Understanding Insurance Coverages

Originally published on our previous website in 2015. Some details, such as companies, coverage options and state requirements, may have changed since then. Call or text 765-474-2300 for current information.

When shopping for insurance, it is important to get educated on what the terms mean and how the quoted limits react if needed. We frequently see quotes in our office that are at state minimum levels… In Indiana, this is only 25/50 BI/PD. 25/50 is twenty-five thousand dollars per person involved in an accident, up to a total of fifty thousand. If there are four people in the other vehicle, this still only provides a maximum of fifty thousand, reducing the per-person bodily injury liability to $12,500 per person. $12,500 is fine for a very minor injury such as a cut or sprain, maybe an ambulance ride, but any serious injury would consume this amount of money fast. Think about how much it costs to stay in a hospital overnight. What if the injured person has to have multiple procedures and is going to be in the hospital for an extended period of time? The insurance company is going to pay what they are liable for (the amount chosen at the time of purchase) and then come after you for the remaining expenses. We always recommend a minimum coverage of 100/300. If you currently have a low-limit policy, please call us today for a quote.

Update (October 2026): State minimum limits can change over time, so call us for Indiana’s current requirements. We still recommend carrying more than the minimum, and an umbrella policy can add even more protection. See our car insurance page.