Can You Reduce SR-22 Insurance Costs with a Higher Deductible?

The requirement of an SR-22 can mean paying a higher amount towards your car insurance. However, SR-22 insurance doesn't mean you should overlook key ways to reduce those costs, like choosing a deductible that is slightly higher. Like all types of auto insurance requirements, you have multiple companies to select from, various plan options to consider and a variety of discounts that may be available to you.

What is your Deductible?

A good place to start is with knowing what your auto insurance deductible is. This is listed on your insurance policy directly. Specifically, it is the amount of money you will need to pay when making a claim before your insurance kicks in. For example, if your deductible is set at $500 and you are involved in an accident with $2,000 worth of damage, you'll pay $500 and the insurer can then pay the remaining $1,500 towards the incident.

The amount of your deductible is one of the most flexible parts of your insurance plan. You can often raise it to a level that is comfortable for you. If you can comfortably raise it, meaning you can easily pay more than the $500 in the event of an accident, then doing so could reduce your monthly premium costs. It may even reduce how much you pay for auto insurance significantly.

How Can This Impact Your SR-22 Insurance Requirement?

Because SR-22 insurance is more expensive because you are a higher risk, you may be looking for the lowest type of coverage possible. Instead of lowering your coverage, though, increase your deductible to the highest level you can easily pay out-of-pocket in the event of an accident. Doing this reduces your costs more so without reducing the amount of coverage you have.

Never raise that deductible to a level that is too high for you to pay out of pocket. Otherwise, you may be unable to get the repairs you need taken care of right away. And, over time and by remaining accident- and violation-free, you may be able to get rid of the SR-22 requirement altogether, reducing your insurance even further.