SR22 insurance cost

what is sr22 insurance cost

Sr22 is a high risk policy for those convicted a at least one driving under the influence misdemeanor charge. Insurance companies determine that someone who has been convicted of a DUI (DWI, OUI, or OWI in some jurisdictions) poses a larger risk of future accidents than the general population, so they have made a special class of insurance for these unfortunate drivers.

what is SR22 insurance

Whether it is just an excuse to create a special class of insurance for higher cost and profit, or a reasonable conclusion of higher risk for those convicted of DUI/DWI/OUI, I'll leave to another discussion.

The fact is that sr22 class insurance is a separately recognized high risk group. And what is sree insurance cost to the insurance companies? Creating the special class of insurance is heavily outweighed by the profit involved in collecting the premiums for this high risk insurance.

Most states have specifically authorized the sr22 insurance high risk class. Most states have requirements that the insurance companies make a case for a higher cost insurance class before they pass on that cost to their customers. Many states have an entire governent agency devoted to inurance isuues and regulation, like the Califronia Insurance Commission, with its own commissioner who reports to the Governor.

Any increase in insurance rates, or the creation of a new high risk insurance class, like the sr22, has to be approved by these States' regulatory bodies. These bodies will take into account the business necessity of the increased premimum, the effect on drivers requiring such inurance, since insurance in almost every state is mandatory, and other impacts on the micro and macro economic level, in deciding whether to approve or disapprove the new hike or new insurance class.

These State government insurance agencies will also be influenced by the action of sister states othe same subject. If other state have decided that the insurance hike or new insurnace class was authorized, that will go far in causing the same conclusion with that state's agency. One agency decision will not have the force of law, or more technically, starie decisis, effect on a sister state. That is becuase they are different soveriegns with seperate sets of laws and jurisdiciton. However, if one state agency finds that it is good public policy to approve an increase in insurance premiums, or approve a new high risk, high cost special insurance issue, that carries great weight with other state agencies that are weighing the same public policy considerations in their decision to approve or disapprove.

The bottom line for state agencies that are weighing what is the sr22 insurance cost going to be for their state, is whether the cost is justified. The agencies are created to be a sort of watch dog to make sure that insurnace agencies do not gouge the public who are being forced to carry the insurance. There has to be a real business cost that will justify the increase in premiums. It is not uncommon for the agencies to deny a hike in premiums, or refuse to authorize a new high risk insurance product. The insurance compnaies have the burden of showning real economic need or risk to justify the mandatory cost to the public.