What is Auto Insurance and Why Do I Need It?
Auto insurance is one type of insurance that Hubler Financial Services provides to our Midwest clients. Auto (or car) insurance provides financial protection in the event of an accident or other damage to a vehicle. Since we are a part of the Hubler Automotive Group in Central/ South Indiana, we are experts in automotive insurance. Auto insurance can cover damage to the insured vehicle, damage to other vehicles or property, and injuries to the insured or others involved in an accident. In Indiana, auto insurance is required by law, and drivers must have liability insurance to legally operate a vehicle.
Liability insurance provides coverage for damages or injuries that you cause to others while operating your vehicle. In Indiana, the minimum amount of liability insurance required is $25,000 for bodily injury or death of one person, $50,000 for bodily injury or death of two or more people, and $10,000 for property damage. However, these are only the minimum and many drivers prefer to carry more insurance to cover higher damage or injury costs in case of a major accident. Liability insurance helps protect you from financial responsibility for damages or injuries that you cause to others while driving, and it is a legal requirement in Indiana.
In addition to liability insurance, there are other types of auto insurance coverage that you may want to consider. Collision coverage provides coverage for damage to your own vehicle in the event of an accident, regardless of who is at fault. Any driver who has had vehicle damage from an accident knows how costly body shop repair can be. Comprehensive coverage provides coverage for non-collision damage to your vehicle, such as damage from hail, theft, or vandalism. Uninsured/underinsured motorist coverage provides coverage for damages or injuries that you sustain in an accident caused by a driver who does not have insurance or who does not have enough insurance to cover the damages.
There are several reasons why you need auto insurance in Indiana:
- It’s a legal requirement: As mentioned earlier, auto insurance is required by law in Indiana. If you’re caught driving without insurance, you could face fines, license suspension, or other penalties.
- Financial protection: Auto insurance provides financial protection in the event of an accident or other damage to your vehicle. Without insurance, you would be responsible for paying for any damages or injuries that you cause while driving.
- Peace of mind: Knowing that you have auto insurance can provide peace of mind while driving. You’ll know that you’re protected in the event of an accident, and you won’t have to worry about the financial consequences of an accident.
- Lender requirements: If you’re financing or leasing a vehicle, your lender may require you to have auto insurance as a condition of the loan or lease agreement. This is because the lender has a financial interest in the vehicle and wants to make sure that it’s protected.
When choosing an auto insurance policy, it’s important to consider your specific needs and budget. You may want to shop around and compare quotes from different insurance companies to find the best coverage at the most affordable price. Some factors that can affect your auto insurance rates include your age, driving record, type of vehicle, and location.
In conclusion, auto insurance is a legal requirement in Indiana, and it provides financial protection in the event of an accident or other damage to your vehicle. It’s important to choose the right coverage for your needs and budget to ensure that you’re protected while driving.