Reader question:

Why do I have to pay more for insurance just because I have to file an SR22 insurance form?

Melanie

Great question, Melanie.

It can be frustrating to see your raters leap up the second you request your company to file an SR22 insurance form for you, but the truth is that your car insurance company isn’t worried about your frustration. It’s worried about the numbers.

When all of the money that a car insurance company receives comes from one pool of people and must go back into that pool for claims, they need to fill the pool high enough to be able to cover claims and make a profit. Some people file claims more often than others, and it doesn’t make sense to have everyone pay the same amount because some policy holders are more liability for the company than others are. For this reason, people who have higher risk, such as people who must file an SR22 insurance form, are require to pay more for their car insurance coverage than others because they will be most likely to take more money out of the system in the end.

However, just because you have to file an SR22 insurance form doesn’t mean that you automatically must pay ridiculous rates for your auto insurance coverage. Policy holders with an SR22 insurance form get great quotes all the time. Instead, all you have to do is look for other ways to lower your premium.

• You can ask what discounts you qualify for.
• You can raise your deductible.
• You can cut your coverage.
• You can shop around.

There are so many ways that you can save money even while filing an SR22 insurance form, and all you need to do is a little research and ask a couple of questions.

Cheers,

Fashun Guadarrama.