SR-22, FR Filing, High Risk Auto Insurance
References:
Minnesota Laws and Regulations:
MN Certificate of Insurance
MN 169.791
MN 169.796
MN DPS 7409.1600 failure to maintain insurance
MN DPS 7409.2400 no insurance at time of accident
MN DPS 7409.3800 MN Cert of Insurance
MN DPS 7409.3900 when MN Cert is required
MN DPS 7409.4000 proof of insurance
North Dakota Laws:
ND SR-22 Statement of Financial Responsibility
ND 39.16 Statement of Financial Responsibility Law
Common Scams:
1. Joe Snuffy buys a 6 month policy and only pays the first month but keeps the 6 month I.D. card. He will be caught when he is in an accident.
--If he shows a Progressive "Gold Card" with no accompanying I.D. card, his coverage can be verified by calling the number on the gold card 24 hours a day.
2. Joe Snuffy collides with garage at his apartment. He doesn't call the police, but turns in a claim. Police Officers that know this scheme will often issue citations for leaving the scene, reckless driving and failure to render assistance and anything else they can think of.
3. Joe Snuffy has a collision with his best friend in a parking lot. He calls the police and turns in a claim. It is difficult to do anything about this practice without police investigation.
A good police report is vital to preventing fraud. The more information given to the adjuster, the better.
Frequently Asked Questions:
1. What is an SR-22, FR Filing, Certificate of Insurance?
This is a certification from an authorized insurance company to the state that an individual is in compliance with the insurance requirements of the state. This filing is usually a condition of a reinstatement of a suspended, withdrawn, revoked, etc. license. It's often required of a person who had an accident without insurance. It's a common requirement when reinstating a license that was suspended for an alcohol violation.
2. Where do I get an SR-22, FR Filing, Certificate of Insurance?
Insurance agents that sell "high risk" insurance are usually able to provide these filings. The filing itself can't be made by the agent, but most agents have pre-executed filings that can be issued on the spot. North Dakota will often honor a filing that is faxed from the agent to the state. If the person should cancel, refuse to pay the premium or do anything else to cause the policy to lapse, the SR-22 is revoked immediately. This usually means that the driver's license is suspended immediately.
3. What if I'm late on my insurance payment?
Your license is suspended. This may mean that you have to surrender your license to the state.
4. Can I be reinstated after a late payment?
Almost always. If not, there is another provision to provide coverage called the Assigned Risk Plan. Every licensed agent is authorized to obtain coverage through the assigned risk plan in both North Dakota and Minnesota. There is no such thing as "I can't get insurance". There are so few exceptions to this rule they are not worth discussing.
5. How long do I have to have a filing?
Until you are notified that it is not required. Generally this is 1 to 3 years.
6. What is "high risk" insurance?
There are 3 types of insurance. Preferred, Standard and Non-Standard. Preferred is for people with clean records for usually 5 years. Standard is for people with 1 or 2 minor violations like speeding in 3 to 5 years. Non-Standard is for people who have serious violations, accidents, or no insurance. Every company files rules with the state that specify what types of risks they will accept. If a person exceeds the risk then they are usually cancelled and must obtain insurance from a different company.
Only certain companies may issue FR filings. Preferred companies generally do not issue FR filings.
In Minnesota it is possible to obtain insurance from certain Preferred companies with an FR filing if you have very good credit. See your agent.
You can be denied coverage even if you have a perfect record and prior insurance if you have bad credit. Not all companies consider credit reports. See your agent.