Indiana Car Insurance Laws: How Much Coverage Do I Need?

Indiana drivers are required to carry 25/50/25 liability coverage, but most policyholders invest in higher coverage limits and additional coverages for better financial protection.
Written by Jasmine Kanter
Edited by Sarah Gray
Reviewed by R.E. Fulton
Indiana car insurance
laws require all drivers to purchase $25,000 of bodily injury liability per person, $50,000 of bodily injury liability per accident, and $25,000 of property damage liability.

Indiana auto insurance requirements

The Indiana Department of Insurance requires all drivers to carry at least the following types of car insurance:
If you get into an at-fault car accident, your auto insurance company will pay up to $25,000 to treat each person you injure, with a maximum of $50,000 per accident. If the other vehicle is damaged, your provider will cover up to $25,000 to repair or replace it.
Indiana insurance companies must also offer uninsured/underinsured motorist coverage (UM/UIM) on all policies, but you can reject this coverage in writing.2 This coverage allows you to file a claim with your own insurance company if you’re struck by an at-fault driver who has no liability coverage, whose coverage isn’t sufficient to cover your medical bills, or who can’t be identified by police (i.e. a hit-and-run driver). 
The minimum amount of UM/UIM offered to Indiana drivers is:
  • Uninsured motorist coverage for bodily injury: $25,000/$50,000
  • Underinsured motorist coverage for bodily injury: $50,000
  • Uninsured motorist property damage: $25,000
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If you lease or finance a vehicle in Indiana, your bank or lender may require you to purchase full coverage insurance with comprehensive and collision coverage on top of liability insurance. Your leasing company may also require you to raise your liability limits to 100/300/100.

Is minimum coverage the most cost effective option?

Indiana’s minimum coverage requirements offer limited financial protection. If you’re involved in an accident and the other driver’s damages exceed your liability coverage limits,
Indiana car accident laws
allow them to sue you.

Expert Insurance Agent Insight

Licensed Insurance Agent @ Jerry - 6 years experience
As a licensed agent, I highly recommend [carrying] higher limits than state minimums for bodily injury and property damage coverages. I'd consider limits of $100,000/$300,000 as these coverages can better protect you from the damages and injury you may cause in an auto accident.
Since minimum liability coverage can result in high out-of-pocket costs, it isn’t the most cost effective insurance option for Indiana drivers. Instead, insurance experts recommend a full coverage insurance plan with the following policy limits and coverage options:
$50,000 to $100,000 of bodily injury liability coverage per accident
$50,000 of property damage liability coverage per accident
$25,000/$50,000 of uninsured motorist bodily injury coverage
$50,000 of underinsured motorist coverage
Comprehensive coverage
(covers your vehicle for damages from vandalism, theft, severe weather, and more)
Collision coverage
(covers your vehicle after an accident, regardless of fault)
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Raise your liability limits and turn on full coverage with high deductibles to find affordable coverage with maximum protection.
makes it easy to adjust your coverage levels and see how they affect your rate – ensuring you find coverage that fits your needs at the best price.

Indiana car insurance costs: Minimum vs full coverage rates

In Indiana, the average cost of state minimum liability coverage amounts to approximately $102 per month or $1,224. On average, full coverage insurance in Indiana costs around $1,688 each year or $141 per month.
While minimum liability coverage may offer lower premiums, full coverage provides better protection for your vehicle. To find the lowest full coverage car insurance rate, you’ll need to compare quotes from multiple providers.
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Optional coverages in Indiana

When it comes to financial protection, liability, collision, and comprehensive insurance are just the beginning. You may want to consider add-ons like:
Medical payments coverage (MedPay)
: Helps you cover your personal medical expenses after an accident, including emergency room visits and doctor bills. It does not cover lost wages or pain and suffering.
Roadside assistance
: For help with things like tire changes, towing, battery jumps, running out of gas, and more.
Accident forgiveness
: Prevents your rates from being surcharged after your first at-fault auto accident (terms may vary).
Rental car reimbursement
: Helps pay for a rental car for the time needed to repair your vehicle up to your policy limits in the event of a covered insurance claim.
Gap insurance
: Covers the difference between the actual cash value (ACV) of your financed vehicle and the total remaining on your loan if the vehicle is totaled.

Penalties for driving without insurance in Indiana

If you’re caught
driving without proof of insurance
in the state of Indiana, you could face a driver’s license suspension, a license reinstatement fee, and an SR-22 filing requirement.3
  • License suspended until
    certificate filed with Indiana Bureau of Motor Vehicles (BMV)
  • $250 license reinstatement fee
  • SR-22 filing requirement for at least six months
  • License suspended until SR-22 certificate filed with Indiana BMV
  • $500 license reinstatement fee
  • SR-22 filing requirement for at least six months
  • License suspended until SR-22 certificate filed with Indiana BMV
  • $1,000 license reinstatement fee
  • SR-22 filing requirement for at least six months
Remember: Driving without insurance is a moving violation—and like any other traffic violation, it can drive up the cost of car insurance coverage.


Does Indiana require you to have car insurance?

Yes, car insurance is required in Indiana. You’ll need to find an auto insurance policy that provides bodily injury and property damage liability coverage following a 25/50/25 rule.

Is Indiana a no-fault state for car insurance?

Indiana is an at-fault state for car insurance, which means the at-fault driver is legally responsible for paying any damages. Liability insurance allows the insurance company to step in and pay for damages you’re liable for.

What’s the penalty for not having car insurance in Indiana?

In Indiana, uninsured motorists may be punished by driver’s license suspension, an SR-22 filing requirement, and a license reinstatement fee. 
An SR-22 is a certificate your car insurance provider must file directly with the Indiana Bureau of Motor Vehicles. SR-22 filings usually result in added surcharges and increased car insurance premiums.

What are the insurance requirements in Indiana?

Indiana drivers are required to carry a car insurance policy with at least $25,000 of bodily injury liability coverage per person, $50,000 of bodily injury liability coverage per accident, and $25,000 of property damage liability coverage per accident.

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