By the Yellow Ribbon Insurance team · Bill Cline, Licensed Insurance Agent
Indiana car insurance requirements, explained in depth: what 25/50/25 means in a real crash, the uninsured motorist rules, when the BMV asks for proof, current penalties and SR22 rules for driving uninsured, and what lenders and new residents need to know.
Quick answer
Indiana requires car insurance with at least 25/50/25 liability limits: $25,000 for one person's injuries, $50,000 for all injuries in one crash and $25,000 for property damage. Every newly written Indiana policy also includes uninsured and underinsured motorist coverage unless you reject it in writing. Collision and comprehensive aren't required by state law, but a lender usually requires them.
- Driving uninsured is a Class A infraction, and a Class C misdemeanor with a prior conviction or judgment for it.
- A no-insurance suspension (since Dec. 31, 2021) has no fixed end date: an SR22 stays it, and 180 days of continuous SR22 coverage ends it.
- Reinstatement fees climb from $250 to $500 to $1,000, and aren't required if you keep the SR22 for the required period.
- The average paid bodily injury liability claim was $28,278 in 2024 (ISO, via the Insurance Information Institute), above the $25,000 per-person minimum.
Do this: check two lines on your declarations page, your liability limits and your uninsured and underinsured motorist coverage. If either is missing or sits at the bare minimum, ask for a coverage review.
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A new move from another state, a BMV letter asking for proof of insurance, a dealer saying the loan needs "full coverage" — each comes back to one question: what car insurance does Indiana actually require? This guide covers how the limits work in a real crash, the uninsured motorist law, BMV proof requests and how a no-insurance suspension works today. For deer season, winter claims and pricing, see our Indiana car insurance guide.
Indiana car insurance requirements: key facts
| Minimum liability | 25/50/25: $25,000 per person and $50,000 per accident for injuries, $25,000 for property damageIC 9-25-4-5 · Indiana BMV |
|---|---|
| Uninsured/underinsured motorist | Included on every newly written policy unless rejected in writingIndiana Department of Insurance |
| Proof when the BMV asks | A Certificate of Compliance from your insurer within 90 days of the requestIndiana BMV |
| Driving uninsured | Class A infraction; Class C misdemeanor with a priorIC 9-25-8-2 |
| Suspension and fee | Indefinite until an SR22 is kept 180 days; $250, $500, then $1,000Indiana Driver's Manual, ch. 5 |
What is the minimum car insurance required in Indiana?
The short answer: Indiana's minimum is 25/50/25 liability coverage under IC 9-25-4-5, meaning $25,000 for one person's injuries, $50,000 for everyone's injuries in one crash and $25,000 for property damage.
Those numbers come from Indiana Code 9-25-4-5, and the Indiana BMV lists the same amounts. The uninsured and underinsured motorist minimums come from the Indiana Department of Insurance's auto fact sheet.
| Coverage | Indiana minimum | What it means |
|---|---|---|
| Bodily injury liability, per person | Required $25,000 | The most the policy pays for any one person hurt or killed in a crash you cause |
| Bodily injury liability, per accident | Required $50,000 | The most it pays for all injured people together |
| Property damage liability | Required $25,000 | Other people's cars and property in one crash ($10,000 before July 1, 2018) |
| Uninsured motorist bodily injury | Included unless rejected $25,000 / $50,000 | Your injuries when an at-fault driver has no insurance |
| Uninsured motorist property damage | Included unless rejected $25,000 | Your car ($25,000 minimum on policies issued on or after July 1, 2017) |
| Underinsured motorist bodily injury | Included unless rejected $50,000 | Your injuries when the at-fault driver's limits are lower than yours |
| Collision and comprehensive | Not required by law | Your own car; lenders will likely require both |
The law is written around driving: the Indiana Driver's Manual says a person may not operate a motor vehicle in Indiana if financial responsibility isn't in effect for that vehicle, or if the person isn't otherwise insured to operate it. A bond or BMV-certified self-insurance can also satisfy the law, but the Department of Insurance says the most common proof is an auto liability policy.
Liability coverage pays other people. The NAIC's consumer guide describes it as coverage for injuries you cause to someone else and damage you cause to someone else's car or property. It doesn't repair your own car.
A minimum is a floor, not a recommendation: the NAIC says state minimums are too low to fully cover you if you cause a serious accident. See the coverage we write on our auto insurance page.
Bill Cline
Licensed insurance agent · Veteran · Licensed since 2018
Bill owns Yellow Ribbon Insurance in New Albany. More about Bill.
How do the per-person and per-accident limits work after a crash?
The short answer: Each injured person can draw at most $25,000 from a minimum policy's bodily injury coverage, all injured people together share at most $50,000, and whatever runs past those caps isn't paid by the policy.
