Certificate of Financial Responsibility: Florida Auto Insurance

The Certificate of Financial Responsibility (CFR), also known as the SR-22, is a kind of document, which proves that a person has the minimum liability coverage in the car insurance, as it is required by the particular state's financial responsibility laws. Generally, a certificate of financial responsibility is needed for an individual involved in an accident or any other traffic offense and is not in a position to pay for the damage.

You can get a certificate of financial responsibility by requesting it from the insurer. You will also be sent a notification from the Department of Motor Vehicles (DMV) that you will require an SR-22. After you subscribe to an insurance liability, which is in accordance with the requirements of the state, your car insurance company will file for the certificate of financial responsibility.

The duration of carrying an SR-22 is time-bound. Generally, it is restricted to three years. However, this duration will be extended if you are involved in more traffic offenses. It is important to note that policies, which you take out to meet the requirements of the certificate of financial responsibility, may or may not provide you with full coverage. In majority of cases, a certificate of financial responsibility policy will only cover the minimum requirements, which might not even meet the some of the basic expenses such as replacement value of a car.

If you fail to carry an SR-22, it will lead to a suspension of your license. You will also have your license revoked; in extreme cases hence, it is important for you to carry a certificate of financial responsibility as per the rules of your state.

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