Indiana Auto Insurance State Required Minimums, Noncompliance Fines

Indiana auto insurance prices varied a lot in the year 2009, with the median average cost of auto insurance in Indiana starting at $1,607 in January, and as of August 2009 the state average was $1,794. Since last year at this time Indiana has seen an increase of over 30% in the average cost of auto insurance, which is a good reason to do everything possible to receive the discounts that you qualify for as well as improving your credit and your driving record to receive better rates. You should also get car insurance rate quotes every year to ensure you are paying the lowest rates possible.

In Indiana, the state has minimum insurance requirements for their drivers. As with all states, there are penalties for driving without auto insurance. If you are pulled over for a traffic violation or you are in a car accident and you do not have proof of insurance, the police officer will inform the DMV who will then take steps to revoke your license and pull your vehicle registration.

The fee to reinstate your license and registration is $150 for the first offense, $225 for the second, and $300 for each offense thereafter. Indiana state law also allows for up to $10,000 in fines for uninsured drivers if they are convicted of a misdemeanor for driving without auto insurance. Unlike many other states, Indiana does not jail people for driving without auto insurance; however, driving without Indiana auto insurance clearly has its consequences.

The minimum required Indiana auto insurance coverage is bodily injury liability in the amount of $25,000 for a single person, bodily injury liability $50,000 for more than one person and property damage liability of $10,000 per accident. It is up to you to determine if this is enough coverage based on the vehicle that you drive and the area that you live in. Since Indiana is a tort state, if you are found to be the cause of a car accident and your insurance does not fully cover all of the costs, then you will be liable for the remaining costs incurred by the accident. It is often more affordable to pay an extra $20 a month for additional coverage than it is to pay $20,000 to $30,000 dollars out of pocket for damages your insurance does not cover.

If you are an Indiana resident and you want to know how to save money on your auto insurance you ought to consider taking some of these steps.

  • Improve your driving record by taking a defensive driving or other type of course.
  • Decrease the miles you drive to reduce your risk of having a car accident.
  • Improve your credit score by repairing errors.
  • Remove teen drivers and other high risk drivers from your policy (and don't let them drive your vehicle).
  • Get a higher education.
  • Purchase a vehicle that costs less to insure.
  • Piggyback auto policy onto homeowner's.

Don't be caught without a valid Indiana auto insurance policy because you could pay a lot more than just fines to the state. You could lose everything if you cause a car accident and you do not have the insurance that you need to coverage damages.

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During the last 12 months, Indiana auto insurance prices have increased by more than 30%.

In addition to losing your license, although you will face no jail time, you will be issued up to $10,000 in fines for driving without a valid policy for Indiana auto insurance.

Check additional valuable information of your State Insurance department organization.
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