The two injury caps apply at once. If you cause a crash that hurts one person, the most your bodily injury coverage pays is $25,000, even though the per-accident number is $50,000. The $50,000 only matters when two or more people are hurt. Property damage is a separate $25,000 for everything you damage in that crash.
Illustrative scenario
A driver with a 25/50/25 policy runs a red light and hits a pickup, which then clips a fence. Three people are hurt, with injury claims of $40,000, $20,000 and $12,000. The pickup is a total loss valued at $32,000, and the fence repair is $4,000.
| Injury claims, all three people | $72,000 |
| Most the first person can receive (per-person cap) | $25,000 |
| Most the policy pays for all injuries (per-accident cap) | $50,000 |
| Injury claims beyond the policy: $72,000 − $50,000 | $22,000 |
| Property claims beyond the policy: $36,000 − $25,000 | $11,000 |
| Total beyond the policy's limits | $33,000 |
Illustrative scenario with round numbers, not a quote or a prediction of how any claim is settled. How the $50,000 is divided among the injured people depends on the claims and the settlement. Liability coverage doesn't pay for the at-fault driver's own car.
What happens to the $33,000? Indiana is a fault-based state, and the Insurance Information Institute explains that in traditional tort states, a driver at fault in a crash can be sued by the other driver and passengers for medical costs and for pain and suffering. Your limits decide how much of that your insurance handles.
What does Indiana law say about uninsured and underinsured motorist coverage?
The short answer: Indiana insurers must make uninsured and underinsured motorist coverage available at limits at least equal to your bodily injury liability limits, and it stays on the policy unless a named insured rejects it in writing.
It pays for your injuries, and with the property damage part your car, when the at-fault driver can't. The Insurance Research Council estimates 14.0% of Indiana drivers were uninsured in 2023, based on the ratio of uninsured motorist claims to bodily injury claims. The rules come from IC 27-7-5-2:
- It matches your liability by default. It must be provided in limits at least equal to your bodily injury liability limits, and never below the 25/50 minimum, unless rejected in writing.
- Underinsured motorist coverage has its own floor. Insurers may not sell it for less than $50,000.
- One signature covers everyone. A written rejection by one named insured is a rejection on behalf of all the other named insureds.
- A rejection carries forward. The insurer doesn't have to offer the coverage again on a renewal or replacement policy unless you later ask for it in writing.
"Underinsured" has a specific meaning. Under IC 27-7-5-4, it's an insured vehicle whose bodily injury limits available to you are less than your own underinsured motorist limits at the time of the accident. So a driver with only the $25,000 per-person minimum counts as underinsured against a $50,000 underinsured motorist limit. What your policy then pays depends on its wording and the claim.
Check for a rejection you didn't sign: because one named insured's rejection binds everyone on the policy and carries into renewals, a household can go years without this coverage and not notice. If it isn't on your declarations page, you can ask for it in writing. Our Indiana auto insurance guide shows how it fits with the rest of a policy.
When does the Indiana BMV ask for proof of insurance?
The short answer: The BMV asks for proof after it receives an accident report or after certain violations, and your insurer must answer with an electronic Certificate of Compliance that reaches the BMV within 90 days of the request.
The Indiana BMV asks for proof after a crash it receives an accident report for, a pointable moving violation within one year of two others, a serious violation such as a misdemeanor or felony, or any pointable violation by a driver previously suspended for failing to provide proof.
Your insurance company answers by filing a Certificate of Compliance electronically. The Driver's Manual says it shows the vehicle you were driving was insured to the 25/50/25 minimum at the time of the incident.
Two details trip people up. The 90 days run from the date the BMV mails its request, so an unopened letter still counts down. And the certificate proves coverage on a past date: under IC 9-25-6-3, if none arrives in time, or one arrives that doesn't show coverage on the date of the accident or violation, the BMV suspends you. A policy bought afterward doesn't change what was in force that day.
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What are the penalties for driving without insurance in Indiana?
The short answer: Driving uninsured is a Class A infraction that can carry a judgment of up to $10,000, it becomes a Class C misdemeanor with a prior conviction or judgment, and the BMV can suspend your license, registration or both.
Two tracks can run at once.
In court: under IC 9-25-8-2, knowingly driving, or letting someone drive, a vehicle on an Indiana public highway without financial responsibility is a Class A infraction, which can carry a judgment of up to $10,000 under IC 34-28-5-4. With a prior unrelated conviction or judgment under that section, it's a Class C misdemeanor, with up to 60 days in jail and a fine of up to $500 under IC 35-50-3-4. Those are statutory maximums.
