Caught driving without insurance is risky. In addition to putting you in financial jeopardy and risking losing your driving privileges, you can also be issued an SR50 in Indiana if you drive without car insurance.
auto insurance companies issue sr50 certificates to prove you have the required minimum liability insurance coverage.
having an sr50 form probably also means higher car insurance rates.
learn about sr50 auto insurance issues and how this certificate may affect you and your ability to drive.
what is sr50 insurance in indiana?
an sr50 certificate is a valid affidavit of insurance. It is not an auto insurance policy. An SR50 Certificate of Compliance validates that you have the minimum liability coverage required in Indiana.
brian martucci, the minneapolis-based finance editor of money crashers, says you may be required to submit an sr50 certificate if:
- caught driving without minimum auto insurance coverage in indiana
- involved in a car accident reported to the indiana bureau of motor vehicles (bmv)
- receiver of three traffic violations in 12 months
- charged with a driving-related offense (misdemeanor or felony)
- charged with a traffic violation while driving with a license suspension for lack of proof of financial responsibility.
- $25,000 per person for bodily injury
- $50,000 per bodily injury accident
- $25,000 per accident for property damage
- combined home and auto coverage with the same insurance company
- raise your deductible
- decline optional comprehensive and collision coverage on older vehicles
- complete a virtual driver safety program
- use telematics apps/devices that allow your operator to monitor your driving habits
- convicted of driving under the influence/driving while intoxicated (dui/dwi) or driving without insurance
- being involved in an accident without insurance
- being involved in too many accidents or wrongful violations
“In most cases, filing an SR50 certificate is only necessary if you receive a notice from the state advising you of this requirement,” says Mark Friedlander, director of corporate communications for the Institute of Insurance Information in St. John’s, Florida.
adds that indiana is the only state that requires the filing of an sr50 form (where sr stands for “security liability”).
indiana sr-50 insurance requirements
If Indiana requires you to file an SR50 document, it must be attached to your current auto insurance policy and your auto insurance company must file it on your behalf with the BMV. The document indicates the effective and expiration dates of your insurance policy.
“Usually only one SR50 is required for the current period of insurance, which usually means six months, minimum. but how long it takes for an sr50 to remain in force is at the discretion of bmv,” adds friedlander.
the presentation of an sr50 is a unique event. you do not need to refile every year or for a certain number of years.
“But you’ll need to refile if you’re involved in another situation that requires it, like being charged with a different or repeated traffic violation,” says Martucci.
You must have a current and valid auto insurance policy with sufficient coverage limits to legally drive after receiving notice that you must file an SR50 form. The required liability coverage limits, which are the same for other drivers in Indiana, are:
While there is no cost to file an SR50 form, you may be required to pay a reinstatement fee of $150 to $300 for Indiana to reinstate your driving privileges.
sr50 auto insurance quotes
if you are required to present an sr50 certificate, you will be classified as a high risk driver. high-risk car insurance is more expensive.
“Your insurance rates will be much higher than standard car insurance rates—potentially 50 percent higher or more,” warns friedlander.
The good news is that Indiana has one of the lowest average auto insurance rates. The average cost of auto insurance in Indiana is $1,266 for full coverage and $430 for minimum coverage.
Many factors can affect auto insurance costs. Several factors apply to SR50 drivers, so Martucci says it’s impossible to determine how an SR50 filing will increase your premiums.
the end result? high-risk auto insurance costs more. That’s why it’s a good idea to shop around and request coverage quotes from different providers after you’ve been notified that you need to file an SR-50 certificate.
“Buying auto insurance with an sr50 certificate requirement is no different than looking for coverage without it. You can talk to any licensed insurance agent in Indiana to get the coverage you need,” Friedlander advises.
“many national and regional companies offer insurance for sr-50 drivers. The Insurance Information Institute recommends getting at least three quotes to see who offers the best coverage at the most affordable price.”
To help lower your premium costs, ask about possible discounts, which may be available to you. here are some tips:
differences between sr22, sr 16 and sr50
an sr-50 is not the only document issued by indiana to certain drivers.
two others include sr22 and sr16. here are the differences:
sr22:
an sr22 certificate serves as proof of insurance with the legal minimum amount of coverage for a specified period in the future (usually three years).
an sr22 filing is required when:
sr16:
Courts use an SR16 certificate to notify BMV of Indiana that a driver has been convicted of, failed to appear, or failed to pay a citation for violating a motor vehicle law. this document also notifies the bmv if any of these orders have been rescinded.
“sr50 and sr22 certificates are similar. the biggest difference is that the sr22 filing requirement is ongoing, typically for three years, while the sr50 filing requirement is one time,” explains martucci.
bmv can request both an sr50 and an sr22 from a driver.
“Failure to provide one or both of these certificates could result in the suspension or revocation of your driving privileges.
If you’re convicted of a violation and don’t have adequate insurance, your driver’s license and registration will likely be suspended for a year and you’ll be subject to a fine of up to $300,” says friedlander.
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Also, not having a vehicle could make filing an SR50 difficult. That’s because you’ll need to provide proof of insurance to get the certificate.
“If you don’t own a car but want to drive, you should apply for a non-owners auto insurance policy before applying for an SR50,” Friedlander suggests. “Non-owner auto insurance typically costs less than a standard policy because it doesn’t provide protection against physical damage to your vehicle.”
