Indiana Car Insurance Requirements (Updated for 2025)

Driving in Indiana requires proof of financial responsibility—typically via liability insurance plus uninsured/underinsured coverage. Failure to comply can lead to fines, suspension, mandatory SR‑22 filings, and other penalties.

Minimum Liability & UM/UIM Coverage in Indiana

As of 2025, Indiana law mandates the following minimum auto insurance coverage:

• Bodily Injury Liability: $25,000 per person / $50,000 per accident
• Property Damage Liability: $25,000 per accident
• Uninsured Motorist Bodily Injury (UMBI): $25,000 per person / $50,000 per accident
• Underinsured Motorist Bodily Injury (UIMBI): $50,000 per accident

Note: Uninsured Motorist Property Damage (UMPD) is not mandatory but might be available.

Proof of Financial Responsibility

If you’re involved in an accident, receive certain traffic violations, or are out-of-state and pulled over, the BMV may require your insurer to submit a Certificate of Compliance (COC) within 90 days. Failure to do so results in license suspension :contentReference[oaicite:1]{index=1}.

Penalties for Driving Without Insurance

• First offense: License suspended at least 90 days, $250 reinstatement fee, required SR‑22 for 180 days (some sources say up to 3 years) :contentReference[oaicite:2]{index=2}.
• Second offense: License suspended 1 year (registration suspension possible), $500 reinstatement fee, SR‑22 for 3 years :contentReference[oaicite:3]{index=3}.
• Third & subsequent offenses: License suspended 1 year, $1,000 reinstatement fee, SR‑22 for 5 years :contentReference[oaicite:4]{index=4}.
• Failure to provide COC when requested also triggers suspension until proof is submitted :contentReference[oaicite:5]{index=5}.

“No‑Pay, No‑Play” Rule

Indiana’s “No‑Pay, No‑Play” law limits your ability to recover non-economic damages (like pain & suffering) in an accident if you were uninsured or previously had a financial responsibility violation :contentReference[oaicite:6]{index=6}.

SR‑22 Filing Requirements

If your license is suspended for insurance-related violations, you’ll need an SR‑22 certificate (filed by your insurer):

• 1st offense: ~6 months to 3 years (sources vary) :contentReference[oaicite:7]{index=7}.
• 2nd offense: 3 years
• 3rd offense: 5 years :contentReference[oaicite:8]{index=8}.

Optional Coverages to Consider

• Comprehensive
• Collision
• Medical Payments (MedPay)
• Uninsured/Underinsured Motorist Property Damage (if available)
• Rental Reimbursement
• Roadside Assistance

At‑Fault System

Indiana operates an at‑fault (tort) system, meaning the responsible driver bears costs. It also uses modified comparative negligence—which can reduce recovery based on percentage of fault :contentReference[oaicite:9]{index=9}.

Liability Limit Advice

Indiana’s minimums satisfy legal requirements but may not cover serious crashes. Many opt for higher liability and UM/UIM limits to protect against major medical or legal costs :contentReference[oaicite:10]{index=10}.

Compare Auto Insurance Quotes in Indiana

Premiums in Indiana average ~$1,100 per year but vary widely. It’s smart to compare rates from top carriers to find the best mix of coverage and price:

🔍 Start Comparing Indiana Car Insurance Quotes →

FAQs

Is Indiana a no‑fault state?

No. Indiana follows an at‑fault (tort) system; the responsible party pays for damages.

Is uninsured/underinsured coverage mandatory?

Yes, insurers must offer UMBI & UIMBI matching liability limits; you may waive it in writing :contentReference[oaicite:11]{index=11}.

What is SR‑22?

An SR‑22 is a certificate of financial responsibility filed by your insurer to reinstate driving privileges after suspension.

Can I file a Certificate of Compliance after a violation?

Yes—if you had valid insurance at the time, your insurer can electronically file the COC within 90 days and your license may be reinstated :contentReference[oaicite:12]{index=12}.