Car Insurance Guidelines for Indianapolis, Indiana

Facts about auto insurance in Indianapolis

Indianapolis insurance is governed by the legal requirements instituted by the state of Indiana. Indiana’s minimum requirements for liability insurance are $25,000 for uninsured motorist coverage, $10,000 for property damage liability, and $50,000 for underinsured motorist coverage.

The types of voluntary coverage available in Indianapolis include medical payments, collision, comprehensive, towing, and rental auto. Although collision coverage is not legally required by the state of Indiana, it is often required by the lender if you still owe a balance on your auto loan.

Although the Indiana Department of Insurance does not “set” rates, it does require all auto insurance providers to file rates and forms with the Department before implementing them. The Department examines each company’s intentions to ensure that consumers get auto insurance at a fair price. The Department also requires that the rates be open for public inspection. This benefits you because you can compare rates from numerous providers in Indianapolis without committing to purchase.

Tariff Determination

Indianapolis providers use a number of factors when determining your auto insurance premium. These include (but are not limited to) gender and age, marital status, type of car, place of residence, financial credit scores, daily travel distance, driving history, driver training (if you have completed a driving course), claims history, and the deductible and type of coverage chosen.

Insurance companies combine these factors with general statistics, a process that helps the provider reach reasonable conclusions about the amount of risk each driver represents. Indianapolis driver, car and highway statistics are available so you can see how your area is doing in the eyes of insurers. For example, the average daily commute in Indianapolis is 22.7 minutes. The city reported 70 fatal car crashes in 2007, involving 174 people and 114 cars. Indianapolis had an estimated 7,680 carjackings that same year. You can research statistics like these and find lists of the most stolen cars in Indianapolis, as well as the safest cars to drive.

As you research auto insurance companies in Indianapolis, be sure to compare rates based on the following criteria:

*Does the policy provide adequate coverage?

*Can you lower your premium by increasing your deductible?

*Does the company offer discounts for student drivers (good grades and training), good driving record, safety features on your vehicle, etc.?

*Can you depend on the company when you need to file a claim?

*How is the company financially rated? (Use AM Best Rating Service and others to find out.)

*Will insuring your car and home with the same company save you money?

*Can you lower your premium by installing anti-theft devices or parking your car in a locked garage instead of on the street?

Ask these questions about each provider so you can make an informed decision. A lower price is not always the best if it means sacrificing the quality of service you receive. Indiana’s average auto insurance premium is $1,715 per year (as of 2009). This is in line with the national average of $1,735. But with online auto insurance comparisons, you may be able to get even better rates. Use these guidelines to start your search for affordable auto insurance in Indianapolis today.