The Indiana Motor Vehicle Code requires that every driver carry liability auto insurance with at least the stated minimum coverage when they drive: 25/50/10. However, if you satisfy one of the alternative ways to proof your financial responsibility, the Bureau of Motor Vehicle will also consider your duty fulfilled. Indiana allows you to present your insurance ID or policy declaration page in either paper or electronic form (such as a photo on your phone).
|Indiana Required Car Insurance Coverage||IN Required Min. Limits|
|Bodily Injury (BI)||$25,000 per person / $50,000 per person|
|Property Damage (PD)||$10,000 per accident|
Indiana Car Insurance Minimum Requirements
A valid Indiana auto insurance policy must include both coverages of liability insurance: Bodily Injury and Property Damage. By paying your insurance company premiums for them, you are covered for any payments owe to injured persons in an accident you cause, up to a certain amount (the limit on your policy). In Indiana, the minimum limits you must purchase are:
Bodily Injury (BI): up to $25,000 for the injuries or death of one person, to a total of $50,000 for two or more persons, in a given accident. When the total of the other driver’s medical expenses exceed these limits, and he or she decides to sue you for more, your assets will be on the hook to pay for the extra amount. Higher limits are often available; amounts differ by insurer.
Property Damage (PD): up to $10,000 per accident, for any property damage you are responsible for to either the other driver or collateral damage. If it is determined that you should pay above this limit, you must cover the difference. Again, higher PD limits are often available for a higher premium, and vary by insurer.
Optional Car Insurance Coverage in Indiana
The Insurance Code requires that every licensed insurer in Indiana include Uninsured and Underinsured Motorist coverages into your quote when you are buying a policy for the first time. Although these are optional and you may reject them as long as you do so in writing, they are often strongly recommended by agents and officials. Here is a list of these elective coverages in Indiana, and what they can do for you:
Uninsured Motorist (UM): despite law enforcement efforts, some drivers on the road are still uninsured and often not financially prepared to pay for the damage they cause. The UM coverages therefore protect you in the absence of another driver’s liability insurance, for either bodily injury or property damage, or both:
- Uninsured Motorist Bodily Injury (UMBI): every Indiana insurer will at least provide UMBI with limits of $25k/$50k. Most of them will also make higher limits available; however, limits cannot be higher than your BI.
- Uninsured Motorist Property Damage (UMPD): for up $10,000 worth of property damage, or higher depending on the insurer. Note that most insurers won’t make UMPD available to you unless you also purchase UMBI; some may sell you UMBI and UMPD coverage under one single premium in Indiana.
Underinsured Motorist Bodily Injury (UIMBI): whenever the other driver’s BI limits are lower than your UIMBI’s (if you have bought this coverage), UIMBI covers the difference up to the limits you purchased. In Indiana, every insurer must offer UIMBI in $50k/$50k (a total of $50,000 per accident, whether one or more persons are injured). Higher limits are usually available, varying from company to company.
Although most of the time your UM & UIM limits cannot be higher than your BI, there is an exception. Since the minimum required UIM limits are 50/50, some insurers, such as GEICO, can allow you to add UIM 50/50 to an auto insurance policy with the bare minimum limits (BI 25/50). They also have the right to only sell you UIM if you match BI at 50/50.
Alternative Proof of Financial Responsibility
Apart from an insurance policy, there are three other ways to prove you are a financially responsible driver in Indiana. Specifically, the BMV will grant your vehicle registration if you can provide one of the following:
Surety Bond: a surety bond issued by a licensed surety company in Indiana, who promises to pay in your place when you are unable to do so. The bond should be good for payments of at least the same amounts as a minimum insurance policy would for each accident you cause. Send a copy of this bond to the BMV. When a Certificate of Compliance is requested of you, have the surety company provide the necessary information to the Bureau.
Cash/Security Deposit: a $40,000 deposit of either cash or securities – such as a government bond or note – with the Treasurer of State. In the event that you cause an accident, the amount of payment you are ruled responsible for will be deducted from this deposit. Once the Treasure accepts your deposit, the Bureau will also get a copy of the receipt in your files.