Driving uninsured is illegal in the state of Indiana and, in its simplest form, a liability car insurance policy covers the minimum state-mandated liability insurance drivers are legally required to carry. Liability car insurance in Indianapolis covers damages and injuries to third parties whenever you’re involved in an accident and found to be at fault. While this may sound sufficient, liability car insurance offers no protection whatsoever for your own medical bills or repair expenses, meaning you’ll need extra coverage if you want to be completely protected. Nevertheless, liability car insurance is without a doubt better than no insurance at all and with its relatively low premiums, liability car insurance is worth its weight in gold when it comes to paying expensive medical bills and repair costs after an accident.
Liability car insurance in Indianapolis covers two main areas: bodily injury and property damage liability. Bodily injury liability covers any medical expenses and lost income suffered by a party involved in an accident for which the insured driver is deemed at fault, while property damage liability covers any repairs or replacements necessary to vehicles, personal property, or government property damaged in the crash. If you’re taken to court following an accident, liability insurance would cover damages to a certain amount, and possibly prevent your assets from being seized. However, it’s important to note that liability car insurance only covers up to a specified amount and the insured party would be expected to pay any remaining damages. The average liability car insurance policy in Indianapolis has 100/300/50 liability limits.
Most drivers who opt for liability car insurance in Indianapolis either own their vehicle outright or drive low-value vehicles. Liability auto insurance may be suitable for you if you’ve fully paid off your vehicle or are fine with losing it if it’s declared a total loss. In other words, liability insurance is sufficient enough if your vehicle doesn’t hold much value or you’re able to afford repairs after an accident. Carrying liability insurance alone doesn’t make financial sense if you drive an expensive or leased vehicle, however, and you’d be better off with a bit more coverage — yet so many still opt to go the liability insurance route. Not only is this a shortsighted way to save a few dollars on your insurance premium, but it also means that you could potentially lose your hard-earned vehicle if you’re deemed at fault in an accident. Before purchasing liability insurance, be sure to carefully consider your personal needs, driver’s record, budget, and the risk you’re willing to take or want to avoid while driving. Whatever you decide, it’s always best to spend some time comparing the different kinds of car insurance available to you before settling on liability car insurance.
As we mentioned earlier, full coverage car insurance may not be worth it if you drive an older vehicle or one that isn’t worth much. In this case, if you are purchasing full coverage car insurance, you run the risk of your insurance provider deciding it’s cheaper to write off your car after an accident than it is to repair it, meaning you’re stuck without a vehicle and likely won’t receive enough to purchase a new one. On the other hand, foregoing a liability policy for a more comprehensive plan if you own a more expensive vehicle makes more sense. This means that you won’t be affected as badly should you be involved in an accident, or even if your vehicle is damaged in any other way. When opting for full coverage auto insurance on a more modern or expensive car, your insurance company is more likely to pay to repair your vehicle than it is to write it off. In both cases, your insurance company’s decision on what happens to your car after an accident is based on a comparison of the possible repair costs with the current value of your vehicle. In other words, liability insurance is typically only the better option if you’re OK with paying for your vehicle repairs or medical expenses or drive an older model and simply need a policy that meets the minimum state-mandated requirements.
As with all other types of insurance, you need to understand exactly what you’ll be covered for when choosing which liability car insurance policy to go for. Since liability insurance covers variables like medical expenses and repair costs, insurers often set limits on how much each policy covers. As soon as that sum is exceeded, the insured person will be expected to cover the rest. The best way to decide on a policy is to calculate how much you’re personally able to cover, on top of the insurer’s limits, and base your final decision on that. Everyone’s personal circumstances are different, so it’s important to do proper research before purchasing liability car insurance in Indianapolis, or simply have an insurance company do it for you.