Hoosier State Auto Insurance Requirements: What You Need To Know

Indiana requires all drivers to have auto insurance, with a minimum coverage of $25,000 per person/$50,000 per accident for bodily injury liability and $25,000 per accident for property damage liability. This means that if you are found at fault for an accident, your insurance will cover the expenses of the other driver and their passengers, up to these limits. You must be able to provide proof of insurance when requested by a law enforcement official.

Indiana's minimum auto insurance requirements

Indiana requires all drivers to have auto insurance. The Indiana Motor Vehicle Code requires every driver to carry liability auto insurance with stated minimum coverages: 25/50/25. This means that drivers must have a minimum of $25,000 per person/$50,000 per accident for bodily injury liability and $25,000 per accident for property damage liability. These minimums are designed to cover the medical and repair bills of other drivers, passengers, and pedestrians involved in an accident that you cause.

In Indiana, a valid auto insurance policy must include liability insurance for both bodily injury and property damage. The minimum limits you must purchase are:

• Bodily Injury (BI): $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, you will be responsible for paying the extra amount.
• Property Damage (PD): Your policy will cover up to $25,000 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.

It is important to note that higher insurance limits can help protect your personal assets in the event of a serious crash. While collision coverage is optional in Indiana, it can pay for repairs to (or replacement of) your damaged vehicle after an accident, regardless of who was at fault.

In addition to the minimum requirements, drivers can opt for additional coverage, such as collision coverage, comprehensive coverage, medical payments coverage, and rental reimbursement.

Indiana also requires all car insurance policies to include uninsured motorist coverage, with minimum liability limits of $25,000 for bodily injury and $25,000 for property damage. Underinsured motorist coverage with a minimum of $50,000 for bodily injury is also required unless these coverage options are waived in writing by the policy purchaser.

Proof of insurance

Indiana requires vehicle owners to maintain financial responsibility for any accident they might cause. Most drivers do this by purchasing car insurance that meets the minimum coverage required under Indiana law. The state requires drivers to carry liability auto insurance with minimum coverages of $25,000 per person, $50,000 per accident, and $25,000 for property damage. This basic coverage pays the medical and property damage bills of drivers, passengers, and pedestrians injured or whose vehicles are damaged in a car accident.

Indiana allows drivers to provide proof of insurance in either paper or electronic form. This includes presenting an insurance ID, a policy declaration page, or an electronic image of a car insurance card using an insurance company's app.

If a driver is involved in an accident or receives certain traffic violations, they may be required to provide additional proof of financial responsibility. This can be done by obtaining a Certificate of Compliance (COC) or an SR-22 form. The COC demonstrates that the driver had the state's minimum motor vehicle liability protection at the time of the incident, while the SR-22 form proves that the driver has obtained a motor vehicle insurance policy that meets the state's minimum standards. Failure to provide this documentation can result in the suspension of driving privileges and financial penalties.

In addition to the minimum liability insurance requirements, Indiana also mandates that all car insurance policies include uninsured motorist coverage unless this is waived in writing by the policy purchaser. This coverage protects drivers in the event of an accident with an uninsured driver and provides protection for bodily injury and property damage.

Penalties for driving without insurance

Indiana has strict penalties for driving without insurance. The consequences for this violation have become more severe over time and can result in hefty fines, suspension of driving privileges, and even the impounding of your vehicle.

If you are caught driving without insurance in Indiana for the first time, your driving privileges will be suspended, and you will be required to carry an SR-22 Certificate for three years. The SR-22, also known as a "Certificate of Financial Responsibility," is a document that proves you have car insurance that meets the minimum insurance required by law. For a first offence, you will also face a 90-day driver's license suspension and a $250 reinstatement fee.

The penalties increase for a second offence, resulting in a $500 fine, a one-year license suspension, and the requirement to carry an SR-22 for three years. The reinstatement fee increases to $500, and your vehicle registration may also be suspended for one year.

