Drivers with serious violations on their records are considered high-risk policyholders by insurance companies. In the State of Minnesota, these individuals are subject to special requirements and must obtain an SR-22. If you live in Minnesota and are required to have SR-22 insurance, keep reading to learn more about these special policies.
What Is SR-22 Insurance?
In Minnesota, drivers with serious violations on their records are subject to special requirements. This includes individuals with the following violations:
- Reckless driving
- Multiple outstanding tickets
- Driving with a suspended license
- Driving without insurance coverage
These individuals must have SR-22 coverage, which costs more than the average for regular policies. The name for this type of coverage comes from the SR-22 form, which insurance companies must file with the Minnesota DMV if they insure a high-risk driver. This form is necessary to reinstate suspended licenses and demonstrates that the driver has insurance that meets the state’s minimum insurance requirements, which are:
- Personal Injury Protection (PIP): This coverage can pay for your and your passenger’s medical expenses and lost wages if involved in a car accident. This applies whether you are at fault or not. The minimum PIP coverage in Minnesota is $40,000 per person, per accident. This amount is split evenly between medical expense coverage and non-medical costs.
- Liability: Liability insurance covers the costs you incur if you are at fault in an accident and cause injury to another party or damage to their property. Minnesota’s mandatory minimum liability coverage is $30,000 for injuries to a single person, $60,000 for injuries to multiple people, and $10,000 for vehicle or property damage.
- Underinsured: This coverage applies to medical expenses for those on your policy if they are involved in an accident where the other driver is at fault. It can cover any additional expenses if the other party’s insurance is insufficient. The minimum coverage is $25,000 for injuries to a single person and $50,000 for injuries to multiple individuals.
- Uninsured: This coverage can cover medical expenses for you and those on your policy if you are involved in an accident with an at-fault and uninsured driver. The minimum requirements in Minnesota are $25,000 for injuries to one person and $50,000 for injuries to two or more individuals.
While drivers subject to SR-22 requirements pay more than drivers with clean records, the exact cost of the policy varies based on the seriousness of the offense. For example, a driver convicted of a DUI or hit-and-run will pay much more than someone with multiple outstanding speeding tickets. Additionally, drivers with SR-22 coverage will have to pay a one-time fee to file the form and lose access to good driving discounts.
What Is Non-Owner SR-22 Insurance?
After a serious driving offense, your license may be suspended. You’ll need to file an SR-22 form and purchase an insurance policy that meets the state’s minimum liability requirements if you want to drive at all. This is true even if you don’t own a car, but may sometimes need to rent one or borrow someone else’s.
In these cases, it’s best to buy a non-owner insurance policy. This will provide you with proof of insurance, allowing you to drive when necessary. These policies usually cost less than traditional SR-22 policies as a bonus. Unfortunately, non-owner policies are a bit rarer than traditional SR-22 coverage. In some cases, companies may refer to them as an operator’s policy SR-22 instead, so look out for both names when shopping for insurance.
How Do You Get SR-22 Insurance?
In order to get SR-22 coverage, your insurance company will have to submit an SR-22 form to the Minnesota State DMV. The first step is to notify your carrier that you require this form. Once they submit the form, you’ll be responsible for paying the one-time fee, which is usually around $25. Upon approval, you will be sent a copy of the form.
How Long Will You Need SR-22 Insurance?
The amount of time you’re subject to SR-22 coverage will depend on the severity of your violation. The duration is set by the court that handles your case and can be reevaluated based on your behavior. In most cases, drivers are subject to SR-22 coverage for around three years.
How Much Does SR-22 Insurance Cost?
Costs for SR-22 coverage can vary widely based on the severity of the violation and the insurance company. Like other insurance policies, SR-22 coverage can be affected by a range of other factors, including the make, model, and year of the vehicle, as well as your age and credit history. These are the average annual rates for the cheapest SR-22 coverage providers in Minnesota, according to moneygeek.com:
- State Farm: $670
- American Family: $756
- USAA: $795
- Farmers: $803
- Progressive: $1,202
- Country Financial: $1,244
- Allstate: $1,317
- Auto-Owners Insurance Co: $1,407
- Allied: $1,434
- GEICO: $2.093
- MetLife: $2.181
- AAA: $3,557
These are the average annual rates for non-owner SR-22 coverage in Minnesota, according to moneygeek.com:
- State Farm: $474
- USAA: $708
- Farmers: $905
- GEICO: $1,265
- Progressive: $1,358
As you can see from the estimates above, State farm generally offers the lowest rates for both standard and non-owner SR-22 coverage in Minnesota. Rates will vary based on your unique circumstances, so be sure to get an accurate quote from a professional insurance agent.
That’s a quick overview of what SR-22 insurance is and how much it costs. Hopefully, this will make it easier to insure your vehicle properly and get back on the road. Since rates can change rapidly, contact your insurance agent to get the most accurate quotes on SR-22 and non-owner SR-22 coverage.
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