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by Indiana Farm Bureau Insurance

How to choose your car insurance wisely

Photo of a mother strapping her baby in a car seat

Car insurance is mandatory in Indiana and can be complex to choose. Review our guide to find out how to choose your car insurance wisely and to determine how much car insurance you need.  

The Hoosier state is a great place to live and access to consumer-friendly auto insurance makes it even better. The average annual premium cost for auto insurance in Indiana is significantly less than the national average. This is a good thing for Indiana residents that don’t want to pay too much for their auto insurance. 

Indiana Farm Bureau Insurance offers auto insurance policies that are both reliable and customizable to your insurance wants and needs.  

Although Indiana residents don’t have to pay top dollar for auto insurance, it is still another expense to build into the budget. However, car insurance in Indiana is not an option; it is a legal requirement. You must have it in Indiana because state law mandates it.   

Indiana auto insurance law  

Indiana requires drivers to have car insurance when they operate vehicles. Indiana also has firm requirements for the minimum amounts of insurance.   

Indiana is an at-fault state. That means that whoever is responsible for causing an auto accident is financially liable for losses such as automobile damage, lost income and personal injuries resulting from the accident. Indiana law requires that drivers carry liability insurance to cover the expenses. This requirement has mandated minimums which are:

  • $25,000 per person/$50,000 per accident for bodily injury coverage  

  • $25,000 for property damage coverage  

The Indiana Bureau of Motor is required to verify that all motorists have the minimum liability insurance coverage in effect whenever a vehicle operator is involved in an auto accident resulting in an accident report.

Consequences of driving without car insurance in Indiana 

Indiana is not very sympathetic
 to anyone who does not have car insurance. The first offense for driving without insurance is a driver’s license suspension of 90 days and a $250 reinstatement fee. The driver must have an SR-22 certificate, which shows financial responsibility, for three years.  

The penalty may get harsher with every new offense. If a driver has three offenses, there is a $1,000 reinstatement fine, suspension of the driver’s license for one year and suspended registration for one year. The SR-22 certificate must be carried for five years.  

Although car insurance is mandated in Indiana there are still individuals that don’t abide by the law. That is a problematic situation for many drivers, because driving without insurance can result in many unwanted consequences.  

Losing a driver’s license can affect a person’s employment, as a one-year suspension can lead to being terminated because the driver cannot get to work. Some people try to risk not having insurance, thinking it saves money. But the penalties for not having insurance are simply not worth the risk.  

Not enough insurance or underinsured?  

Insurance policies in Indiana must have UM coverage of $25,000 for bodily injury for one person and $50,000 for two or more people in one accident. In addition, property damage of up to $25,000 is included.  

Indiana statute also deals with underinsured motorist coverage (UIM). Bodily injury is covered up to $50,000 for one person if the at-fault driver does not have sufficient insurance to cover the damage. 

UM and UIM coverage both sound reassuring, but there is a catch. The maximums may not be enough to cover expenses that come with bodily harm. For example, a severe back injury may require surgery and months of physical therapy. What you must pay out of pocket could be substantial, and there is a chance you may have to win a personal injury lawsuit to recover those added expenses.  

There is also the possibility that you do not have enough of the right coverage. Car insurance in Indiana includes several products that can be important for your financial wellness. Comprehensive coverage is intended for mishaps that are unrelated to a regular accident, such as hitting a deer in the middle of the road.  

Perhaps too much insurance?

Being “insurance poor” is often mentioned in connection with life insurance but it can also surface in car insurance products. This means that you may have more insurance than you need, and the premiums you are paying are putting a burden on your personal finances.  

An example is having collision insurance on an old car that has little value. A buyer pays more for not understanding car insurance and, consequently, gets more coverage than is practical. It helps if there is someone with in-depth knowledge of insurance to serve as an advisor, which could be an Indiana Farm Bureau Insurance agent.  

Indiana insurance agents are seasoned professionals    

The best partner a consumer can have when buying coverage is a licensed Indiana insurance agent.  

An insurance agent in Indiana can take an informed look at what a person doesn’t have, already has and what they need and can make suggestions on what type of insurance is necessary, and how much coverage they should purchase. There are many discounts at Indiana Farm Bureau Insurance that customers can take advantage of. Policyholders can save up to 23% when they bundle certain insurance policies including auto and home or auto and renters with the Multi-Line Discount.   

At Indiana Farm Bureau Insurance, we want to establish a long-term relationship with a policy holder. It makes it easier for the latter to adjust coverage as time goes by and insurance needs change. It is the type of partnership that provides considerable long-term benefits.   

Going into the car insurance market unprepared can be a very risky business. It makes sense to work with an insurance agent to get the right kind of policy, one that meets the expectations of Indiana law and at the same time gives the right amount of protection. 

*The information in this article was compiled from a variety of sources and is intended to provide helpful tips only.