Minimum Insurance Standards when Driving in Indiana

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

Laws and Regulations to Consider

Indiana requires all drivers to purchase liability protection. Driving without the required minimum liability protection is against the law and may cost you your license. The minimum liability insurance requirements are 25/50/10. In other words, drivers must carry $25,000 of liability protection 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 promote peace of mind. 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.

Physical Damage Considerations

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 that protects the vehicles of others, these coverages protect your vehicle from losses resulting from an accident. For example, collision protection 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 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, the state has gotten closer and closer to surpassing the national average for policy rates in recent years. Some experts attribute this rise to Indiana's growing population density and high traffic in certain areas of the state.