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Minimum auto insurance requirements in Indiana

Indiana law requires drivers to have coverage that meets the 25/50/25 formula, which is: 

What liability insurance covers

Bodily injury liability insurance helps cover: 

• Medical expenses for people you injure in an at-fault accident 

• Lost wages of other people you injure in an at-fault accident 

• Pain and suffering claims (including emotional damage) 

• Your legal defense fees if you are sued 

Property damage liability insurance helps cover: 

• Repairs to other people’s vehicle 

• Damage to buildings, fences, lampposts, and other structures 

• Your legal costs from property damage claims 

• Loss of business income you caused 

Liability insurance does not cover: 

• Any damage to your personal vehicle  

• Your medical bills after an accident 

• Theft of your vehicle  

• Vandalism to your vehicle 

• Weather-related damage (e.g., hail, windstorms) 

• Hitting a deer or other animal 

Costs can add up quickly after an accident. Even if you opt to carry only liability insurance, you can select limits above the Indiana state insurance requirements of 25/50/25. Inadequate coverage can be a major financial risk. Since carrying only liability insurance means you are more financially vulnerable, it’s important to know about the option to add collision and/or comprehensive coverage to make an informed decision. 

What is collision coverage?

Collision coverage is a key element of auto insurance. When paired with liability insurance, it’s the next level of protection as a driver. Collision coverage protects your vehicle when you are in an accident. 

Collision coverage helps cover your vehicle when you: 

• Hit another vehicle 

• Are hit by another vehicle (regardless of fault) 

• Hit a stationary object like a tree or building 

• Roll your vehicle over 

• Cause a single-car accident 

To take coverage to the next level and obtain what people mistakenly call “full coverage” auto insurance, you can add comprehensive coverage to your policy. 

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What is comprehensive coverage 

Comprehensive coverage, called “other than collision” at Indiana Farm Bureau Insurance, protects damage to your own vehicle from atypical accidents.  

Comprehensive coverage helps cover your vehicle for: 

• Theft of the vehicle 

• Vandalism 

• Hail, water, or flood 

• Windstorms 

• Animal collisions  

• Glass breakage 

What happens if I’m uninsured or underinsured in Indiana?

Indiana is an “at-fault” state. That means the person who caused an accident is financially responsible for all damages. So, while liability coverage may be a requirement, there’s a good chance it may not be enough coverage for you. 

Serious accidents that result in injuries can see medical bills reaching $100,000 or more. If you have the state minimum coverage of $25,000 per person in coverage and you go beyond your policy limits, you are personally liable for the difference.  

The penalties for driving uninsured in Indiana are steep.  

• First offense: 90-day license suspension and a $250 reinstatement fee 

• Subsequent offenses: The penalties accumulate and at the third offense, the driver’s license will be suspended for one year and face a $1,000 reinstatement fee. 

• All offenses:  Require SR-22 certificate filed by an insurance company to show financial responsibility and prove to the Bureau of Motor Vehicles that you have insurance in place.  

Do you need collision and comprehensive coverage? 

You should strongly consider adding collision and comprehensive coverage if you: 

• Have a newer vehicle or one that is worth a significant amount of money 

• Can’t afford to replace your vehicle out-of-pocket 

• Have a loan or lease (lenders will require it) 

• Live in an area with high theft or vandalism rates 

• Live in an area with frequently adverse weather conditions 

• Frequently drive in areas with deer and other wildlife 

• Want more protection and peace of mind 

Liability-only coverage might be enough for you if you: 

• Drive an older car that is worth less than a few thousand dollars 

• Have enough money saved to replace your car 

• Own your vehicle outright (no loan or lease in place) 

• Are comfortable assuming the financial risk 

You don’t have to go it alone. Reach out to an  Indiana Farm Bureau Insurance agent today. They can help you assess your needs, identify discounts, explain your coverages and adjust coverages as needed for your circumstances. We have agents in all 92 counties in Indiana who specialize in helping you find protection that works for you.  

Inside Story is for educational and informational purposes only. Inside Story is compiled from various sources, which may or may not be affiliated with our family of companies, and may include the assistance of artificial intelligence. While we strive to provide accurate and reliable content, we make no warranties or guarantees about its completeness, accuracy, or reliability, and are not responsible for the content of any third-party sources or websites referenced herein. The inclusion of any content does not establish a business relationship or constitute our endorsement, approval, or recommendation of any third party. Testimonials and examples provided are for illustrative purposes only and do not guarantee future or similar results or outcomes, and may not consider individual circumstances, goals, needs, or objectives. Inside Story does not provide legal, tax, or accounting advice. For individual guidance, please consult a qualified professional in the appropriate field.   

Coverages subject to policy terms, conditions, and exclusions. Subject to underwriting review and approval.