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