There are a lot of myths and lies surrounding SR-22 insurance and surety bonds. Here, we will help to debunk most of them, but first we'll answer a couple of key questions.
What is SR-22 insurance and why is it important? What is a surety bond and how can you apply for one?
SR-22 Insurance and its Benefits
If you are apprehended and charged with driving under the influence (DUI) or without insurance, you’ll be required to file for proof of insurance with the secretary of state. This is the case in most states and that’s when an SR-22 insurance bond comes into play; it allows you to keep your driving license while at the same time, protecting all third parties with whom you may be involved in an accident with. Anyone involved in an accident with an uninsured driver will have a tough time collecting their claims and you do not want to be responsible for that.
Surety Bonds and How to apply for them
A surety bond is basically a line of credit. It involves two parties, a contractor and you, the client. This is how it works: once you have acquired a bond, you can be sure that if the contractor fails to perform as expected you’ll have new funds available to finish off the job! Without the bond, the contractor may be forced to put up some cash as collateral.
There are a number of myths surrounding surety bonds. Here are some of them;
- Buying two or more bonds will result in a discount. This is not true. If you buy a surety bond for multiple years, you can be guaranteed of a discount for the additional years. Do not fall for the trap that buying 2 bonds will result in lower rates. To the contrary, rates will go up.
- Some have heard that when applying for the bond, a credit check will not be performed. Do not let a broker lie to you that the surety is not going to run a credit check on you. There can be an exception when it comes to notary bonds.
- Another myth is that acquiring a surety bond will get back your license. You cannot get back your license without a bond but that does not mean acquiring one guarantees you of your license.
Before applying for a surety bond, there are a number of factors you should consider. Key among them is the type of bond to go for. The most efficient way to get the exact bond you want is by contacting the bond’s obligee. Determine how much time you have to get the surety bond and gather information that could affect your bond application.
For more details on how to apply for a Dallas SR22 Insurance, contact us today on 214-374-9997.