Indiana Auto Insurance

Indiana is a relatively inexpensive state for purchasing auto insurance. It requires the following types of coverage:

• At least $25,000 of Bodily Injury Liability for one person
• At least $50,000 of Bodily Injury Liability for all bodily injuries
• At least $10,000 of Property Damage Liability for property damage

Bodily Injury Liability

Bodily Injury Liability (BIL) reimburses the other party involved in an accident for medical expenses, child-care expenses, and income lost during recovery. It only applies to when you or a dependent on your policy directly causes an accident. These expenses can get quite high depending on the severity of the accident, so it is a good idea to purchase more than just the minimum amount of $25,000/$50,000.

Property Damage Liability

Property Damage Liability (PDL) takes care of car repairs and other property belonging to the other party in an accident you or your dependents cause. Again, $10,000 will often be insufficient in many accidents, so you should purchase at least double that amount for solid coverage.

Other Recommended Types of Insurance

Since Indiana does not mandate the purchase of personal auto coverage, you should purchase Personal Injury Protection (PIP), or Medical Expenses coverage, to provide for yourself and your loved ones in case you are injured in an accident. Many Indiana residents purchase at least $10,000 of PIP to reimburse their medical expenses, lost income, and even funeral costs.

Indiana residents also insure their cars’ survival by purchasing Collision Coverage and Comprehensive Coverage. Collision Coverage reimburses car damages following a car-to-car collision, and Comprehensive Coverage reimburses car damages caused by storms, vandalism, and collision with roadside objects. Both these types of coverage are typically paid by selecting as large a deductible as you feel comfortable purchasing out of pocket.

You should also purchase Uninsured/Underinsured Motorist Coverage that pays for damages suffered by you and your passengers on account of an uninsured driver. This coverage is becoming more and more crucial due to the large amount of drivers who lack insurance. You should purchase the maximum limit as specified in the terms and conditions of your insurance policy.

Indiana’s Financial Responsibility Laws

You will need to provide proof of state-required insurance when you are involved in an accident or road violations. In either case, the report you file will be sent to the Bureau of Motor Vehicles (BMV), who will contact your insurance company for policy information. If the insurance company does not send the information, the BMV will send you a certificate of compliance, which you will have to fill out to prove your financial responsibility.

The Indiana BMV specifies a limit of 40 days for returning this certificate. Yet, it is best to return it within 30 days because it usually takes the BMV a week to verify the certificate. If you fail to return the certificate within the 40-day timeframe, the BMV will suspend your license for 90 days.

Furthermore, you will have to present proof of financial responsibility if you are involved in one of the following traffic violations:

• You have committed a violation classified as a misdemeanor or felony
• You have had two other moving traffic violations in the past 12 months for which points were given
• You have previously had your license suspended for failing to show proof of financial responsibility

Reinstatement Fees

The penalties don’t stop once you face suspension of your license. The first time your license is suspended, you will have to pay a $150 reinstatement fee to reclaim it after the 90-day suspension period. If you are a repeat offender, you will have to pay a higher reinstatement fee of $225 and endure another 90-day suspension period. If you repeat this offense two more times, you will pay $300 each time, plus go through the same suspension periods. Furthermore, if your license is suspended twice within three years, you will lose your license for one year.

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