Like every state, Indiana has car insurance rules and regulations. We are going to detail the mandatory car insurance requirements in Indiana momentarily, but one of the most important things you need to understand is that Indiana is an “at fault” state.
Simply put, this means that when there is a car accident, the person who is at fault is the one who will be paying for the damages. This is why everyone is required to have liability insurance: If a driver causes a car accident, this insurance will help them pay for the bodily damage and property damage of the other driver(s) and their passengers.
If there is an accident and you are found at fault for it, then simply having liability insurance means you will receive no payout to help cover your own injuries or the damage to your vehicle.
What Are the Mandatory Car Insurance Requirements in Indiana?
At a minimum, you need liability insurance with $25,000 bodily injury/death liability insurance per person, $50,000 bodily injury/death liability coverage per accident, and $25,000 for property damage liability insurance.
Even if you stick to only liability insurance, you may want to consider higher coverage limits. And, as we touched on before, you should strongly consider getting additional forms of coverage (such as collision, which will pay out to cover damage to your car even if you were at fault for the accident).
What Is the Penalty for Driving Without Insurance in Indiana?
For the first offense, your license will be suspended for 90 days. Even worse, you may need to get an SR-22 certificate for the following three years.
If there is a second offense, your license is suspended for an entire year, and you must pay a $500 fine. You will be required to get an SR-22 certificate for three years.
If you commit a third offense (or any offenses beyond the third), your license is suspended for a year, and you will need to pay $1,000 to reinstate it. And you will now be forced to get an SR-22 certificate for five years.