At the BMV: under IC 9-25-6-3, the BMV suspends your driving privileges, your registration, or both. The Driver's Manual says no-insurance suspensions effective on or after December 31, 2021 are indefinite: stayed when the BMV receives an SR22, and ended once you keep the SR22 continuously for 180 days. What climbs with each suspension is the fee, under IC 9-25-6-15:
| No-insurance suspension | How long it lasts | Reinstatement fee |
|---|---|---|
| First | Until an SR22 is filed and kept 180 continuous days | $250 |
| Second | Same | $500 |
| Third or later | Same | $1,000 |
The Driver's Manual says the count covers no-insurance suspensions that occurred after Jan. 1, 2015. The statute says you aren't required to pay the fee if the suspension was ended by keeping proof of future financial responsibility on file for the required time period, which the Driver's Manual describes as an SR22 kept continuously for 180 days.
Seen "90 days for a first offense" or "up to a year"? That's the old system. Before 2021, IC 9-25-6-3 set a suspension of 90 days to one year, and IC 9-25-6-3.5 added a one-year suspension for repeat violations within three years. A 2021 law rewrote IC 9-25-6-3 and repealed IC 9-25-6-3.5, replacing both with today's indefinite suspension. The 90 days in current BMV material is the deadline for the BMV to receive your Certificate of Compliance, not a suspension length.
How does an SR22 end an Indiana no-insurance suspension?
The short answer: Once your insurer files an SR22 electronically, the BMV stays the suspension, and if the SR22 stays in force for 180 consecutive days with no cancellation notice, the suspension ends and the reinstatement fee isn't required.
An SR22 is a form your insurer files electronically with the BMV as proof of future financial responsibility, and the BMV says the requirement for insurance suspensions is satisfied after 180 consecutive days:
- A no-insurance suspension takes effect, for example because no Certificate of Compliance arrived in time.
- Your insurer files an SR22. When the BMV receives it, the suspension is stayed.
- You keep it in force for 180 consecutive days, with no gap and no cancellation.
- The suspension ends, and the reinstatement fee isn't required.
The stay is fragile. When the policy is canceled, the insurer sends the BMV an SR26. The Driver's Manual says an SR26 during the 180-day stay puts the suspension back into active status, and the fee becomes due again until you pay it or a new SR22 arrives.
Protect the 180 days: pay the policy on time, and if you change policies during the stay, get the new SR22 on file before the old policy ends. A cancellation notice that reaches the BMV first can put the suspension back in force.
Other kinds of suspensions can carry 3-year or 5-year SR22 requirements, the BMV notes, so read your notice for the exact rule. If a past lapse, accident or violation makes a standard auto policy hard to get, we may have non-standard auto options. Eligibility depends on the driver, so call us to see what fits.
What does a car lender or leasing company require beyond Indiana law?
The short answer: Indiana law doesn't require collision or comprehensive, but lenders and leasing companies will likely require both on a financed or leased car, to protect their interest in the car until the loan is paid off.
The Insurance Information Institute says that if you lease or finance, auto lenders and leasing companies will likely require you to buy collision and comprehensive. The Department of Insurance describes collision as paying for damage to your car from a collision or upset, and comprehensive as covering other losses, such as theft, fire, windstorm and glass breakage. Your loan or lease contract spells out the exact requirements.
If that coverage lapses, the NAIC warns that your lender will likely insure the car itself, and the premium may be much higher, and the coverage much less, than a policy you'd buy on your own. People often call this combination "full coverage," but that's a nickname, not a legal standard. For what minimum and fuller coverage cost by the published numbers, see how much car insurance costs in Indiana.
How do Indiana's minimums stack up against what crashes cost?
The short answer: The average paid property damage claim fits inside the $25,000 minimum, but the average paid bodily injury claim was $28,278 in 2024, already above Indiana's $25,000 per-person limit.
Average paid bodily injury liability claim in 2024, countrywide, versus Indiana's $25,000 per-person minimum. Source: ISO, a Verisk business, via the Insurance Information Institute. All limits combined; excludes Massachusetts and most no-fault states. Checked October 2026. Not a quote.
Start with the figure that favors the minimum: in the same ISO data, the average paid property damage liability claim was $6,770 in 2024, well under the $25,000 limit. The injury side is where the minimum runs short. The average paid bodily injury claim was $28,278, up from $26,178 in 2023, more than $3,000 above the per-person limit. The National Safety Council points the same way with its 2024 estimates of average economic cost:
| Crash outcome (NSC, 2024) | Average economic cost | Indiana minimum |
|---|---|---|
| Property damage only, per vehicle | $6,600 | $25,000 per accident |
| Possible injury, per person | $28,000 | $25,000 per person |
| Evident injury, per person | $45,000 | $25,000 per person |
| Disabling injury, per person | $174,000 | $25,000 per person |
The figures measure different things. ISO's are paid claims across every limit drivers carried, so a claim on a minimum policy stops at $25,000 per person however large the injury. The NSC's are estimates of economic loss, including wages, medical bills, administrative costs, vehicle damage and employers' uninsured costs, not what a court would award or an insurer would pay. Neither is Indiana-only, and neither predicts your crash.
