Why Are SR22 Insurance Rates So High?
Q: Why are SR22 insurance rates so high?
A: There are a lot of reasons for why insurance rates, period, are very high, but the main reason for SR22 insurance being expensive is the risk. Car insurance companies rate consumers based on risk, be it risk of filing a claim or even risk of canceling. If you have SR22 insurance, then it’s likely that you have been convicted of drunk driving, so you’re already a big danger when it comes to the insurance company. You’re more likely to cause an accident, or so they are able to glean from your information, and so they’re likely to get both liability claims from a non-customer because of you, as well as your own collision and personal injury claims.
Another reason why your SR22 rates are so has nothing to do with you, but with the fact that you live in New York. New York has some of the highest insurance rates nationwide, and the main reason for this is fraud, which is enabled by the no fault system in place their. Car insurance fraud in New York is a billion dollar industry, and the more fraud there is, the more everybody else is punished for it. Somebody in New York commits fraud, and your e SR22 insurance rates go up.
Loading ...