Indiana Minimum Car Insurance Requirements
Indiana requires every registered vehicle to carry at least 25/50/25 liability car insurance: $25,000 bodily injury per person, $50,000 bodily injury per accident, and $25,000 property damage. Indiana is an at-fault state and also mandates uninsured and underinsured motorist coverage unless you reject it in writing.
What Indiana requires at a minimum
Indiana law requires every driver who registers and operates a vehicle on public roads to carry liability insurance that meets the state minimum limits of 25/50/25. Those three numbers stand for the maximum your insurer will pay under a minimum policy: $25,000 for bodily injury to or the death of one person, $50,000 for total bodily injury to or the death of two or more people in a single accident, and $25,000 for damage to another person property in one accident. These are the floors set by the state, not a recommendation of how much protection you actually need.
Liability insurance pays the other party when you are at fault. It does not pay to repair your own vehicle or treat your own injuries. To cover your own car you would add collision and comprehensive coverage, which the state does not require but a lender or lessor almost always will. Indiana raised its property damage floor from $10,000 to $25,000 effective January 1, 2019, which is why the current standard is 25/50/25 rather than the older 25/50/10 figure you may still see quoted on out-of-date pages.
Indiana is an at-fault (tort) state
Indiana follows the traditional at-fault, or tort, system. That means the driver who causes a crash is financially responsible for the injuries and property damage that result, and the injured party can pursue that driver liability coverage, file a claim, or sue. Unlike no-fault states such as Minnesota, Kentucky, or Florida, Indiana does not require personal injury protection (PIP), and drivers do not first turn to their own policy for medical bills regardless of blame.
Because fault drives every claim, the amount of liability coverage you carry matters a great deal. If you cause a serious wreck and the damages exceed your limits, the injured party can come after your personal assets, wages, and savings for the difference. A minimum 25/50/25 policy is often exhausted quickly in a multi-vehicle collision or any crash involving a hospital stay.
Key data
| Factor | Filed value | Source |
|---|---|---|
| Minimum liability limits (BI per person / BI per accident / property damage) | 25/50/25 ($25,000 / $50,000 / $25,000) | Insurance Information Institute · Jul 2026 |
| Minimum underinsured motorist bodily injury coverage required on new policies | $50,000 | Indiana Department of Insurance · Jul 2026 |
| SR-22 filing period to satisfy an insurance-related suspension | 180 consecutive days | Indiana Bureau of Motor Vehicles · Jul 2026 |
| Reinstatement fee after a no-insurance driving suspension (first offense) | $250 (first suspension); $500 second; $1,000 third or subsequent (suspensions after Jan. 1, 2015) | Indiana Bureau of Motor Vehicles · Jul 2026 |
Uninsured and underinsured motorist coverage
Even though Indiana is an at-fault state, it goes a step further than most: every newly written Indiana auto liability policy must include uninsured motorist (UM) and underinsured motorist (UIM) coverage unless you reject it in writing. This protects you when the at-fault driver has no insurance or not enough insurance to cover your injuries.
The mandatory minimums the Indiana Department of Insurance lists are $25,000/$50,000 for uninsured motorist bodily injury, $25,000 for uninsured motorist property damage, and $50,000 for underinsured motorist bodily injury. Under Indiana Code 27-7-5-2, insurers may not sell underinsured motorist coverage in an amount below $50,000, and UM/UIM limits must be offered at least equal to your bodily injury liability limits. You can decline UM and UIM, but the rejection must be documented in writing, and given how many drivers on the road are uninsured, keeping these coverages is one of the smartest protections in an Indiana policy.
Proof of financial responsibility
Carrying the coverage is only half the requirement; you also have to be able to prove it. Indiana randomly verifies insurance and requires proof of financial responsibility after certain events, such as a traffic stop, an accident, or a random verification request from the Bureau of Motor Vehicles (BMV). If the BMV asks and you cannot show a policy that met the state minimum with respect to the vehicle you were operating, your driving privileges are suspended.
Most drivers satisfy the proof requirement with a standard auto insurance policy from a licensed carrier. Acceptable proof also exists in the form of a certificate of financial responsibility (an SR-22) or, in limited cases, a bond or cash deposit, but a conventional policy is by far the most common and least expensive route.
Penalties for driving without insurance
Driving uninsured in Indiana carries real consequences. When the BMV determines you operated a vehicle without the required coverage, it imposes a driving privilege suspension and financial penalties. A first insurance suspension typically runs 90 days, and repeat violations bring longer suspensions of up to one year. On top of the suspension, you owe reinstatement fees that escalate with each offense, and you must file an SR-22 to restore your license.
