Indiana Car Insurance Laws (2024)
Indiana car insurance laws require minimum liability coverage of $25,000 per person and $50,000 per accident for bodily injury; and $25,000 liability coverage for property damage. Indiana is a “tort” or at-fault state, meaning that a driver who causes a car accident is responsible for the medical expenses and property damages caused in a crash.
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Justin Wright
Licensed Insurance Agent
Justin Wright has been a licensed insurance broker for over 9 years. After graduating from Southeastern Seminary with a Masters in Philosophy, Justin started his career as a professor, teaching Philosophy and Ethics. Later, Justin obtained both his Property & Casualty license and his Life and Health license and began working for State Farm and Allstate. In 2020, Justin began working as an i...
Licensed Insurance Agent
UPDATED: Oct 22, 2024
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Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything insurance related. We update our site regularly, and all content is reviewed by insurance experts.
UPDATED: Oct 22, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance provider and cannot guarantee quotes from any single provider.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
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Indiana is one of the more affordable states for auto insurance, ranking 45th overall in 2017. Stated another way, Indiana is the 7th cheapest state for car insurance, with premiums averaging $1021 per year.
The state shares a few similarities with other affordable states:
- It’s a predominately rural state, with few major cities and plenty of space between them.
- It’s a tort state, meaning that the insurance of the at-fault driver pays for the victim’s injuries (rather than the victim’s insurance paying those expenses).
- It has conservative insurance mandates, meaning that a minimum/bare-bones policy in Indiana is cheaper than in a state with higher minimum requirements.
All of these factors, combined with Indiana’s middle-of-the-road averages for drunk drivers and uninsured motorists, help to keep costs reasonable.
Required Coverage & Limits
Indiana requires all vehicle operators to carry two main coverages:
- Bodily Injury Liability – $25,000 limit per person and $50,000 per accident. This pays for injuries to other people when you are responsible for an accident.
- Property Damage Liability – $25,000 per accident. This pays for damages that you cause to another person’s property, including vehicles. It does not pay for your own property. For example, if you hit your garage door with your car, PDL would not pay for damages to the garage or your vehicle; you would need to carry collision coverage for that. However, if another person drove into your garage door, his PDL would pay for your damages.
These are the only coverages required by law. However, the state requires all insurance companies to offer uninsured and underinsured motorist coverage:
- Uninsured Motorist Bodily Injury (UMBI) – $25,000 per person or $50,000 per accident. This coverage takes the place of another driver’s liability insurance in the event that he is uninsured.
- Underinsured Motorist Bodily Injury – $50,000 per incident. This goes hand-in-hand with UMBI. Under-insured motorist coverage comes into effect when a driver doesn’t have enough liability coverage to pay for the injuries he causes.
- Uninsured Motorist Property Damage (UMPD) – $10,000 per incident. This takes the place of another person’s property damage liability insurance when that driver is uninsured.
You will need these coverages unless you sign a waiver accepting responsibility for your injuries and damages if you’re ever in an accident caused by a driver without insurance. Your one-stop online insurance guide. Get free quotes now! Secured with SHA-256 Encryption
Read more: Best Indiana Car Insurance
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Special Notes About Indiana Auto Insurance
Tort State
Indiana is a “tort” or at-fault state. This means that a driver who causes a car accident is responsible for the medical expenses and property damages caused in a crash. If you are involved in an accident in Indiana, you are allowed to file a suit against the at-fault party for your medical expenses, lost work, pain and suffering, and related expenses. Similarly, you can find yourself on the receiving end of such a lawsuit if you are responsible for an accident.
The best way to cover your assets properly in a tort state is to carry an ample amount of liability insurance. If you are found to be at fault for a serious accident, the other party’s injuries can easily max out the state minimum of $25,000, leaving you personally liable for the extra amount. The more liability coverage you carry, the better your odds of avoiding personal financial responsibility. Additional liability insurance, like the umbrella policy (often added to homeowners insurance) can also help offset costs of very expensive claims.
Uninsured Motorist Property Damage
While most states offer and/or require Uninsured Motorist Bodily Injury (UMBI), not every state requires Uninsured Motorist Property Damage (UMPD) coverage. Indiana is one of 10 states where insurance companies are required to offer UMPD to their customers and a signed waiver is necessary in order to skip that coverage.
In a handful of states, UMPD is legally required. In the majority of states, UMPD is purely optional or not offered at all. (Source)
What exactly is covered by UMPD varies from one state to the next. Sometimes, the responsible driver has to be identified and proven to be uninsured for the coverage to apply. In Indiana, however, hit-and-run claims can be handled as uninsured motorist accident. If your vehicle is parked when its hit by an unknown driver, the claim can be handled under UMPD and the deductible will be waived. (For more information, read our “Does my car insurance cover damage to my car if I hit a parked car?“).
