​ Many Indiana drivers that currently have their license suspended will need either an SR50 or SR22 state filing attached onto their auto insurance policy to get their drivers license reinstated. Although this is a very simple process, There's not that much information out there regarding SR50's/SR22's that offer much help in guiding you through the process. This article will better help you understand how both the SR50 and SR22 auto insurance filings work, and what you need to know to get the proper coverage you need at an affordable rate.




What is an SR50?


        An SR50 attaches on to an auto insurance policy. Once you buy an auto insurance policy with an SR50 attached to it, the company is required to notify the Indiana BMV that you have purchased at least state minimum auto liability insurance coverage. Think of it as proof of auto insurance in the present.


What is an SR22?

•       An SR22 is similar to an SR50 in that they both attach onto an auto insurance policy. They let the Indiana DMV know that you're caring at least state minimum liability auto insurance. But the SR22 goes a step farther than the SR50.
•      With an SR22, you must keep the policy active as long as you're required to carry it. Think of it as proof of insurance in both the present present and the future. If a policy that has an SR22 attached to it ever cancels or lapses, your drivers license will be suspended until you reinstate the policy or take out a new one with another SR22 attached.

Substitution factor


This is very important:

• If you're required to carry an SR50, then either the SR50 or the SR22 will work for you just the same. That's because they both cover proof of insurance in the present.

• However, it doesn't work the other way around. If you need an SR22, you can not substitute for an SR50.

So just to be clear, if you need an SR50, an SR22 will work just as well. But not vice versa! If you need an SR22, you're stuck with the SR22.

Why this is important?




Because many companies do not offer SR50 filings....  They only offer SR22's.

• Therefore for those who need an SR50, you may have to substitute and take the SR22 instead. Do not be worried about the fact that the SR22 carries a higher standard. If you only required an SR50, you will not be held to the higher standard of an SR22. So don't let that bother you.

• That is very important to know for those who need an SR50. Because if you're only shopping with auto insurance companies that offer the SR50, you are limiting yourself to the number of companies you can quote with. Thus, you will likely not get as low of a rate as you may have by taking the SR22 instead.

How do I set up an SR50 or an SR22 state filing?

• All you need to do is purchase one of two types of auto insurance policies: regular auto insurance or named operators insurance.

• For those who own a vehicle (or have a vehicle registered in their name), or drive a vehicle owned by another household member, they will need to carry a regular auto insurance policy.

• If you do not own a vehicle or have a vehicle registered in your name, you will need to take out what's known as a named operators auto insurance policy.

• Choose whichever of the above two policies that fits your situation. That's the type of policy you need to attach either the SR22 or the SR50 onto.

• Not all auto insurance companies offer SR50's and SR22's. In fact, many of them don't. So be sure to let your agent know that you need one of those filings before he/she runs you a quote.

• And finally, if you are unsure of whether you need the SR50 or the SR22, contact the Indiana BMV. It's very easy for them to look it up and tell you.

Summary:


I hope this helps you make sense of Indiana state auto insurance filings. If you have any other questions, feel free to give me a call or drop an email. I will be happy to answer any questions you have.



Get an SR50/SR22 Quote with Lyles Insurance here if you own a vehicle


Get an SR50/SR22 Quote with Lyles Insurance here if you Do Not own a vehicle




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The difference between an Indiana SR50 and an SR22 auto insurance filing?

​Most people are aware of the fact that you save money on your auto insurance policy by paying your premium in full. But the question is how much money do you save? Although that's not very hard to figure out. You be surprised how many people do not take the time to do the math, and figure out their total savings. It is very easy to calculate your own savings to see how much you save by paying in full, versus paying month-to-month. And it's very well worth looking into paying in full for your auto insurance policy because the savings in many cases are very significant.


      This would probably be a very good time for many of you to take a close look at your auto insurance policy. Find out how much you could save yourself by paying in full. Many of you will receive an income tax refund in the next month or so. This makes for a perfect opportunity for you to save a significant amount of money.


Why is paying your policy in full such a good idea?


      Because paying your policy in full is one major factor that can significantly reduce your insurance premium right away. There are several ways of saving money on your auto insurance policy. But almost all of them require at least a significant amount of time to pass. Paying in full is one way to save on your policy without having to wait for a while. You may need to save up a couple paychecks. Or, as I suggested, using your income tax refund is also a great way of coming up with a big chunk of money fast.

So back to the original question. How much do I actually save on an insurance policy by paying in full?


     Last year, I did a case study involving several of my major auto insurance carriers. I looked at a lot of the past auto insurance quotes I had ran, and compared what the savings would be by paying in full as opposed to paying month-to-month. Here are the results of that case study:


The overall total average the driver saved a lot of insurance by paying their policy in full as opposed to paying month-to-month was 17.6%!


Of the companies used in this study, the company that offer the lowest savings was 9.5%.


The company that offers the highest savings was 28.3%. This is why it's so important to pay your policy in full if it all possible. That is a very significant amount of savings




I can't afford to pay my policy in full. Are there any other options that could help me save money right away?


       I realize that paying six or twelve months in full can be a big chunk of money for many people. However for those of you who can not come up with a big chunk like that at one time, another option would be to set up automatic bank withdrawals. Instead of you having to make a payment every month, you can have the premium automatically taken out of your checking account. Although this doesn't provide as much savings as paying the policy in full, with some companies savings is roughly half of that, which is significant. And once again, companies vary on how much savings they offer for automatic bank withdrawals, just like they vary for savings applied when you pay in full.


      And one last thing. Keep in mind that this savings you get from paying your policy in full is not just limited to auto insurance. This also applies to many other types of insurance. For example: commercial auto insurance, motorcycle insurance, boat insurance, golf cart insurance, homeowners insurance etc. The savings show up all across the board when you pay your policy in full. And if your policy is up for renewal anytime soon, that would be a great time to consider paying your policy in full.




Get an Auto Insurance Quote with Lyles Insurance


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