How much car insurance do I need in Indiana?

Learn about minimum insurance coverage requirements for vehicles in Indiana, consequences for driving without insurance, and more.

Indiana requires drivers to maintain proof of financial responsibility -- in case of a car accident -- for any vehicle registered and in operation in the state. Specifically, Indiana Code section 9-25-4-5 sets the minimum amounts of financial responsibility at:

  • $25,000 for bodily injury to (or the death of) one person
  • $50,000 for bodily injury to (or the death of) two or more individuals in any one accident, and
  • $10,000 for damage to or the destruction of property (such as a vehicle) in one accident.

You can establish financial responsibility in a number of ways, but most vehicle owners do so by purchasing and maintaining liability car insurance coverage that matches the minimums listed above.

What happens if losses from an accident exceed policy limits?

Uninsured and underinsured motorist coverage is designed to act as a safety net if you are in a car accident and the other driver is (1) at fault and (2) has no, or insufficient, coverage to pay for your damages. Your UIM coverage can cover the gap between the at-fault driver's coverage and your losses, if your limits are high enough.

Indiana lets policy purchasers decline UIM coverage as long as they do so in writing. If UIM coverage is not declined in writing, then Indiana requires coverage “in limits at least equal to the limits of liability specified in the bodily injury liability provisions of an insured's policy,” with the caveat that underinsured coverage can’t be less than $50,000. Get more information about Uninsured and Underinsured Motorist Coverage.

Other ways to establish financial responsibility in Indiana

Under Indiana law, in addition to complying with the law by purchasing a car insurance policy, you can prove financial responsibility by:

  • Making an adequate deposit with the state treasurer.
  • Arranging for a surety company to issue a bond. You can contact the Indiana Bureau of Motor Vehicles at 888-692-6841, to ensure you have the proper bond amount.

What is the penalty for not having proof of financial responsibility in Indiana?

You cannot register your vehicle in Indiana if you do not have proof of financial responsibility. Additionally, your driver's license and registration may be suspended.

Get more information on Indiana Car Insurance Laws and Regulations.

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