In many states, including Indiana, auto insurance is required by law. If you are caught operating a motor vehicle without it, you could be facing penalties. However, what the law requires as a starting point might leave you in financial distress after you are involved in a collision. A claimant (person that is hurt in the accident) can come for your current or future assets; they can even take part of your paycheck if you are found negligent!
Here’s what you need to know about the different types of auto insurance in order to find the best balance for your financial needs:
Property Damage covers damage that is done by your vehicle to another vehicle or property of any type. The minimum property damage liability coverage in Indiana is $10,000. This amount may seem substantial, but the damages done to the other vehicles or buildings can add up very quickly! Many vehicles alone cost more than $10,000. What if your car spins out on ice and hits three more parked cars? Your total protection does not change, but the expense of the accident is much higher than $10,000.
Reese Insurance works with you to find a healthy balance. For example, what if you paid $10 more a month to have $100,000 coverage for one person, $300,000 for the entire accident, and $100,000 for property damage? What about a million-dollar umbrella? If that million-dollar umbrella costs you $196 more a year, would that be money well spent so that you don't have to give up 25% of your hard earned income? These are some of the crucial questions that Reese Insurance will help you answer.
Personal Injury Coverage
This type of auto insurance is also typically required by law. In lieu of a collision, you have medical insurance that takes care of you and your passengers’ medical bills. If you also have health insurance, an amount as small as $5,000 might be sufficient.
Knowing what you already have is imperative to figuring out what you still need. Reese Insurance will work with you to review these precise figures, so you can choose the most cost-efficient option for you when searching for auto insurance in Lafayette, Indiana.
Bodily Injury Coverage
The Indiana State law requires you to carry $25,000 bodily injury for one person. This is the insurance that will be used for the other person involved in an accident. You will also have $50,000 per occurrence, which means that even if you hit multiple people, the most the insurance will pay for that accident is $50,000. However, no person gets more than $25,000. In some instances, that $50,000 is nowhere near enough to cover the accident.
Collision coverage is designed to reimburse you up to the cash value of your vehicle. The deductible is the amount that you are responsible for. If you have a loan, the bank requires that you put insurance on it. If you do not, the bank will add insurance onto your loan. When insuring a car, you will usually be asked about deductibles. The higher the deductible, the lower the cost will be. Sounds good, right? However, it’s important to think about this: If you save $100 a year on your deductible, and it takes you 6 years to earn back your savings when you have a collision, is the lower deductible even worth it? Reese Insurance will help you work through these tough questions in order to find you the best possible solution.
Uninsured or underinsured
Because the uninsured and under-insured motorist is an option in Indiana, Reese insurance wants to make sure that you are taken care of if an uninsured motorist or someone who is legal, but only carries $25,000 liability hits your vehicle. It is more than just medical and vehicle bills, you may miss work. You may never have the quality of life you would have had if your policy doesn’t step up.
Reese Insurance: Auto Insurance Lafayette, Indiana
Some of this "insurance language" sounds foreign to those who are not familiar with the industry. Thankfully, Reese Insurance can help you interpret all of this so we can make the best decision for your specific needs. We are the best choice for auto insurance in Lafayette, Indiana. We are fast, professional, and always have your back. Call Reese Insurance at (765) 807-7073 and get covered!