Indiana Auto Insurance Requirements: Minimum Coverage (2025)

Quick Answer: Indiana Minimum Auto Insurance

Indiana requires all drivers to carry liability insurance. The state-mandated minimums are:

This is commonly written as 25/50/25. Indiana requires proof of financial responsibility but does not mandate uninsured motorist coverage, PIP, or comprehensive/collision coverage.

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What Indiana Law Actually Requires

Under Indiana Code 9-25, all drivers must:

1. Maintain liability insurance meeting minimum state requirements
2. Carry proof of insurance at all times while driving
3. Provide insurance information during traffic stops and at accident scenes
4. Register insurance with the BMV (insurers report this automatically)

Understanding 25/50/25 Coverage

Bodily Injury Liability - $25,000/$50,000

This covers injuries you cause to others:

• $25,000 maximum per injured person
• $50,000 maximum per accident (total for all injured people)
• Pays for medical bills, lost wages, pain and suffering
• Does NOT cover your own injuries

Property Damage Liability - $25,000

This covers damage you cause to others' property:

• Other vehicles involved in accidents
• Buildings, fences, guardrails
• Personal property damaged in accidents
• Does NOT cover damage to your own vehicle

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Indiana's BMV Verification System

Indiana uses an electronic insurance verification system:

How It Works

1. Automatic Reporting: Insurance companies report your coverage status to the BMV electronically
2. Real-Time Monitoring: The BMV tracks insurance lapses in real-time
3. Notification System: You receive warnings if coverage lapses
4. Registration Suspension: Registration can be suspended for non-compliance

What Triggers BMV Alerts

• Insurance policy cancellation
• Non-payment of premiums
• Policy expiration without renewal
• Moving to Indiana without obtaining IN insurance

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Penalties for Driving Uninsured in Indiana

Indiana enforces insurance requirements strictly:

First Offense

Subsequent Offenses

Additional Consequences

• Vehicle impoundment at traffic stops
• Personal liability for accident damages
• Difficulty obtaining insurance in the future
• Higher insurance rates when you do get coverage

If You Cause an Accident While Uninsured

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Why Indiana's Minimums Aren't Enough

While Indiana's requirements are higher than some states, they still fall short for many real-world accidents:

Real-World Cost Comparison

Gap Example

You cause an accident injuring two people and totaling a newer SUV:

• Person 1 medical bills: $45,000
• Person 2 medical bills: $35,000
• Vehicle damage: $40,000
• Total damages: $120,000

Your 25/50/25 coverage pays:

• Person 1: $25,000 (maximum)
• Person 2: $25,000 (maximum)
• Vehicle: $25,000 (maximum)
• Total paid: $75,000

You owe out of pocket: $45,000

The injured parties can sue you for the difference. Your wages can be garnished, and your assets can be seized to pay the judgment.

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Recommended Coverage for Indiana Drivers

Insurance experts recommend higher limits for Indiana drivers:

Minimum Recommended: 50/100/50

Why: Covers most single-vehicle accidents and moderate injuries

Better Protection: 100/300/100

Why: Adequate for multi-car accidents and serious injuries

Additional Coverages to Consider

Uninsured/Underinsured Motorist (UM/UIM)

• Protects you when hit by drivers with no insurance or inadequate coverage
• Approximately 12% of Indiana drivers are uninsured
• Not required by law but highly recommended
• Typically costs $100-200 per year

Medical Payments (MedPay)

• Covers your medical bills regardless of fault
• Pays quickly without waiting for liability determination
• Typically $1,000 - $10,000 limits
• Especially valuable if you have high-deductible health insurance

Collision Coverage

• Pays to repair your car after accidents
• Required if you have a car loan or lease
• Subject to deductible ($250-$1,000)

Comprehensive Coverage

• Covers theft, vandalism, weather damage, animal strikes
• Required if you have a car loan or lease
• Subject to deductible

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Indiana-Specific Insurance Rules

Proof of Insurance Requirements

You must provide proof of insurance:

• During traffic stops
• At accident scenes
• At BMV during registration
• When requested by law enforcement

Acceptable forms:

• Insurance ID card (paper or electronic)
• Policy declarations page
• Digital insurance card on smartphone

Indiana accepts digital proof - showing an insurance card on your phone is legally valid.

Moving to Indiana

If you establish Indiana residency:

1. Obtain Indiana insurance within 60 days
2. Register vehicle at BMV with proof of insurance
3. Obtain Indiana driver's license within 60 days
4. Update insurance address with your carrier

Out-of-state insurance does not satisfy Indiana requirements for residents.

