Carmel Car Insurance
All residents in Carmel, Indiana are required by law to carry auto insurance coverage when they own a vehicle that is registered in the state. Auto insurance laws are in place so that people who cause damages or injuries on Indiana roadways can pay for the damages that they cause while they are behind the wheel.
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Driving without insurance in Indiana is illegal. Before you start shopping for Carmel car insurance, it is important to know not only the coverage requirements but also how to build an adequate policy and save money in the process. Read this guide to car insurance in Carmel, and learn everything you need to know to be an educated consumer.
What does Carmel car insurance cover?
Auto insurance is a financial contract between an insurance company and a policyholder. The contract states that the insurer will pay for covered losses, up to the limits on the policy, if the policyholder pays its premiums to keep the policy active.
Car insurance will only pay for damages that are sustained after an unintentional loss.
Rather than using your own money to pay for the injuries and property damage that you cause, the insurer will pay. Your policy may also pay to repair your vehicle, to pay your medical bills, to cover a rental car, or to pay off your vehicle loan if you carry the appropriate form of optional protection.
The policy itself is a form of financial protection for you, and protection for the third-party against people who do not have the money to pay for their damages.
Why is auto insurance required in Carmel, Indiana?
State officials in each state set the auto insurance laws. Virtually all states require drivers to carry auto insurance, but some states will allow alternative types of protection like cash deposits to take the place of a policy. Because the state follows a tort system, all residents in Indiana must have a minimum amount of liability coverage.
A tort system is a fault-based system where the party deemed 51 percent or more at fault for damages is required to pay for these damages. This requirement is in place to protect drivers on the roadways when they suffer damages and they are not at-fault for these damages.
By setting an insurance requirement, everyone who can afford to own a car can afford to pay for the medical bills and repairs they are responsible for.
What are the Carmel car insurance requirements?
Now that you understand why auto insurance is a requirement, it is time to learn about the coverage types and limits that you must have.
The Indiana Department of Insurance regulates the industry and the state legislature will write the requirements into the vehicle code.
Based on the current vehicle code, all drivers must carry Bodily Injury Liability and Property Damage Liability coverage. Here is a breakdown of how liability cover works and what limits you must have in Carmel:
- Bodily Injury: $25,000 per person, up to $50,000 per accident
Bodily Injury coverage is a third-party liability coverage that will pay other drivers and their passengers when they are injured and you are at-fault. For your liability to pay, you must be at least 51 percent at fault or more for the incident.
Bodily Injury (BI) will not pay for your own bills or the bills of your passengers if they are injured. It will, however, pay if any listed driver or permissive user gets into an accident in the covered vehicle. All Indiana drivers must have at least:
- Property Damage: $10,000 per accident
Property Damage coverage is also a required coverage that will pay for vehicle repairs or the replacement of property when you cause damage in an at-fault accident. This coverage option will only pay for third-party damages and not the damages that you sustain. Limits written are on a per accident basis. You must carry at least:
- Uninsured or Underinsured Motorist
Not all people comply with auto insurance laws even though it is breaking the law to drive without coverage. In Indiana, the statistics show that 14.2 percent of drivers are uninsured. Uninsured motorists are becoming a serious problem, and to combat this problem all insurers in the state must offer new policyholders the option to purchase Uninsured Motorist Protection.
You do have the option to reject the coverage in writing if you do not want to pay the additional premiums.
The protection will pay for your injuries, just like Bodily Injury does for a third-party, if someone hits you and does not have liability coverage.
How to Build an Adequate Carmel Car Insurance Policy
Now that you know about the coverage requirements, it is time to learn how to build a policy that will sufficiently protect you. One of the biggest auto insurance mistakes that you can make when you are buying insurance is to select only coverage options and limits that are legally required.
If you buy only liability coverage at very low limits, you must pay for your own losses and are at-risk of being sued if the costs exceed your limits. Here are some tips that you can use when building your policy:
1. Select Adequate Liability Limits to Protect Your Assets
When you are shopping for insurance, you need to consider your personal needs so that you can purchase adequate liability limits. If you own a property or you have assets you need to protect, having higher liability limits is crucial. You will need to consider your budget, but a majority of agents recommend that all drivers have at least $100,000 per person and $300,000 per accident in Bodily Injury and $100,000 in Property Damage cover.
2. Purchase Coverage to Protect You From Uninsured Drivers
You must have uninsured motorist protection to pay for your injuries if someone without coverage hits you. This coverage will also pay if someone carries low limits and your bills exceeds these limits. If you do not have medical insurance or you want to be protected when you lose wages because of your injuries, Uninsured Motorist can truly protect you.
3. Purchase Reimbursement coverage for Medical Bills
If you are at fault for an accident, will your medical bills be paid for? If you do not have Medical Payments coverage, you will have to rely on your medical insurance to cover your treatment and medical care. The problem with this is that you may not have coverage, or you may have a high deductible plan.
By purchasing even a minimal amount of Medical Payments coverage, you know that you will have some form of coverage to see a Carmel doctor immediately after you are in an accident.
This coverage will also pay for the bills your passengers accrue.
4. Consider Whether You Can Afford to Pay for Car Repairs or Replacement Out-of-Pocket?
If you were involved in an accident and your vehicle needed repairs totaling in the amount of $4000, could you afford to pay the bill? If your car was stolen, could you pay to replace the vehicle out-of-pocket? If you answered no, you need physical damage coverage. You also need physical damage coverage if your vehicle is leased or financed because you technically own the car until it is paid off.
Physical Damage consists of Comprehensive and Collision. Comprehensive will pay to repair your vehicle or replace it if it is stolen, vandalized or catches fire. Collision will pay when you are in an at-fault accident or when you are hit by someone who does not have insurance. Whenever a claim is filed, you must pay your deductible and the insurer will pay up to the fair market value of the vehicle for repairs or replacement.
How to Save Money On Your Carmel Car Insurance
In Indiana, the average expenditure for auto insurance is $624.27 per year. While this is the average, it is possible to pay more or less depending on how much of a risk you present to the insurer. If you would like to save money on your insurance, there are plenty of ways to do so. Here are some valuable tips to save money off of your coverage without compromising your level of protection:
- Insure more than one vehicle with the same insurer
- Buy multiple lines of insurance with the same insurer
- Keep a clean driving record
- Take voluntary driver education courses
- Earn good grades as a full-time student
- Choose higher deductibles
- Shop around
To shop around for insurance, it is best to compare the rates with at least 5 insurers. The easiest way to do this is to use an online rate comparison tool that gives you access to quotes with top-rated insurers that are licensed to sell insurance in Indiana. Gather your information, select the coverage options you would like to carry, and then find the best Carmel car insurance company and rates.
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