You might need to buy an SR-22 insurance policy in order to keep your driver's license or get it back, but did you know that this product is not really insurance? People often refer to SR-22 as auto insurance, but it really is not insurance in itself. If you need this product and want to understand what it really is, read on to learn more about what SR-22 really is.

1. An SR-22 is a form

While it might seem that SR-22 is insurance, it is really just a form. In fact, the form is called an SR-22 form, and this form is designed to prove that a person has insurance. This form is something that an insurance company produces when a person purchases an SR-22 auto insurance policy with them. They will then send the form to the local DMV, and the DMV will keep this on file. The form itself simply states that the person has insurance, but the form is not really insurance. The person who buys the policy must actually buy an auto insurance policy with the insurance company in order to receive the SR-22 document.

2. An SR-22 obligates the insurance company to monitor your insurance

The insurance company that issues the SR-22 form to the DMV takes on the responsibility of monitoring that the person has auto insurance. If the policy gets canceled for any reason, the insurance company has the responsibility to tell the DMV that this happened and when it happened. This added responsibility is partly why it will cost more to buy a policy that includes SR-22 coverage, but there are other reasons SR-22 coverage costs more too.

3. An SR-22 is required for high-risk drivers

Getting SR-22 coverage is something that is necessary only for high-risk drivers; however, not all high-risk drivers need it. The only time you must purchase it is if you are instructed to by the DMV or your local court. Because it is a form that proves coverage for a high-risk driver, you should expect the coverage to cost more. You cannot go without it, though, if you are told to get it, as going without it would lead to losing your driver's license privileges.

Purchasing a car insurance policy that includes SR-22 coverage might be a requirement for you. SR-22 policies often cost more than regular polices, so you should shop around as you look for an insurance plan that suits your needs and budget.