Experts Concerned Hoosiers Dropping Auto Insurance

INDIANAPOLIS -- Many Hoosiers looking for ways to cut costs in economic strife are cutting back and even canceling automobile insurance.

Winter weather typically leads to plenty of crashes on Indiana's roads, and experts are concerned an increasing number of people involved won't have insurance, 6News' Rick Hightower reported.

The Insurance Institute of Indiana said there are a multitude of reasons why dropping insurance is a bad decision.

"If you have a family, you have to have their interest in mind in terms of protecting them in case of lawsuits, not even talking about the law, which compels you to do it," said Insurance Institute President Stephen Williams. "That ought to be not a choice anyone would make, for their own sake."

In addition to legal concerns, anyone who isn't insured could end up spending far more money to get a car repaired if they are involved in a crash. Average collision costs range from $3,000 to $4,000 for one vehicle.

"The statute requires you to be financially responsible. The penalties can be as high as 60 days in jail and a $500 fine, plus reinstatement fees," Williams said.

Collision repair experts also said cutting corners on car insurance is not a good idea.

"Insurance is a very good investment, especially if you're making payments on a vehicle," said Greg Gambrel, of Church Brothers Collision Repair. "It's your best bet to save your investment."

Many drivers take the importance of insurance for granted, until they need it. Consumers can save on auto insurance by shopping around, increasing deductibles or considering liability coverage if a car is paid off.