Indiana car insurance requirements and laws

Minimum car insurance requirements

Indiana requires every motorist to carry liability insurance of at least 25/50/25 (Ind. Code § 9-25-4-5): $25,000 for injuries to one person, $50,000 for all injuries in one crash and $25,000 for damage to other people's property. The property damage minimum rose from $10,000 to $25,000 on July 1, 2018. Insurers must also offer uninsured and underinsured motorist coverage. Compare states with the state car insurance requirements lookup.

What the minimums mean in practice. If you cause a crash and the other driver has $40,000 in medical bills, a 25/50/25 policy pays $25,000, and the remaining $15,000 can be pursued from you. If two people are badly hurt, they share the $50,000 per-accident limit. If you total a $38,000 truck, your $25,000 property damage limit leaves $13,000 exposed. how much liability coverage do you need? and the How much car insurance do I need? help you set limits that protect your assets.

When the BMV checks. Indiana's Bureau of Motor Vehicles asks for proof of insurance after a crash and after certain traffic violations. Your insurer must file a Certificate of Compliance electronically within 90 days of the BMV's request, showing that you and the vehicle were insured on that date. If it does not arrive in time, your driving privileges are suspended.

Fault system and what it means after a crash

Indiana is an at-fault state. The driver who caused the crash pays for the other side's injuries and property damage through their liability insurance. You can claim against that insurer, use your own collision coverage, or sue. See no-fault vs at-fault states.

Indiana applies modified comparative negligence with a 51% bar (Ind. Code § 34-51-2-6). You are barred from recovery only if your fault is greater than the combined fault of everyone else who contributed to the crash. Otherwise your damages are reduced by your share, so a driver 30% at fault for a $20,000 loss recovers $14,000.

Lawsuits for injury or property damage generally must be filed within two years (Ind. Code § 34-11-2-4). See statutes of limitations for car accident claims.

Optional coverage worth considering here

• Uninsured/underinsured motorist. Indiana insurers must offer UM/UIM bodily injury coverage and uninsured motorist property damage coverage at no less than the state minimums, and you must reject them in writing to go without. The Insurance Research Council estimates about 14.0% of Indiana drivers were uninsured in 2023. See uninsured and underinsured motorist coverage explained and uninsured motorist property damage.
• Comprehensive. Deer collisions, hail, tornadoes and flooding are comprehensive claims in Indiana (comprehensive coverage explained).
• Collision. Required by lenders and the only coverage for your own car after a crash you cause.
• Medical payments. medical payments coverage pays your and your passengers' medical bills regardless of fault.
• An umbrella policy for homeowners and others with significant assets (umbrella insurance: liability protection above your auto policy).

What drives rates in Indiana

The NAIC puts Indiana's average annual expenditure at $926 in 2023, well below the national average of $1,282. These averages blend all policy types and are not quotes (What NAIC auto insurance data measures).

Moderate repair and medical costs, lower traffic density outside Indianapolis and a competitive market with many regional insurers help keep Indiana prices down. Heavy truck traffic on interstates such as I-65, I-70 and I-94, winter weather, severe storms and deer collisions push costs up. Prices vary by ZIP code between Indianapolis, the Chicago-area counties of northwest Indiana and rural areas (Why your ZIP code changes your car insurance price).

Penalties for driving uninsured

Indiana enforces its insurance law mainly through license and registration suspensions. If the BMV does not receive proof that you were insured when you had a crash or committed certain violations, it suspends your driving privileges, your vehicle registration or both. The suspension stays in place until proof of future financial responsibility, an SR22, is filed (Ind. Code § 9-25-6-3). Selling the car or letting the registration lapse does not stop the suspension. Reinstatement fees apply, and you remain personally liable for any damage you caused. See penalties for driving without insurance.

SR-22 and high-risk drivers

The BMV may require SR22 insurance, a filing your insurer submits electronically, to restore driving privileges after insurance violations or certain court convictions. According to the BMV, for insurance-related suspensions the SR22 requirement is satisfied after 180 consecutive days of coverage. If your insurer cancels the policy and files an SR26 cancellation notice during that time, your privileges are suspended again until a new SR22 is on file. SR-22 insurance explained covers how it works, and non-owner car insurance: who needs it and how it works covers drivers without a car. If standard insurers decline you, see high-risk car insurance: options when insurers say no.

Insurers with a strong presence in Indiana

Indianapolis-based Indiana Farm Bureau Insurance is the state's home-grown option. Midwestern carriers sold through independent agents, including Erie Insurance and Auto-Owners Insurance, also have a strong presence. State Farm, Progressive, Allstate, GEICO and American Family Insurance round out the market. See regional car insurers: when smaller carriers can beat the giants and captive agents vs independent agents vs buying direct.

Where to get help

The Indiana Department of Insurance regulates insurers and helps consumers with questions and complaints about auto policies and claims. Call 800-622-4461 or 317-232-2395, email [email protected], or file a complaint online at in.gov/idoi. how to file a complaint against a car insurance company explains what to include. Suspensions, Certificates of Compliance and SR22 filings are handled by the Bureau of Motor Vehicles; for injury claims, consult a licensed Indiana attorney.