Liability Sample Quote: Rating Factors

Liability Sample Quote: Insurance Rate Factors

Discounts Applied to this Liability Sample Quote:

Additional Notes: This person does not have a vehicle!

Disclaimer: The purpose of this page is to showcase an estimate of what insurance may cost an individual with these products and/or circumstances. This is based on a real liability sample quote.

Why Would Someone Need An Auto Insurance Policy If They Do Not Own A Vehicle?

If someone does not own a vehicle, they may still need an auto insurance policy for a few reasons:

1. They may rent or borrow a vehicle: If someone rents or borrows a vehicle, they may need to have their own insurance policy to cover any damages they may cause to the rental or borrowed car, as the car owner’s insurance policy may not cover them.
2. They may use car-sharing services: Some people may use car-sharing services like Zipcar or Car2Go, which provide short-term car rentals. These services often include insurance coverage, but it may be limited, so having an additional insurance policy can provide extra protection.
3. They may live with someone who owns a car: If someone lives with a family member or roommate who owns a car, they may want to have their own insurance policy to protect themselves in case of an accident.
4. They may need insurance for legal reasons: In some states, it may be a legal requirement to have auto insurance, even if you do not own a car. This is to ensure that people who do cause accidents are able to pay for any damages or injuries they may cause.
5. They may need to have proof of insurance with a financial responsibility form in order to get their driver’s license reinstated.

In summary, even if someone does not own a vehicle, there are several situations where having an auto insurance policy can provide important protection and peace of mind.

What Is An SR-22?

An SR-22 is a document that certifies that someone has purchased and maintains the required minimum amount of auto insurance coverage as required by their state’s laws.

An SR-22 is often required when someone has had their driver’s license suspended or revoked due to a serious traffic violation, such as driving under the influence (DUI), driving without insurance, or reckless driving. In these cases, an SR-22 is required as proof of financial responsibility before the person’s driver’s license can be reinstated.

An SR-22 is not an insurance policy itself, but rather a form that an insurance company files with the state to prove that the driver is insured. The insurance company will typically charge an additional fee to file the SR-22 on behalf of the driver.

It’s important to note that an SR-22 is typically required for a certain period of time, usually three years, and during that time, the driver must maintain continuous coverage of the required minimum amount of auto insurance. If the driver’s insurance policy lapses or is canceled during that time, the insurance company is required to notify the state, which could result in the driver’s license being suspended again.

Overall, an SR-22 is a form that verifies a driver’s auto insurance coverage, and it is often required when someone has had their driver’s license suspended or revoked due to a serious traffic violation.