Indiana has set forth a Financial Responsibility law. This law requires that anyone operating a vehicle in the state will be required to carry minimum amounts of liability coverage at all times. It is against the law not to carry the state required insurance, and there are severe penalties that can result for failure to comply with the requirements.
25/50/10 coverage is required. These are the amounts the auto insurance companies agree to be responsible for in an accident caused by a policy holder. This means the auto insurance company will pay up to $25,000 in Bodily injury fees to 1 person injured in an accident. The policy sets a limit of $50,000 in bodily injury claims for 2 or more people injured in an accident. State required coverage also insures up to $10,000 in Property Damage coverage. These amounts are minimal, and can always be increased to better protect you.
Collision coverage is not required by the state, but is a policy that comes highly recommended. Collision coverage will pay to repair the damages to your automobile as a result of an accident. Many people are unaware that basic policies will not cover costs of their car, and are left with thousands of dollars in repairs. Collision coverage offers protection, up to the Kelley Blue Book value, of the vehicle.
Uninsured motorist coverage is also recommended. This type of insurance offers protection if an accident occurs with a person who does not have auto insurance on their vehicle, or do not have enough coverage to cover the total cost of damages.
No matter whether you choose adding these policies or sticking with the state required coverage, it is important to insure that your coverage never lapses. Fines and the suspension of your drivers license for up to one year can be imposed for failure to maintain insurance at all times.
Shopping around for auto insurance is always in your best interest. Comparing rates between 3 or more companies ensures you receive the best auto insurance for your needs. Use a site such as www.esurance.com to receive free, no obligation quotes from several of the top companies in your Indiana town.It takes only a matter of minutes, and can help you find the policy best suited for you. It is quick and easy and you will be glad you did your homework when you save hundreds of dollars on your auto insurance premiums every year!