Indiana may be known for its farmland and open roads, but drivers still need to follow strict car insurance requirements. All Indiana motorists must carry minimum liability insurance to legally operate a vehicle. The state uses an at-fault system, meaning the driver responsible for an accident is financially liable. Below is a complete guide to Indiana’s insurance laws and penalties for 2025.
- Carry at least 25/50/25 liability coverage
- Have electronic or printed proof of insurance in your vehicle
- Understand license/registration penalties for being uninsured
- Check if your lender requires full coverage
Driving in Indiana? Here’s the Minimum Coverage Required
Indiana law mandates the following minimum liability limits:
- Bodily Injury Liability: $25,000 per person / $50,000 per accident
- Property Damage Liability: $25,000 per accident
This is often referred to as 25/50/25 coverage.
Optional Coverage You Should Consider
Minimum coverage only protects others. To protect yourself financially, many Indiana drivers choose these extras:
- Collision Coverage: Pays for repairs to your vehicle after a crash, regardless of fault.
- Comprehensive Coverage: Covers non-collision losses like theft, hail, or deer strikes (common in Indiana).
- Uninsured/Underinsured Motorist Coverage (UM/UIM): Protects you if the other driver has no insurance or not enough coverage.
- Medical Payments Coverage: Helps cover hospital bills for you and passengers, even if you caused the accident.
- Roadside Assistance & Rental Reimbursement: Useful if you rely on your vehicle daily and want added convenience.
Lenders usually require full coverage if your vehicle is financed or leased.
What Happens in Indiana if You Drive Without Insurance?
Indiana imposes strict penalties for uninsured driving:
- First offense: License suspension for 90 days and a reinstatement fee.
- Second offense: Suspension for up to one year and mandatory SR-22 filing for three years.
- Third/subsequent offenses: Suspension for one year, longer SR-22 requirements, and higher reinstatement costs.
Insurance Verification Options in Indiana
Drivers must carry proof of insurance at all times and present it during traffic stops, vehicle registration, or after an accident. Indiana accepts both paper cards and digital proof on mobile devices.
Does Indiana Use Real-Time Insurance Verification?
Indiana uses the Electronic Insurance Verification Program (EIV). It is not a true real-time system, but the BMV conducts random checks and verifies coverage at registration and renewal. If the system flags a lapse, drivers may be required to submit proof of insurance within a set deadline to avoid suspension.
John forgets to renew his insurance and is randomly selected for verification. When he fails to respond, the BMV suspends his license for 90 days. To reinstate, he must pay fees and file SR-22 insurance for three years — making his premiums much higher.
Official Indiana Insurance Resources
Frequently Asked Questions About Indiana Car Insurance
Is car insurance required in Indiana?
Yes. Indiana law requires every driver to carry minimum liability coverage of 25/50/25.
What happens if I’m caught driving uninsured?
You may face license suspension, fines, reinstatement fees, and mandatory SR-22 filings.
Can I show proof of insurance electronically?
Yes. Indiana allows drivers to present digital insurance cards on smartphones.
Does Indiana require uninsured motorist coverage?
Yes. Insurers must offer UM/UIM coverage, but drivers may reject it in writing.
Is full coverage required in Indiana?
Not by law — but lenders may require it for financed or leased vehicles.
Interested in Indiana’s insurance laws compared to nearby states? Check out:
Illinois,
Kentucky,
Ohio, and
Michigan.