In Indiana, having a car insurance policy is a must for all automobile owners. There are certain minimum set requirements for a car owner to comply with all the state laws, and you should educate yourself about these to avoid serious penalties and fines. To better understand how Indiana car insurance works, here are the basics you need to know.
Average cost of car insurance in Indiana
The National Association of Insurance Commissioners (NAIC) claim that the average person pays roughly $621.71 for car insurance in Indiana each year.
They broke this figure down to:
$362.97 is the average annual liability insurance expenditure.
$229.17 is the average annual collision insurance expenditure.
$112.35 is the average annual comprehensive insurance expenditure.
Young Drivers in Indiana
Our case study revealed that in the State of Indiana, young drivers can expect to pay the following car insurance premium averages:
- $989.2 for state minimum coverage1,
- $1918.8 for basic full coverage2 and
- $2613.2 for premium full coverage3.
There are many different factors that insurance companies take into account when calculating the rates they charge young drivers with. A driver aged 20 or below living in Rushville City, IN, with an estimated population of 6,077 (2015, latest data4), can get insurance for as low as $49 a month.
Female Drivers in Indiana
A 35-year-old female driver in IN can expect the following premium averages:
- $578.8 for state minimum coverage,
- $1035.2 for basic full coverage and
- $1435.2 for premium full coverage.
The information we gathered points out that women in Indiana have numerous opportunities allowing them to spend far less than young drivers. For instance, they can pay $411.10 less than what motorists aged 20 and below pay for state minimum coverage, $883.60 for basic full coverage, and $1,178.00 for premium full coverage.
Senior Drivers in Indiana
Our case study’s methodology5 involved using the data of a 68-year-old male driver with a driving experience of 45 years. We found that senior drivers in IN pay an average of:
- $578.4 for state minimum coverage,
- $986 for basic full coverage and
- $1347.2 for premium full coverage.
Because age-related health problems can put a senior motorist at greater risks of getting involved in road traffic accidents, it pays to have better coverage. Upgrading to the basic full increases the monthly premium average to $82.17, but doing so improves overall protection. The difference between the monthly average of a state minimum and a premium full coverage is $64.07.
Minimum car insurance requirements
Without the right amount of liability insurance coverage, you can expect the authorities to immediately suspend your driver’s license. You have to make sure your policy includes both the liability coverage and the uninsured motorist coverage.
Liability insurance coverage provides you with financial protection for any damage or injury you have caused to others during an accident. As long as you have the minimum requirements in your policy – $25,000 per person for bodily injury, $50,000 per accident for multiple/total bodily injury, and $10,000 for property damage – you can rest assure you remain in compliance with the state laws.
The second coverage type your policy should have, uninsured motorist coverage, helps you pay for injury-related expenses you have caused people without (or lacking in) insurance. The same minimum requirements as liability insurance coverage applies here. As for the minimum underinsured motorist bodily injury coverage, you should carry $50,000 per accident.
Upon purchasing a motor vehicle insurance policy, your chosen service provider may also offer you with many other coverage types. The optional coverage programs you can opt for include collision insurance, comprehensive insurance, medical payments insurance, rental reimbursement insurance, loan/lease gap insurance, emergency roadside service, and customized parts and equipment insurance.
Violations and Penalties
Operating an uninsured motor vehicle in the State of Indiana can deal you a lot of financial damage.
The laws in the state are so strict that even for just first time offenders, a 90-day up to a year of license suspension awaits them. Add to this the required reinstatement fee of $150, plus proof of financial responsibility (a three-year car insurance policy purchased on the date of the conviction), and you can see how expensive it can get.
Second and subsequent offenses within a five-year duration means having your license suspended for one entire year. To have your license reinstated after, you need to pay up $225. The authorities will also require you to show the same kind of proof of financial responsibility as first time offenders.
A third offense outside of the five-year duration from the first or the second time of conviction will result in a one-year license suspension. A fine of $300 apply for having your license reinstated, as well as proof of future insurance (same rules as first and second offenses).
Driving safety in Indiana
With the Centers for Disease Control and Prevention indicating that the percentage of motorists and front-seat passengers wearing seatbelts in Indiana is at 94%, the state exceeds the national average of 86%.
According to the National Highway Safety Administration, there were 821 driving fatalities in the state in 2015. 178 of these, or 22%, were caused by alcohol impaired drivers.
CDC also reported that this total number of fatalities, the state’s overall vehicle occupant death rate is at 8.1 per 100,000 residents.
Driving without (or even just inadequate) insurance coverage can quickly turn into a financial nightmare, what with Indiana’s extremely strict laws. So instead of risking yourself, your finances, and others, you should seriously think about purchasing a more extensive insurance policy.
|1||State minimum coverage includes the minimum liability insurance limits required in your state but excludes the following:
|2||Basic full coverage includes:
|3||Premium full coverage includes:
|4||Latest data: The U.S. census is conducted every 10 years as per requirement of the United States Constitution. The 23rd edition and the latest data is the 2010 United States Census. Source: https://en.wikipedia.org/wiki/2010_United_States_Census|
|5||Methodology: To achieve accurate results we obtained estimates for 10 cities in the state: 5 of the largest cities and 5 randomly picked smaller cities. For each city, we collected premiums for 3 levels of coverage: state minimum coverage, basic full coverage and premium full coverage. We used 3 different driver profiles for the case studies. For the young driver profile we used a 20-year-old single male or female with 1 year driving experience. Second, the profile fit that of a 35-year-old married female with 12 years of driving experience. The last profile we used in our studies is a male senior driver who was 68-year-old with 45 years of driving experience. The vehicle we used for all three driver profiles was a 2012 Honda Accord EX.|