Is Self-Insurance Right for You?

The state of Indiana has minimum requirements for insurance that must be met by every driver on the road. Specifically, the state requires that all drivers be insured for a minimum of $25,000 per person and $50,000 per accident in bodily injury liability and that drivers carry at least $10,000 in property damage liability.

Most individuals choose to purchase an insurance policy from a qualified auto insurance agency, but drivers also have the choice to prove financial responsibility by filing a bond with the DMV. Drivers also have the option of leaving $40,000 on deposit with the DMV.

Self-Insurance Considerations

It can be tempting to think of handling your car insurance needs on your own, saving yourself from the “middle man” of the insurance company. However, consider the following:

• You can prove financial responsibility by filing a bond with the DMV. However, consider how much you are putting at risk. If you caused, or were charged with causing, a major car accident, the costs could be astronomical. Or if you or a family member was in a wreck with an uninsured person, you may have no choice but to take on all costs on your own. Even if you have the wealth to self-insure in this manner, it might not be worth it.

• You also have the option of depositing a minimum of $40,000 with the DMV. However, this sum may not cover all car accident costs, and whatever cash deposit you have at the DMV could otherwise be used in some type of investment, which could actually increase your overall wealth.

Overall, it may be best to purchase an insurance policy, even if you do have the necessary wealth to self-insure.

Contact Us

To find out what policy is best for you and your family, contact the Indianapolis auto insurance experts at Insure on the Spot by calling 1-888-972-SAVE today.