All U.S. states require drivers to carry auto insurance, but each state has specific laws determining exactly what level of coverage is required. The minimum amount of insurance coverage is likely to be insufficient to cover all damages in a serious accident, so Indiana drivers are advised to purchase as much insurance coverage as they can afford.

Required Liability Insurance for All Indiana Drivers

BIL (Bodily Injury Liability): Liability coverage for injuries/deaths in the other vehicle

• Minimum of $25,000 for one person
• Minimum of $50,000 for the other driver and all passengers

PDL (Property Damage Liability): Liability coverage for damage to the other driver’s vehicle or property, and other public or private property surrounding the accident scene

• Minimum of $10,000 for all property damage

UMC (Uninsured/Underinsured Motorist Coverage): Coverage for injuries and property damages in an accident caused by an uninsured or inadequately insured driver

• Minimum of $25,000 per person for injuries/medical expenses
• Minimum of $50,000 per accident for injuries/medical expenses
• Minimum of $10,000 per accident for property damage

About Liability Insurance

Liability insurance pays for damages to the other vehicle and injuries to the driver and passengers of the other vehicle in the case of an accident that is determined to be your fault. Liability insurance does not cover damages to your own vehicle or injuries to yourself or your passengers if you cause an accident. If the other driver is deemed responsible for the accident, his/her liability insurance will cover the damages to your vehicle and any injuries to yourself or your passengers.

About Uninsured/Underinsured Motorist Coverage

Indiana requires all new auto insurance policies to include uninsured/underinsured motorist coverage unless you decline this coverage in writing. Uninsured motorist coverage is designed to cover the costs of injuries and property damage caused by an uninsured or underinsured driver. Although all Indiana drivers are required to carry liability insurance, UMC coverage is strongly recommended because of the persistently high rate of uninsured drivers. If you are involved in an accident caused by an uninsured driver and you don’t carry UMC coverage, you will be responsible for paying your medical and vehicle repair expenses out of pocket.

Other Recommended (but not Required) Insurance for Indiana Drivers

Because liability insurance only covers the other driver’s expenses following an accident that is determined to be your fault, you will need additional coverage if you wish to cover your own expenses. Without these optional types of coverage, you will be responsible for your own expenses if you cause an accident. Additionally, if you have a loan, lease, or lien on your vehicle, you may be required to carry more comprehensive insurance.

• Collision coverage: pays for damage to your vehicle/property if you cause an accident
• Personal injury protection (PIP): pays the expenses for injuries to yourself and your passengers if you cause an accident
• Comprehensive coverage: pays for damage to your vehicle resulting from non-collision incidents, such as fire, floods, hail, and other acts of nature.

State-Issued Proof of Insurance

Indiana drivers are required to carry proof of insurance in their vehicles at all times. In the event of an accident or traffic stop, you will be asked to provide proof of insurance to a police officer or state trooper. Failure to carry insurance or provide proof of insurance results in stiff penalties.

After an accident in Indiana, an accident report will be filed with the Bureau of Motor Vehicles, who will in turn contact your insurance company for proof of insurance. If the BMV does not receive proof from your insurance provider, you will have 40 days to provide your own proof of insurance to the Bureau of Motor Vehicles. If you fail to provide this proof within the designated time frame, your license will be suspended for 90 days, after which you will have to pay a $150 reinstatement fee to restore your driving privileges. Indiana has increasingly severe penalties for repeat offenses, as follows:

• 2nd offense: another 90-day license suspension and a $225 reinstatement fee
• 3rd and 4th offenses: 90-day license suspension and a $300 reinstatement fee
• 2 offenses within 3 years: 1-year license suspension

If your driver’s license is suspended for any reason, you are not legally permitted to drive any vehicle for the entire duration of the suspension.

Determining Fault for an Accident

In the event of an accident, the police will determine which driver is at fault. Whichever driver is at fault for the accident will be responsible for the costs of all injuries and property damage. Fault is determined by several factors, including statements by the parties involved, witness reports, and the traffic situation at the scene. You should not admit fault after an accident; instead, report the incident to police right away and allow the authorities to determine who was responsible for the accident.