In certain situations, drivers may be legally required to file an SR22 bond or an SR22 insurance policy. These are two distinct types of financial instruments that serve different purposes.
An SR22 bond is a surety bond that is typically used as proof of financial responsibility for drivers who have had their licenses suspended or revoked due to serious traffic violations. The bond is issued by an insurance company and guarantees that the driver will comply with the terms of their license suspension or revocation. The bond amount is typically determined by the state’s Department of Motor Vehicles (DMV) and can vary depending on the nature of the violation.
An SR22 insurance policy is a type of auto insurance that provides proof of financial responsibility for drivers who need to show the DMV that they are carrying the state’s minimum required liability coverage. SR22 insurance policies are typically more expensive than standard auto insurance policies, as they include an additional endorsement that certifies that the driver is complying with the terms of their license suspension or revocation.
The following table outlines the key differences between SR22 bonds and SR22 insurance policies:
| Feature | SR22 Bond | SR22 Insurance |
|—|—|—|
| Purpose | Proof of financial responsibility for drivers with suspended or revoked licenses | Proof of financial responsibility for drivers with suspended or revoked licenses |
| Issuer | Insurance company | Insurance company |
| Coverage | Guarantees compliance with license suspension or revocation | Provides liability coverage up to the state’s minimum required limits |
| Cost | Typically more expensive than standard auto insurance policies | Typically more expensive than standard auto insurance policies |
The type of financial instrument you need will depend on the specific requirements of your state’s DMV. If you have been ordered to file an SR22, you will need to contact an insurance company to obtain either an SR22 bond or an SR22 insurance policy.