Indiana car insurance companies are permitted to consider an applicant’s credit history and credit score when determining how much to charge for coverage. They consider that a person with a good credit rating is demonstrating that they are responsible, and that trait carries forward to their driving habits.
What car insurance companies do not take into account is that there can be circumstances beyond a person’s control that affect his or her credit rating. Illness or job loss can make it difficult, if not impossible, for a person to keep up with bill payments.
A person with less-than-stellar credit may pay more for his or her car insurance coverage, but they need to understand that this is only one factor that that insurers consider when setting rates. Not every company is going to give the same weight to credit history, which means that shopping around for coverage is important for consumers who want to avoid paying too much for their coverage.
The best time to start collecting quotes is a couple of months before an existing Indiana car insurance policy is due to expire. That gives the policyholder enough time to gather information about other options and if he or she decides to change companies, they can get the new policy in place without creating a lapse in coverage.