What Indiana requires
Indiana's mandatory package is 25/50/25 liability: twenty-five thousand per injured person, fifty thousand per accident, twenty-five thousand of property damage. No PIP mandate, no MedPay mandate. The surprise sits on the optional side of the form: under Indiana law every new liability policy includes uninsured motorist coverage at 25/50, underinsured motorist bodily injury at $50,000, and uninsured motorist property damage at $25,000 - unless the policyholder rejects any of them in writing at the quote stage.
| Coverage | Indiana minimum | Required? |
|---|---|---|
| Bodily injury liability | $25,000 / $50,000 | Yes |
| Property damage liability | $25,000 | Yes |
| Uninsured motorist | $25,000 / $50,000 | Included unless rejected in writing |
| Underinsured motorist | $50,000 | Included unless rejected in writing |
| Uninsured motorist property damage | $25,000 | Included unless rejected in writing |
| Personal injury protection | None | No |
Those default coverages quietly do most of the work that other states leave to shoppers. An Indiana driver who never touched the optional boxes still carries protection against uninsured at-fault drivers, a top-up layer when the other driver's limits are too low, and property damage coverage when the culprit has no policy at all. Removing any of it requires affirmative paperwork - silence keeps the protection in place.
How the UM and UIM layers pay
The layers stack in a specific order after a crash. The at-fault driver's liability limits pay first, up to their 25/50 ceiling. Your uninsured motorist coverage takes over when that driver has no policy - funding your bodily injury claim through your own carrier. When the other driver carries limits too small for your damages, underinsured motorist coverage rises above what they paid and continues the claim up to its $50,000 limit. Uninsured motorist property damage handles repairs when the other side cannot.
Drivers who want those layers gone must reject them explicitly. The Indiana Department of Insurance treats a written rejection as the only valid opt-out, and the coverages otherwise continue at renewal as written. Anyone who believes they declined UM years ago should pull the declarations page: the defaults are generous enough that many Indiana policies still carry the full stack, deductibles and all.
Indiana fault rules
Indiana is an at-fault state applying modified comparative negligence through its comparative fault statute. Your damages shrink by your percentage of responsibility, and once the jury places more than half the fault on you the claim is barred outright. At or below half, you recover the remainder - reduced but intact. The same math governs cross-claims: a defendant who was 40 percent at fault still collects 60 percent of their damages from you.
Fault determinations interact directly with the default coverage stack. When the other driver was majority at fault but carries only the state minimum, your UIM layer closes the gap between their limits and your actual damages; when they have nothing, UM funds the bodily injury claim instead. Indiana's statute of limitations for crash injuries runs two years - a deadline shorter than most neighboring states, and one adjusters use to their advantage.
Penalties for driving uninsured
Indiana punishes lapses with fines, suspension and long-tail monitoring. A first offense carries a $250 fine; later violations run up to $1,000. Beyond the ticket, an uninsured driver loses driving privileges until coverage is restored and enters a three-year financial responsibility period - the SR-22-style filing requirement that keeps insurers notified of your status long after the original citation. Court costs and reinstatement fees stack on top.
Coverage lapses carry administrative consequences too. After an accident or certain violations, the Indiana Department of Insurance requires a Certificate of Financial Responsibility from your insurer before privileges are fully restored. Insurers themselves operate under timing rules: cancellation is permitted within the first 60 days of a new policy, while nonrenewal requires 20 days' advance notice. Policyholders who receive an unexpected cancellation notice can escalate to the IDOI consumer services division.
Shopping an Indiana policy
Start by confirming which of the default coverages you actually kept - the cheapest quote in Indiana is frequently the one that rejected UM and UIM in writing. Then normalize liability limits across carriers before comparing prices, since twenty-five thousand per person is a floor rather than a recommendation. Garaging zip, annual mileage, vehicle theft rates and driving record shape most of the premium spread across the state.
- Keep UM, UIM and UMPD unless you have a documented reason to reject them.
- Raise liability to 100/300/100 before shopping on price - it costs less than people expect.
- Bundle with renters or homeowners coverage for the largest standard credit.
- Stack good student, defensive driving, low mileage and multi-vehicle discounts.
- Re-quote after a move, a wedding, a new vehicle or a cleared violation - each one re-rates the policy.
Reading an Indiana declarations page
The Indiana defaults only protect drivers who can see them. Pull your declarations page and confirm four blocks appear: bodily injury liability, property damage liability, uninsured motorist at $25,000/$50,000, and underinsured motorist at $50,000 - plus the $25,000 uninsured motorist property damage line. A signed rejection removes any of them; an absent signature does not. The page also shows whether your liability sits at the state floor or at the higher limits you asked for, which is the number that decides whether your savings account is exposed after a serious at-fault crash.
- UM $25,000/$50,000 and UIM $50,000 should be listed unless you signed a rejection.
- Uninsured motorist property damage at $25,000 pays repairs when the other driver has no policy.
- A Certificate of Financial Responsibility request after an accident means coverage lapsed - respond fast.
- Compare liability across carriers at equal limits before comparing price.
- Attach the page to your renewal folder; rejections you never signed are disputable with proof.
Related pages
- How much liability coverage you need
- How car insurance works
- Non-owner car insurance
- Auto insurance in Ohio
- Auto insurance hub
Frequently Asked Questions
Is car insurance required in Indiana?
Yes. Indiana requires 25/50/25 liability limits on every vehicle. Uninsured and underinsured motorist coverages are additionally included by default in every new policy unless rejected in writing.
Is Indiana a no-fault state?
No. Indiana is an at-fault state using modified comparative negligence - your recovery is reduced by your share of fault and barred once you are found more than half responsible. There is no PIP mandate.
What happens if I drive uninsured in Indiana?
A first offense carries a $250 fine and later violations up to $1,000, followed by license suspension until coverage is restored and a three-year financial responsibility monitoring period requiring insurer filings.
Can I reject uninsured motorist coverage in Indiana?
Yes - but only in writing. Every new policy includes UM at $25,000/$50,000, UIM at $50,000, and uninsured motorist property damage at $25,000 unless the policyholder signs a rejection. Keep them: they fund claims against uninsured and underinsured drivers.
How does Indiana's comparative fault rule work?
Your damages are reduced by your percentage of fault, and you recover nothing once you pass half the blame. At or below 50 percent fault you keep the remainder of your award, while the other driver's insurer may still pursue you for their share.
Last updated: 2026-10-01