Car Insurance Requirements in Indiana (2024)

Car insurance requirements vary on a state-by-state basis. But in nearly every state, you must carry a minimum amount of car insurance to comply with the law.

If you want to avoid fines, license suspension, or other potential negative consequences, it’s critical to learn and follow the car insurance requirements for your state.

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Indiana car insurance requirements

The minimum liability car insurance requirement in Indiana is 25/50/25, meaning Indiana drivers must have at least $25,000 in bodily injury coverage per person, $50,000 in total bodily injury coverage per accident, and $25,000 in property damage insurance per accident.^[1]

Here’s a closer look at the protection this type of coverage provides.

Bodily injury liability insurance

When you’re in an at-fault car accident, bodily injury liability insurance covers the medical bills for physical injury. On top of medical expenses, this type of coverage could also pay for legal fees if an injured person files a lawsuit against you.

Indiana law requires drivers to carry the following minimum amount of bodily injury liability insurance:

• $25,000 in bodily injury coverage per person

• $50,000 in bodily injury coverage per accident

Property damage insurance

Property damage liability insurance is another type of mandatory coverage in most states, including Indiana. This type of insurance covers damage that you (or other drivers operating your car) cause to another motor vehicle in an accident. It can also help pay for damage that you or other drivers of your vehicle cause to property like buildings, fences, and signs.^[2]

Indiana requires drivers to carry the following minimum amount of property damage insurance:

• $25,000 per accident for property damage or destruction

Uninsured/underinsured motorist

Car insurance companies must also include uninsured/underinsured motorist coverage in every new Indiana auto insurance liability policy. Indiana drivers can decline this type of coverage but must do so in writing.^[3]

Uninsured and underinsured motorist coverage can protect you if someone without insurance (or without enough insurance coverage) causes a car accident that injures you, your passengers, or damages your property. With this type of coverage, you can collect damages from your insurance company if you’re in a covered accident.

If you carry it, the minimum liability limits for uninsured motorist coverage in Indiana are as follows:

• $25,000/$50,000 for bodily injury (uninsured motorists)

• $25,000 for property damage (uninsured motorists)

• $50,000 for bodily injury (underinsured motorists)

Indiana Auto Insurance Plan

Although having car insurance is a requirement, not every car insurance company has to approve your application for coverage. If an insurance company considers you high risk due to your driving record, credit rating, the car you drive, or other factors, it could turn you down when you apply for an auto insurance policy.^[4]

On a positive note, Indiana drivers have a resource if they’re turned down for car insurance coverage: the Indiana Auto Insurance Plan (INAIP). You can apply for this specialty insurance plan through any insurance agent in the state.^[4]

To be eligible for coverage, you must:

• Show proof of denial from at least three Indiana auto insurance companies

• Have a valid driver’s license

• Have a vehicle registered in Indiana

Do you need more than the state minimum coverage in Indiana?

No. The state’s minimum insurance is exactly that: the minimum amount of insurance you must have. In general, insurance professionals will encourage you to buy more coverage if you can afford to do so. Otherwise, you leave yourself exposed to many potential risks when you and others are behind the wheel of any vehicle you own.

If you cause a car accident that injures others or causes property damage that exceeds your policy limits, you’d be responsible for paying additional costs out of your own pocket. And medical expenses and car repairs can be expensive. 

Minimum coverage is typically only something to consider if you can’t afford better protection. But it’s important to understand that if you’re in an accident, being underinsured could put you in a financial bind later. Even if you don’t want full coverage because your vehicle is older or due to another factor, minimum coverage could still leave you financially vulnerable.

If you want to fully protect your car and finances, even if you’re at fault, full coverage is worth considering. Full-coverage car insurance includes all state minimum requirements plus collision and comprehensive coverage. Personal injury protection (PIP) isn’t part of Indiana’s minimum-coverage requirements, so full-coverage policies may also include this coverage.

The cost of liability-only car insurance in Indiana

Indiana drivers can purchase minimum-liability car insurance for an average of $72 per month.

Yet rates vary among insurance companies, and the details from your application could also affect your premiums. Therefore, it’s smart to shop around and compare quotes from insurance companies in your area.

The cost of full-coverage car insurance in Indiana

Full-coverage car insurance provides you with more financial protection in the event of an accident — even accidents that are your fault. In addition to collision coverage, which can cover your vehicle when you’re in an accident with another vehicle or object, full coverage includes comprehensive coverage. This type of insurance could protect you from losses resulting from vandalism or theft and natural disasters like hail or floods.

Drivers in Indiana pay an average of $142 for full-coverage insurance. However, it’s smart to shop around and compare rates from different insurance companies to make sure you get the best deal available for the type of coverage you want.

Penalties for driving without proof of insurance in Indiana

Indiana doesn’t take it easy on drivers who get caught operating a vehicle without insurance. The Indiana Bureau of Motor Vehicles (BMV) may request proof that drivers have current minimum liability insurance at any time.

The Indiana BMV is required to request proof of insurance under several circumstances. So, if you’re ever in an auto accident or a serious traffic violation, there’s a chance you might have to submit proof of insurance to the BMV.^[1]

If the BMV sends you a request for proof of insurance, it’s important to notify your insurance company right away. Your insurance company must send the BMV proof of your current insurance policy within 90 days. This is called a certificate of compliance, or COC.

Below are some consequences you could face if you don’t provide proof of insurance to the Indiana BMV upon request:

• Suspension of driving privileges: If the BMV doesn’t receive your COC within 90 days, the state will suspend your driving privileges. To remove this suspension from your driving record, your insurance company can submit an electronic copy of your COC showing you had insurance on the date of the accident or incident.

• Take out an SR-22 insurance policy: If your driving privileges are suspended due to insurance violations and can’t be reinstated right away, you might have to apply for an SR-22 insurance policy. In this scenario, you may need to keep an SR-22 certificate for 180 days before becoming eligible to apply for a standard auto insurance policy again.^[1]

Optional car insurance coverages to consider

Indiana state law requires drivers to carry a minimum amount of liability insurance. But it’s a good idea to consider additional types of car insurance coverage as well:

• 

  Collision coverage

  Collision coverage can help you repair or replace your vehicle when you’re in an accident with another vehicle or object and at fault.

• 

  Comprehensive coverage

  Comprehensive insurance provides coverage for your personal vehicle for damages outside of your control. Theft, vandalism, falling trees, fire, or hail are a few examples of damages that this type of insurance policy could cover.

• 

  Personal injury protection (PIP) coverage

  Personal injury protection (PIP) coverage can help you pay for medical and other injury-related expenses for yourself and passengers after a car accident. Medical bills, lost income, child care costs, and funeral expenses are examples of some of the costs PIP might cover.

• 

  Gap coverage

  Gap insurance — short for guaranteed asset protection insurance — can help you pay off a financed vehicle if your car is in an accident or stolen and you owe more than the vehicle is worth.

Indiana car insurance requirements FAQs