What Indiana requires you to carry

Indiana law requires every driver to carry liability insurance — the kind that pays for damage or injury you cause to someone else. The minimum amounts are $25,000 per person for bodily injury, $50,000 per accident for bodily injury to multiple people, and $25,000 per accident for property damage. These are written as 25/50/25.

You do not have to carry collision or comprehensive coverage — the types that pay for damage to your own vehicle — but your lender will require them if you have a car loan or lease. If you own your car outright, those are optional.

Indiana is a fault state, which means the person responsible for an accident pays for the damage. This affects how claims work and what your insurance company will do after an accident.

Key Takeaways

  • Indiana's minimum liability coverage is 25/50/25 — $25,000 per person, $50,000 per accident for injuries, and $25,000 for property damage.
  • You must carry proof of insurance in your vehicle at all times, either a paper card or digital copy on your phone.
  • Uninsured and underinsured motorist coverage is optional but protects you if someone without enough insurance hits you.
  • Your rates depend on your driving record, age, vehicle type, and where you live in Indiana, and they can change year to year.
  • If you cannot afford the minimum coverage, some insurers offer low-income programs or payment plans that break premiums into smaller monthly amounts.

Proof of insurance and what to carry

You must show proof of insurance if a police officer stops you or if you are in an accident. Indiana accepts a paper insurance card, a digital image on your phone, or an email from your insurance company showing your policy number and coverage dates. Many insurers let you read a digital card to your phone's wallet app.

Keep your proof of insurance in your vehicle at all times. If you do not have it when stopped, you can face a fine even if you actually have a policy in force. Some police departments allow you to show proof later if you can provide your policy number at the time of the stop, but this varies by jurisdiction.

Your proof of insurance should show your name, vehicle identification number (VIN), policy number, coverage limits, and the dates the policy is active. If any of this information changes — you buy a new car, you move, or you switch insurers — update your proof of insurance when ready.

How rates are set and what affects your premium

Indiana insurers use several factors to calculate what you pay each month or year. Your driving record is the largest factor — accidents and traffic violations raise your rate significantly. Age matters too: drivers under 25 and over 75 typically pay more. Where you live in Indiana affects your rate because some areas have more accidents or theft. The type of vehicle you drive, how far you commute, and how many miles you drive yearly all play a role.

Your credit score can also influence your rate in Indiana, though the state limits how much weight insurers can give it. If you have been without insurance for a period, you may pay more when you get coverage again. Some insurers offer discounts for bundling home and auto policies, completing a defensive driving course, or maintaining a clean driving record for several years.

Rates are not locked in. Your insurer can raise or lower your premium when you renew your policy, usually every six or twelve months. If your rate increases significantly, you can shop with other insurers — Indiana law allows you to switch at any time, though you may owe a small cancellation fee depending on your policy terms.

Uninsured and underinsured motorist coverage

Uninsured motorist (UM) coverage pays for your medical bills and vehicle damage if someone without insurance hits you. Underinsured motorist (UIM) coverage kicks in when the at-fault driver has insurance but not enough to cover your losses. Neither is required by Indiana law, but both protect you against a real risk — many drivers on Indiana roads carry no insurance or carry only the minimum.

UM and UIM coverage typically cost $10 to $30 per month added to your policy, depending on your coverage limits and insurer. If you are hit by an uninsured driver and do not have this coverage, you would have to sue the other driver personally to recover costs, which is often not worth the time and money. With UM/UIM, your own insurer handles the claim.

Indiana law allows you to reject UM/UIM coverage in writing, but most insurance agents recommend keeping it. If you have a loan on your vehicle, your lender may require it.

What happens after an accident

If you are in an accident, call the police if anyone is injured or if there is significant damage. Get the other driver's name, phone number, address, driver's license number, vehicle information, and insurance details. Take photos of the damage, the accident scene, and the other vehicle. Write down the names and contact information of any witnesses.

Report the accident to your insurance company as soon as possible — most insurers have a 24-hour reporting line. Provide them with the other driver's information and your photos. Your insurer will assign an adjuster who will contact you to schedule an inspection of your vehicle.

Because Indiana is a fault state, the at-fault driver's insurance company is responsible for paying for damage. If you are found at fault, your liability coverage pays for the other person's damage, and your collision coverage (if you have it) pays for your own vehicle damage. If the other driver is at fault but has no insurance or not enough insurance, your UM/UIM coverage would cover your losses.

Finding insurance and comparing quotes

Indiana has many insurance companies operating in the state, including national carriers like State Farm, Allstate, and Geico, as well as regional and local insurers. You can get quotes by calling insurers directly, visiting their websites, or using comparison websites that gather quotes from multiple companies at once.

When comparing quotes, make sure you are looking at the same coverage limits and deductibles across all quotes. A lower premium might come with a higher deductible (the amount you pay out of pocket before insurance kicks in) or lower coverage limits. The cheapest option is not always the best if it leaves you underprotected.

Some insurers specialize in high-risk drivers or offer programs for people with accidents or violations on their record. If you have had trouble finding coverage, ask about your state's insurer of last resort — a program that ensures every driver can get the minimum required coverage, though usually at a higher cost.

Cancellation and switching insurers

You can cancel your insurance policy at any time in Indiana. If you cancel before your policy term ends, you may owe an early cancellation fee — typically $25 to $100, depending on your insurer and how much of the term remains. Some insurers waive this fee if you are switching to another insurer.

When you switch insurers, make sure your new policy starts on the same day your old one ends so you have no gap in coverage. A lapse in coverage can result in a fine and higher rates when you get insurance again. If you are buying a new car, your new insurer can usually add it to your policy when ready.

If your insurer cancels your policy for non-payment, you will have a harder time finding coverage in the future. If you are struggling to pay your premium, contact your insurer about payment plans or discounts you may not know about.

Frequently Asked Questions

Do I need insurance if my car is parked and I am not driving it?

If your car is registered in Indiana, you must have active insurance even if it is parked. You can ask your insurer about a storage or parked vehicle discount, which lowers your premium if the car will not be driven for an extended period. You still need coverage in case someone hits your parked car or it is stolen.

What happens if I get caught driving without insurance?

Driving without proof of insurance in Indiana can result in a fine of $25 to $500 for a first offense, and higher fines for repeat offenses. Your license can be suspended, and you may be required to file an SR-22 form with the state — a document proving you have insurance — before you can drive again.

Can I lower my insurance rate if I drive very little?

Yes. Tell your insurer how many miles you drive per year. If you drive fewer than 7,500 miles annually, you may may have access to for a low-mileage discount. Some insurers also offer usage-based programs where they monitor your driving habits through an app, and safe drivers get a discount.

What is an SR-22 and when do I need one?

An SR-22 is a form your insurance company files with the Indiana Bureau of Motor Vehicles to prove you have liability coverage. You need one if your license was suspended for driving without insurance, if you were convicted of a DUI, or if you had multiple traffic violations. It typically costs $15 to $25 to file and must stay active for three years.

Does my insurance cover me if I am driving someone else's car?

Usually yes, if you have permission to drive the car. Your liability coverage typically extends to any vehicle you drive regularly. However, collision and comprehensive coverage may not transfer. If you frequently borrow someone's car, tell your insurer so they can make sure you are covered, or the car's owner should add you to their policy.