Is There Such a Thing as Cheap SR22 Auto Insurance?
Reader’s Question:
Is there such a thing as the cheapest SR22 auto insurance?
Henry
New York, NY
An SR22 insurance is something you didn’t voluntarily buy. I wouldn’t necessarily call something I was forced to purchase ‘cheap.’ But there are car insurance companies out there that can offer you comparatively cheap SR22 insurance. Your car insurance company files this form to the local DMV office in your state, and this usually follows after you’ve committed a serious offense or conviction. This was most likely ordered by a municipal court or by the DMV. Some offenses and a conviction usually lead to a suspension of your driver’s license or car registration; sometimes they even impound your car. In order to get any of that back, filing the form is required. How much you might have to pay may depend on how bad your offense was.
The lighter types can probably get you relatively cheap SR22 auto insurance. If you happen to be arrested for drunk driving, that will automatically put you in the high risk category of drivers and you can kiss any likelihood of getting cheap SR22 insurance goodbye. Some companies, however, are better at offering this kind of insurance than others. So having one that specializes on it as your provider may also give you a chance to obtain reasonably cheap SR22 insurance.
Buying Auto Insurance in New Jersey
Reader’s Question:
I heard from a friend that in New Jersey people can purchase auto insurance through two markets (which I don’t quite remember what the name of the markets are). Also, she told that being able to buy auto insurance from standard market depends if you have less than seven insurance eligibility points or not. Can you explain this to me? What are those markets.
Cherrie
Orange City, NJ
Yes your friend is correct Cherrie.
According to New Jersey Department of Banking and Insurance, residents of NJ can buy auto insurance through voluntary market or what is commonly known as regular market and assigned risk market or residual.
Being able to buy through these markets depends on a person’s insurance eligibility points. Let me just make this clear that insurance eligibility points are not the same as the points given to drivers by the New Jersey Motor Vehicle Commission. The insurance eligibility points are points given by car insurance companies to drivers. This depends on the driver’s suspensions, traffic violations, and accidents wherein he/she is deem to be at-fault. In addition, for new drivers (regardless of how old the driver is and the gender) they are automatically given three insurance eligibility points upon purchasing auto insurance. So the higher your insurance eligibility points are means the higher the risk of insuring you.
Once the driver accumulates seven insurance eligibility points, he/she may no longer purchase auto insurance policy through regular market. This is where the assigned risk market kicks in. This is through this market that a driver with seven or more insurance eligibility points could purchase his/her auto insurance policy.
If you have additional question about insurance eligibility points, you can ask your auto insurance agent in NJ or even the NJ Department of Banking and Insurance.
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