All Indiana drivers must carry minimum liability insurance to legally operate a vehicle. Indiana uses an at-fault system, meaning the driver responsible for an accident is financially liable. Here’s what you need to know about insurance requirements in Indiana for 2025.
- Carry at least 25/50/25 liability coverage
- Have electronic or printed proof of insurance in your vehicle
- Understand potential license/registration penalties for driving 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
To better protect yourself and your vehicle, many Indiana drivers choose additional coverage:
- Collision and Comprehensive Coverage
- Uninsured/Underinsured Motorist Coverage (UM/UIM)
- Medical Payments Coverage
- Roadside Assistance and Rental Reimbursement
Lenders often require full coverage if your vehicle is financed or leased.
What Happens in Indiana if you drive without Insurance?
Pay attention Hoosiers, Indiana imposes serious consequences for failing to maintain insurance:
- Fines and possible license suspension
- Vehicle registration suspension
- Mandatory SR-22 filing for repeat or severe violations
Insurance Verification options in Indiana
Drivers must carry proof of insurance at all times and present it when requested by law enforcement, at traffic stops, or during vehicle registration. Indiana accepts electronic proof (e.g., mobile apps).
Does Indiana Use Real-Time Insurance Verification?
As of 2025, Indiana does not have a full real-time electronic insurance verification system. However, the Bureau of Motor Vehicles may perform random checks, and law enforcement can verify coverage manually during traffic stops. There are discussions at the state level about enhancing the system in the future.
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 and registration suspension, fines, and SR-22 insurance filing for reinstatement.
Can I show proof of insurance electronically?
Yes. Indiana allows drivers to present digital insurance cards on smartphones or devices.
Does Indiana require uninsured motorist coverage?
Yes. Indiana requires insurers to offer UM/UIM coverage, but drivers can reject it in writing if they choose.
Is full coverage required in Indiana?
Not by law — but your lender may require full coverage if you have a lease or car loan.
Interested in Indiana’s insurance laws compared to nearby states? Check out:
Illinois,
Kentucky,
Ohio, and
Michigan.