Car accidents are expensive. They often cause costly damage to property, and serious crashes lead to people getting some of the most expensive injuries possible.
Indiana requires drivers to prove that they are financially responsible for losses they might cause. For most people, this means carrying insurance.
Basic liability requirements
Liability insurance is often one of the most important types for someone who was in a crash. This category covers damage to other people and their property if the policyholder is responsible.
The law requires liability insurance to have minimum levels of coverage. It follows the 25/50/25 rule:
- $25,000 for somebody’s injuries or death
- $50,000 for the injuries or death of two people (in one accident)
- $25,000 for property damage (from one accident)
For anyone familiar with the current cost of cars or medical care, this could seem somewhat low. It is, however, only a minimum level of coverage. People may choose to carry policies that pay more in the event of an accident.
Other types of insurance
While liability insurance is important, it is not the only type of car insurance. There are various other types that cover injury and damage, such as comprehensive, medical payment, collision, roadside assistance and temporary replacement policies.
At first, these policies might seem redundant. The main difference is usually in the people the policy covers. For example, liability insurance would cover damage to other people’s property, but collision insurance would cover damage to the policyholder’s car.
Uninsured drivers
Uninsured and underinsured drivers might not have an insurance company to help them meet their responsibilities. As a result, insurance policies must include coverage for this possibility.
Unfortunately, people may reject this coverage in writing when they buy their insurance. Many do reject it — but there may be other ways to secure compensation.