Strategies, Challenges, and Answers

An Auto Carrier Providing An SR-22 Certificate Must Give The DMV Ten Days Notice Before Cancelling

SR-22Nevada car owners know that before you can register an automobile in Nevada, the owner will have to prove to the Department of Motor Vehicles that the car is insured.  The owner usually satisfies this obligation by bringing a Proof of Insurance Card issued by a Nevada licensed insurance company to the DMV when it’s time to register the car.

In addition, the Nevada DMV can require proof of auto insurance before reinstating the suspended or revoked license of a high risk driver.  See NRS 485.3075 as an example.  If the DMV requires this type of proof, a conventional Proof of Insurance Card may not be enough.  Depending on the type of suspension or revocation, the DMV can require that the driver provide a special Proof of Insurance known as an SR-22.  For example, an SR-22 Proof of Insurance will be required if the driver’s license was suspended following a DUI. Usually that SR-22 requirement will remain in place for three years.  Click Here For More Information.  This same type of SR-22 requirement applies if you allow your insurance to lapse and you don’t renew it quickly enough.  Lapsed Insurance Affidavit.

If the State requires a driver to provide an SR-22 certificate, the insurance company cannot cancel the driver’s insurance until it notifies the driver and the State of its plan. This SR-22 obligation forces the insurance company to provide the DMV ten (10) days notice before it cancels a policy covered by an SR-22 certificate. That ten-day notice must come to the DMV by way of an SR-26 Certificate from the insurance company.

You may have heard that getting SR-22 insurance is expensive.  This additional cost is not imposed because the state requires the high risk driver to get extra coverage.  The Division of Insurance lets insurance companies charge the insured this premium because of the additional administrative burdens and the potential for extended liability exposure it faces.  If you need an SR-22 certificate before you can get your license back, you may want to consult an insurance agent on how you might be able to save money while the SR-22 obligation is in place.

Mills & Associates does not accept clients who are trying to get their driver’s licenses reinstated.  But we do know about questions dealing with insurance coverage for accidents that happen where notice of cancellation is in question.  If you have such coverage questions, please contact Mike Mills at Mills & Associates 702-240-6060 and let’s find out if we can discover an answer.