If you are a driver in Indiana (or anywhere for that matter), you know how complicated and confusing it can be to file a car accident claim, switch car insurance companies or simply add a person on to your policy. To help make things easier when dealing with your auto insurance company, we have listed some helpful tips for Indiana car insurance customers below. Understanding these items can not only save you a lot of time and money on your Indiana auto insurance, but it will also help you be better prepared in the event of a car accident.
1. How your Indiana car insurance company determines your car's value after it has been declared a "total loss."
When totaling your car, your insurance company's goal is to help you find a new car within the same market. To do this, car insurance companies use three different methods for determining the value of the car declared a total loss, such as:
If the car insurance company is unable to find a car from within your area, they may have to find a replacement car outside your zip code, which can dramatically affect your car's true value. For instance, if you reside in a big city within Indiana, such as Fort Wayne, South Bend and Indianapolis, then the cost of replacing your car will likely be more expensive then if you lived in a suburb or more rural part of Indiana.
2. When switching car insurance companies, you must cancel your insurance policy first.
Though it is possible to cancel your coverage at anytime, it is important to note that many insurance companies require a written statement, including the date of termination, in order to officially close your car insurance policy. If you do not do this, and you receive and ignore the next bill, your policy will be canceled automatically by the insurance agency for delinquency of payment. The downside to this automatic cancellation is that it will show up on your credit record, which could potentially impact your credit score!
The safest thing to do when switching car insurance companies is to call your company and let them know that you are canceling your policy. The company will send you a cancellation request that needs to be filled out and sent back in.
3. Adding a teen to your car insurance policy.
Most insurance companies do not require you to add your teen to your car insurance policy when they are a certain age, just when they receive their license. If you are in a high-risk pool, you may be required to add them when they receive their driver's permit. If you forget to add your licensed teen, and they are involved in a car accident, they will be covered, but your insurance company may charge you back premiums from the date your teen received a license.
In Indiana, there are two types of permits your teen can apply for: the Driver Education Learner's Permit and the regular Learner's Permit. The Driver Education Learner permit is available to those who have enrolled in driver's education course and are at least 15, but not yet 16 years old. This permit allows teens to take the Indiana state approved driver education course, where they may drive with a certified driving instructor. When the course is successfully completed, teens are able to practice their driving with a parent, guardian, or other relative who has a valid driver's license and are sitting in the passenger seat.
The second type of Indiana permit is the Learner's Permit. It is available for those who are 16 years of age who wish to obtain their official Indiana state driver's licenses. Teen drivers must have the Learner's Permit for at least 60 days before taking the Indiana state license examination. The learner's permit allows teens between the ages16 and 18 to drive with a parent, guardian, or relative who is legally licensed, sitting in the passenger seat. Those who are over 18 are permitted to drive with anyone who has a valid driver's license, sitting in the passenger seat. To learn more about Indiana teen driving laws and regulations, please visit the Indiana DMV website.
4. Paying in installments may increase your car insurance.
"Fractional premium" fees are usually charged when you divide your car insurance annual premium into installments. Six month, quarterly or monthly are the typical breakdowns for most insurance companies. Generally, the more you break down your installments, the higher the administrative/fractional premium fee. Always ask when applying for a new car insurance policy, and see exactly what the fees are for each payment you break down. Make sure to also ask your insurance provider if they offer an alternative way to make payments, such as Automatic Clearing House (ACH) processing, which withdrawals the funds right from your checking account. This may help eliminate processing fees while helping you stick to your budget.
5. Personal property in your car is not covered by your auto insurance.
Stolen or damaged items from within your car are not covered by your auto insurance policy. Most policies will only cover smaller and less expensive items like CDs, but if you carry more expensive things, you will want to consider adding a rider to your home insurance policy. Keeping photos or video of your items is also a good idea. If something is stolen from your car, you may have to file a claim on your home insurance if you do not have a rider in place.
Even though most states typically have similar laws in place for car insurance, they do not typically have similar car insurance rates. That is because Indiana car insurance rates are influenced by Indiana's geographic location and its' state laws. With that being said, it is always a good idea to shop around and compare the rates of various auto insurance companies. To assist you in the processes Insurance.com offers an auto insurance comparison application. Here, you will be able to evaluate multiple rates from best-in-class insurance providers - helping you find the cheapest auto insurance coverage for your budget.
6. Paying for someone else's bad driving.
If you loan your car to someone and they end up crashing it, you will have to file a claim with your car insurance company. As a result, you will have to pay your deductible (or any that apply) and your rates could potentially increase your car insurance rate. If your car is taken without permission, you are typically not held liable. If the drier is uninsured and causes damages exceeding your policy limit, the injured party may come after you for medical or property-damage expenses and not your friend.
7. Paying in installments may increase your car insurance.
"Fractional Premium" fees are usually charged when you divide your car insurance annual premium into installments. Six month, quarterly or monthly are the typical breakdowns for most insurance companies. Generally, the more you break down your installments, the higher the administrative/fractional premium fee. Always ask when applying for a new car insurance policy, and see exactly what the fees are for each payment you break down. Make sure to also ask your insurance provider if they offer an alternative way to make payments, such as Automatic Clearing House (ACH) processing, which withdraws the funds directly from your checking account. This may help eliminate processing fees while helping you stick to your budget.