For a third and any subsequent offences, the penalties become even more severe. You will be required to pay a $1000 reinstatement fee, your driver's license will be suspended for one year, and you will need to carry an SR-22 for five years. Additionally, your vehicle registration may be suspended for one year.

It is important to note that driving without insurance can also lead to significant financial consequences. If you are responsible for an accident and are uninsured, the other driver can sue you, and you will be liable for their repairs, medical care, and any damages to your own vehicle and personal injuries.

Recommended insurance coverage

Indiana requires vehicle owners to maintain financial responsibility for any accident they cause. Most drivers do this by purchasing car insurance that meets the minimum coverage required under Indiana law. However, it is recommended to carry more coverage to protect yourself in case of a serious crash that results in significant injuries and vehicle damage. Once policy limits are exhausted, you will be personally liable for any additional costs, so higher insurance limits can help protect your personal assets.

Liability Car Insurance:

Liability car insurance is mandatory for all drivers in Indiana. It covers the other vehicle and/or its driver and passengers when you are found at fault for an accident. The minimum liability insurance requirements in Indiana are:

• Bodily Injury Liability: $25,000 for injuries or death of one person, with a total of $50,000 for two or more people in a given accident.
• Property Damage Liability: $25,000 per accident for any property damage you are responsible for, either to the other driver or for collateral damage.

You can opt for higher liability limits, which differ by insurer, to provide additional protection.

Uninsured/Underinsured Motorist Coverage:

While not mandatory, uninsured/underinsured motorist coverage is strongly recommended in Indiana. This coverage protects you in the event of an accident with a driver who does not have sufficient insurance. The minimum limits for uninsured motorist coverage are:

• Bodily Injury: $25,000 per person and $50,000 per accident.
• Property Damage: $10,000 per accident.

For underinsured motorist coverage, the minimum limit is $50,000 per accident, regardless of the number of people injured.

Collision Coverage:

Collision coverage is optional in Indiana but highly recommended, especially if you have a valuable vehicle. It pays for repairs or replacement of your vehicle if it is damaged in a collision or upset.

Comprehensive Coverage:

Comprehensive coverage is also optional but valuable. It covers damages to your car caused by perils other than collision or upset, including theft, fire, windstorm, and glass breakage.

Medical Payments Coverage:

Medical payments coverage pays for the medical bills incurred by you and usually your passengers if injured while riding in, entering, or exiting the car. This coverage is subject to the limits of the policy.

Other Optional Coverages:

Other optional coverages to consider include towing, car rental, and emergency roadside assistance. Additionally, if you lease or finance a vehicle, your lender may require you to have comprehensive and collision coverage.

Alternative proof of financial responsibility

Indiana requires vehicle owners to maintain financial responsibility for any accident they might cause. This is usually demonstrated by purchasing car insurance that meets the state's minimum coverage requirements. However, there are alternative ways to prove financial responsibility in Indiana.

The Indiana Bureau of Motor Vehicles (BMV) will accept alternative forms of proof of financial responsibility when registering a vehicle. Here are the two alternatives to purchasing car insurance:

A surety bond is issued by a licensed Indiana surety company, which promises to pay on your behalf if you are unable to do so. The bond should cover at least the same amounts as a minimum insurance policy would pay out for each accident. A copy of this bond must be sent to the BMV, and when a Certificate of Compliance is requested, the surety company must provide the necessary information to the BMV.

Cash/Security Deposit

You can make a deposit of $40,000 in cash or securities, such as a government bond or note, with the state treasurer. In the event that you cause an accident, the amount you are ruled responsible for will be deducted from this deposit. Once the treasurer accepts your deposit, the BMV will receive a copy of the receipt for their records.

It is important to note that these alternatives to car insurance still require you to demonstrate financial responsibility and cover any expenses you may owe to injured persons or property damage in an accident.

Frequently asked questions