Indiana Auto Insurance Laws and Compliance Regulations

By law, drivers in the state are required to carry Indiana auto insurance or have the equivalent available as a means of proving financial responsibility. The law is designed to ensure that drivers who are found to be at fault for an accident will be able to provide the minimum amount of restitution. This does not mean you have to carry a policy if you can meet other requirements.

Can I Be Self-Insured?

You do have the right to be self insured. This would mean that you must be able to provide a $40K bond or have that amount in cash held by the state government. This is a significant amount of money and it does not protect you from being at the receiving end of a lawsuit. It actually just makes more sense to find a good company and buy coverage that will offer you greater protection.

Liability Coverage is Vital

Regardless of your financial situation, having adequate liability coverage is vital.

Liability coverage does more than just cover the immediate expenses associated with ambulance transport, emergency room admission, and other medical services that are provided.

• The industry actually put liability on policies so that medical teams did not have to worry about gathering medical coverage information to determine a patient’s eligibility for certain medical services.
• It is an indication that you are covered and the medical bills will be handled.

• Today, liability coverage is required by law to protect other drivers. It guarantees them financial compensation for injury and property loss.
• Medical expenses are covered.
• Repairs to the vehicle, or a new vehicle if the one involved in the accident has been declared totaled, is also written into the policy.

How is Coverage Paid Out?

In order for the coverage to be paid an investigation or admission of fault must take place. It is always best to avoid admitting fault simply because you may not be completely aware of what happened. Most financial responsibility cards will advise you not to admit fault.

• Allowing an investigation to continue will provide clear evidence of what really happened. If you wrongly perceive that you are at fault and admit as much, the underwriter of your policy will most likely have to pay the claim.

Penalties for Lapse in Coverage

Any lapse in coverage is a violation of the driving laws in the state. The penalties for getting caught escalate with each offense.

1. You can find that you are to serve an immediate suspension of your driving privileges for three months.
2. Each offense will require you to pay an escalating reinstatement fee.
3. Getting your policy reinstated can cost you as much as 50 percent of the premium as a penalty surcharge.

Compliance with Indiana auto insurance laws is easy provided that you work with a quality company that offers competitive rates. With personal budgets shrinking it may be tempting to drop a policy to save some money. This is a bad idea. You can have all the legal requirements met in a simple and affordable manner. Basic coverage keeps you and other drivers on the road safer in the event of an accident.

Are you looking for the best rate possible for the coverage you need?  The only way to do this in your area is to search our directory of local auto insurance agents or to compare auto insurance quotes from multiple providers. Look around our site, learn about different insurance products, and find local agents or national companies by entering your zip code into one of our convenient forms located on every page.