{"id":863,"date":"2022-08-15T18:42:17","date_gmt":"2022-08-15T18:42:17","guid":{"rendered":"https:\/\/www.sr22adviser.com\/guidance-and-tips\/?p=863"},"modified":"2022-08-15T18:42:20","modified_gmt":"2022-08-15T18:42:20","slug":"the-history-of-sr-22-insurance","status":"publish","type":"post","link":"https:\/\/www.sr22adviser.com\/guidance-and-tips\/insurance-facts\/the-history-of-sr-22-insurance\/","title":{"rendered":"The History of SR-22 Insurance\u00a0"},"content":{"rendered":"
If you\u2019ve recently been required to have <\/span>SR-22 insurance<\/span><\/a>, you probably have a lot on your mind. You\u2019ll need to shop around for the best SR-22 insurance, you\u2019ll need to send in an application to get your license back, and you may even need to pay for your car repairs.<\/span>\u00a0<\/span><\/p>\n But, deep in the back of your mind, have you ever wondered: Where does SR-22 insurance come from, anyway?<\/span>\u00a0<\/span><\/p>\n This article walks you through the history of car insurance, how states came to require it, and why SR-22 helps solve a really difficult problem.<\/span>\u00a0<\/span><\/p>\n An SR-22, also known as a certificate of financial responsibility, is a document that you and your insurance company need to file with your state DMV to show you have at least the minimum in car insurance.<\/span>\u00a0<\/span><\/p>\n Each state has its own definition of what makes a <\/span>high-risk driver<\/span><\/a>, but the most common situations include:<\/span>\u00a0<\/span><\/p>\n It\u2019s important to remember that an SR-22 technically isn\u2019t a type of insurance like liability insurance or life insurance. Instead, an SR-22 is a certificate that proves to the government that you have the state-required minimum insurance.<\/span>\u00a0<\/span><\/p>\n If you\u2019re ordered to file an SR-22, you\u2019ll be required to do so for a certain amount of time before you can remove it <\/span>from your record<\/span><\/a> \u2014 typically 3 years. But where did this requirement come from in the first place?<\/span>\u00a0<\/span><\/p>\n Picture this scene: an inebriated car driver from out of town accidentally hits a local cyclist. The cyclist ends up with a broken leg and is on her own to cover her medical bills. Meanwhile, the car driver spends a night in jail but is otherwise off the hook. If this doesn\u2019t seem like a fair outcome to you, you\u2019re not alone. In fact, it\u2019s situations like this one that probably led people to start demanding car insurance.<\/span>\u00a0<\/span><\/p>\n The concept of insurance \u2014 a way to manage risk and protect someone against financial losses \u2014 is thousands of years old and can be traced to the earliest civilizations. So, it\u2019s no surprise that when cars were invented, car insurance would soon follow. The <\/span>first car insurance policy<\/span><\/a> dates back to 1897, and it was a form of liability insurance that protected the car owner if the car damaged property or injured another person.<\/span>\u00a0<\/span><\/p>\n While car insurance was an excellent way to help victims of car accidents, it wasn\u2019t until 1925 that some states started requiring drivers to show some proof of financial responsibility. Back then, drivers had a choice of getting car insurance or showing that they had at least $10,000 in cash or bonds.\u00a0<\/span>\u00a0<\/span><\/p>\n After 1927, Massachusetts started requiring that all drivers show proof of insurance coverage before registering a car, and other states like New York and North Carolina followed. Back then, just like today, car insurance was regulated at the state level.\u00a0<\/span>\u00a0<\/span><\/p>\n By the 1970s, almost every state had mandated car insurance. But, while it\u2019s easy to show proof of car insurance when registering a vehicle, it\u2019s much harder to track who\u2019s keeping their car insurance policies active. With so many states registering thousands or millions of vehicles, imagine how hard it would be for both the DMV and insurance companies to track <\/span>every<\/span><\/i> driver\u2019s insurance, especially before modern computers. This is where the <\/span>SR-22<\/span><\/a> certificate comes in.<\/span>\u00a0<\/span><\/p>\n <\/div>\r\n <\/div>\r\n <\/div>\r\n<\/div>\n\nWhat is SR-22<\/span><\/b> Insurance?\u00a0<\/span><\/h2>\n
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A History of Car<\/span><\/b> Accidents, Car Insurance, and SR-22<\/span><\/b>\u00a0<\/span><\/h2>\n
Find Cheap SR-22 Auto Insurance Quotes<\/h2>\r\n