SR-22 Insurance Glossary
Definitions of key insurance terms you'll encounter during the SR-22 process.
Assigned Risk Pool
A state-managed program that assigns high-risk drivers to insurance companies when they cannot obtain coverage in the standard market.
Bodily Injury Liability
Insurance coverage that pays for injuries you cause to other people in an accident. Expressed as per-person and per-accident limits (e.g., $25,000/$50,000).
BAC (Blood Alcohol Content)
The percentage of alcohol in your bloodstream. The legal limit for driving is 0.08% in most states, with lower limits for commercial drivers (0.04%) and underage drivers (0.00-0.02%).
Comprehensive Coverage
Insurance that covers damage to your vehicle from non-collision events like theft, vandalism, weather, and animal strikes. Optional but recommended.
Collision Coverage
Insurance that covers damage to your vehicle from collisions with other vehicles or objects, regardless of fault. Optional but recommended for financed vehicles.
Claims History
A record of insurance claims you've filed, which insurers use to assess your risk level and determine premiums.
CLUE Report
Comprehensive Loss Underwriting Exchange — a database of insurance claims history that insurers use to evaluate applicants.
Cancellation
The termination of an insurance policy before its expiration date, either by the policyholder or the insurance company.
DMV
Department of Motor Vehicles — the state agency responsible for vehicle registration, driver licensing, and maintaining driving records. Some states use different names (BMV, DPS, DOT).
DUI/DWI
Driving Under the Influence / Driving While Intoxicated — criminal offenses for operating a vehicle while impaired by alcohol or drugs. One of the most common triggers for SR-22 requirements.
Deductible
The amount you pay out of pocket before your insurance coverage kicks in. Choosing a higher deductible can lower your premium.
Defensive Driving Course
A driving safety course that can help reduce points on your record and may qualify you for insurance discounts.
Electronic Filing
The process of submitting SR-22 forms electronically to the DMV, which is faster than paper filing and typically processed within 1-3 business days.
Endorsement
An amendment or addition to an existing insurance policy that modifies coverage. An SR-22 is technically an endorsement to your auto policy.
FR-44
A financial responsibility form used in Florida and Virginia that requires higher liability limits than a standard SR-22, typically required after DUI/DWI convictions.
Financial Responsibility
The legal requirement to demonstrate ability to pay for damages caused in an auto accident, typically proven through insurance coverage or an SR-22 filing.
Filing Period
The length of time you must maintain an SR-22 filing, typically 3 years. The period starts from the date of conviction or license reinstatement.
Full Coverage
A term commonly used to describe a policy that includes liability, comprehensive, and collision coverage. Not an official insurance term.
Grace Period
A short period after a payment due date during which you can make a payment without your policy being canceled. Varies by insurer.
Good Driver Discount
An insurance discount offered to drivers with clean driving records, typically requiring no violations or accidents for 3-5 years.
High-Risk Driver
A driver classified by insurance companies as more likely to file claims due to their driving history, including DUI convictions, multiple violations, or lapses in coverage.
Implied Consent
A law stating that by driving on public roads, you've implicitly agreed to submit to chemical testing (breathalyzer, blood test) if suspected of DUI.
Ignition Interlock Device
A breathalyzer device installed in a vehicle that prevents the engine from starting if the driver's BAC is above a set limit. Often required after DUI convictions.
Liability Insurance
The minimum required auto insurance that covers damages and injuries you cause to others. Does not cover your own vehicle or injuries.
License Suspension
A temporary withdrawal of driving privileges by the state, often requiring SR-22 filing and reinstatement fees before privileges are restored.
License Reinstatement
The process of restoring driving privileges after a suspension, typically requiring SR-22 filing, payment of fees, and completion of any court-ordered requirements.
Lapse in Coverage
A gap in your insurance coverage, which can trigger DMV notification and license suspension if you have an active SR-22 requirement.
Liability Limits
The maximum amount your insurance will pay for damages you cause. Expressed as split limits (e.g., 25/50/25) or a single combined limit.
Moving Violation
A traffic violation committed while the vehicle is in motion, such as speeding, running a red light, or reckless driving.
Minimum Coverage
The lowest amount of auto insurance required by your state. Expressed as three numbers (e.g., 25/50/25) representing bodily injury per person, per accident, and property damage limits.
MVR (Motor Vehicle Record)
A record maintained by the DMV that includes your driving history, violations, accidents, and license status.
Multi-Policy Discount
A discount offered when you bundle multiple insurance policies (auto, home, renters) with the same company.
Non-Owner SR-22
An SR-22 policy for individuals who don't own a vehicle but need to maintain financial responsibility filing. Provides liability coverage when driving borrowed or rented vehicles.
No-Fault Insurance
An insurance system where each driver's own insurance pays for their injuries regardless of who caused the accident. Used in about a dozen states.
Non-Renewal
When an insurance company decides not to renew your policy at the end of its term, often due to claims history or risk factors.
Property Damage Liability
Insurance coverage that pays for damage you cause to other people's property (vehicles, buildings, etc.) in an accident.
Premium
The amount you pay for your insurance policy, typically expressed as a monthly or annual payment. SR-22 drivers generally pay higher premiums.
PIP (Personal Injury Protection)
No-fault insurance coverage that pays for medical expenses and lost wages for you and your passengers, regardless of who caused the accident.
Point System
A system used by most states to track driving violations. Points are assigned for each violation, and accumulating too many can lead to license suspension and SR-22 requirements.
Policy Term
The period during which your insurance policy is active, typically 6 months or 1 year. SR-22 must be maintained for the entire filing period across multiple policy terms.
Proof of Insurance
Documentation showing you have active auto insurance coverage. Can be a physical card, digital card, or SR-22 certificate.
Reckless Driving
Operating a vehicle with willful disregard for the safety of others. A serious violation that often triggers SR-22 requirements.
Reinstatement Fee
A fee charged by the DMV to restore your driving privileges after a suspension. Typically ranges from $25 to $100.
SR-22
A certificate of financial responsibility filed by your insurance company with the state DMV, proving you carry the required minimum auto insurance coverage.
Surcharge
An additional charge added to your insurance premium due to violations, accidents, or other risk factors on your driving record.
Traffic Violation
Any act that violates traffic laws, ranging from minor infractions (parking tickets) to serious offenses (DUI, reckless driving).
TCPA Consent
Telephone Consumer Protection Act consent — permission you give allowing companies to contact you by phone or text about insurance quotes.
Uninsured Motorist Coverage
Insurance that protects you if you're hit by a driver who doesn't have insurance. Required in some states.
Underinsured Motorist Coverage
Insurance that covers the gap when the at-fault driver's insurance isn't enough to cover your damages.
Underwriting
The process insurance companies use to evaluate risk and determine whether to offer coverage and at what price.