Here's one of the best 1-inch dial indicators for your money:
Mitutoyo 2776S with .0005" graduations
Dial indicator model 2776S (formerly model 2776F) with a 1" range, reading in .0005" is, in our opinion, one of the best indicators for your money. It's consistently reliable, accurate and repairable.
This indicator has a permissible error of .0005" over its first 2-1/2 revolutions and ±.002" over its one inch range. The indicators we've seen astonishingly keep this tolerance to .0005" over the entire range.
The bezel diameter is about 2-1/4". It comes complete with lug back for secure fastening to magnetic stands, granite stands and fixtures. It features a new Mitutoyo innovation: two dovetails are integral with the outside of the metal case to which you can easily clamp any dovetail accessory, including the bezel clamp (included). If you want, the indicator can now be mounted to a stand or fixture directly from the case rather than the back or the stem. Tolerance markers are not included with this model. Made in Japan.
Idea: add a magnetic base stand to hold your dial indicator. An ideal combination for the shop and automotive work.
Do you need to go deeper than 1"? Use contact point extensions with your dial indicator. These will not increase the amount of travel, but they will extend the reach. See page 133.