Indiana Car Insurance
Like almost every US state, Indiana requires drivers to carry certain amounts of insurance. Depending on your unique circumstances, though, you may want to purchase additional coverage that protects you from medical and legal expenses.
Before you choose an auto insurance policy, make sure it includes the minimum coverage required by the state of Indiana. Then, you can decide whether you want additional coverage.
Minimum Auto Coverage for Indiana Drivers
Indiana requires vehicle owners to carry three types of insurance for:
- Property damage liability ($25,000)
- Bodily injury from an uninsured motorist ($25,000)
- Bodily injury from an under-insured motorist ($50,000)
Property Damage Liability Insurance
Property damage liability insurance pays to repair or replace the other person's vehicle after a collision. It can also pay for damage caused to other types of property, such as buildings, fences, and signs.
Indiana's minimum requirement means that your insurance company will spend up to $25,000 for any damage that you cause. This amount is similar to requirements from states bordering Indiana. Kentucky and Ohio also require $25,000 in property damage insurance. Illinois requires $20,000. Michigan drivers only need $10,000 in liability coverage.
Keep in mind that the insurance does not cover your vehicle. It only protects you from the cost of repairing property owned by other people.
If you want a policy that covers your vehicle, then you should purchase collision insurance. You can find more information about collision insurance below.
Uninsured and Under-insured Motorist Insurance
According to the Insurance Information Institute's latest data, approximately 16.7% of Indiana's drivers do not meet the state's minimum insurance requirement. Compared to the rest of the country, Indiana has more uninsured drivers than all but seven states.
That means if you have an accident in Indiana, there's a 16.7% chance that the other driver won't have insurance to pay for your repair and medical bills.
Indiana attempts to solve this problem by requiring vehicle owners to carry uninsured and under-insured motorist insurance. After an accident, you don't have to fight with someone else's insurance company. Instead, you can get money from your own insurance provider.
Since uninsured and under-insured policies cover bodily injury, you can use them to pay for any medical services that you need after an accident. You can also use bodily injury insurance to cover lost wages and ongoing treatments such as physical therapy.
Other Types of Auto Insurance for Indiana Drivers
Buying the minimum amount of insurance keeps you on the right side of the law, but it doesn't ensure that you get all of the protection that you need after a serious collision. Purchasing additional policies can give you more liability protection.
Collision insurance pays for repairs that your vehicle needs after an accident.
You can choose practically any amount of collision insurance that you want. The price of your policy, however, depends on how much coverage you want and what deductible you set.
If you want $25,000 in coverage with a fairly low deductible of $500, then you can expect your policy to cost quite a bit of money.
Raising your deductible can make collision insurance more affordable. Remember, though, that your insurance company will not pay for any repairs until you reach your deductible. If you can't afford to pay $1,000 out of pocket for car repairs, then you should not choose such a high deductible.
Comprehensive insurance also pays for repairs that your vehicle needs. It only applies to damage caused by something other than a driver, though. A comprehensive policy comes in handy when your car gets damaged by:
- Accidents with animals
- Severe weather
Although you don't have to buy collision and comprehensive insurance policies, many Indiana drivers get peace of mind knowing that they won't have to shoulder the full financial burden after their vehicles get damaged.
How Auto Insurance Companies Set Premiums
Most drivers in Indiana can purchase affordable insurance policies because the state doesn't set high standards of coverage. For comparison, consider that Maine's minimum requirements include $100,000 of bodily injury liability and $100,000 of uninsured motorist coverage.
How much you spend on auto insurance depends on more than your state's minimum standards, though. Insurance companies use several factors to set premiums. Some things they look at include:
- Your location.
- How far you drive.
- Your driving record.
- The type of vehicle you drive.
- How many claims you have filed in the past.
- Your credit score.
- Your age.
- Your sex.
- Your marital status.
- The amount of coverage you want.
- The deductible you choose.
You can't control many of these factors. You can always alter your deductible and how much coverage you get, but you can't do much about your age or how many miles you need to drive in a year.
Of course, you can also make sure that you follow the rules of the road so you maintain a clean driving record. You can also improve your credit score to lower your premium.
Since companies consider so many factors, it makes sense for you to compare premiums from several insurance providers. You may find that you can meet Indiana's insurance requirements while spending less money by comparing offers from several companies. Start by comparing quotes for Indiana car insurance.