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Indiana car insurance laws require all drivers to carry auto insurance when driving or parking on public roads. You must provide proof of insurance when requested by a law enforcement official. Failing to carry the proper level of coverage could leave you at risk of legal recourse and financial responsibility.
Indiana Minimum Requirements
Indiana’s minimum auto insurance requirements are comparable to most other states in the U.S. Like most states, Indiana’s minimums are inadequate to cover a policyholder properly. One traffic accident could easily break through your liability limits. If you consider the cost of replacing a new vehicle, the $25,000 limits for property damage liability are quite low. TheZebra recommends you purchase a policy with limits greater than what is required to become a legal driver.
State minimums in Indiana are:
- Bodily injury liability: $25,000 per person and $50,000 per accident
- Property damage liability: $25,000 per accident
What If I Don’t Carry Car Insurance?
Indiana cracks down on uninsured driving heavily. If you are caught driving without the proper insurance, you can expect the following:
- After your first offense, you will be required to carry an SR-22 certificate for a minimum of three years, and your license will be suspended for 90 days.
- After your second offense, you’ll receive a one-year license suspension, a $500 reinstatement fee, and you will be required to carry an SR-22 certificate for a minimum of three years.
- After a third offense, your reinstatement fee will be $1000, your license will be suspended for one year, and you will be required to carry an SR-22 certificate for a minimum of three years.
Coverage Options in Indiana
Car insurance laws in Indiana require drivers to purchase liability coverage only. However, it is recommended that you purchase coverage beyond the state minimums. Most insurance providers offer various insurance options to protect you, your passengers, and your property. Take a look at some of your options below per Bankrate:
- Comprehensive: Comprehensive coverage pays for repair and replacement when your vehicle was damaged by an event considered out of the driver’s control, such as weather, theft, vandalism, or striking an animal on the roadway.
- Collision: This insurance is subject to a deductible and covers repair and replacement costs when you collide with another vehicle or a static object such as a curb or fence.
- Medical payments: Regardless of who is at fault in an accident, this coverage will cover your medical costs, loss of services, child care, and funeral expenses.
- Gap coverage: If you have financed your vehicle, gap insurance, also called loan/lease payoff, will pay off the difference between what you owe and the actual cash value of your vehicle when it’s totaled.
- Roadside assistance: This optional coverage reimburses the policyholder for locksmiths, refueling, towing, battery recharging, and more.
- Uninsured and Underinsured Motorist: This type of insurance covers you when the at-fault driver doesn’t have insurance or their insurance is insufficient.
- Rental reimbursement: This coverage reimburses the cost of a rental vehicle when yours is in the shop for more than 24 hours.
- Sound system insurance: This coverage replaces your sound system if it is stolen or damaged in a traffic accident.
Indiana Is a Fault State
According to Nolo, Indiana is considered a “fault state.” No-fault laws were enacted in some states to reduce the amount of traffic accident cases brought into court. All claims are under your own insurance company in a no-fault state regardless of who caused the accident, and certain legal actions are restricted. In a fault state like Indiana, the driver who caused the accident is responsible for paying out any injuries or damages. The at-fault driver’s insurance company will pay up to their policyholder’s limits, and the rest will be paid out of pocket by the policyholder.
Because Indiana is a fault state, your options after a traffic accident that you didn’t cause are:
- You may file an insurance claim with your own provider. Your insurance company will then file a subrogation claim against the at-fault driver’s insurance.
- You can file a third-party insurance claim with the at-fault driver’s insurance company yourself.
- You may take legal action against the at-fault driver by suing for damages, pain, and suffering.
What Determines My Car Insurance Rates in Indiana?
The cost for a minimum liability insurance plan in Indiana is $354 annually, $209 less than the national average of $552. Indiana’s average annual rates for full coverage policies are $1281, $457 cheaper than the national average of $1738.
According to Einsurance, auto insurance rates are regulated under the Indiana Department of insurance. Insurance providers can change premiums or give discounts based on several factors, including:
- If your vehicle is used for business
- Your driving experience
- Your vehicle’s make, model, and year
- Your past violations and accident history
- Your insurance history
- Your age, gender, and marital status
- How many miles you plan to drive
- Where you live, work, or park your car
There are many ways to improve your monthly car insurance premiums, such as:
- Take advantage of any available discounts your insurance provider offers. Some common discounts are safe or good driving discounts, paperless billing or online discounts, discounts for installing anti-theft devices, hybrid or EV discounts, homeowners or renters insurance bundling discounts.
- Compare prices from several insurance companies. You should compare prices from at least three different insurance companies. Shop around in your local area to get the most accurate quotes.
- Cancel coverages you no longer need or insurances you don’t use, such as roadside assistance.
- Contact the Indiana department of motor vehicles to see if your state offers any low-cost coverage programs.
Knowledge about auto insurance can bring peace of mind and freedom to your everyday life. A few minutes of research can mean the difference between carrying the right coverages and being drowned in financial responsibility. Quotes are simple, easy, and can be done completely online. Head to your insurance provider’s website today to get your free auto insurance quote.
Check this out if you need additional information, resources, or guidance on car insurance.
Sources:
Car and Driver Car Insurance Hub | caranddriver.com
Indiana Car Insurance Laws | thezebra.com
Indiana car insurance laws | bankrate.com
Indiana Auto Insurance Requirements | nolo.com
Indiana Auto Insurance Guide | einsurance.com
Can Married Couples Have Separate Car Insurance? | caranddriver.com
Insurance Claim Process for Car Accidents | caranddriver.com
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