Frequently Asked Questions

Below are some of our frequently asked questions.  If you have any other questions or concerns, please feel free to contact us.

1.	What is SR22
2.	Can I insure my friend's vehicle under my policy/name?
3.	What is the deductable?
4.	How does age affect my policy?
5.	What is risk insurance and who needs it?

	What is SR22 In Illinois, an SR-22 is an insurance policy  filed by the home office of an insurance company directly to the Secretary of State. The SR-22 certificate is issued in one of the following forms: Non-Owne SR22 or Operator's Certificate - This policy covers the motorist in the operation of any non-owned vehicle. If the motorist does not own a vehicle, the financial responsibility requirement can be met through the Operator's Certificate. Owner's Certificate - This policy covers vehicles owned by the driver. The type of vehicle must be listed on the SR-22 or may be issued for "All owned vehicles". Operators-Owners Certificate - This certificate covers all vehicles owned or non-owned by the driver. An SR-22 may be obtained by contacting an insurance company that is authorized to write SR-22 policies for Illinois. When payment is made to an insurance agency, the agent will submit a request for an SR-22 certificate to the main office of the insurance company. The SR-22 certificate will then be sent directly to the Secretary of State in Springfield. Although most insurance companies file the certificate electronically, the filing process may take up to 30 days. Upon acceptance, the individual will receive a copy of the SR-22 from the insurance company and a letter from the Secretary of State. Once the insurance is accepted, it must be maintained until notified by the Secretary of State (normally for a period of 12-36 months.) If the SR-22 expires or is cancelled, the insurance company is required by law to notify the Safety and Financial Responsibility Section by a SR-26 Cancellation Certificate. Upon receipt, S&FR will then load a Type Action 05 suspension on the driving record. This suspension cannot be removed until the insurance filing has been reinstated. Back to Top
	Can I insure my friend's vehicle under my policy/name? Listed vehicles have to be titled under the insured's name (or that of the spouse) at the time of loss for the insurance company to cover that loss. Back to Top
	What is the deductable? Deductible is the amount of money that you agree to pay in case you want your company to pay for a covered loss. It is subtracted from the total amount paid by the insurance company to you or the repair shop. For example, if your claim is $5,000 and the deductible is $500, then you have to pay $500 and the insurance company will pay the rest $4,500. Lower deductible are associated with higher premiums. If you file a claim with your insurance company for a loss that is the fault of another motorist, you still need to pay the deductible. Your company may/ or may not, pursue the other operator. If your company collects in the future from the other operator or his/her insurer then you company may refund you the deductible that you paid. Some companies deduct small administrative expense for providing this service. Back to Top
	How does age affect my policy? The insurance industry is one of the very few places where age might be used to discriminate between folks when it comes to their age. Insurers assess different charges for different Individuals  using their age. If you are a 16 year individual and you  feel that you are going to be getting a nicer premium than your 22 year old neighbor because you are better in assuming responsibility than him or her then you are making a false theory. Insurance companies assess their insurance rates according to 'brackets' or classes of people grouped together with certain common attributes. These classes could change based on specific criteria like age, marital status, sex, geographical location, credit rating etc. This posting is narrow in its scope to the age factor. Youth Drivers Classes: Under Age 18: This is the age category where insurance rate is the at the top. People in this age category pay as much as 175% to 225% far more than mature operators. Since no one under age 18 will obtain a CDL, any operator beneath the age of 18 running a motor vehicle that has commercial insurance coverage may be risking declination of coverage in the scenario of an insurance claim. Age 18 to 20: People are still classified as young operators, and they still have to pay higher prices than mature operators, although their premiums are a great deal less than the previous group. At age 18 individuals can possess their CDL. Most insurance companies that possibly will give consideration to them will not even look at there insurance request for policies that involve interstate activities coverage. Insurance carriers that allow them to be on a commercial policy will restrict their coverage to intrastate activities. Age 21 to 24: This is the last category in the classification of youthful drivers. Insurance prices for personal insurance begin to settle with most insurance companies, in comparison with rates offered to mature drivers. Age 21 years is where many commercial insurers start to allow business auto insurance applicants with interstate bearing. All companies will add in substantial premium extra charge for commercial operators under age 21 years, and some insurance companies may demand a specific period of expertise such as 12 to 24 months of experience to evaluate them for insurance. Mature Drivers: Age 25 years to 69 years: The majority of insurance companies charge comparable rates for this age bracket, although some insurers begin to take little build up in their prices immediately after age 60 years. Age does not seem to be relevant for this category. Old Operators: Above Age 70 Years: