What Every Driver Needs to Know About Indiana Car Insurance
Indiana is one of the states that requires every driver to establish financial responsibility before getting behind the wheel, but allows drivers to establish their responsibility without buying auto insurance.
It’s simple, really. Just deposit $40,000 with the State Treasurer. Or set up a trust fund with a balance of $40,000 or more assigned to the State of Indiana. Or you can even arrange for a $40,000 bond (which may cost you only slightly less than $40,000 when you include the value of property you will probably have to pledge to get the bond).
Or you can get auto insurance from an insurance provider licensed by the State of Indiana. The state manages its own Auto Insurance Program for people who are turned down by other insurers. But you will get less expensive coverage through any other insurance company in the State.
How Much Liability Insurance Do Drivers Need in Indiana?
The Indiana Bureau of Motor Vehicles (BMV) requires drivers to carry a 25/50/10 policy. This policy will pay up to $25,000 for injuries to one person, up to $50,000 for injuries to two or more people, and up to $10,000 for property damage, as the bare minimum. In Indiana, your policy must also guarantee payment when the other party is uninsured (didn’t obtain or maintain auto insurance) or underinsured (bought a policy in another state with lower limits). This makes Indiana auto insurance policies cost a little more but can save you financial devastation should you be involved in an accident with an uninsured or underinsured driver.
Keeping Tabs on Indiana Auto Insurance
Indiana insurers send your policy information to the Bureau of Motor Vehicles, updating it as you make payments, and also informing the state if your policy is canceled. If you are involved in an auto accident or you are pulled over for a traffic violation, the BMV will either confirm that you are insured or send you a request for a Certificate of Compliance. The Certificate of Compliance request gives you 40 days to prove that you were insured at the time of your traffic stop or the accident. And if you can’t prove you had insurance, certain penalties will apply:
You will lose your driver’s license and registration for at least 90 days. You can lose your license and registration for up to a year with your third offense.
You will pay a fine of $150 for your first offense, $225 for your second offense, and $300 for subsequent offenses.
You will have to obtain much more expensive SR-22 coverage when the time has passed so that you can drive and legally register your car again. (The SR-22 establishes that you have obtained an Indiana auto insurance policy. It is not to be confused with an Indiana SR-50 that establishes you had auto insurance on a specific date.)
It is a lot less expensive just to make sure you pay your premiums—or stay off the road. But there are ways you can save money on your Indiana auto insurance policy.
Saving Money on Indiana Car Insurance
The simplest way to save lots of money on car insurance in Indiana is never, ever to drive without having an active policy in force. You might be able to talk your way out of getting a ticket on the spot but the system will catch up with you later—with stiff penalties. And you can also save on your Indiana auto insurance by:
- Good driver discounts. Keeping a clean driving record. If you go for three years with no accidents and no tickets, you will get much lower rates.
- Good student discounts. Teenage and young adult drivers sometimes can get lower rates based on their GPA or college entrance exam scores.
- Passive restraint discount. Vehicles made after 1993 and equipped with air bags or passive restraints get lower rates in Indiana.
- Safe vehicle discounts. Many insurers offer lower rates for models of cars for which they seldom have claims.
- Defensive driver training. Completing either state-registered safe driving courses or insurance company-sponsored courses may get you significantly lower premiums.
And don’t forget to check out the rates you find on this site. On-line quotes are the efficient, low-pressure way to get you all the information you need to get the best deal on the Indiana auto insurance coverage you need.
