Auto Insurance Requirements in Indiana
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The Indiana Motor Vehicle Code requires every driver to carry liability auto insurance with at least the stated minimum coverages when driving: 25/50/25. However, if you satisfy one of the alternative ways to prove your financial responsibility, the Indiana Bureau of Motor Vehicles (BMV) will consider your duty fulfilled. The state allows you to present your insurance ID or policy declaration page in either paper or electronic form (such as a photo on your phone).
Contents
Indiana required car insurance coverage
Required min. limits | |
|---|---|
| Bodily injury (BI) | $25,000 per person/$50,000 per accident |
| Property damage (PD) | $25,000 per accident |
Indiana car insurance minimum requirements
A valid Indiana auto insurance policy must include liability insurance for both bodily injury and property damage. Your insurance company premiums cover any expenses you owe to injured persons in an accident you cause, up to a certain amount (the limit on your policy). In Indiana, the minimum limits you must purchase are:
Bodily injury (BI): You're required to have coverage of up to $25,000 for the injuries or death of one person, with a total of $50,000 for two or more people, in a given accident. If the total of the other driver's medical expenses exceeds these limits and they decide to sue you for more, your assets will be on the hook for paying the extra amount. Higher limits are often available and differ by insurer.
Property damage (PD): Your policy will cover up to $10,000 per accident for any property damage you are responsible for, either to the other driver or for collateral damage. If it is determined that you owe more than this limit, you must cover the difference. Again, higher PD limits are often available for a higher premium and vary by insurer.
Cheapest companies in Indiana for minimum liability
Optional car insurance coverage in Indiana
The insurance code requires that every licensed insurer in Indiana include uninsured and underinsured motorist coverages in your quote when you are buying a policy for the first time. Although these are optional and you may reject them in writing, they are often strongly recommended by agents and officials. Here is a list of these elective coverages in Indiana and what they can do for you:
Uninsured motorist (UM): Despite law enforcement efforts, some drivers on the road are still uninsured and often not financially prepared to pay for the damage they cause. The UM coverages, therefore, protect you in the absence of another driver's liability insurance, for either bodily injury or property damage — or both:
- Uninsured motorist bodily injury (UMBI): Every Indiana insurer will provide UMBI with limits of at least $25K/$50K. Most will also make higher limits available, but limits cannot be higher than your BI coverage.
- Uninsured motorist property damage (UMPD): This covers $10,000 worth of property damage or higher, depending on the insurer. Note that most insurers won't make UMPD available to you unless you also purchase UMBI, and some may sell you UMBI and UMPD coverage under one single premium in Indiana.
Underinsured motorist bodily injury (UIMBI): Whenever the other driver's BI limits are lower than your UIMBI's (if you bought this coverage), UIMBI covers the difference, up to the limits you purchased. In Indiana, every insurer must offer UIMBI of $50K/$50K (a total of $50,000 per accident, regardless of how many people are hurt). Higher limits are usually available and vary from company to company.
Alternative proof of financial responsibility
Other than an insurance policy, there are two ways to prove you are a financially responsible driver in Indiana. Specifically, the BMV will grant your vehicle registration if you can provide one of the following:
Surety bond: A surety bond is issued when a licensed Indiana surety company promises to pay in your place when you are unable to do so. The bond should be good for payments of at least the amounts that a minimum insurance policy would pay for each accident you cause. Send a copy of this bond to the Bureau of Motor Vehicles. When a Certificate of Compliance is requested of you, have the surety company provide the necessary information to the BMV.
Cash/security deposit: You can make a $40,000 deposit of either cash or securities, such as a government bond or note, with the treasurer of state. In the event that you cause an accident, the amount of payment you are ruled responsible for will be deducted from this deposit. Once the treasurer accepts your deposit, the BMV will also get a copy of the receipt in your files.
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