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Indiana Auto Insurance Coverage

There are several types of automobile insurance available in Indiana. While some types of insurance are required for all drivers in the state, other types are completely optional. If you are driving in the state, it's important that you're aware of what kinds of insurance are out there, so you can decide which types you need.

Knowing what is available for car insurance in IN will also help you save money. If you know what you need, you won't be susceptible to vehicle insurance agents who try to upsell you or sell you insurance in types and amounts that you don't need. You also won't spend money on insurance just because it sounds like a good idea. In fact, you will only spend when you know what a type of insurance covers and have decided that you need and can afford it. Thus, knowing what you're looking for is the first step toward saving money on auto insurance

Basic Auto Insurance in Indiana

The most basic type of automobile insurance available in the state is liability insurance. This is insurance that covers the damages of people who are not at fault in an accident you cause. Even if you are a very safe driver, you will need to carry this type of insurance because the state requires it. The penalties for being caught without it will cause you more difficulty as an Indiana motorist than simply purchasing the insurance and keeping up with your premiums.

Liability insurance comes in two types. The first of these is bodily injury liability insurance. In a standard case, this type of insurance covers the medical bills of anyone who is injured in an accident you cause. These can range from very inexpensive to incredibly costly. In other cases, this type of insurance will also cover the funeral costs for someone killed in an auto accident that you cause, and will often cover some percentage of lost wages and home health care for someone whose injury is very serious.

The second type of liability insurance is property damage liability. This insurance covers the costs of repairing or replacing property in an accident you cause. Normally, the property being fixed or replaced is a vehicle, though it will also cover damage to buildings, landscaping, fences, signs, etc.

Note that, while the state of Indiana requires certain minimal amounts of these types of insurance, you can also choose to carry these in higher amounts. This offers you more protection. If you are in a car accident where someone is seriously injured or an expensive vehicle is destroyed and you are determined to be at fault, the expenses could easily exceed the minimal amount of insurance the state requires you to have. It's possible that a court could then find you personally responsible for the balance of the expense. Unless you have a significant amount of money sitting around somewhere, this could put you in a difficult financial situation. Thus, if you have a little extra money, you may want to purchase higher amounts of liability insurance.

Other Auto Insurance in Indiana

Beyond liability insurance, there are also several other types of coverage offered in IN. Though these are not mandated by law, many motorists choose them for the financial protection they offer. Feeling safe and secure and knowing that any sudden expenses will be covered by an insurance company is worth the price of the premium for many drivers.

Physical damage insurance is one of the most common of these other types of insurance. This is a broad category of automobile insurance that covers any damage done to your car so that you do not have to pay to repair or replace your vehicle yourself. Note that most physical damage insurance comes with a deductible, which is an amount you must pay before the vehicle insurance company will pay anything. The higher your deductible, the lower your premium will be. Thus, it can be beneficial to get quotes for physical damage insurance at several deductible levels so you can choose which one is best for you.

Physical damage insurance usually comes in two subcategories. The first of these is collision insurance. Like its name implies, collision insurance covers the cost of repairing or replacing your vehicle if you are in an accident and the damage is not covered by another motorist's insurance or the other motorist does not have enough insurance. If you do not have the money to repair or replace your vehicle on your own in case of a bad accident, this type of insurance might be a good choice for you.

The second type of physical damage insurance available in IN is comprehensive insurance. This type of insurance covers any damage to your car that is not done in an accident. It usually includes damage done due to an act of God, like a storm or a tornado, as well as vandalism and accidental damage. In addition, this is the type of coverage that will help you the most if your vehicle gets stolen.

While neither type of physical damage insurance is required by the state of Indiana, both can be required by contract if you are leasing a car or are paying off a loan on the vehicle. Because they protect the interests of the loan or leasing company, certain amounts of both collision and comprehensive insurance are usually written into these sorts of contracts. Based on your contract, the company can either revoke your lease or loan if you do not purchase the insurance, or they can purchase it for you and bill you accordingly. Since the state of IN will honor these contracts, it is in your best interests to purchase the insurance required of you.

In addition to physical damage coverage, car insurance companies in Indiana offer uninsured and underinsured motorist coverage. These policies will pay your medical bills and those of the passengers in your vehicles, up to a certain amount, if you are injured in an accident that is not your fault and the other driver either does not carry the required insurance or does not carry enough insurance to cover your damages.

While no one wants to imagine themselves in a situation like this, these things do happen. Thus, it is important to consider purchasing these types of insurance even if you don't want to think about such a situation.

Medical payments insurance is similar to uninsured and underinsured motorist coverage in that it covers the medical bills of you and your passengers in case of an accident. However, most of these policies will cover medical bills whether or not you are at fault in the accident, and will often pay immediately instead of reimbursing patients or tying up the money in a legal battle.

The above list includes all of the major types of automobile insurance available to Indiana drivers. If you have further questions or need more clarification, be sure to check with an auto insurance professional before you make any purchases. That way, you can be sure to save as much money as possible by only getting the types and amounts of insurance that you need.


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