Auto Insurance SR22
Reader’s Question:
Can you please explain to me: I thought motor vehicle insurance follows the vehicle. Why do you need to purchase SR22 if you no longer own your car?
Maria
Des Moines, IA
Not all auto insurance follows the vehicle.
Liability coverage doesn’t always follow the vehicle, but rather the driver. It can be very complicated to determine which policy should be used primary, secondary or even tertiary in these kind of situations. An SR22 is a certificate which must be filed by the insurance carrier stating that auto liability insurance is in effect for a particular motorist. It is required typically when insurance is given to a person who was in an accident or was convicted of a traffic violation and was unable to show financial responsibility.
Liability insurance is required to pay for property or bodily injury damages to others. Liability can be caused by an person while they are in a motor vehicle or in ANY automobile.