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Indiana Car Insurance Regulations & Required Coverage

Indiana insurance law requires that all drives maintain financial responsibility when operating their vehicle. This is usually in the form of a car insurance policy but the state offers other options as well. Staying current with Indiana rules and regulations can prevent you from paying fines and/or revocation of your license/registration.

A tort system is used in the state of Indiana. Under this type of system, someone must be found at fault for causing a car accident. This person and their insurance company are then required to pay for financial damages resulting from the accident. The specific rules are similar in other states but usually vary slightly.

Required Coverage

All personal vehicles in Indiana require the following liability coverage requirements:

  • Bodily Injury
  • Property Damage
Minimum Indiana Car Insurance Requirements
Bodily Injury Liability $25,000 / $50,000 Limit
Property Damage Liability $10,000 Limit

Additional insurance coverage can include:

  • Comprehensive and Collision Coverage
  • Uninsured / Underinsured Motorist
  • Medical Payments
  • Rental Reimbursement Coverage
  • Towing Coverage

Comprehensive and collision are popular options for those seeking additional insurance protection. If your car is on the list of most stolen vehicles in Indiana, comprehensive would be a wise choice. It covers you if your vehicle is stolen or other non-collision events such as a tornado. Collision pays for repairs of your vehicle if it's been involved in an accident.

Uninsured / underinsured insurance pays for damages to you, your passengers or your vehicle in the event that you are in an accident with an uninsured or underinsured driver. In Indiana, this coverage is required to be offered in the amount of $50,000, but you have the option to reject having it.

Rental reimbursement insurance will pay for the expense of getting a replacement vehicle or alternate form of transportation while your vehicle is being repaired after an accident.

Towing insurance will pay for the expense of towing your vehicle after an accident or if your vehicle needs repairs.

Proof of Insurance and Financial Responsibility

Establishing proof of insurance and financial responsibility

  • Get a standard liability car insurance policy
  • A deposit of $40,000 with the state treasurer
  • A trust fund with a market value of $40,000
  • A bond that meets the BMV's requirements issued by an Indiana surety company

Required Documentation

In order to provide proof of insurance, you can provide one of the following:

  • Insurance ID Card
  • Proof of deposit with state treasurer, trust fund or surety bond

You must maintain proof of insurance and financial responsibility and present it:

  • When asked by a police officer
  • After an accident
  • When registering or renewing your vehicle's registration
  • Anytime you are operating a vehicle

Failure to Maintain Financial Responsibility Penalties

If you are unable to show proof of insurance, you can face the following penalties:

  • Suspension of license and/or registration from up to 90 days to a year
  • License reinstatement fees of between $150 - $300
  • Requirement to maintain an SR-22 on record with the BMV for 3 years

Indiana Insurance Agents

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