Indiana law requires that all drivers have minimum insurance coverage for their vehicles. In Indiana, a driver must carry at least $25,000 worth of liability coverage for bodily injury per person, and $50,000 for bodily injury per accident. All drivers must also have at least $10,000 of liability coverage for property damage per accident.
Unless you reject it in writing, each policy must also include uninsured and underinsured motorist coverage in the amount of $25,000 per person and $50,000 per accident for bodily injury and $10,000 for property damage.
Of course, many drivers also choose to purchase extra coverage, such as higher liability limits, comprehensive coverage, and collision insurance. These extra insurance policies help to mitigate the cost of an at-fault accident.
Anyone driving in Indiana without these minimum requirements faces a six-month license suspension and a reinstatement fee of $150 for a first offense. Subsequent offences increase the suspension time and the amount of the reinstatement fee.
Further, any accidents you cause while uninsured will not be covered by insurance, and you will be personally liable for those damages.
Indiana law requires that you show a valid insurance card on demand by any police officer or other official. Indiana insurance companies issue current insurance cards with each subsequent renewal of your insurance policies, so it is very important to renew your insurance promptly.
Car insurance in the State of Indiana averages $1,067.13 per year, about $600 under the national average. This average is derived from figures all across the state, but prices vary greatly from one city to another. For example, the average price for car insurance in Indianapolis is $1,331.37, while in Fort Wayne it is $1,347.33.
In more rural areas averages tend to be lower; for example, Bloomington’s average insurance price is $1,089. On the other hand, more industrial areas tend to have higher averages; Gary’s average is $1,622, one of the highest in the state.
Prices fluctuate depending on when you buy your insurance, as well. In the past year, Indiana has seen a great fluctuation in prices from a low of $868 in October of 2011 to a high of $1,068 in January of 2012. These increases are not necessarily due to fluctuations in the economy.
There is a definitely spike in automobile insurance prices in June, when summer begins and more people are traveling. Similarly, there is a gradual rise in price from the October low through January or February of the following year, which reflects an increase in claims due to snowy weather.
Insurance prices are always calculated based on risk and claim numbers; it stands to reason that more claims are filed in the summer, as people travel, and in the winter, when ice and snow cause more accidents.
Therefore, it may be wise to time your buying toward the beginning of spring or the beginning of fall if possible. However, even if you cannot time your purchase in this way, you can certain shop for a new policy or for a better price at any time you hold your policy.
Indiana’s top automobile insurance companies include some nationally-recognized groups and some which have a more localized sales area.
Companies which do a great deal of business in Indiana include Liberty Mutual, with $34.63 million a year in sales; Cincinnati Insurance, with $29.05 million in premiums; Motorists Mutual, which sells $12.54 million each year; Progressive Southeastern, with $105.84 million in sales; Allstate, with $126.42 million per year in premiums; Erie Insurance, with $68.57 million in sales; and Hanover Insurance, with $15.18 million per year in insurance sales.
There are also companies which provide specialized insurance coverage in Indiana. For example, The General is a company which specializes in providing insurance coverage to those who have difficulty obtaining it from regular sources. Drivers who are required to file an SR-22, for example, may find that many large companies will refuse to give them coverage.
An SR-22 is required by the State of Indiana when a driver has a DUI conviction, and is a statement on the part of the insurance company that it promises to provide coverage for the individual over a certain period of time. The SR-22 is often a condition of extending a restricted license to a convicted DUI driver. Although The General is well-known for providing this type of insurance, rates will likely be higher for this coverage.