Both show that the per-person injury limit runs out first. The NAIC notes that most insurers let you buy higher liability limits, often without much increase in your premium.
What do drivers new to Indiana need to know about car insurance?
The short answer: New residents have 60 days to get an Indiana driver's license and to apply for a vehicle title, and proof of insurance is required to register, so move your auto policy to your Indiana address first.
The BMV's new-resident page sets the clock: 60 days for a license and 60 days to apply for a title or submit a completed Request for Title. You must provide financial responsibility information to buy a plate and registration, and proof of insurance is on the document list.
Your old policy was written for another state's rules. Kentucky is a common example in Southern Indiana: the Kentucky Department of Insurance describes a choice no-fault system in which basic personal injury protection provides up to $10,000 per person per accident. Indiana is a fault state, and its minimums are liability limits only.
Ask for a policy written to Indiana and to where the car is now kept. Our checklist of what you need for an Indiana car insurance quote lists what to have ready, and if you'll still commute across the river, our guide to car insurance in New Albany covers how a Louisville commute fits into a quote.
If you drive into other states, ask how your policy applies there. Leaving the country is different: the NAIC says your auto insurance will cover you in Canada, but to drive into Mexico you'll need Mexican auto insurance. A move is a good time to call or visit our New Albany office for a coverage review.
Bottom line
In short: Indiana requires 25/50/25 liability, includes uninsured and underinsured motorist coverage unless someone rejects it in writing, and the BMV enforces the liability requirement.
The minimum keeps you legal, but its $25,000 per-person injury limit sits below the 2024 average paid bodily injury claim of $28,278. A no-insurance suspension lasts until an SR22 is kept for 180 days, and lenders add collision and comprehensive. Check your liability and uninsured motorist lines, and ask whether the limits fit what you'd need to protect.
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Frequently asked questions
Do I need car insurance in Indiana if my car is parked and I'm not driving it?
Indiana's rule is written around driving: the BMV Driver's Manual says a person may not operate a motor vehicle in Indiana unless financial responsibility is in effect. Under IC 9-25-8-2, letting someone else drive your uninsured car is also an infraction. Before you drop coverage on a stored car, think about the rest. The BMV requires financial responsibility information to register a vehicle, a lender will likely require collision and comprehensive, and comprehensive is what pays if a parked car is stolen or damaged by fire or a windstorm. Ask about your options before canceling.
Can I use a bond instead of car insurance in Indiana?
The law allows it. Under IC 9-25-4-4, financial responsibility can be shown with a motor vehicle liability insurance policy, a bond, or self-insurer status that the BMV recognizes with a certificate of self-insurance. The Indiana Department of Insurance says the most common proof is your auto liability policy. Keep in mind that a bond or self-insurance isn't an auto policy, so it doesn't come with the uninsured motorist, collision or comprehensive coverage a policy can include.
Is driving without insurance a crime in Indiana?
A first violation is a Class A infraction rather than a misdemeanor. Under IC 9-25-8-2, knowingly driving or permitting the operation of a vehicle on an Indiana public highway without financial responsibility is a Class A infraction, which can carry a judgment of up to $10,000. With a prior unrelated conviction or judgment under that section, it becomes a Class C misdemeanor, punishable by up to 60 days in jail and a fine of up to $500. Separately, the BMV can suspend your driving privileges, your registration or both until an SR22 is filed and kept.
If my spouse rejected uninsured motorist coverage, does that rejection apply to me?
Yes, if your spouse is a named insured. Under IC 27-7-5-2, a written rejection by one named insured is a rejection on behalf of all other named insureds, all other insureds and everyone else entitled to coverage under the policy. It also carries forward: after a rejection, the insurer doesn't have to offer the coverage again on a renewal or replacement policy unless someone asks for it in writing. If you aren't sure what was signed, look for uninsured and underinsured motorist lines on your declarations page, and if they're missing, ask to have them added in writing.
Does Indiana require personal injury protection or medical payments coverage?
No. Indiana's required minimums under IC 9-25-4-5 are liability limits only: $25,000 per person and $50,000 per accident for injuries, and $25,000 for property damage. Uninsured and underinsured motorist coverage is included on new policies unless rejected in writing. Indiana isn't a no-fault state, so personal injury protection isn't part of the requirement the way it is in Kentucky, where the Kentucky Department of Insurance says basic PIP pays up to $10,000 per person. Medical payments coverage is optional in Indiana and can be added if you want it.