What Car Insurance Do I Need in Indiana?

Indiana requires vehicle owners to show "financial responsibility" for any car accident they might cause. Most people do this by buying car insurance that meets the minimum liability coverage that's required under Indiana law, which is:

• $25,000 per person and $50,000 total per accident to cover injuries or death in a crash caused by the insured driver, and
• $25,000 total per accident to cover vehicle damage and other harm to property in a crash caused by the insured driver.

All other kinds of car insurance (including uninsured motorist coverage) are optional in Indiana. Read on for the details of Indiana's auto insurance rules and how coverage is likely to affect a car accident claim.

What Does Liability Car Insurance Cover in Indiana?

This basic coverage pays the medical bills, property damage bills, and other costs of drivers, passengers, and pedestrians who are injured or have their vehicle damaged in a car accident you cause, up to coverage limits.

You can (and in some situations should) carry more coverage to protect you in case a serious crash results in significant car accident injuries and vehicle damage. Remember, once policy limits are exhausted, you are personally on the financial hook, so higher insurance limits can help protect your personal assets if you end up causing a serious crash.

Who Is Covered Under Liability Car Insurance in Indiana?

Your liability coverage will kick in if any family member is driving your vehicle, or if you've given someone else permission to use it. It will likely also cover you if you get into an accident in a rental car.

Liability Car Insurance Won't Cover Your Own Car Accident Losses

Remember that the liability coverage we discussed here doesn't apply to your own injuries or vehicle damage after an Indiana car accident. You'll need different (additional) coverage for that if you're involved in a car accident and no one else's coverage applies to your losses. For example, collision coverage (optional in Indiana) can pay for repairs to (or replacement of) your damaged vehicle after a car accident, regardless of who was at fault.

What Is a "Request for Financial Responsibility Verification" in Indiana?

According to the Indiana Bureau of Motor Vehicles, if you're involved in any of the following driving-related incidents, you can expect to receive a request for verification of financial responsibility at your mailing address:

• a car accident for which a report is filed with the BMV
• multiple "pointable" moving violations within a certain time, or any "pointable" violation after your driving privileges were previously suspended, or
• a misdemeanor or felony traffic violation.

If you receive this kind of request, you'll need to make sure your insurance provider files a "Certificate of Compliance" with the BMV.

Can I Show Proof of Insurance On My Phone In Indiana?

Yes. Indiana law now allows drivers to pull up an electronic image of their car insurance card using their insurance company's app. So, when you're asked for the kind of "financial responsibility verification" we discussed in the previous section, you can produce it using your phone, tablet, or other device.

Do I Need Uninsured Motorist Coverage in Indiana?

In Indiana, all car insurance policies must include uninsured motorist coverage (UIM), in an amount equal to the liability minimums spelled out above (plus another $50,000 in underinsured motorist coverage for bodily injury) unless these coverage options are waived in writing by the policy purchaser.

So, uninsured/underinsured motorist coverage isn't mandatory in Indiana, but if you don't want this coverage, you'll need to put your decision to decline it in writing when you're buying your policy.

What Is the Penalty for Driving Without Insurance Indiana?

For a first violation of Indiana's motor vehicle financial responsibility laws, the punishment is usually suspension of driving privileges, and the driver may need to carry a special kind of insurance (SR22 insurance) going forward. Of course, penalties like these will likely pale in comparison to the financial hit you could take if you're in a car accident and you don't have car insurance.

What's Next After an Indiana Car Accident?

You'll find more details on auto insurance in Indiana on the state's Department of Insurance website. You can also check out our article on car accident laws In Indiana. But if you've been involved in a car accident in Indiana, you might need more than just information. Learn how an attorney can help with your car accident case.