How Credit Score Affect your Car Insurance Policy
Q: I hear my credit is used to get prices for my Indiana SR-22 policy. What does my credit have to do with how I drive?
A: Your credit history doesn’t actually have much to do with the way you drive and how safe it is, but if you think about it, there are a lot of things about Indiana SR-22 car insurance premium rating which have nothing to do with how you handle yourself behind the wheels. For example, many people get better prices when they get married or move to a new location. Gender and age are often used in the rating process as well.
Unrelated things like these are able to be used in the Indiana SR-22 rating process because the car insurance companies have data which back them up when they say that someone with such and such characteristic is a higher risk than someone with this and that characteristic. With credit history, it’s much the same. More claims come from people with bad credit than from those with good credit.
Your credit report is also a good way for your Indiana SR-22 company to gauge whether or not you’ll be paying your car insurance premium on time, and your reliability in that area will affect how you’re charged as well.
What Does SR22 Insurance Cover?
Q: What is Indiana SR22 insurance and what kind of coverage am I required to have for it?
A: Indiana SR22 is mandatory insurance coverage combined with monthly insurance verification. While it is already required by law that everyone who drives carry at least a minimum amount of liability insurance, for those who have had their licenses suspended, an additional requirement is added in the form of the SR22, which is a form which has to be filed every month with the Department of Motor Vehicles by your car insurance company. If not filed, then your license will be suspended. Indiana SR22 is required for three years after the date of the initial suspension.
As for the insurance requirements involved with Indiana SR22, they are otherwise no different than what is required of any Indiana driver. If you have insurance, the minimum amount you can have and still meet the law’s requirements are twenty five thousand dollars of bodily injury per person with a maximum of fifty thousand per accident, and fifteen thousand dollars for property damage coverage. Car insurance companies suggest you get more than that.
How to Get Cheap SR22 Insurance in Indiana
Q: My teenage daughter has to get Indianapolis SR22 insurance. How can I get this cheaply?
A: You’re never going to get cheap teen car insurance or cheap Indianapolis IN SR22 insurance, so it’s best to stop thinking of it in those terms. You can, however, get the cheapest of those insurance types available, and I’ll give you a few tips on how to do that.
First of all, since your daughter’s a teenager and thus likely to be still in school, you should check with your Indianapolis IN SR22 car insurance company to see if they offer the good student discount, and what the requirements are if they do. Standard requirements for this include a minimum age of 16, a B average or above in school, or a 3.5 grade point average, as well as status as a full time student. May vary among companies.
Also, be sure that your daughter is taking a driver’s ed class. Not only will this help her when she gets out on the road, but most car insurance companies also will apply a discount to your Indianapolis IN SR22 insurance if she does this.
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