The Certificate of Financial Responsibility or CFR is a provision of evidence that one has the minimum essential auto insurance as required by the law in Texas. Commonly referred to as SR-22, this form of Car Insurance in TX has different requirements depending on the state one is in. In the state of Texas, the minimum requirement is 30/60/25 liability cover. These figures refer to the amount of body injury cover per person, body injury cover per accident and property cover in thousands respectively.
There are three types of Certificate of Financial Responsibility or SR-22 forms namely: non-owner insurance, car insurance and motor cycle insurance. Both the car and motor cycle SR-22 forms are only for persons whose cars are registered in their own names. The non-owner SR-22; as the name suggests; is for persons who either drive commercial vehicles for business or have vehicles that are borrowed or rented. Such insurance covers are put in place so that no individual can claim to have no Car Insurance cover in TX because their circumstances are not included in the Texan insurance system.
Typically, Car Insurance in TX requires one to have an SR-22 cover if they have previously been unable to provide evidence of auto insurance or have a traffic infraction like a DUI or DWI. The SR-22 cover has to be mandated by the state or court of law. This typically happens when one is arrested following a DUI traffic infraction and is taken to court and found guilty. A guilty verdict on a DUI depending on the surrounding circumstances, typically leads to a license suspension. For people who cannot avoid using a car on their everyday activities, the court will order the defendant to obtain an SR-22 cover as a condition for him or her to be allowed to go on driving. The SR-22 should cover the span for which the defendant’s driver’s license has been suspended.
Insurance premiums for the SR-22 are generally higher than normal auto insurance premiums. This is because they are supposed to act as a penalty to the driver to avoid him or her from falling into the same crime in future. In case the same driver is arrested later on a traffic violation while still holding the SR-22 insurance cover, it is reported to the Texas DMV. This more often than not results in a stiffer penalty for the driver which in some instances may lead to their incarceration in addition to license suspension.
Car Insurance in TX has many firms offering Certificate of Financial Responsibility covers. The most advisable way to easily locate them is via the internet. The minimum requirement still stands for all of them since it is the law but they may be different in terms of their individual parameters of the cover. If you are in need of one or know one who needs it, enter your Zip at the beginning of this web page to browse for the numerous companies providing SR-22 cover.
