For drivers in Indiana, the only type of car insurance that they must put in place is liability coverage. They can also choose to protect their vehicle with collision, comprehensive and uninured/underinsured motorist coverage.
Collision insurance coverage pays for the cost of repairing the driver’s own vehicle following an accident. If the car is totaled as a result of hitting or being hit by another vehicle or object, the insurance company will pay out based on the car’s cash value, not how much it originally cost. The policyholder will also have to pay his or her deductible before the insurer will pay any benefits.
Comprehensive coverage also pays for the cost of repairing the driver’s own vehicle, but it protects against other perils, including damage caused by fire, severe weather and acts of vandalism. It also covers damage to a windshield and pays out if a vehicle is stolen.
Uninsured motorist coverage is put in place to pay out a benefit if the policyholder is involved in an accident caused by a driver who does not have insurance. It also comes into play in a case where the accident was a hit and run and the at-fault driver cannot be identified.
Underinsured motorist coverage is another type of optional Indiana auto insurance coverage. It comes into play in a situation where the at-fault driver in an accident has insurance coverage, but it is not enough to fully pay for the damages caused. The underinsured coverage is used to make up the difference.