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I am confused. I thought car insurance followed the car. Why does SR 22 insurance have to be purchased if you no longer own your car?

Not all insurance follows the car.

Liability coverage doesn't always follow the car, but rather the individual. It can get complicated to determine which policy should be used primary, secondary or even tertiary in these situations.An SR22 is a form which must be filed by the insurance company stating that auto liability insurance is in effect for a particular individual. Typically it is required when insurance is provided to an individual who was in an accident or was convicted of a traffic offense and was unable to show financial responsibility.

Liability insurance is required to pay for damages to others (property or bodily injury). Liability can be caused by an individual while they are in a car or in ANY car.

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Question Details
This car insurance question was asked on 9/22/2005
This auto insurance answer was last updated on 9/22/2005
Shelley requested this car insurance solution.
Rated 7 out of 10 based on 6 votes.
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