What is SR-22 Insurance? SR-22 insurance is a vehicle liability insurance document used by the Illinois Department of Transportation (IDOT) to provide proof that a high-risk driver has minimum liability insurance coverage. SR-22 is a high-risk insurance that carries specific conditions not found in other auto insurance policies. People often mistakenly believe that SR-22 is an insurance policy because the form is purchased through insurance companies. However, SR-22 is merely a form that shows a driver carries a liability insurance policy that satisfies the minimum amount mandated by the law. Under the conditions of the insurance, the insurance company must certify coverage to the Illinois Department of Transportation (IDOT) of the state and must notify the Department of Motor Vehicles (DMV) if the policy is cancelled, terminated, or lapses. Except for Delaware, Kentucky, Minnesota, New Mexico, Oklahoma, Pennsylvania, New York, and North Carolina, all other states have SR-22 insurance requirements.
Why does Illinois require some drivers to have SR-22 insurance? Illinois requires a SR-22 document from a driver prior to reinstating driving privileges, oftentimes after the driver has been involved in an uninsured car accident. From the date of reinstatement, SR-22 must be carried for 3 years. During that time, the law requires the insurance company to notify IDOT of late payments, lapses, and the switching of providers. If the insurance company provides IDOT with any such notification, an individual’s license will be suspended immediately due to failure to comply with SR-22 requirements. Upon suspension, the SR-22 will have to be renewed again to reinstate driving privileges, and the three-year period will begin again.