If you own a car in the Hoosier State you may have heard it is a 25/50/25 minimum insurance state. It is important to know Indiana’s insurance requirements, have proof of insurability for it, and/or have sufficient auto insurance for its use as either a personal vehicle or as a commercial vehicle.
When driving in the state of Indiana, it is mandatory that all drivers have a minimum liability insurance coverage of $25,000 per person in bodily injury, $50,000 per accident, and $25,000 in property damage. Any driver who does not have this amount of coverage may be fined, have their license suspended, or even go to jail.
In order for you to be fully protected in the event of an accident, make sure you are carrying enough insurance coverage so that you are guaranteed financial compensation for yourself and your vehicle.
Read on to learn more about what kind of auto insurance is required by law in Indiana, how much coverage is required, and some of the penalties associated with not having adequate auto coverage.
What Is the Minimum Car Insurance Requirement in Indiana?
As of 2018, the minimum car insurance requirement in Indiana is $25,000. The state’s Department of Insurance has a great explanation of what coverage that includes on its website. This rule applies to all drivers registered in the state and who are at least 16 years old. There are zero exceptions to this requirement—it’s as simple as that. If you fail to meet this standard, your license will be suspended for three months.
The good news is that there is no waiting period for auto insurance coverage in Indiana before you can register your vehicle with the state’s DMV. You should be able to get a policy quickly after completing your registration or if you’re coming from out-of-state and bringing along your existing policy.
Indiana is a 25/50/25 minimum insurance state which means you must have the following minimum auto insurance coverages:
- $25,000 per person for bodily injury
- $50,000 per accident in total
- $25,000 per accident for property damage
What Does This Minimum Coverage Mean?
Indiana’s minimum auto insurance requirement is $25,000. Additionally, every crash that a driver causes with their car must be reported to the police. What this means is that Indiana’s minimum coverages are roughly equivalent to what most other states require.
This coverage includes liability and uninsured/underinsured motorist (UM/UIM) coverage. The liability coverage protects you in the event of any bodily injury or property damage you cause to another person or their property.
If a third party suffers an injury at your hands, they will have recourse against your auto insurance company for protection. The UM/UIM coverage protects you from any injuries or damages caused by an uninsured driver or one who has inadequate insurance coverage in the event of an accident.
This coverage also extends to any passengers in your vehicle as well as pedestrians and cyclists if they were injured in a collision with another car driven by you or someone else in your vehicle.
How Much Does the Minimum Car Insurance Cost in Indiana?
The minimum car insurance coverage required in Indiana is $25,000 for bodily injury per person and $25,000 for property damage. In order to lease a car from a car leasing company in the state, you will likely be required by the leasing company to have full coverage car insurance with minimum liability limits of 100/300/50. In states with no-fault insurance laws—such as Indiana—the law requires you to maintain some level of liability coverage on your car even if you are not legally at fault in an accident.
To learn more about what other specific coverage you may need to carry for your car or other types of property, contact us we are an independent agency that can shop multiple carriers to find you the right coverage at the best price.
According to BankRate.com, the average cost of car insurance in Indiana is $367 for minimum insurance and $1,254 for full car insurance.
Cheapest Minimum Liability Car Insurance in Indiana
A driver in Indiana must have insurance that covers both personal liability and property damage. The minimum level of coverage required is $25,000 for each person injured by the insured. One cheap option is to get a policy with $100,000 worth of total bodily injury coverage. This is a good amount for most people who are not planning on driving a lot or at high speeds.
Check out our article on auto insurance discounts to find more ways to save on your Indiana car insurance.
What Is the Minimum Car Insurance Requirement in Indiana While Leasing a Car?
In Indiana, only residents with a valid driver’s license and a car registered in the state are allowed to drive. In order to lease a car from a car leasing company in the state, you will likely be required by the leasing company to have full coverage car insurance with minimum liability limits of 100/300/50. If you are renting a car, it is important that you ask the rental company if they provide coverage and what the requirements are.
Penalties for Driving Without Car Insurance in Indiana
As a car owner, you must be covered by auto insurance for the vehicle. This insurance needs to be in place for any time your vehicle is being used on public roads. The penalties for driving without car insurance in the state of Indiana are severe. In fact, if you live in the state but don’t have auto insurance, your vehicle could be impounded. Further, if you’re caught driving without valid auto insurance, you may also face criminal charges and fines.
If your car is not registered or insured, it will be considered a public nuisance and impounded at the owner’s expense. If your car is impounded, you cannot retrieve it until the following day after which time you will also have to pay a fee to release it from custody.
With that said, here are some of the penalties for driving without car insurance in Indiana:
- First offense: 90-day driver’s license suspension and the requirement of carrying an SR-22 certificate for three years
- Second offense: $500 fine and possible jail time
- Third offense: Imprisonment up to 1 year with a $1,000 fine
Compare Auto Insurance Rates in Indiana
Our independent Indiana insurance agents can shop coverage for your vehicle from multiple carriers and find the best rate for you. You can get started for free by having our team compare rates for you today.
“Head-on Car Accident” by Chris Yarzab is licensed under CC BY 2.0. To view a copy of this license, visit https://creativecommons.org/licenses/by/2.0/?ref=openverse.
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