Auto Insurance Requirements in Hammond, Indiana
- Nate Jones, CPCU, ARM, CLCS, AU
- Jan 16
- 2 min read
If you drive in Hammond, Indiana, it’s essential to understand the state-mandated auto insurance requirements. Whether you're a new driver, a long-time resident, or someone moving to the area, having the right coverage keeps you compliant and protected. Below is everything Hammond drivers need to know about legally required coverage, and how to choose a policy that offers real peace of mind.
Indiana’s Mandatory Minimum Auto Insurance Requirements
Indiana law requires all drivers, including those in Hammond, to carry 25/50/25 liability coverage, which includes:
$25,000 for bodily injury per person
$50,000 for bodily injury per accident
$25,000 for property damage
These state minimums are designed to cover the damages you may cause in an at-fault accident. However, they often fall short in real-world situations where medical bills and repair costs can exceed these limits.
Indiana auto insurers must also offer uninsured and under insured motorist coverage (UM/UIM). While you can opt out in writing, this protection is strongly recommended given the number of drivers who carry only minimum coverage.
Why Minimum Coverage May Not Be Enough in Hammond
Hammond has higher-than-average insurance rates due to traffic density and accident frequency, which means your financial exposure in an accident can be substantial. Minimum liability coverage may not pay for:
Major property damage (especially if luxury vehicles are involved)
Severe injury medical bills
Legal fees if another party sues
To protect yourself fully, consider adding:
Collision coverage – Pays for damage to your own vehicle after an accident
Comprehensive coverage – Protects against theft, vandalism, weather damage, and more
Medical payments or PIP – Covers injuries to you and your passengers
Roadside assistance – Helpful for breakdowns, lockouts, or tows
Rental reimbursement – Covers temporary transport if your car is in the shop
Proof of Insurance Requirements in Indiana
Indiana requires drivers to carry proof of insurance at all times. The BMV may request verification if:
You are involved in an accident
You receive certain traffic violations
You’re flagged for previous insurance-related issues
Failure to comply can lead to license suspension until your insurer files a Certificate of Compliance confirming you were insured at the required time.
Factors That Influence Your Premium in Hammond
Although the state sets minimum coverage requirements, your cost will vary depending on:
Driving history
Age and vehicle type
ZIP code (Hammond sees higher average rates than many Indiana cities)
Credit-based insurance score
Coverage selections and deductibles
Understanding these factors can help you make smarter decisions and potentially lower your premium.
Why Choose Wexford Insurance?
At Wexford Insurance, we help Hammond drivers navigate insurance requirements and secure the right coverage, at the right price. As an independent agency, we compare rates from multiple top insurance carriers to make sure you get maximum value without sacrificing protection.
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