Auto insurance requirements in Indiana

In order to be considered a legal driver, motorists in Indiana are required to carry car insurance. Proof of insurance must be carried while you are driving, and must be shown at the behest of law enforcement officials. The minimum insurance limits required by the state of Indiana can be seen below:

Keep in mind that those leasing or financing a vehicle could be required to carry physical property damage insurance — otherwise known as full coverage — by their leasing company or lienholder.

Liability coverage requirements in Indiana

Liability coverage is legally required in Indiana and pays for injury and lost wages that you cause to another driver or their passengers. This also applies to any damage to the other driver’s vehicle in the event in which you are considered “at fault.” It’s important to note that this coverage never pays for your injuries or damage to your own property. The specifics of this coverage are explored further below.

What are state-mandated car insurance limits in Indiana?

Nearly every state requires some type of car insurance coverage in order to be considered a legal driver. These bare minimums are often referred to as limits, as they are the maximum amount that a car insurer will pay out in a claim, though higher coverage amounts are available with most companies.

The coverage limits are determined by each individual state and normally split into three different numbers, often referred to as split limits. In Indiana, this is listed as 25/50/25. The first two numbers refer to bodily injury coverage per-person and per-accident, respectively, while the last number refers to property damage.

• The bodily injury coverage per person limit is the maximum dollar amount that an insurer will pay for a single person that you injure in an auto accident.
• The bodily injury coverage per accident is the maximum dollar amount that will be paid for all injuries that you cause in an accident if more than one person is hurt.
• The property damage per accident limit is the maximum dollar amount that an insurer will pay for damage that you cause in an accident.

Do Indiana’s required insurance minimums provide enough coverage?

Indiana’s required liability insurance is on par with most other states — even dramatically more than a few. Still, that does not mean that you should assume you are properly covered. One at-fault accident can cause an extraordinary amount of damage. Serious injuries could quickly eat up your bodily injury limits, especially if you injure more than one person. Furthermore, if you consider that the average cost of a new car is more than $25,000, these property damage limits suddenly seem quite low. As such, it's seen as a good idea to increase these limits as much as you can reasonably afford. 

Remember that the required insurance coverage in Indiana is only liability, meaning that it will pay nothing for your injuries or damage to your property. If you wanted to ensure you and your vehicle were protected, you would need to add an entirely new form of coverage to your policy.

Indiana’s penalties for driving without proof of insurance

If you are found to be driving without the proper insurance coverage in place, you can expect the following consequences in Indiana: 

Optional car insurance coverage in Indiana

Indiana law only requires liability coverage to be a legal driver. However, most insurance companies offer a variety of coverage options which can add more protection. Check out a few of these options below.

• Comprehensive: A form of physical damage coverage, this protects your vehicle from non-collision damages including theft, weather damage, and even animal collisions.
• Collision: This coverage protects your vehicle from damage relating to colliding with another vehicle or stationary object.
• Loan/Lease Payoff: Sometimes referred to as gap coverage, this coverage is very handy for those who are financing a vehicle that has been totaled. It factors in your vehicle’s depreciation to cover the difference in the actual cash value and what you still owe on the loan.
• Medical Payments: Medical payments coverage — or Med Pay — is an optional coverage that goes toward covering the medical expenses of you and those in your vehicle at the time of an accident. This coverage pays regardless of fault.
• Rental Car Reimbursement: Should your car be rendered undrivable, this coverage steps in to provide you with a rental until your car is fixed. Limits vary by company.
• Roadside Assistance: Though each insurance company will offer slightly different coverage options, this coverage typically helps in the event that your car breaks down. Typical uses of this coverage are for battery jumps, towing, and fixing flat tires.
• Uninsured/Underinsured Motorist Bodily Injury: There are, unfortunately, quite a few motorists who get behind the wheel without carrying any insurance — or at least not enough. These coverages help in the event that an uninsured — or underinsured — driver causes an accident and is unable to pay your medical expenses.
• Uninsured Motorist Property Damage: This form of uninsured coverage protects your vehicle in the event that it is damaged by an uninsured driver. 

Indiana is a diminshed value state

Indiana is a diminished value state, meaning drivers are allowed to recover diminished value from the at-fault party’s insurance company. When your vehicle experiences an accident, even if it is fully repaired to its pre-loss condition, the resale value decreases. The involvement in a collision makes your car’s value lesser than similar vehicles that have not experienced an accident. A diminished value claim allows you to recoup the losses you might experience when selling your car. 

Since Indiana is one of the 15 states that offers compensation for diminution in value, you may file by contacting the at-fault party’s insurer. In order to file a diminished value claim in Indiana, certain requirements must be met:

• You are not entitled to compensation if you were the party at fault in the accident
• Documentation will be required to process your claim. Make sure you can provide photos, records of repairs made, and proof of the value of your vehicle by a trusted source. 
• In Indiana, the statute of limitations for filing a diminished value claim is 6 years. 
• Indiana does have uninsured motorist coverage for diminished value claims.

Why adhering to Indiana’s car insurance requirements is important

Car accidents are never planned. This is the exact reason why carrying car insurance is so important. On top of facing penalties, not having the right coverage — or high enough limits — can wind up costing you big. It’s always a good idea to increase your limits or add additional coverage when you can afford it. The best way to find the car insurance you need is to compare quotes. The Zebra can help you compare quotes from a number of top companies so that you can find coverage that protects you and your assets.

Sources:

• Indiana Common Traffic Violations
• Indiana Car Insurance Requirements
• Indiana Penalties