From Gary to Terre Haute, to Fort Wayne to Evansville, Indiana has thousands of miles of roadways. They’ll take you from the Brickyard to the sand dunes, along the wine trail and into Lucas Oil Field in time for kick-off. Indiana’s roads are used by about 5.5 million licensed drivers, who each travel an average of nearly 12,000 miles a year. Along the way, Indiana’s drivers are involved in thousands of traffic accidents every day, including many that result in serious injury or death. Wherever you live and drive in the Hoosier State, carrying adequate car insurance is both a legal requirement and commonsense protection. This is your guide to Indiana’s basic vehicle insurance requirements and laws.
Indiana state law requires you to carry a minimum amount of car insurance. Failure to do so can result in severe penalties that may include monetary fines and jail time. Under Indiana’s tort system, you may also be liable for actual damages (expenses associated with property damage and medical costs), economic damages (lost wages and earning capacity) and emotional and physical pain and suffering.
The bare minimum car insurance requirement for Indiana drivers is:
$25,000 bodily injury per person per accident
$50,000 bodily injury for all persons per accident
$25,000 property damage liability
$25,000/$50,000 uninsured motorist bodily injury
$10,000 uninsured motorist property damage
$50,000 underinsured motorist bodily injury
Uninsured and underinsured motorist coverages can be rejected in writing if you prefer not to purchase them. Indiana does not require you to carry additional coverage such as personal liability or Collision and Comprehensive. However, if you own property or other valuable assets, supplementing the minimum requirements can help you protect yourself from monetary loss.
Penalties for Failure to Carry Indiana Auto Insurance
Indiana law requires that you carry proof of Indiana auto insurance in your car and show it if a law enforcement officer asks to see it. You cannot register or operate a motor vehicle in Indiana without insurance. Fines can include a 90-day license suspension for first offenders or one-year suspension for repeat violations within three years of the first conviction. A fine of up to $10,000 can be imposed. There is a license reinstatement fee of $150 to $300.
Indiana has an Electronic Insurance Forms Submission program that requires your car insurance company to electronically submit your insurance information to the Indiana Bureau of Motor Vehicles. Unless you have proof of minimum coverage on file, you will not be able to register a vehicle or renew registration.
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Indiana Car Insurance Premiums
Vehicle insurance premiums are regulated by the Indiana Department of Insurance. Insurance companies are allowed to charge premiums and award discounts based on a number of factors that can include:
The type of car you are insuring
Prior auto insurance coverage
How much you drive
Your driving record
Your marital status
Your geographic location
How long you’ve been driving
Whether or not you use your car for business
Indiana also allows insurers to consider your credit rating to determine your premium.
How to Get the Cheapest Indiana Car Insurance Policy
You may be able to lower the cost of your premiums in the following ways:
Ask about available discounts for good driving habits, anti-theft devices, multiple cars on one policy, bundling your car insurance with your homeowners or renters policy, automatic or online payments and driving a hybrid or electric car
Compare quotes from a variety of providers on this website
Eliminate unnecessary coverage
Check to see if you qualify for any low-cost auto insurance program your state may offer
New Indiana Driving Laws
Laws regarding driving and car insurance can change frequently. It is your responsibility to stay current about the legal requirements in Indiana. The following laws have recently been enacted in Indiana and may affect your insurance coverage decisions.
Indiana bans texting for all drivers and a ban on all cell phone use (hand-held or hands-free) for novice drivers.
As of 2013, the law requires that the courts shall recommend a minimum 90-day suspension and a maximum of one-year suspension of a person’s driving privileges for failure to provide proof of financial responsibility (car insurance or some other form).
As of 2013, any dealer or seller who knows or reasonably should know that methamphetamine has been manufactured in a motor vehicle within the previous two years must disclose the fact in writer to any prospective buyer or lessee.