Indiana Car Insurance Guide

In some states, auto insurance policies are so reasonably priced that there is no excuse not to carry adequate coverage. As the ninth-cheapest state in the U.S. for auto insurance rates, Indiana is one of those states. The average auto insurance expenditure in Indiana for 2006 was $631, compared with the national average of $817. With rates so low, Indiana residents can easily afford the state's minimum liability insurance requirements as well as optional coverages like collision and comprehensive. In this post, we'll tell you more about Indiana car insurance laws and explain the basics of an auto insurance policy.

Indiana Car Insurance Laws

Indiana requires all drivers to purchase liability insurance. Driving without the required minimum liability protection is against the law and may cost you your license. The minimum liability insurance requirements for Indiana are 25/50/10. In other words, drivers must carry $25,000 of liability coverage for injuries suffered by one person, $50,000 for injuries suffered by two or more persons, and $10,000 for property damage. Keep in mind that these are only the minimum amounts required; most drivers will need to purchase much more liability coverage to protect themselves properly. Keep a copy of your proof of insurance card in your car at all times to show in the event you are pulled over. You can receive a ticket for failing to carry proof of insurance.

Physical Damage Coverage

Physical damage coverage is not required by Indiana law, but it is a good idea to purchase it nevertheless. Unless your car has no cash value, you should add collision and comprehensive to your policy. Unlike liability coverage that protects the vehicles of others, these coverages protect your vehicle from losses resulting from an accident. For example, collision coverage will pay for your car's repair or replacement if it is damaged in a covered accident. Similarly, comprehensive coverage pays to repair or replace your vehicle if it is stolen, damaged by weather, or harmed in almost any event unrelated to a collision.

Explanation of Costs

In 2005, the National Association of Insurance Commissioners reported that the average Indiana resident spent $372 per year on liability protection, $266 on collision, and $120 on comprehensive. However, recent data indicate that rates are going up, especially in Indiana. In fact, Indiana has gotten closer and closer to surpassing the national average for car insurance rates in recent years. Some experts attribute this rise to Indiana's growing population density and high traffic in certain areas of the state.