Why It’s Needed Accidents are expensive Car theft is common It’s required by law (in most states)
Indiana State Insurance Requirements In Indiana one has to buy a State minimum liability coverage of $25,000/$50,000/$10,000. These amounts stand for coverage one has to buy of: at least $25,000 worth liability coverage for bodily injury to 1 person. at least $50,000 worth liability coverage for all bodily injuries. at least $10,000 worth liability coverage for property damage.
Indiana State Insurance Requirements The IN Dept. of Insurance notes that each newly written Indiana auto liability policy must include uninsured and under insured motorists coverages, unless you reject this in writing. Minimum liability limits are: Uninsured Motorists: Bodily Injury: $50,000 Property Damage: $10,000 Under insured Motorists: Bodily Injury: $50,000
Indiana State Insurance Requirements A person who operates a vehicle in Indiana without an automobile liability insurance policy in effect is: Subject to a 90 day driver license suspension or a one year suspension if it is a repeat violation in a three year period. In order to obtain a reinstatement of the license, the person must pay a reinstatement fee of $150, $225, or $300 depending on whether it is a first, second, third or subsequent offense, and provide current proof of insurance signed by an agent or representative of the insurance company.
Types of Coverage Collision – Covers damages to your car after an accident Unless it was someone else’s fault Comprehensive – Covers your car damage for things unrelated to accidents Car fire, theft, debris damage, missile attacks, etc. Liability – Covers damage and injury to other people caused by you – Required by most states Medical Payments/Personal Injury Protection – Pays for medical costs of injuries that occur in a vehicle Unless it was someone else’s fault Uninsured/Underinsured – Covers your injuries when you have an accident with someone who doesn’t have insurance or insufficient insurance Assuming it was their fault
Auto Insurance Lingo Liability coverage is displayed in a 3-number format – 50/100/25 What does it mean? 50 = $50,000 coverage for one person inuries 100 = $100,000 coverage for all injured people 25 = $25,000 for property damage
Factors that Determine Your Insurance Rates Amount of coverage – Higher coverage amounts = higher premiums Deductible – Higher deductible = lower premiums Age – Under 25 = higher premiums Gender – Male = higher premiums Driving record – Previous accidents = higher premiums – Traffic violations = higher premiums Type/Age of vehicle – More expensive car = higher premiums
Insurance Discounts Anti-theft devices Good driver (accident free) Good student Married Multiple lines of insurance with the same company
In Case of an Accident… Write down contact and insurance info for anyone else involved Call your insurance company DO NOT DISCUSS THE DETAILS OF THE ACCIDENT! – Don’t admit fault or blame others
Quick Review 1.Why is it important to have car insurance? 2.What type of coverage is required by most states? 3.If your liability coverage is 100/300/100, how much are you covered for damage you cause to someone else’s property? 4.How will your premiums be affected if you have low deductibles? 5.What should you NOT do after being involved in an accident? Accidents are expensive, car theft is common, required Liability $100,000 Higher premiums Admit blame or blame others