If you plan to drive an automobile in the state of Indiana be prepared to purchase an auto insurance policy. In the state of Indiana all registered vehicles must carry minimum amounts of liability insurance to comply with the laws of the state. The coverage must be carried at all times.

Drivers must have a policy that includes $25,000 in bodily injury coverage, with a maximum amount of $50,000 for all injured parties involved in the accident. $10,000 worth of property damage coverage must also be carried. In lieu of this insurance drivers may post a bond in the amount of $40,000. This amount must be in cash or other securities.

The state required coverage pays only for damages to the other party involved in the accident. Many people add amounts higher than what is required due to the costs of damages when an accident occurs. Additional types of coverage can also be purchased to offer protection to your own property and injuries. An insurance agent can help you determine what, if any, additional insurance policies you should carry. For vehicles under lease these additional coverages may be required by the leasing company regardless of the laws.

If you choose to disregard these laws there are penalties for doing so. The state can suspend your driver's license for a period of 90 days as well as a reinstatement fee ranging between $150 and $300, depending on the number of offenses you have for not carrying insurance. If you are caught without insurance twice in the same year, you will lose your driver's license for a period of one year.

while some people feel auto insurance is a waste of time nothing could be farther from the truth. It is estimated that all drivers will be involved in at least one automobile accident in their lifetime, and without insurance, the costs of the accident are your responsibility. Since an accident can quickly add up thousands of dollars, it is never worth the risk of driving without insurance coverage. Add to that the penalties that come along with it and driving without the required amounts of insurance is something you do not want to do.

Indiana has some of the lowest rates for auto insurance in the country. Rates for the average driver were $661 in 2009 making it the 43rd most expensive state for auto insurance rates. The national average for auto insurance premiums is $871 per year, so you can see how affordable it is to insure your vehicle in the state.

Before starting a new insurance policy keep in mind that there are many factors that can affect the amount you will pay for your coverage. This includes your age, sex, marital status, education level, number of miles the vehicle is driven per day, the type of vehicle being insured, your previous driving record, and even your credit score. Maintaining a safe driving record and a good credit score will help ensure you are getting the lowest rates possible for your coverage.

There are many ways to save on vehicle insurance in your state so visit cheapautoinsurance.org or visit the Auto insurance Indiana page to get an auto insurance quote for y

What most of us know is that we are required to have auto insurance if we intend to own and license a vehicle. Based on that we locate an insurance source and generally purchase what the agent tell us we need. Now that is not to say there are some who are a little more astute when it comes to purchasing car insurance or folks that just get lucky.

The insurance industry has convinced us that learning the basic facts are over our head and that we have to trust their judgment. Well I am here to tell you that is just not so and experience tells me so.

I am like most of you. In the past have just paid the premium every six months for whatever coverage my agent or carrier told me I needed. Recently I had to learn a hard lesson about car insurance and the lesson has not sat well. Part of the outcome was learning how ignorant and trusting I have been. For all intents and purposes, it appears I am not the only person who is in that boat.

If you have an unlimited source of income, or don't know and do not want to know, what I am about to tell you will probably not be of interest! However, you might even still find some of the facts interesting if not frustrating.

If you have the inclination you might want to go on the internet and go to your appropriate state website and download and read the motor vehicle code and auto insurance statutes that apply to you. For the most part it is written in layman's terms and fairly easy to understand.

Because of my recent third-party claim's experience with USAA I have had to learn far more about the auto insurance industry than I wanted to know and in particular how it applies to where I live, in Florida. Starting with the basics, my research begin with how the state of Florida 2010 statutes defined car insurance.

It reads: Coverage for motorized land vehicles (e.g., passenger type automobiles, pickups, vans, trucks and motorcycles). The coverage can include loss or damage to the vehicle itself (evaluated at replacement or repair damage cost, actual cash value, or agreed value). It can also include loss, liability, or expense as a result of ownership, maintenance or use of any such vehicle. The coverage also includes medical, hospital and surgical benefits to injured persons, funeral and death benefits to survivors irrespective of legal liability if incurred while in, upon, entering into, alighting from, or being struck by a vehicle if such coverage is issued as part of a liability insurance contract.

In my case, USAA appears to have a problem evaluating at the replacement or repair cost, the actual cash value, or agreed value of my Jeep. They have refused to consider loss, liability or expense as a result of ownership, maintenance or use of any vehicle. USAA has gone so far, on several occasions, to actually threaten me if I did not relinquish the title immediately.

I do not know a lot about insurance companies in general but can tell you that USAA doesn't particularly care one way or another about the physical condition of your vehicle or any upgrades or improvements you have made.

Another lesson learned is the cold hard facts relating to the depreciated value of a car. Depreciation calculators become your very best friend. While they differ in techniques, the primary factor considered in determining the value of your vehicle is the manufacture date. Another factor which may be requested is the odometer reading. Some sources will take into account exterior and interior physical condition and accessories included on the vehicle. But, you can get close to the value with little information.

The depreciation value is important for several reasons, the first being it will assist you in purchasing the correct amount of insurance for your vehicle. Another is that if you decide to sell your vehicle you can learning the -trade-in- value, versus the sell-off-the-street value.

USAA, with its close mindedness and blinders appears to recognize only a car manufacture date.

Read -Part 2- to learn how important depreciation value is to your vehicle and insurance coverage.