As is true in most states, Indiana car insurance laws require all drivers registered in the state to carry a minimum amount of car insurance.
These limits are not optional, and there are penalties for not purchasing at least the minimum amount of car insurance. But an even more important reason to have it is the fact that insurance protects you from financial disaster in the event of a serious accident.
To find the best car insurance policy for your needs, understand what is required of you by the state, what makes sense considering your finances and your tolerance for risk while on the road.
Car insurance laws in Indiana
Your minimum car insurance in Indiana is 25/50/25. These numbers refer to your liability coverage. Liability, in this case, refers to something for which you are financially responsible. Here’s a breakdown of what your liability coverage gives you:
- $25,000 bodily injury liability: Your insurer will pay up to $25,000 for injuries sustained by the other driver or their passengers in an accident that you are determined to have caused.
- $50,000 total bodily injury liability: If more than one person in the other car is injured, your insurer will pay up to a total of $50,000 for all injuries from a single accident where you are at fault.
- $25,000 in property damage: Your insurer will pay up to $25,000 for any damage you caused in an at-fault accident, either to the other driver’s car or to an object such as a fence or light post.
Missouri auto insurance may also include uninsured/underinsured (UM/UIM) coverage unless the policyholder rejects this type of coverage in writing.
Indiana car insurance is on the inexpensive side compared to other states. The average cost of a minimum liability policy in Indiana is $354, which is $209 cheaper than the national average of $563. A full coverage policy, with collision and comprehensive, averages $1,281, compared to the national average of $1,738.
Liability insurance in Indiana
Indiana insurance laws are primarily in place to protect the other driver and passengers in the event that you cause an accident, but minimum coverage isn’t likely enough.
Consider, for example, an accident you cause when you run a red light and hit someone in the intersection waiting to make a left turn. If the driver or a passenger is seriously injured, that $25,000 maximum coverage would be gone quickly, especially if surgery or extensive rehab were required.
Or think about the ramifications if you total the other driver’s car in the accident. The average cost of a new car in the U.S. is more than $40,000. If the car you total is newly purchased, you would have to pay out-of-pocket any amount more than $25,000.
Is Indiana a no-fault state?
Indiana is not one of the 12 no-fault states in the U.S. No-fault laws are in place in some states to minimize the number of car accident cases that are brought to court. In a no-fault state, you file a claim with your own insurer no matter who is at fault, and there are restrictions on filing claims in court.
Because Indiana is not a no-fault state, you have three options after an accident that you are not the cause of:
- You can file a claim with your own insurer, who will file a subrogation claim against the other driver’s insurer.
- You can file a third-party claim against the other driver’s insurer yourself.
- You can take the other driver to court for damages as well as your pain and suffering.
Penalties for driving without insurance in Indiana
Indiana takes their insurance laws seriously, and there are penalties for not having insurance. You should always carry proof of your insurance with you whenever you get behind the wheel. If you cannot present it to a police officer when stopped, you may be facing the following penalties:
- If it is your first offense, your license will be suspended for 90 days, and you will be required to carry an SR-22 certificate for three years.
- Your second offense results in a $500 reinstatement fee and one-year license suspension, plus the requirement to carry an SR-22 certificate for three years.
- On your third or subsequent offense, you will face a $1,000 reinstatement fee, license suspension for one year, and the SR-22 certificate requirement for five years.
Additional auto insurance coverage options in Indiana
In addition to increasing your liability coverage, there are other optional types of car insurance that you can purchase in Indiana to further protect yourself. Some of the most popular include the following:
- Collision: To have coverage for your vehicle following an accident, you need collision. There is a deductible, usually somewhere between $250-$2,000.
- Comprehensive: Comprehensive coverage pays for damage to your car from non-accident-related mishaps.
- Uninsured/underinsured motorist coverage: 16.7% of Indiana’s drivers are on the road illegally, without insurance. If you are in an accident with one of them, this coverage will pay for injuries or damage to your car. It also kicks in if you are the victim of a hit-and-run driver.
- Gap coverage: This coverage option will pay the difference between what you owe and the cost of the car.
- Towing and labor cost: This helps if you have a road-side emergency. It will cover towing, tire changes, jump starts and other minor repairs.
- Sound system coverage: This will pay if your sound system is damaged in an accident or stolen.
Frequently asked questions
What is the best car insurance company in Indiana?
There are a number of insurers writing good policies in Indiana, and any one of them might be right for you. These companies include USAA, Geico, Indiana Farm Bureau, Erie and Auto-Owners, all of whom offer competitive pricing and great customer service. A good place to start your search is with Bankrate’s Best Car Insurance in Indiana 2021 listing.
What is the cheapest car insurance in Indiana?
There’s no one company that’s always the cheapest for everyone. Many factors, such as your age, the age and model of your car, your credit rating and more go into determining your premium cost. We recommend that you start your search with our listing the Cheapest Car Insurance in Indiana 2021 for information on the insurers that are most cost-effective in the state.
Are Indiana auto insurance requirements enough to protect me if I am in an accident?
The Indiana minimum car insurance is just that — the minimum you should carry. If you can afford it, consider purchasing more insurance, such as 100/300/50, so that you will be covered if you are in a serious accident with injuries and extensive property damage.