There are serious studies made by insurers and the National Highway Traffic  Safety Administration- NHTSA www.nhtsa.gov which signify that those over age 70 years begin to cause more car accidents. Therefore, insurance companies take certain efforts to apply the right rate with the right medical reports from them. Nearly all commercial polices do not cover drivers over age 71 or 72 years. On the personal insurance level, the bulk of companies quit providing new polices for customers over 76 years of age, and other companies make the insurance price very skyrocketing. What else can be done to weaken the influence of age on premiums? There is not  much that you can do. Young drivers and older drivers are triggering more street accidents, pretty much, and they have to simply pay the cost of their accidents. The majority of insurance carriers let good student discounts for young student drivers, and other companies may permit part time operator status on their policy. For older drivers, making certain that you have the proper medical statement that shows the physical and mental capability of the old person to operate the vehicle is required to give to your insurance representative. The absence of that note to be provided in timely manner may end in ceasing the policy which might be difficult to replace with a whole new company afterwards. ## Ed Sneineh, insurance professional for over 20 years, former college educator of insurance, and founder of Insurance Navy, a leader in quoting  Illinois SR22 insurance. Visit our blog for up to date information or get your  Chicago car insurance quotes  in 5 minutes or less. Insurance Navy represents major carriers such as AAA, Travelers, Progressive, Hartford, and more than 20 other carriers. Back to Top
	What is risk insurance and who needs it? What is high risk insurance? Generally speaking high risk insurance refers to coverages that provide insurance protection for imperfect risks, or risks that are under the favorable standards set by the most preferred insurers in that field. For example, in health insurance someone who is diabetic is a impaired risk, and insurance policies covering them are called high risk insurance policies. In the auto insurance business, someone who does not fit the underwriting regulations set by the "standard or preferred companies" is defined as high risk. A building that is left vacant because of an existing fire damage is also categorized as high risk. With regard to the car insurance business, high risk drivers refer to individuals who are not "preferred risk." Preferred risk is normally set by preferred & standard companies. To understand what high risk is about, it might be a good idea to define the preferred risk ,first. A preferred risk in the car insurance is one who scores high on the following points:  A high score homeowner with a family style life in a low risk neighborhood, with multiple cars and clear driving history. The better you score on these factors, the more preferred you are! Scoring low on the above factors means that the person is classified as high risk in the car insurance business. If one has a less than perfect driving record, they may think that they need to go into the 'high risk pool.' That is not always the case, however. Here are a few factors to determine if you require one of the available high risk auto insurance policies available today. Characteristics of High Risk Auto Insurance: 1. Policies issued without credit score examination. 2. Offers basic liability, most of the times. 3. Higher premium for the same amount of coverage. 4. Customer services and claims are not handled with the same spirit as in preferred situations. Who Needs High Risk Policies? Generally speaking the only times where a professional insurance agent should suggest high risk policies are the following: a. When the client does not fit any criterion of preferred or standard companies to the point where he is ineligible for their auto insurance policies. This includes people with DUI or excessive number of tickets and accidents. b. If the cost is too high where the customer will not pay for it because he/she cannot afford it. Typical examples of people who belong to this category are people youthful drivers (under age 24) or old drivers (over 70 years) who live on limited budget, but their insurance is too high because of their age. Also, unemployed people with no money may fit here. c. In some instances where the drivers have international licenses, or foreign licenses such as Mexico license, high risk may be the only option, as standard and preferred companies will not insure those risks. Who Should Never Purchase High Risk Policy? Typically, rich people who can afford high protection or high liability policies with preferred companies should never purchase the low liability, high risk policy. Insurance cost should be only one factor, and not the main one. Keep in mind that insurance is to protect wealth, assets and income. So if you have larger wealth, or larger assets, or have big income; or you are expected to belong to these classes in the near future, then you surely do not want to get low cost, high risk insurance. Make sure to not make it a permanent life style to live your life with high risk policies. Constantly look for other preferred or standard policies that fit your changing needs and budget. Here, it is good to recite what most financial planners lecture: Failing to plan for your life is planning to fail in your life! ## Ed Sneineh, Chicago Auto Insurance Agent since 1989, former college educator of insurance, & founder of Chicago based Insurance Navy, a leader in providing affordable Chicago auto insurance quotes. Visit us and get your Illinois SR22 Car insurance rates in 5 minutes or less from over 20 insurers like AAA, Travelers, Progressive, Hartford. Back to Top