How Much Will My Auto Insurance Cost With An SR22 Bond?
Reader question:
Will I have to pay more for my auto insurance premium if I get an SR22 bond?
Neil
Great question, Neil.
This depends on what kind of driver you are and what your history is with the car insurance company you are with. For most drivers, my answer to the question of whether or not insurance premiums increase when an SR22 bond is filed would be, “OH YES” with several exclamation marks. It’s a widespread practice to charge those who file an SR22 bond fifteen to thirty percent more.
This is allowed because car insurance companies operate on the basis of risk, and that is how you are judged and rated. If you are high risk,then you will pay high car insurance prices. If you are low risk, then you will pay low car insurance rates. Having to file an SR22 bond pushes you into the high risk category.
Most people who have to file an SR22 bond describe it as being almost as bad as when they were teenagers paying for their auto insurance policy. You can rest assured, though, that even an SR22 bond is cheaper than filing for car insurance as a teenager, which is usually fifty percent more than the average car insurance policy holder.
The SR22 bond will hurt you the most when it is combined with other risk factors. For example, if you have to file an SR22 bond and you are under the age of twenty five, drive a high performance car, and have bad credit, then you can look at bankrupting yourself through the SR22 bond prices.
In order to avoid price hikes when you file your SR22 bond, you should look into other ways to get cheap car insurance. You might consider asking your car insurance company what kinds of discounts they offer and seeing if you qualify for them. While filing an SR22 bond will disqualify you for several discounts, there are still quite a few left for which you can still qualify if only you ask.
Cheers,
Fashun Guadarrama.
