Indiana Car Insurance Requirements

Indiana is an at-fault state with a financial responsibility law administered by the Indiana BMV. Every registered vehicle must carry liability insurance meeting the state's 25/50/25 minimum, and the BMV runs an electronic verification program that checks insurance status against carrier records on a rolling basis.

Indiana's minimum liability

Indiana requires every driver to carry these minimums:

• $25,000 bodily injury liability per person.
• $50,000 bodily injury liability per accident (multiple injured parties).
• $25,000 property damage liability per accident.

The 25/50/25 limits are among the more conservative in the country — comparable to Missouri (also 25/50/25 since January 2024) but lower than Maine, Alaska, or some New England states. Most Indiana drivers carry well above the minimum because a single serious crash can quickly exceed the bodily injury limits and expose the driver's personal assets.

Uninsured and underinsured motorist coverage

Indiana auto policies must offer uninsured motorist (UM) and underinsured motorist (UIM) coverage at the same 25/50/25 limits as the liability portion, but the driver may waive UM/UIM in writing. Carrying UM/UIM is strongly recommended: the Indiana Department of Insurance estimates that roughly 16% of Indiana drivers operate without insurance at any given time, and UM coverage protects the policyholder against losses caused by those drivers.

Optional coverages most Indiana drivers carry alongside the minimum:

• Collision: covers damage to your own vehicle from a crash regardless of fault.
• Comprehensive: covers theft, vandalism, animal strikes, and weather damage.
• Medical Payments (MedPay): covers medical bills for the driver and passengers regardless of fault.
• Rental reimbursement and roadside assistance.

The Indiana BMV verification program

The BMV maintains an electronic interface with every Indiana auto insurance carrier. Carriers report new policies, lapses, and cancellations to the BMV within five business days. If the BMV detects a lapse, it sends a verification request by mail to the registered owner. The owner has 90 days to respond with proof of insurance or to verify that the vehicle is no longer in service. Failure to respond results in:

• Registration suspension and license suspension.
• A reinstatement fee of $150 to $300 — see suspended license.
• A 3-year SR-22 filing requirement.

SR-22 financial responsibility

An SR-22 is a certificate filed by your insurance carrier directly with the BMV that confirms you carry at least the state minimum liability coverage. Indiana requires SR-22 after:

• An OWI conviction or chemical-test refusal.
• A points-related license suspension.
• A Habitual Traffic Violator designation.
• Driving without insurance.
• An at-fault accident while uninsured.

The SR-22 must remain on file for 3 years from the date of reinstatement. Any lapse cancels the reinstatement and triggers an immediate re-suspension. Not every Indiana carrier writes SR-22 policies — drivers requiring SR-22 sometimes need to switch carriers to a non-standard or specialty insurer.

Proof of insurance at traffic stops

Indiana drivers must present proof of insurance to a peace officer on request. Acceptable proof includes:

• The insurance ID card issued by the carrier (paper or digital on a phone).
• A declarations page from the policy.
• A binder for a newly issued policy that has not yet generated an ID card.

Driving without insurance — or without proof of insurance at the time of a stop — is a Class A infraction with fines of up to $1,000 and triggers the BMV registration suspension described above.

Insurance shopping in Indiana

Indiana auto insurance rates are generally lower than the national average, ranging from $1,100 to $1,800 per year for full coverage on a typical mid-size sedan. Major carriers operating across Indiana include State Farm, GEICO, Progressive, Allstate, Erie, and American Family. Rates vary significantly by ZIP code — Indianapolis and Gary both push above the state average, while smaller cities such as Bloomington, Lafayette, and Fort Wayne sit below it. See the Indiana BMV hub for the licensing prerequisites that drive insurance underwriting decisions, and the teen license page for adding a probationary driver to a household policy.