When it comes to insurance in the state of Texas, one of the most important types of coverage you should familiarize yourself with is SR-22 insurance. Nearly three million drivers in the U.S. are currently required to carry an SR-22 form, and millions more in Texas could have to meet the same requirement for one reason or another. So, what is it, and how does it affect business professionals, entrepreneurs, and investors in the Lone Star State?
SR-22 insurance, also known as a Certificate of Financial Responsibility, is an insurance filing that documents proof to the court system that an individual has automobile liability insurance. Specifically in TX, this form is required for all drivers who have received a conviction for a car-related crime such as DWI or reckless driving. It can also be necessary if the motorist has been cited numerous times for failing to comply with vehicle-related regulations.
In the state of Texas, SR-22 insurance can vary significantly in terms of both cost and coverage types. The price paid for SR-22 coverage is directly tied to the driving history, credit rating, and other factors of the individual in question. In general, premiums for SR-22 policies are typically much higher than normal due to the increased risk associated with this type of coverage.
For business professionals, entrepreneurs, and investors who must obtain SR-22 insurance, there are several steps they should take. First and foremost, they should shop around and compare different companies and their offerings. Comparing the cost, policy limits, and types of coverage available from each provider could help save money and find the most suitable policy for their needs.
When selecting an insurer to provide the necessary SR-22 filing, it is important to opt for one with a strong financial standing, preferably with an A.M. Best rating of A- or better. A business professional, entrepreneur, or investor who chooses a high-rated insurance provider can rest assured that they will be able to rely on the company to handle any and all claims in case of an incident.
Before signing any paperwork, business professionals, entrepreneurs, and investors should take the time to read and understand the policy. It is also important to check if there are any potential modifications or changes that can be made to the SR-22 form that might lower the cost of the monthly premiums.
To keep the SR-22 filing active and in good standing, the policy must remain active for the entire duration of the court-ordered period. If for whatever reason the policy is cancelled or lapses during the required period, the driver in question will likely be at risk for another type of legal action.
In conclusion, it is important for business professionals, entrepreneurs, and investors who reside or operate a business in Texas to familiarize themselves with the legal requirements of SR-22 insurance. Occurrences such as a DWI conviction or revocation of license often require the filing of an SR-22 to remain in compliance with the state’s legalities. It is important to shop around when looking for an insurance provider, taking the time to understand the policy, and remaining vigilant in keeping the policy active for the entire duration of the court-ordered period.