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Who are the “High Risk” Drivers, Which Insurance Companies Offer Them Coverage

SR-22 is a certification issued by an insurance company referencing an existing car insurance policy of a high risk driver hoping to have his license reinstated. The submission of a SR-22 Insurance certification is a vital requirement of the Department of Motor Vehicles (DMV) in connection with the lifting of a driver license suspension. Yet one might ask, who exactly are “high risk drivers“; and which insurance company is willing to expose its business to higher risks?

Who Exactly are “High Risk Drivers?”

The high-risk tag describing a driver pertains to that person’s bad or poor driving records. They even include those who have been convicted and served jail terms for driving under the influence (DUI) of alcohol or Driving Without Insurance (DWI). Teenage drivers represent a large sector of this group, generally having the highest accident rates and moving violations when taking their vehicles on the road.


Yet state DMVs want to give rehabilitated “high risk drivers” a chance to go on the road again once all punishments and penalties have been served and paid. The government agency will allow the errant driver to work on the reinstatement of his driving license by requiring a new car insurance policy; or a non-car auto liability insurance, whichever is applicable.

To ensure the propriety and reliability of the SR-22 Insurance coverage, the insurance provider will submit a certification to the DMV.


Historically, insurance companies before were not willing to expose their company to the high risk conditions presented by drivers with bad driving history.


Is There a Special Type of Insurance Company Serving High Risk Drivers?

Insurance companies reserve the right to refuse to give financial protection to individuals who have increased potential of suffering or incurring financial losses. Finding an insurer therefore tends to be a problem as far as high risk individuals are concerned.

To remedy the problem, state governments, in their regulation of the insurance companies doing business in their respective jurisdiction, created a residual market system. That way, individuals or entities who have been rejected by insurance companies because they are high risks, can find a provider in the residual market created by the state. This sector represents a group of insurance companies that have been designated by the state to provide insurance coverage for persons or entities regarded as high risks. Aside from car liability insurance, insurers in the residual market also provide financial coverage for high risk workers and properties.

To ensure that insurers in the residual market will profit from the high risk ventures, they are allowed to absorb potential losses and to realize profits by quoting insurance rates higher than those quoted by insurance companies in regular markets. Moreover, the amount of premiums collected depend on the degree of risks presented by violators and offenders seeking to have their driving license reinstated. The more serious the offense or crime, the higher the amount of premium collected.