Lapse Grace Period

Indiana offers no grace period for insurance lapses:

• Suspension is immediate upon coverage termination
• You'll receive a notice but suspension proceeds regardless
• Must obtain insurance and pay reinstatement fee to restore driving privileges

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SR-22 Requirements in Indiana

Certain violations require filing an SR-22 certificate:

When SR-22 Is Required

• DUI/OWI conviction
• Driving while suspended
• At-fault accident while uninsured
• Accumulating too many points (18 in 24 months)
• Reckless driving causing injury

SR-22 Requirements

How SR-22 Works

1. Contact insurance company that offers SR-22 filing
2. Purchase policy meeting minimum requirements
3. Insurer files SR-22 certificate with Indiana BMV
4. Pay BMV reinstatement fees ($150-$300)
5. Maintain continuous coverage for required period

Important: Any lapse in coverage during SR-22 period triggers automatic license suspension and restarts the SR-22 clock.

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How Much Does Indiana Auto Insurance Cost?

Average annual premiums in Indiana:

Indiana is below the national average for auto insurance costs, ranking in the lower third of states.

Factors Affecting Your Rate

• Age: Drivers under 25 and over 75 pay more
• Driving record: Accidents and tickets increase rates significantly
• Location: Indianapolis costs more than rural areas
• Vehicle type: Luxury and sports cars cost more to insure
• Credit score: Indiana allows credit-based insurance scoring
• Annual mileage: High mileage = higher premiums
• Coverage levels: Higher limits = higher cost

Money-Saving Tips for Indiana Drivers

1. Shop around: Rates vary 30%+ between companies
2. Bundle policies: Combine auto and home insurance for discounts
3. Maintain good credit: Can save 20-30% on premiums
4. Take defensive driving: Course discounts available
5. Increase deductibles: Higher deductible = lower premium
6. Ask about discounts: Good student, low mileage, safety features

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Frequently Asked Questions

Is car insurance required in Indiana?

Yes. Indiana law requires all drivers to carry minimum liability insurance of 25/50/25. Driving without insurance results in license suspension, registration suspension, and reinstatement fees.

Can I drive in Indiana with out-of-state insurance?

Yes, if you're visiting. Out-of-state insurance covers temporary visits. However, Indiana residents must have Indiana-issued insurance policies. If you move to Indiana, you must obtain IN insurance within 60 days.

Does Indiana require uninsured motorist coverage?

No, UM/UIM coverage is not required by law. However, insurance companies must offer it, and you must sign a waiver to decline. Given that about 12% of Indiana drivers are uninsured, UM coverage is strongly recommended.

What happens if my insurance lapses in Indiana?

The BMV is notified electronically and immediately suspends your license and registration. You'll receive a notice, but suspension occurs automatically. To reinstate, you must obtain insurance, pay $150 reinstatement fee, and possibly file an SR-22.

Does Indiana have no-fault insurance?

No. Indiana is a traditional "at-fault" (tort) state. The driver who causes an accident is responsible for damages. Their liability insurance pays claims from injured parties.

How do I prove insurance at a traffic stop?

Show your insurance ID card (paper or digital). Indiana accepts electronic proof on smartphones. Police can also verify coverage through the BMV database using your license plate number.

Can I get temporary insurance in Indiana?

Yes, but most insurers require at least 6 months. Some companies offer temporary policies for specific situations (test drives, newly purchased vehicles). However, you must maintain continuous coverage to avoid BMV penalties.

What is the penalty for a second uninsured driving offense?

Second offense within 5 years results in up to 1-year license suspension, up to $300 reinstatement fee, vehicle impoundment, and likely SR-22 requirement. Criminal charges are possible for repeat offenders.

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Key Takeaways

• Indiana requires 25/50/25 minimum liability coverage
• BMV monitors insurance electronically in real-time
• No grace period for lapses—suspension is immediate
• Driving uninsured results in 90-day suspension and $150 fee
• Recommended coverage: At least 50/100/50 with UM/UIM
• SR-22 required for DUI, suspensions, and serious violations
• Digital proof accepted—show insurance card on phone
• Indiana is affordable compared to national average

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Important Disclaimer

This guide provides general information about Indiana auto insurance requirements based on publicly available sources. This is not legal or insurance advice. Requirements and laws can change. Always verify current requirements with the Indiana Bureau of Motor Vehicles and Department of Insurance.

Consult with a licensed insurance professional for advice specific to your situation.

Last verified: December 2025

Sources: Indiana Bureau of Motor Vehicles, Indiana Code Title 9, Indiana Department of Insurance