Indiana Car Insurance

indiana

The Indiana Bureau of Motor Vehicles, like most states, has specific rules governing the registration and operation of cars and trucks. The state of Indiana has several methods drivers can use to prove financial responsibility, or to prove they can compensate others if they cause an accident. At CarInsuranceReviews.com we aim to provide you with as much information about Indiana insurance laws as possible so that you can make an informed decision.

Indiana’s Financial Responsibility Guidelines

Financial responsibility is the term that refers to your ability to pay for damages you would be responsible for if you were to cause an accident. In Indiana, you can prove you are financially responsible in one of 4 ways. You can:

  • Present the Bureau of Motor Vehicles with a valid surety bond;
  • Show the Bureau of Motor Vehicles that you have a trust fund valued at a sum of at least $40,000;
  • Make a cash deposit of $40,000 with the Indiana state treasurer; or
  • Purchase car insurance from a company licensed to do insurance in Indiana.

Most people, due to their financial situations, opt to simply purchase car insurance.

Minimum Coverage Limits in Indiana

The state of Indiana requires all drivers to purchase minimum coverage limits of at least $25,000 per person and $50,000 per accident in bodily injury liability coverage and $10,000 in property damage liability coverage. Indiana does not have no-fault insurance laws, which means you will be responsible for paying the damages you cause in any accident, regardless of its magnitude. With this in mind, it is important to consider increasing these limits if you can afford to do so. Otherwise, you may not actually have enough coverage to pay for all of the expenses associated with your accident.

The state of Indiana allows insurers to offer additional coverage options as well. You may find it necessary to purchase comprehensive or collision coverage to pay for damages you may cause to your own vehicle. If you are financing or leasing a car, your bank may require you to purchase those coverage options in addition to showing proof of liability insurance.

Those who have had excessive accidents or moving violations may not qualify for coverage from a traditional carrier and should instead apply for coverage through the Indiana Auto Insurance Plan. Information about these plans can be obtained from a state agency.

Indiana Penalties for Driving without Insurance

The penalties for driving without insurance in Indiana can be stiff, regardless of the reason you have no insurance. Anyone caught driving without coverage will be charged with a Class A offense and may receive a 90-day license suspension for the first offense. Subsequent offenses will result in longer suspension periods and each suspension will result in a higher fine to have your license reinstated, ranging from $150 to $300 or more. This is, of course, in addition to proving you have obtained insurance coverage.

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