Teen Driving Rules & Laws
Teens over the age of 15 can take a driver’s education class and receive a learner’s permit. This permit enables the teen to operate a vehicle while under the instruction of a licensed parent or guardian or another licensed driver over the age of 21.
In order to receive a learner’s permit at age 15, you will need to be enrolled in a driver’s education program, but you do not need to complete the program prior to obtaining a permit. You’ll also need to pass the written test before receiving the permit. If you are 16 or older, you do not need to take a driver’s education course, although you can if you wish.
A person must hold a permit for at least six months before obtaining a driver’s license. Drivers must log 50 hours of supervised driving, 10 of which should be at night, before taking the driver’s test to graduate to a provisional/probationary license. You will need to pass the driving test and have your guardian sign a log proving that you’ve completed driving practice.
If the driver is between the ages of 16 and 18, he will advance from a learner’s permit to a probationary license. Drivers over the age of 18 can receive a standard driver’s license immediately after passing the driving test.
Once you have your provisional license, there is a probationary period until you are 21 years old. During this time, for the first 180 days, you are not permitted to drive between 10pm and 5am. After 180 days you are not permitted to drive after 11pm Sunday to Thursday, earlier than 5am Monday through Friday, and between 1am and 5am Saturday and Sunday unless required by school/work or if you’re accompanied by a fully licensed driver age 25 or older. You also cannot have passengers in your vehicle during the probationary period unless you are accompanied by a licensed driver (25+). The exception to the passenger law is if you are driving your child, spouse or sibling. Your one-stop online insurance guide. Get free quotes now! Secured with SHA-256 Encryption
Frequently Asked Questions
What are the minimum car insurance requirements in Indiana?
In Indiana, the minimum car insurance requirements are as follows:
- $25,000 bodily injury liability per person
- $50,000 bodily injury liability per accident
- $25,000 property damage liability per accident
Are there any additional car insurance coverage options in Indiana?
While the minimum liability coverage is required, drivers in Indiana have the option to purchase additional car insurance coverage, such as collision coverage (for damage to your own vehicle), comprehensive coverage (for non-collision-related damage, such as theft or weather damage), uninsured/underinsured motorist coverage (protection against drivers without insurance or insufficient coverage), and medical payments coverage (to cover medical expenses resulting from an accident).
What are the penalties for driving without car insurance in Indiana?
Driving without car insurance in Indiana can result in various penalties. These may include fines, suspension of your driver’s license and vehicle registration, reinstatement fees, and the requirement to provide proof of financial responsibility (SR-22) for a specific period.
Can I use alternative methods to meet the car insurance requirements in Indiana?
Yes, Indiana allows drivers to meet the car insurance requirements through alternative methods, such as obtaining a surety bond or making a deposit with the Indiana Bureau of Motor Vehicles (BMV). However, these methods are less common, and most drivers fulfill the requirements by purchasing car insurance from a licensed insurance company.
What happens if I’m involved in a car accident in Indiana?
If you’re involved in a car accident in Indiana, it’s important to comply with the state’s laws and regulations. This includes stopping at the scene, exchanging information with the other parties involved, and reporting the accident to law enforcement if necessary. Additionally, you may need to contact your car insurance company to report the incident and initiate the claims process if there are damages or injuries involved.
Can my car insurance rates increase after an accident in Indiana?
Yes, it’s possible for your car insurance rates to increase after an accident in Indiana, especially if you were at fault. Insurance companies may consider your accident history and adjust your rates accordingly when you renew your policy.
Where can I find more information about car insurance laws in Indiana?
For more detailed information about car insurance laws in Indiana, you can visit the Indiana Department of Insurance website or contact their office directly. Additionally, consulting with a licensed insurance agent who is familiar with Indiana car insurance regulations can provide you with personalized guidance and answer any specific questions you may have.
Are you looking for free insurance quotes?
Your one-stop online insurance guide. Get free quotes now!
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Justin Wright
Licensed Insurance Agent
Justin Wright has been a licensed insurance broker for over 9 years. After graduating from Southeastern Seminary with a Masters in Philosophy, Justin started his career as a professor, teaching Philosophy and Ethics. Later, Justin obtained both his Property & Casualty license and his Life and Health license and began working for State Farm and Allstate. In 2020, Justin began working as an i...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything insurance related. We update our site regularly, and all content is reviewed by insurance experts.