The Importance of Car Insurance

Posted by in Automobile Accidents, Finaces on Jan 10, 2014

Ever wonder who pays for a personal injury claim resulting from a car accident? Most people understand that car insurance is required by law for anyone who wants to drive; at the same it, it pays for the repair of a car when it gets damaged. What most people don’t know is that it is also the car insurance company by way of the third-party liability (TPL) coverage (also required by law in most states) which usually pays for any awards in a personal injury suit. This is why defendants in such cases are so well-represented; it is usually the insurer which pays for the lawyers.

However, in cases where drivers have been convicted of driving under the influence (DUI), driving uninsured, driving without a license, or with more than three traffic violations, they get their license suspended and most insurance companies will refuse to provide coverage, anyway. This is because such drivers represent a high-risk population, and the actuary tables indicate that such clients are likely to cost the company more money than bring it in. Without a valid driver’s license and basic insurance, an individual cannot legally drive in the U.S.

But there is a way to get a special kind of insurance for these individuals, but it will require an SR-22 filing. According to the car accident lawyers at Habush Habush & Rottier S.C. ®, the SR-22 is a form that an insurer sends the Secretary of State certifying that a particular individual has the necessary insurance to drive legally in a specific state, such as Indiana or Illinois, which the insurer covers. The SR-22 certification is also a requirement for the lifting of a suspended license in most states.

The SR-22 insurance is typically difficult to obtain and can be expensive to boot, but the level of difficulty and cost varies depending on the insurance company. When in need of SR-22 insurance, request rates and the level of service from the insurance companies offering it in the relevant state to comparison shop before making a choice.

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