Indiana Car Insurance Laws— All You Need to Know

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  • Minimum requirements
  • Is minimum enough?
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  • FAQs
Indiana law requires all drivers to carry a minimum amount of liability coverage car insurance. Drivers in Indiana must also have proof of insurance on their person while driving.
Indiana’s state-mandated limits for liability coverage follow a 25/50/25 pattern—meaning drivers must have $25,000 coverage in bodily injury per person, $50,000 coverage in bodily injury per accident, and $25,000 coverage in property damage per accident.
The insurance comparison and broker app Jerry, has compiled everything you need to know about car insurance in Indiana. Jerry makes insurance comparison shopping hassle-free and easy—so you can find the best deals in the least amount of time.
Here’s everything you need to know about Indiana’s car insurance laws.
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Car insurance requirements in Indiana

Liability coverage is required for all drivers in Indiana. Here are Indiana’s minimum liability coverage limits:
Minimum Liability Coverage
$25,000 in bodily injury per person
$50,000 in bodily injury per accident
$25,000 in property damage per accident

State-mandated car insurance limits

A “limit” is the maximum amount your insurance company will provide in each coverage category. Indiana’s state-mandated limits are written as 25/50/25: $25,000 coverage in bodily injury per person, $50,000 coverage in bodily injury per accident, and $25,000 coverage in property damage per accident.
These limits are not high, so you should consider purchasing higher limits for your liability coverage.
For instance, let’s say you are at fault in an accident where three other people are injured, each incurring $25,000 in medical bills ($75,000 in total for all three people). Indiana’s liability limits would only cover $50,000 in medical bills per accident, so you would be liable for the remaining $25,000.
Key Takeaway Indiana law requires all drivers to have liability insurance. When buying your liability coverage, you should purchase higher limits than the state’s mandated minimums.

Do Indiana’s required insurance minimums provide enough coverage?

Indiana’s required insurance minimums are extremely limited when compared to other states. Indiana law only requires liability insurance, and according to the required insurance minimums, your own expenses will not be covered if you are ever in an at-fault accident.
For comparison, many states also require personal injury protection (PIP) and uninsured/underinsured motorist coverage.
While you should consider purchasing higher limits than the required 25/50/25 liability limits, you should also look into additional types of insurance coverage for your car.
Liability coverage won’t cover damages to your own vehicle in an at-fault accident. It also won’t cover your own medical bills—which could easily be thousands of dollars if you are in a serious collision.
For something like this, you should consider personal injury protection (PIP)—or one of the other options listed below.

Optional auto insurance coverage in Indiana

It’s a good idea to purchase optional car insurance coverage in Indiana since only liability coverage is required. Here are some optional types of coverage you can consider:
  • Uninsured/underinsured motorist coverage can cover your expenses if you get into a collision with an at-fault driver who doesn’t have insurance.
  • Personal injury protection (PIP) covers your own healthcare expenses after an accident—regardless of who is at fault.
  • Comprehensive coverage can cover the costs of physical damages to your vehicle that are not the result of a collision (e.g. vandalism).
  • Collision coverage can help you cover the cost of repairs for your vehicle after a collision with another vehicle or fixed object.
  • Medical payments coverage covers the cost of medical bills or funeral expenses resulting from a collision.
  • Roadside assistance helps with things like fixing flats, towing, or jump-starting a car. The type of coverage will vary between policies and companies.
  • Rental car reimbursement will cover the cost of a rental vehicle if you are unable to drive your car.
Key Takeaway Indiana’s minimum requirements for car insurance are limited—you’re best off purchasing additional car insurance coverage.

Penalties for driving without insurance in Indiana

Insurance is mandated in Indiana, so there are various penalties for driving without insurance or proof of insurance:
Penalties for driving without proof of insurance in Indiana
License suspension for 30 days to 1 year
At least $250 in license reinstatement fees
Possible SR-22
Remember—along with these legal penalties, driving without insurance can have huge financial consequences, as you’ll be liable for damages and medical expenses if you are at fault in an accident.
Jerry has everything you need to know about getting insured in Indiana, so that you can drive fully insured—and have fun while doing it.
Key Takeaway License suspensions and fees are some of the possible penalties for driving without proof of insurance in Indiana.
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Where to buy car insurance in Indiana

No matter where you’re driving, comparison shopping is the best way to find the cheapest car insurance. Jerry does all the comparison shopping for you: after gathering your information in less than a minute, Jerry brings you quotes from over 40 different insurance providers—you just have to browse and pick your policy.
Jerry does the calls and paperwork for you, so you can get set with your new policy in-app—hassle-free and quicker than grocery shopping.
The average Jerry customer saves nearly $900 a year on car insurance—and it’s always completely free to use!
“I had been putting off looking into a better car insurance rate because I dreaded the long forms, the disruptive calls, the endless process of getting quotes. I’m so glad to have found Jerry! They did it all for me. Switching was super easy. They did all the work, and they are saving me almost $50/month!” —Satisfied Jerry user
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FAQs

What insurance is required in Indiana?

Liability insurance is the only type of insurance required in Indiana. Your policy must meet the 25/50/25 state-mandated limits: $25,000 coverage in bodily injury per person, $50,000 coverage in bodily injury per accident, and $25,000 coverage in property damage per accident.

Is it illegal to not have car insurance in Indiana?

Yes, it is illegal to drive without insurance or proof of insurance in Indiana. Indiana law requires that drivers have liability insurance.
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