Traffic violations can have various impacts on your auto insurance, often raising your rates. However, if you are involved in a violation that resulted in a suspended license, you could end up with other issues you need to handle as well. When your license is suspended, you may be ordered to purchase SR-22 Insurance in Illinois. Before you buy this policy, though, it is important to understand the myths often associated with this type of insurance so you don’t make even more mistakes.
Cancelling the Policy
Your suspended license is the cause of needing this type of insurance policy, but it isn’t an excuse to cancel your policy. The purpose of an SR-22 insurance policy is to guarantee your insurance coverage with the DMV. The insurance company you use must report your policy to the DMV. If you cancel your policy or it lapses for any reason, they will alert the DMV, which will get you in trouble as well, causing more problems in your future.
Higher Cost
Some people are afraid to get SR-22 Insurance in Illinois, because of the higher cost. However, this is a myth. There is a processing fee for this type of insurance, but it is often a one-time fee that is often low. There are no monthly fees to carry this additional rider on your insurance. Your insurance is likely to be higher, but that is only because of your traffic violation, not the type of insurance you have.
Coverage
When you have SR-22 insurance, you don’t need to carry full coverage as some may think. The purpose of this insurance is to ensure you are financially responsible for any damages you cause on the road since you are labeled as a high risk because of your violation. However, you are only required to carry liability insurance to cover damages to other people and vehicles. This can keep your costs lower.
Understanding how SR-22 Insurance in Illinois, works can help you if you are ordered to carry it. No matter which type of violation you have, a license suspension tells the DMV you are a higher risk on the road. This is why they require you to carry this specific type of insurance that offers accountability with the DMV. If you need one of these policies, it is important to separate the myths from the truth, such as your ability to cancel the policy, the costs associated with it and the coverage level you need.
