Auto insurance helps to protect you from financial disaster in the event that you are involved in – or are the cause of – a serious automotive accident. By paying your insurance premiums each month, you have the assurance that, should you be involved in an accident, your insurance will help cover the costs associated with damages and medical treatment. 

However, each state has its own rules when it comes to insurance requirements and claims. There are two types of insurance systems in the United States: no-fault and fault-based systems. In a no-fault system, each driver claims against their own insurance policies in the event of an accident. In a fault-based system, the person who is assigned responsibility for the accident is also responsible for paying for any damages that result from it. 

Indiana has a fault-based system, providing you with three choices if another driver causes an accident in which you are involved. You can: 

• File a claim with your insurance company, who will then pursue the at-fault driver’s insurance company for reimbursement. 
• File an insurance claim directly with the insurance company that covers the at-fault driver. 
• File a personal injury lawsuit against the driver responsible for the accident.  

Fortunately, all motorists in Indiana are required to have some level of auto insurance. To make sure drivers take this law seriously, Indiana has penalties in place for non-compliance. For example, if you are found driving without insurance, you will be fined, and you could even have your license suspended and be required to carry an SR-22 certificate for up to five years. In addition, if you are involved in an accident in Indiana and you do not have auto insurance, you will be held personally liable for any damages caused by your actions. That means the other driver could sue you and, if the judgement is made against you, they can go after personal assets such as investments and even your home.   

 

Three Types of Automobile Insurance Coverage You Need to Know About if You Live in Indiana 

While the state of Indiana only requires liability coverage as a minimum, there are several other options you should consider if you want to be fully protected in the event of theft, loss, damage, or accidents.  

 

Liability Coverage 

Simply put, liability coverage protects you if you are the driver at fault in an automobile accident. It will cover the cost of repairs to both your vehicle and the vehicle you hit, cover any property damage caused by your vehicle, and help cover medical bills arising from the accident.  

In Indiana, you must have the following minimum liability insurance in place in order to drive in the state:  

• $25,000 per person for bodily injury 
• $50,000 per accident for bodily injury 
• $25,000 per accident for property damage 

This mix of coverage is typically known as the 25/50/25 rule among Indiana insurers. While these numbers represent the maximum payout under this coverage level, you may choose to increase these to limit your liability even further.  

 

Collision Coverage 

Collision coverage is not required in Indiana, but it provides protection for your vehicle regardless of whose fault the accident is and will provide coverage if you hit a person, an inanimate object, or another vehicle. It does not cover you if you hit an animal, but it will cover damage caused by potholes in the road. Typically, this policy will reimburse you for the cost of repairing your vehicle, minus the cost of your chosen deductible amount.  

 

Comprehensive Coverage 

To keep yourself protected against damages arising outside of collisions, you will want to add comprehensive auto insurance coverage to your policy. Comprehensive coverage provides protection from damages caused by things such as: 

• A broken windshield 
• Vandalism 
• Impact from animals 
• Natural disasters 
• Car theft, in whole or in part 
• Fallen objects 

Comprehensive coverage even protects you and your vehicle in the event of fire and riots. 

 

Let Us Take the Anxiety Out of Driving in Indiana

Driving can be an anxiety-inducing experience, particularly if you are involved in an accident. To put your mind at ease, make sure you have the minimum liability coverage required in Indiana, the 25/50/25 mix. However, as experts who have been in the automobile insurance industry for almost 80 years, we like to help our clients stay as protected as possible in the event of an accident.  

Our insurance experts can help you sort through all your auto insurance policy choices to determine the right coverage to fit your needs and your budget so that you can get on the road with peace of mind. We know that choosing auto insurance can be confusing, so contact us today to speak with one of our knowledgeable team members and get protected now.