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Surely at some point in your life you have driven out of your home state. Ever wondered if your car insurance follows you the same way it does in your home state? The answer may surprise you.

Each state has what is referred to as state minimums when it comes to auto insurance. These are the minimum liability and property damage limits allowed by the state, and believe it or not, each state is different. This means that your own coverage and the coverage of those around you can change with each state line you cross.

Let’s explain this a little deeper. Let’s say you are driving to Pennsylvania to visit some family next week. On the way to Grandma Sue’s, a distracted driver hits you. Your car is totaled. You’re late to Grandma Sue’s. But luckily, everyone is unharmed. Not luckily, though, this driver has the Pennsylvania state minimum coverage limits. In Indiana, state minimum would mean that driver’s policy would pay $10,000 toward replacing your vehicle. But, in Pennsylvania, this means the driver’s policy will only be paying $5,000 toward replacing your vehicle. Chances are, neither of those numbers are making you very comfortable. This brings us back to the information from the previous post about having uninsured and underinsured motorist coverage. Having this coverage as a part of your auto policy may be even more necessary when traveling out of state.

Now let’s look at the other side of the coin. Let’s say someone from Pennsylvania is driving to Indiana to see Uncle Bob and his cornfield. He is in such a rush to see Uncle Bob that they blow through a red light and hit you, again totaling your vehicle. This time, you’re hurt. Really hurt. And so is your car. His state minimum coverage in Pennsylvania isn’t going to even begin covering your expenses. It will only pay $15,000 per person’s injuries, $30,000 liability for the whole accident and $5,000 for the car itself. But, because they were in Indiana territory, their coverage limits expanded to fit Indiana’s the second they crossed the state line. Now, their policy will pay $25,000 for bodily injury, $50,000 liability for the whole accident and $10,000 for the car itself. While state minimum coverages can expand from state to state, this is by no means adequate coverage for a devastating injury or loss. All this being said, this situation will never work the opposite way. Meaning, your coverage limits will never drop, only expand, when travelling into other states.

If you have any questions concerning this article or any other previous post, please contact us at (317)867-5433 or info@insurewithdean.com.

When it comes to thinking about car wrecks, hit and runs and even fender benders, it’s easy to exclude yourself from the equation, convincing yourself you are a great driver and would never be part of something like that. And it’s easy to see how one could see things that way – an owner of a spotless driving record, never had a claim, and maybe you even drive more carefully than Grandma Sue on Sunday mornings. At the end of the day, though, it doesn’t matter. It’s not all about you.

Sure, your coverage is to cushion you in the event of a poorly executed blind spot check, a lead foot at the stop light or even black ice, but it’s also there to protect you from others and the mistakes they may make while driving. As unfortunate as it is to think, you really don’t know if that person driving next to you cares as much as you do. Statistics tell us that over 1 in 10 drivers in Indiana have no auto insurance whatsoever. Next time you are driving down I-465, look around you. Within your line of vision, at least one of your neighboring drivers does not have car insurance. Now, if they happen to be the one who hits you, are you protected from them? This is where uninsured and underinsured protection comes in to save the day…assuming you have it of course.

Let’s put this in perspective. You are driving down I-465. It’s a sunny day, your windows are down and you’re happy as a clam. Suddenly, you notice a car in the other lane starting to swerve and before you know it, the hood of that same car is in your passenger’s seat. The owner of this car, Debbie Dingbat, has successfully totaled your $20,000 baby and likely your soul in the process. Ms. Dingbat informs you she has no insurance. None. Zero. At this point you are thinking one of two things: thank goodness my agent explained uninsured motorist insurance with me – I have that and this will be okay. Or, I’ve never heard of uninsured motorist insurance but I hope maybe that was just included in the cheap rates my online company promised me. Hint: it’s not included. If you find yourself in the second group, you are now officially on the hook for the entirety of the $20,000 you just watched fall apart. Oh, and is your car paid off? Better hope so, because if not the bank will still be expecting payments on your now un-drivable vehicle. Without uninsured/underinsured motorist coverage, your insurance company does not pay a dime toward your loss. It’s time to start thinking about uninsured/underinsured motorist coverage.

If you have any questions concerning this article or any other posts, please contact us at (317)867-5433.