The Ins and Outs of Indiana Auto Insurance
The majority of states in America have state-mandated auto insurance requirements that drivers must comply with. The Indiana Department of Insurance sets guidelines including minimum policy amounts and consequences for not having coverage within that state. Understanding the insurance requirements for Indiana auto insurance can help you avoid costly consequences if you live there, or plan on driving through.
In the state of Indiana, bodily injury liability coverage provides payments for pain and suffering due to injuries for everyone except the policyholder-in the event the policyholder causes a traffic accident while he or she is operating a vehicle. The policy will have limits on how much it will pay out for each person and a total it will cover per accident. Once those limits are reached, the injured parties must recover any further damages from the driver personally.
Property damage to all property except the offending driver’s is also covered with a liability only policy. This can mean payment for vehicle repair, replacement cars or repairs to structures, landscape, windows or any other property involved in the driver caused event. There are caps on what will be paid out per incident.
Indiana auto insurance liability policies also cover medical payments for all injured parties in the accident, including medical bills of the driver. It includes medical payments for injuries incurred getting in or out of a covered vehicle. The policy has limits to what it will pay for medical bills.
Collision insurance pays out all of the above, plus pays for the damage to the driver’s vehicle. In addition to car accidents, damages caused by theft, broken glass, fire or windstorms is also covered.
In some cases, collision coverage has a deductible, which is the amount the policyholder must pay before the insurance pays the balance of the damage costs. For example,
Vehicle insurance policies require drivers to include uninsured motorist and under-insured motorist as part of the plan. Drivers who do not wish to carry this coverage must sign a statement at the time of purchase that they do not wish to have such coverage.
Minimum liability caps for coverage in auto insurance plans include $25,000/$50,000 for uninsured motorists, $10,000 for property damage and $50,000 for under-insured motorists. In the event a policyholder is in an accident caused by an uninsured/under-insured motorist the driver’s own policy will pay for damages up to the policy limits.
For drivers who cannot qualify for traditional policies, due to poor driving records or other issues, they can apply for the coverage Plan. Every Indiana insurance company is mandated by state law to participate in this program that provides insurance for those with driving issues that prevent them from getting traditional auto coverage.
Indiana Auto Insurance Carriers Cancellation Requirements
Indiana law requires insurance carriers to file an SR-21 for policyholders that have been in accidents or gotten traffic violations. Carriers cannot cancel a policy without providing the insured with a minimum 20 day notice. The only exception to this is if the carrier chooses to cancel a policy within the first 60 days of insurance.