How do I create a bond for auto insurance?

FREE Auto Insurance Comparison

 Secured with SHA-256 Encryption

Compare quotes from the top auto insurance companies and save!

Things to Remember...

  • Creating a bond for auto insurance is something you may be required to do in order to keep your license and vehicle registration intact
  • Bonds are used in conjunction with, or as a replacement for, standard auto insurance
  • Depending on the reason for your getting the bond, you may or may not have to pay the insurance company fee
  • With the exception of the voluntary SR22 procured for self-insurance purposes, auto insurance bonds are usually temporary

Creating a bond for  auto insurance is something you may be required to do in order to keep your license and vehicle registration intact.

It also might be something you choose to do in states which allow drivers to self-insure. Regardless of why you need to create a bond, it’s not difficult to do it all. In most

Regardless of why you need to create a bond, it’s not difficult to do it all. In most cases, it can be accomplished through a simple phone call, the transfer of some paperwork, and a small fee paid up front.

Enter your zip code for the latest auto insurance rates in your area!

Bonds are used in conjunction with, or as a replacement for, standard auto insurance. But the exact definition of these bonds, also known as SR22 bonds, varies from state to state.

While you’ll find some general information about them in this article, it’s recommended you contact your state motor vehicle or insurance department in order to verify how auto insurance bonds work in your state.

Do I actually create the bond?

AdobeStock_40258869-1600x1600

Technically, the driver who needs the SR22 bond does not create it. This type of bond is simply an instrument demonstrating to a court that you have the financial resources to maintain your car insurance.

It’s also a secondary statement of sorts which proves your car insurance is still in force.

Therefore, you can’t create it. Your auto insurance company or a third-party surety company must create it for you. Which entity creates it depends on your circumstances.

In most cases, your insurance company creates the bond and then electronically files the paperwork with your state.

Depending on the reason for your getting the bond, you may or may not have to pay the insurance company fee.

If circumstances dictate you use a surety company, that company will create the bond and then relay the paperwork to your insurance company, who will in turn file it with the state.

In either case, you simply need to provide the appropriate information and pay any fees upfront that might be necessary.

FREE Auto Insurance Comparison

Compare quotes from the top auto insurance companies and save!

 Secured with SHA-256 Encryption

Why would I need a bond?

Creating a bond for auto insurance is required by a court usually after one or more serious driving-related incidents. For example, if you’re arrested for

For example, if you’re arrested for DUI/DWI a court might order a bond because you are a much higher risk to other drivers on the road.

That bond would provide a guarantee of extra liability coverage in addition to what your current auto policy already provides. The same can be said for excessive speeding tickets and other violations.

You may be also required to get an SR22 bond if you’ve been caught driving without insurance.

This sort of bond guarantees the court you have the financial resources to pay your insurance, and that your insurance, is in fact, still in force.

In this type of scenario, it is almost always impossible to have your driving privileges restored without producing a bond.

In terms of voluntary bonding, some states allow drivers to self-insure as long as they have the financial resources. The bond is proof of those resources.

Will I always have to have an auto insurance bond?

sharing view and opinions_78962857-1600x1600

With the exception of the voluntary SR22 procured for self-insurance purposes, auto insurance bonds are usually temporary. While states have different

While states have different auto insurance laws in this area it’s generally accepted that 3 to 5 years is the life of a bond requirement as long as the driver is not found guilty of any additional issues.

A court may alter this time frame if necessary, depending on the severity of the circumstances which caused it to be implemented, to begin with.

If you move to another state, be advised that you’re still required by law to fulfill the terms of the bond in the state where it was issued.

For example, if you were required to get an SR22 bond by the state of Texas, and you decide to move to Oklahoma, you must still carry that Texas bond until its time period expires.

This can get complicated if your move to the new state requires you get a new insurance company. But insurance companies know how to work around these issues to make sure you’re in compliance with the law.

What if I violate the terms of my bond?

State courts take auto insurance issues very seriously. Therefore, if you
violate the terms of your bond you are essentially violating the terms of the court.

This could result in a suspension or revocation of your driver’s license, suspension of your vehicle registration, and even jail time in some cases.

At the very least, you will most certainly lose the money that you put up for the bond.

Remember that a court which orders you to secure an auto insurance bond is one that is suspicious of your integrity and character anyway.

The judge is likely to be far less lenient if he’s giving you a second chance through an SR22 bond, and you turn around and blow that second chance.

If you’re ordered to get an auto insurance bond, do everything in your power to make sure you fulfill its terms as well as obeying the law in the future.

Start your search for competitive auto insurance quotes by entering your zip code now.

FREE Auto Insurance Comparison

Compare quotes from the top auto insurance companies and save!

 Secured with SHA-256 Encryption

[0-9]
[0-9]