Businesses have largely been shielded from the impact of rising costs and inflation as it concerns their fleets and their car insurance coverage, but that may be set to change. According to research published by S&P Global, rapidly rising claim costs are pushing up car insurance premiums, even in business fleets. This means higher rates for high-risk driver insurance certifications, such as SR22 insurance. Navigating these changes is an important part of business monetary management and keeping overheads down; targeting high-cost areas, such as SR-22 insurance, is an essential first step.
Understanding insurer priorities
Businesses have to bring in vehicle insurance for their fleets, but it’s entirely possible that individuals will need to beef this up with non-owner insurance coverages. As US News highlights, drivers who have had previous violations, including DUI convictions and lapses in car insurance, will then need to file for SR-22 certificate with the state. The business will know better than most the circumstances that led to an SR-22 insurance filing being necessary and should seek to look at a range of car insurance companies for SR22 insurance quotes to find the best potential options. Insurance companies will, of course, apply higher car insurance rates to high-risk drivers, which makes shopping around for car insurance coverage all the more important.
Navigating limits
SR22 has a limit of three years in most states, according to The Balance. However, this varies by state – some states demand five years, and some three. A lapse in SR22 insurance coverage can result in the revocation of a driver’s license, so it’s essential that employees are aware of this factor. That being said, there is potential for a reduced SR22 liability insurance period and so reduced overheads; ensure that the individual state situation is understood, and you may be able to reduce long-term insurance costs.
Covering the gaps
As Time.com notes, SR22 certificates don’t necessarily end when an employee stops driving. Indeed, some states mandate that individuals will be required to have continued SR22 certification with their respective state’s Department of Motor Vehicles. Lapsing in SR22 certification, which means losing insurance coverage, can lead to the seizure of a driver’s license. Ensure that employees retain their car insurance even when not driving for a period – the costs associated with navigating the messy world of an SR-22 revoked license, and the potential HR and payroll implications of that, can be high.
Employers and businesses are starting to feel the brunt of the car insurance inflation hike. With that, their high-risk drivers will feel the pinch more than most. Be prepared.
