A certificate of financial responsibility is a vehicle liability insurance document required by most state Department of Motor Vehicles (DMV) offices for “high-risk” insurance policies. If that sounds even more confusing, donât worry. Like most government forms and regulations, it sounds more complicated than it really is. A certificate of financial responsibility is more often referred to as SR22 insurance. Â It is a simple document that your insurance company files after you have had your license suspended or revoked. If you take the time to learn all about cheap SR22 insurance, then you will be able to reacquire your good driver status quickly.
The documentation itself is not expensive, only about $25 to $35, depending on your insurance company. The purpose of the added and documented insurance is to make sure high risk drivers have enough insurance to cover anyone they injure if they are in another accident. Statistics have shown that drivers who have had a DUI, or have had their license suspended for other reasons, are far more likely to repeat their risky behavior.
A certificate of financial responsibility, or SR22 documentation, is âproof of financial responsibilityâ for drivers who have had their licenses revoked or suspended for any number of reasons, including:
- DUIs.
- Driving without insurance.
- Excessive violations within a certain time frame.
- Outstanding traffic or parking fines.
- At-fault accidents while uninsured.
- Reckless driving.