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Indiana Car Insurance Requirements

Indiana Minimum Car Insurance Requirements

All drivers in the state of Indiana must carry liability insurance coverage. There is a set minimum amount you must carry in order to be a legal driver in Indiana. Those minimums are as outlined:

  • $25,000 bodily injury per person
  • $50,000 bodily injury per accident
  • $25,000 property damage per accident

You must be prepared to provide proof of insurance if asked to do so by law enforcement. Failure to do so could result in some harsh penalties. If you have an auto loan or are leasing your vehicle, your lender or leasing company may require you to carry additional insurance.

Indiana Liability Coverage

Liability insurance is mandatory in the state of Indiana. This coverage pays for bodily injuries and property damage in an accident that you are responsible for. Liability insurance will never pay for you or your property. In order to protect yourself, you will need to expand your insurance policy. More specifics about this type of insurance and its coverage limits will be explored in a later section.

Diminished Value Policy in Indiana

Indiana is one of 15 states that are what is known as a diminished value state. This means that in Indiana you are able to recover diminished value from the at-fault driver’s insurance company if you experience any losses when going to sell your vehicle. Even if your car has been fully repaired, just being in an accident will result in it losing some of its value. If this affects the selling process, you could file a diminished value claim with the other person’s insurer.

There are specific requirements you must meet in the state of Indiana in order to successfully file such a claim:

  • You were not at fault for the accident
  • You can provide substantial documentation of the accident, including photos and records of repairs.
  • The accident happened less than 6 years ago.
  • Indiana does have uninsured motorist coverage for such a claim.

Car Insurance Limits in Indiana

Coverage limits refer to the minimum amount of insurance the state mandates drivers carry in order to legally drive. From an insurance point of view, limits are also the maximum amount an insurer will pay out should you carry the required minimums. In Indiana, this is expressed as 25/50/25 which each number representing a different category or liability insurance. What those categories cover is explored below:

  • Bodily injury per person refers to the maximum amount your insurance company will pay for one person injured in an accident you caused.
  • Bodily injury per accident is the amount your insurer will payout for all injuries you caused in an accident.
  • Property damage per accident refers to the maximum amount of money your insurance company will pay for damage you caused in an accident.

Is Indiana’s Mandatory Insurance Minimums Enough Coverage?

In short, no. Indiana does not have adequate mandatory minimum liability insurance coverage. Accidents can get very pricey, very fast. Medical expenses can easily exceed the limits even if the insurance company is paying up to $50,000 in bills. Not to mention that replacing a vehicle can cost way more than $25,000. For everything that is not covered by your insurance, it will come back to you to pay personally, putting you in a financially risky position. It is highly recommended that you increase your coverage limits and utilize policy add-ons to strengthen your car insurance.

Driving Without Proof of Insurance in Indiana

Failure to provide proof of insurance in the state of Indiana can result in some pretty harsh consequences. The table below outlines what you could be facing if you choose to drive without insurance in Indiana.

Consequences
1st Offense
2nd Offense
3rd Offense
Fines
$250
$500
Up to $1,000
License Suspension
90 days
90 days
1 year
SR22 Requirement
3 years
3 years
5 years

Additional Types of Car Insurance in Indiana

While liability insurance is the only type of car insurance required to legally drive in the state of Indiana, there are numerous policy add-ons you should consider to strengthen your coverage. Listed below are some common types of insurance drivers add to their policies.

  • Collision: This protects your car from damages related to a crash with another vehicle.
  • Comprehensive: A form of damage coverage, this protects your vehicle from damages it sustains when it is not in use. Some perils included under this type of insurance are theft and extreme weather.
  • Gap Coverage: If you have an auto loan and your car is totaled, gap coverage can help pay the difference between your car's actual cash value and the amount remaining on your loan.
  • Roadside Assistance: If you are experiencing mechanical issues while driving, roadside assistance can help. While coverage varies from company to company, it generally will lend assistance if you have a dead battery or flat tire.
  • Rental Car Reimbursement: Should your car be out of use following an accident, this coverage can help pay for a rental while you wait for your vehicle to be repaired.
  • Uninsured Motorist Coverage: Even though insurance is required by many states, you can still encounter a driver with little to no insurance coverage. Instead of getting stuck paying the bills yourself, uninsured motorist coverage can be added to your policy. Your insurer will then help pay for damages and injuries when the other driver's insurance cannot.

Car Insurance is Important For Any Indiana Driver

While you can never plan for a car accident, you can prepare for the possibility of one. The best way to go about this is obtaining adequate car insurance. This means you should not stick to just carrying the state-mandated liability insurance. It would be in your best interest to really sit down and look at your current situation to decide what would offer you the best protection in an accident. It is not the most exciting thing in the world but when the unexpected happens, you are going to be thankful you did it.

*This product may not be available in every state, please call an agent for more information.

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