Indiana Car Insurance Requirements: Minimums, Fault Rules & Penalties

Minimum liability requirements

Indiana requires all registered vehicles to carry at least 25/50/25 liability coverage. There is no state mandate for personal injury protection (PIP) or uninsured motorist coverage, though both are available as optional additions to a standard policy.

Coverage	Minimum limit
Bodily injury per person	$25,000
Bodily injury per accident	$50,000
Property damage per accident	$25,000

Indiana's Bureau of Motor Vehicles (BMV) operates an electronic insurance verification system. Insurers report active policy data to the BMV, which cross-checks it against vehicle registration records. Drivers whose coverage appears to have lapsed may receive a notice requiring proof of insurance within a defined response window before administrative action begins.

Fault system

Indiana is an at-fault (tort) state that applies modified comparative fault with a 51% bar. A claimant can recover damages from the at-fault driver as long as their own share of responsibility is 50% or less. If a court determines the claimant is 51% or more at fault, they are barred from any recovery from the other party.

Awards are reduced in proportion to the claimant's percentage of fault. A driver who is 20% responsible for an accident causing $50,000 in damages can still recover $40,000 from the other party. This proportional reduction applies up to the 51% threshold; beyond that, the claimant receives nothing.

Indiana's per-person bodily injury minimum of $25,000 can be exhausted quickly in accidents involving emergency surgery or extended hospitalization. Many Indiana drivers carry higher limits to limit personal financial exposure in a serious at-fault accident.

SR-22 requirements

An SR-22 in Indiana is a certificate your insurer files directly with the BMV confirming that your policy carries at least the state minimum liability limits. It is not a separate insurance policy — it is an endorsement attached to your existing coverage. The BMV requires SR-22 filing after:

• An OWI (Operating While Intoxicated) conviction
• A habitual traffic violator designation
• A conviction for driving without insurance
• Qualifying license suspension or revocation

Indiana requires the SR-22 to remain continuously in force for 3 years. A lapse or cancellation during that period triggers an automatic BMV notification and typically results in re-suspension of driving privileges, restarting the compliance clock.

Penalties for driving without insurance

Indiana does not publish a fixed statutory fine range for driving without insurance — courts set amounts within the applicable infraction class, and amounts can vary considerably by county. The more consequential penalties are administrative rather than monetary.

Consequence	Detail
License suspension	Suspended until reinstatement conditions are satisfied
Registration suspension	Vehicle registration cancelled; cannot be legally operated
Reinstatement fee	$150–$300 depending on prior history
Driving on suspended registration	Separate Class A misdemeanor charge

The detail that makes Indiana's penalties unusually significant: driving a vehicle whose registration is suspended due to an insurance lapse is charged as a criminal misdemeanor, not a civil infraction. A misdemeanor conviction carries potential jail time and a criminal record, not merely a civil fine.

To reinstate your license and registration, you must pay the applicable fee and provide proof of an active policy. If an SR-22 is part of the reinstatement order, the insurer must file it with the BMV before driving privileges are restored.