What is a car insurance bond and why might I need one?

Answered by Home Insurance, Car Insurance Expert Shannon on February 19, 2021

I was told that I need to get a car insurance bond. Can you explain what that is to me, and why someone might need to get one?

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Home Insurance, Car Insurance Expert

Thanks for your question! Car insurance bonds can have many different names depending on the state in which you live. They can be called surety bonds or certificates of financial responsibility, but they’re usually referred to as a SR-22. A SR-22 demonstrates to the state that a driver is carrying at least the state-minimum liability coverage. The state can require this document if a person has had a DUI, a DWI, too many at-fault accidents or convictions, or was driving without insurance.

Your insurer will file the SR-22 with the state. There’s a small cost for the filing, usually around $25. The timeframe required to retain a SR-22 is usually three years, but it can be longer or shorter depending on the situation. Once this timeframe has passed, the driver needs to let the insurance company know and they won’t be charged for the SR-22 at the next renewal.

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