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UPDATED: Mar 13, 2020
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SR22 Bond Insurance and What it Is
In some states you may be permitted to purchase SR22 bond insurance instead of a regular insurance policy. This will require you to keep a substantial amount of money on deposit with the Treasury Department.
What is SR22 Bond Insurance?
By definition, SR22 bond insurance is a deposit with the Treasury Department to be used when you are found at fault in an automobile accident. Different states will have differing amounts required for the SR22 bond insurance, but you can be sure it will be in excess of $20,000. The monies deposited are used to pay any bills that are caused by the accident. It might be hard for you to come up with 20K for the deposit, but think of how much you will have to come up with if the accident is serious and more than your deposit.
SR22 Bond Insurance vs. an Insurance Policy
The amount of your bond is the amount that will be paid for the accident. Any debts over and above your deposit will be paid by you. SR22 bond insurance does not cover you, your passengers, or your property. Any time monies from the bond are used, you will have to replenish the bond to the minimum amount. An insurance policy does not require the large initial outlay of cash, but it will require regular payments. Insurance policies can be for much larger amounts than you would have on deposit. You can also protect yourself, passengers and property with an insurance policy. Insurance agents are very good at handling the details of an accident and making sure proper payments are made. They also know when to fight, and how much the cost of the accident should be.
You can tailor an insurance policy to meet your needs. SR22 bond insurance is really only available to people that have a large amount of money they are not going to need for some time.