The suspension is not lifted automatically. You must serve the suspension period, pay the reinstatement fee, and have your insurer file an SR-22 on your behalf. Letting coverage lapse even briefly, then getting stopped or being in a crash, can trigger this whole chain of events, so it is far cheaper to keep a policy continuously in force than to gamble on going without.
When Indiana requires an SR-22
An SR-22 is not a type of insurance; it is a certificate your insurance company files with the BMV to prove you carry at least the state minimum coverage. Indiana requires an SR-22 when your driving privileges are suspended for an insurance violation or for certain court-related offenses, such as operating while intoxicated or accumulating too many points.
For an insurance-related suspension, the SR-22 requirement is satisfied after you maintain the filing for 180 consecutive days. Court-ordered SR-22 periods are usually longer. During the required period, coverage must stay continuous. If your insurer sends the BMV an SR-26 (a cancellation notice) or the BMV does not have an effective SR-22 on file at any point, your license is suspended again until a valid SR-22 is received. Because SR-22 drivers are treated as higher risk, expect meaningfully higher premiums while the filing is active.
How much coverage you really need
The 25/50/25 minimum is the legal floor, not a safety target. Modern vehicles, emergency transport, and hospital care mean a single serious injury can blow past $25,000 in a matter of hours, and a crash involving several people can exhaust a $50,000 per-accident limit almost instantly. Once your limits are gone, you are personally on the hook for the rest.
For that reason many Indiana drivers step up to 50/100/50 or 100/300/100 liability limits, which cost far less to add than most people expect and dramatically reduce the risk to your personal assets. It is also worth keeping the uninsured and underinsured motorist coverage that Indiana includes by default rather than rejecting it. If you have a newer or financed vehicle, add collision and comprehensive, and consider a higher UM/UIM limit so your own protection matches the liability you carry.
How to compare Indiana quotes the right way
When you shop, make sure every quote lists the same coverage limits, deductibles, and UM/UIM elections so you are comparing identical protection, not just a headline price. A quote that looks cheap may simply have stripped out underinsured motorist coverage or set a bare 25/50/25 liability limit. Confirm the bodily injury, property damage, and uninsured/underinsured figures line by line.
Also weigh factors beyond price: the carrier complaint record, claims-handling reputation, and available discounts for bundling, safe driving, or paperless billing. Indiana rates vary widely by ZIP code, driving history, and vehicle, so gathering several quotes at the same coverage level is the only reliable way to see who is genuinely cheapest for your situation. Verify any figure against the Indiana Department of Insurance, the BMV, or the Insurance Information Institute rather than relying on a summary that may be out of date.
Frequently asked questions
What is the minimum car insurance required in Indiana?
Indiana requires liability limits of at least 25/50/25: $25,000 for bodily injury per person, $50,000 for bodily injury per accident, and $25,000 for property damage. New policies must also include uninsured and underinsured motorist coverage unless you reject it in writing.
Is Indiana a no-fault state?
No. Indiana is an at-fault, or tort, state. The driver who causes a crash is responsible for the resulting injuries and damage, and Indiana does not require personal injury protection (PIP). It does, however, require uninsured and underinsured motorist coverage by default.
Does Indiana require uninsured motorist coverage?
Yes, by default. Every newly written Indiana auto liability policy must include uninsured motorist coverage ($25,000/$50,000 bodily injury and $25,000 property damage) and underinsured motorist bodily injury coverage of at least $50,000, unless you reject the coverage in writing.
What happens if I drive without insurance in Indiana?
The BMV suspends your driving privileges, typically for 90 days on a first insurance violation and up to a year for repeat offenses. You must serve the suspension, pay escalating reinstatement fees, and file an SR-22 before your license is restored.
When do I need an SR-22 in Indiana?
Indiana requires an SR-22 when your license is suspended for an insurance violation or certain court offenses such as operating while intoxicated. For insurance suspensions, the requirement is met after you maintain the SR-22 filing for 180 consecutive days without a lapse.
Is 25/50/25 enough coverage in Indiana?
It meets the legal minimum, but it is often not enough. A single serious injury can exceed $25,000, and one bad multi-vehicle crash can exhaust a $50,000 per-accident limit. Many drivers choose 50/100/50 or 100/300/100 to better protect their assets.
Sources cited
- Insurance Information Institute — captured Jul 2026
- Indiana Department of Insurance — captured Jul 2026
- Indiana Bureau of Motor Vehicles — captured Jul 2026
- Indiana General Assembly - Indiana Code 27-7-5-2 (UM/UIM Coverage) — captured Jul 2026
- NAIC - Understanding Auto Insurance — captured Jul 2026
