SR22 insurance fraud, can I keep Car insurance with my current agent?
We get that question all the time. Someone will call and ask for an SR22. But they want to keep their car insurance with their current company. Is that SR22 Insurance Fraud?
Here is what you need to know:
- An SR22 is a “certificate of financial responsibility” that is filed by your insurance company confirming that you have the minimum liability limits in your state.
- In order to get an SR22, you must purchase minimum liability from the insurance company.
- It may not be illegal to take out two insurance policies on the same car but which policy will pay in the event of a claim? Making two claims with two different insurance companies for the same accident may be considered insurance fraud. Is it worth the risk?
- If you own a vehicle, you can not purchase “non-owners” insurance. If your attorney or agent are suggesting that, find another agent.
- Having full coverage with one company and then getting an SR22 filing with another company, could put you and your vehicle at risk. One policy may cancel out the other. And if you have full coverage, that’s not the policy you want canceled if your car has been involved in an accident.
- Insurance companies generally have policies discouraging the practice of double insuring a vehicle
- It’s best to find an insurance policy that will affordably insure you and your vehicle with the SR22 filing.
It’s called Double-Dipping – SR22 Insurance Fraud
The primary reason most states and insurance companies disapprove of multiple car insurance policies on one car is because of double-dipping.
In the insurance world, double-dipping is called unjust enrichment. This occurs when you get into a car accident and file claims with both of your insurance companies in an attempt to give yourself a financial windfall. Whether you mean to or not. If you are involved in an accident, which proof of Insurance are you going to provide. The one that DPS has on file showing your SR22, or the other one that shows you have full-coverage.
If both of your car insurance claims are approved, you or the claimants might get twice the money for the accident than you would normally receive.
Once you have the checks, and you decide to repair your vehicle with the first settlement and keep the second for your own financial gain. This is absolutely illegal and constitutes insurance fraud. You may even be charged with a felony.
Don’t risk it. If you are still not sure what an SR22 is, please call our office and one of our agent ‘s will review the details with you.
