Indiana Auto Insurance

Guide to Indiana Auto Insurance

Indiana drivers have growing concerns on the road. Traffic fatality rates in the state rose from a low of 11 per 100,000 people in 2014 to a 10-year high of almost 14 per 100,000 in 2017. The fatality rate was 13 per 100,000 people in 2020. No insurance policy can replace a family member lost in an auto accident. However, purchasing Indiana auto insurance can help protect your family against the economic consequences of a serious auto accident.

Indiana Driving Conditions

While most injuries and fatalities occur on urban roads, the rate of fatal crashes is higher in rural areas. In 2020, 28% of all traffic fatalities happened on rural roads, compared to 14% of nonfatal injury accidents. This contributed to a fatality rate of 7.6 people per 1,000 people involved in collisions in rural areas versus a rate of 2.1 per 1,000 for urban areas. This suggests that while overall, fewer accidents happen in rural areas, the accidents that do occur tend to be more severe.

Alcohol was a contributing factor in 29% of traffic fatalities in the state in 2019 with 26% of all drivers in fatal collisions being legally impaired. In those collisions, drivers of pickup trucks were the most likely to be impaired, at 34%. and drivers of passenger cars were the second most likely, at 25%. 

While the number of speeding drivers involved in traffic accidents declined from 2019 to 2020, the number of fatal collisions that involved a speeding driver rose to a five-year high. Additionally, while speed was only a factor in 9% of the state's collisions, it played a role in 25% of the state's fatal collisions, suggesting that accidents involving a speeding driver tend to be more severe.

Accident rates vary by county, with Jackson, Marion, Madison and Franklin counties having some of the worst accident rates. Jasper, Putnam, Shelby and Rush have some of the state's lowest accident rates.

Types of Indiana Auto Insurance Coverage

Because Indiana requires each driver to have auto liability insurance, some drivers just purchase the minimum required coverage.  However, doing places those drivers at a much higher financial risk if they cause a serious accident.

Liability Insurance

This required coverage comes in two types.

Bodily Injury Liability

If your or someone you allow to drive your car causes an accident that injures someone, bodily injury liability coverage pays for the damages you are legally obligated to pay. This includes awards for medical bills, lost wages, pain and suffering and other expenses.

Property Damage Liability

This coverage works the same as the bodily injury portion but instead pays to repair or replace someone else's vehicle or other property. It will not pay for damage to any property that you own.

Uninsured and Underinsured Motorist Coverage

Insurance companies must offer you these coverages, but you can decline them in writing. They pay for injuries and property damage that someone else causes but cannot pay because they do not have enough insurance or do not have any insurance. 15.8% of Indiana drivers were uninsured in 2019.

Collision Coverage

This optional coverage pays to repair or replace your vehicle when you are in an accident, whether or not the accident was your fault. A deductible usually applies. 

Comprehensive Coverage

If something other than an accident damages your vehicle, such as weather, animals or theft, this optional coverage pays to repair or replace it. A deductible usually applies.

If your car is financed, the lender will likely require Collision and Comprehensive coverages

Medical Payments

This optional coverage pays for the medical expenses of the driver and passengers in your vehicle, regardless of who caused the accident. It does not provide coverage for lost wages and other expenses.

Indiana Minimum Insurance Requirements

Indiana drivers must purchase at least these minimum amounts of coverage to legally drive or own a vehicle in the state:

•       $25,000 per person and $50,000 per accident bodily injury liability coverage

•       $25,000 per accident property damage liability coverage

Insurance companies must also offer you a minimum of $25,000 per person and $50,000 per accident bodily injury and $25,000 property damage coverage for uninsured motorists. They must also offer you a minimum of $50,000 per person and per accident underinsured motorist coverage. However, you can decline to purchase this coverage in writing. 

Average Cost of Indiana Auto Insurance

Indiana drivers pay an $1,250 for full coverage. The national average is $1,675 per year for full coverage.

Getting a quote can help you find the lowest rates. You can easily compare multiple auto insurance companies by requesting Indiana auto insurance quotes from VIU By HUB.

Factors That Affect Indiana Auto Insurance Rates

Different insurance companies calculate rates in different ways based on various factors.

Location

Where you live can make a big difference in how much you pay for auto insurance. Urban drivers tend to pay more than those located in rural areas.

Age

Younger drivers pay higher rates, particularly if they have their own policies instead of being on their parent's policy. The average yearly premium that an 18-year-old driver pays drop as their age gets closer to age 25. Drivers continue to see a more gradual decline in rates as they get older until they reach their 70s, when the rates start to go back up due to age-related risk factors.

Driving Record

Moving violations and accidents will usually cause your rates to go up. A speeding ticket can increase your premium by 20% and a DUI may cause a 50% increase. Accidents cause rates to go up by about 30%

This information is intended for general informational purposes only and is not intended to constitute legal advice.

Sources:

Indiana Crash Facts

Insurance Information Institute