Cheap Car Insurance Quotes in Indiana – IN
Driving in Indiana means that people will need to be able to comply with the Financial Responsibility Law. The possibility always exists that anyone driving an automobile can cause a collision and injure others and damage their property. According to the law, these people will be required to take financial responsibility for these injuries and damages, and one way that Indiana residents can do this is by purchasing auto insurance.
The Merit System in Indiana
Auto insurance companies charge what are called premiums for their products, and they are allowed in Indiana to set these premiums based on a merit system. For example, some auto insurance companies will determine how much one person will be charged based on credit scores. High scores will mean the client will be rewarded with a lower rate because these drivers are statistically living more responsible lives than those with lower scores.
Indiana’s laws also allow auto insurance companies to penalize their clients for several reasons. Typically, auto insurance companies sell yearly policies that will need to be renewed before the expiration date. The auto insurance company may review their clients’ driving records to discover if anything has been added that would require an increase in the rates. If so, the insurance companies are within their rights to raise those rates.
The Point System in Indiana
In Indiana, the DMV has a point system that helps auto insurance companies easily determine how dangerous there are as drivers. Once the driver has accumulated the designated number of points, the auto insurance company can assign the driver to a higher risk category and raise rates accordingly.
The least serious violations will only add two points to an Indiana driver’s record. Just a few of the reasons that people may receive a two-point violation is if they fail to turn their headlights on at night or their turning signals are not working. Indiana also metes out four-point and six-point violations. The most serious offenses receive eight points and reasons for this high number of points can be for driving while their licenses are suspended or racing.
Indiana Insurance Requirements
The fact that Indiana is a tort state means that if there is a collision, the person who caused it needs to be determined. The Financial Responsibility Law also comes into play because the at-fault person has to cover the bills for bodily injuries and property damages. For this purpose, Indiana requires that before drivers can register their vehicles, they will need to show proof that they have purchased liability insurance for third-party bodily injuries and property damages in at least the following amounts:
• $25,000 for one person
• $50,000 for everyone injured in the collision
• $10,000 for all property damages
Indiana drivers must also purchase auto insurance in case they are hit and injured by an uninsured or a hit-and-run driver. They will need to have $25,000 for one person and $50,000 for everyone injured in the collision.
Some people have complied with Indiana’s laws and purchased the required liability coverage but the medical bills surpassed $25,000 for one person and $50,000 for everyone injured in the accident. These are underinsured drivers and because this scenario can occur, Indiana also requires drivers to purchase underinsured coverage in the same amounts as for liability and uninsured bodily injury.
The Indiana Auto Insurance Plan
Because Indiana insurance companies are allowed to penalize clients who have driving records with several points attached, some people find it difficult to find insurance coverage for rates they can afford. Indiana has implemented the Indiana Auto Insurance Plan to accommodate these people so that they will be able to driver their vehicles without being in violation of the law.
Before drivers resort to the Indiana Auto Insurance Plan, they have the option of obtaining discount insurance quotes in Indiana from this website. Even those with troublesome driving records have the chance to find reasonable quotes for their auto insurance coverage.