State of Indiana

Indiana, the Crossroads of America, has more highways per square mile than any other state. With all those roads to drive, you don’t have to be in the Indy 500 to worry about how much car insurance you need. Thankfully, you can expect to pay below the national average on your car insurance - but that doesn’t mean you shouldn’t shop around.

The Hoosier state requires that any motorists operating on the roadways must have a liability policy in effect at all times unless you’d prefer to deposit $40,000 with the DMV to prove financial responsibility. But with so many options for cheap car insurance, why would you want to?

So how much car insurance do you need? And what other coverage should you consider?

Indiana Car Insurance Laws

Every driver must have a liability policy that consists of two parts. Bodily Injury Liability Coverage pays for injuries to other people as a result of being at fault in a traffic accident up to the limits on the policy. Property Damage pays for any property damaged by the policyholder with their vehicle. The Indiana car insurance laws also require insurance companies to offer you Uninsured/Underinsured Motorist coverage, although it can be rejected in writing by the motorist. This coverage pays for bodily injury to you and your passengers if struck by a driver that does not have a policy or is underinsured. It will also cover an accident with a hit-and-run driver.

Indiana laws

The minimum required limits are:

Liability

$25,000 for bodily injury to one person

$50,000 for bodily injury to two or more people

$10,000 for property damage

Uninsured Motorists

$25,000 for bodily injury to one person

$50,000 for bodily injury to two or more people

$10,000 for property damage

Underinsured Motorists

$50,000 for bodily injury

The state also requires that drivers file an SR-21 or a Certificate of Compliance with their insurer following an accident or traffic violation. This is to prove financial responsibility for possible future incidents. Once you fill out your SR-21, it is your responsibility to submit the form to the Bureau of Motor Vehicles. Failure to comply can result in the loss of a driver’s license. Contact the Indiana Department of Insurance for more information on complying with the state’s requirements.

Other policies to consider

If you need coverage on your vehicle, liability insurance isn’t going to do anything for you. And uninsured motorist coverage will only protect you in circumstances where you were not at fault. Collision and comprehensive policies will cover your vehicle and a much wider variety of conditions, although they are subject to a deductible, unlike liability.

A collision policy will cover damages to your vehicle or windshield when you’re in an at-fault accident or if you hit a stationary object. Once you meet your deductible, your insurance company will cover the rest of the damage, up to the limit on your deductible.

Comprehensive coverage will pay to repair or replace your vehicle if you hit an animal, or from damage outside of human control like a storm or falling limbs. It will also cover theft and vandalism. You will have to meet your deductible first, and then insurance will pay the rest.

Indiana is a tort state, so that means injuries a driver sustains are only covered if another driver is at fault. Medical Payment covers expenses from any car-related injury you sustain, either by riding in a vehicle or getting into or out of one. If you have great health insurance, you might not be worried about medical payments. But if you’re riding with a “don’t get sick” policy, this option is definitely worth considering.

All of these policies will add on to the price of your premiums, but unless you have excellent financial health, you might not be in a position to afford an expensive car accident. If your insurance policy doesn’t leave you secure, then you’re not getting your money’s worth.

When to add other drivers to your policy

In many instances, your insurance policy will cover damages when someone else is driving your car, as long as they have your permission. But if someone related to you and living in your house is driving your car, and they aren’t listed on the policy, they might deny coverage. The best practice is to add anyone who might regularly drive your car to the policy,

Of course, adding a driver to your policy might increase your rates, especially if it’s a teen driver. But it’s usually a lot cheaper than buying a separate policy for that driver.

Comparing Indiana Car Insurance Online

The internet provides a fast and easy way to compare insurance premiums from multiple companies. By filling out an online form on a comparison website and submitting it, consumers will be able to compare rates from carriers that are approved to issue policies in their area in a matter of minutes. This method eliminates the time-consuming office visits and telephone calls.

The Department of Insurance doesn’t set rates, but companies must submit their rates and determining factors for approval to ensure fair practices. Because companies set their own rates, competition is a driving factor, and comparing rates will make sure you find the best price for your policy.

When making Indiana car insurance comparisons, you should have some information ready in order to speed up the process. Insurers need to know the below information to offer quotes, whether you’re shopping online or in the office. Here are the factors that providers are permitted to use:

  • Drivers age and sex
  • Marital status
  • Place of residence
  • Driving history
  • Claims history
  • Car usage (pleasure or business)
  • Type of coverage desired
  • Annual mileage
  • Vehicle year, make and model
  • Policy limits and type of coverage
  • Amount of Deductibles (if applicable)
  • Credit scores

Each car insurance company will weigh these factors differently when determining the risk of insuring you. Because they asses risk differently, the most effective way to find cheap car insurance policies is to gather rates from as many providers as possible. The easiest way to do this is by getting insurance quotes online without any obligation to buy. Customers worried about sharing their personal information online can rest easy: you won’t need to provide your social security number or driver’s license to get a quote.

The Bottom Line

In order to get the best deal on your car insurance, you must first decide the level of coverage you need. Only then will you get any value in comparing rates from various companies. Once you find a couple of policies that look good, find out what other discounts they offer that you might qualify for. Good student discounts, safe driving discounts, and accident forgiveness will all save you a lot of money in the long run.

Even if you already have a policy, it’s worth comparing rates. A lot of companies offer a discount for switching carriers, and they might weigh your personal factors more favorably. You can often save 20% a year by switching companies, even mid policy.

Once you find an insurance company that’s in your price range, you can sign up online and have proof of insurance in minutes. Drive safe, and rest easy knowing you’re covered in the worst-case scenario.