Indiana minimum car insurance requirements by ZIP
Indiana Code 9-25-4-5 sets the usual financial-responsibility amounts at $25,000 for bodily injury to or the death of one person and $50,000 for bodily injury to or the death of two or more people in one accident. Beginning July 1, 2018, the property-damage amount in that section is $25,000 for one accident. Those amounts are statewide. The Indiana Department of Insurance does not set auto rates, and it lists place of residence among the factors a filed rate can use.
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Start with the ZIP where the vehicle is garaged overnight, then line up liability at the financial-responsibility floor and any uninsured or underinsured motorist coverage that was not rejected in writing.
Esurance is an Allstate brand. EsuranceInsurance.org is an independent comparison site and is not affiliated with Esurance or Allstate.
Indiana financial responsibility minimums (25/50/25)
Indiana Code 9-25-4-5, except for the separate recovery-vehicle amounts in section 6 of that chapter, states the minimum amounts of financial responsibility. Subject to the limit for two or more people, the amount is $25,000 for bodily injury to or the death of one individual. The amount is $50,000 for bodily injury to or the death of two or more individuals in any one accident. Before July 1, 2018, the property amount was $10,000 for damage to or the destruction of property in one accident. Beginning July 1, 2018, that property amount is $25,000. The current combination is commonly called 25/50/25.
Section 4 of the same chapter says financial responsibility is in effect with respect to a motor vehicle when a motor vehicle liability policy, a bond, or self-insurance recognized by the bureau can respond in damages for liability arising out of ownership, maintenance, or use of the vehicle, in amounts at least equal to section 5 or section 6. A liability policy under that article must contain the terms the statute requires, and it must be approved by the state insurance commissioner. Section 1 says a person may not register a motor vehicle in Indiana, and may not operate a motor vehicle on a public highway in Indiana, if financial responsibility is not in effect under section 4, or the person is not otherwise insured in order to operate the motor vehicle. A person who violates section 1 is subject to suspension of current driving privileges, the motor vehicle registration, or both.
The Indiana Department of Insurance describes bodily injury liability as paying, up to the limits of the policy, for injuries to other people caused with the car. It describes property damage liability as paying, up to the limits of the policy, for damage to other people’s property caused by the car. Those liability parts do not pay to repair the insured car. The department describes collision, subject to a deductible, as coverage for damage to the insured car caused by collision or upset, and comprehensive as coverage for other damage to that car, including theft, fire, a windstorm, and glass breakage.
Uninsured and underinsured motorist coverage in Indiana
The Indiana Department of Insurance says each newly written Indiana auto liability policy must include uninsured and underinsured motorist coverages unless they are rejected in writing. The department lists those minimum liability limits as uninsured-motorist bodily injury of $25,000/$50,000, property damage of $25,000, and underinsured-motorist bodily injury of $50,000. It says the coverages allow the insured to collect those damages from the insured’s own insurance company.
Indiana Code 27-7-5-2 says the insurer shall make uninsured and underinsured motorist coverage available in an automobile liability policy delivered or issued for delivery in Indiana for a motor vehicle registered or principally garaged in the state, with the exceptions the section states for certain umbrella and commercial policies. Unless the insured has rejected the coverages in writing, the limits must be at least equal to the bodily injury liability limits of the policy. Underinsured motorist coverage must be made available in limits of not less than $50,000. An insurer may not sell or provide underinsured motorist coverage in an amount less than $50,000.
A named insured has the right, in writing, to reject both coverages, or to reject either coverage alone if the insurer provides the coverage that is kept separately from the coverage that is rejected. A rejection by a named insured is a rejection on behalf of all other named insureds, all other insureds, and all other persons entitled to coverage under the policy. The section also says no insured may have uninsured-motorist property damage coverage unless that insured also has uninsured-motorist bodily injury coverage. After a written rejection, the insurer need not offer the rejected coverage in a renewal or replacement policy issued to the same insured by the same insurer, or by a subsidiary or an affiliate, unless a later written request asks for it. Keep the rejection choice the same on every quote. Otherwise a ZIP comparison mixes a policy that still includes the coverage with a policy that has rejected it.
Coverage above the financial-responsibility floor
An injury or damage to someone else’s property can exceed $25,000 for one person, $50,000 for one accident, or $25,000 of property damage. Section 4 describes the section 5 figures as the minimum ability to respond in damages. The Indiana Department of Insurance describes medical payments as a separate coverage that pays medical bills incurred by the insured and usually the passengers, up to the limits of the policy, if they are injured while riding in, entering, or getting out of the car. Medical payments is not one of the amounts in section 5.
Collision and comprehensive are separate from that floor as well. The department lists them after bodily injury liability and property damage liability. Neither of those liability parts, as the department describes them, pays to repair the insured car after a crash that driver causes.
What still changes by Indiana ZIP
Section 5 sets one statewide floor. The Indiana Department of Insurance does not set auto rates. Companies file rates with the department, and the department says automobile rates vary. Place of residence is one factor it lists. It also lists driver record, car use, the type of car, policy limits, deductibles, claims history, and credit scores. Neighboring ZIP codes can produce different filed rates even though the amounts in section 5 stay the same.
The department does not recommend a specific company. It says each company should be quoted on the same basis. A driver who is turned down can apply for the Indiana Auto Insurance Plan through any insurance agent in Indiana. Write down the liability limits and whether uninsured or underinsured motorist coverage was rejected, so the next quote can be lined up the same way.
General information: This page summarizes public requirements for Indiana auto insurance. It is not legal advice, not a quote, and not an offer of insurance. Confirm current limits, forms, and filings with the Indiana Department of Insurance or a licensed Indiana agent before a policy is bought or changed.
Frequently asked questions
What are the current Indiana financial-responsibility amounts?
Indiana Code 9-25-4-5 sets $25,000 for bodily injury to or the death of one person, $50,000 for two or more people in one accident, and, beginning July 1, 2018, $25,000 for property damage in one accident. Section 6 of that chapter sets different amounts for recovery vehicles.
Does a new Indiana liability policy include uninsured motorist coverage?
The Indiana Department of Insurance says each newly written auto liability policy must include uninsured and underinsured motorist coverages unless they are rejected in writing. Indiana Code 27-7-5-2 gives the named insured that written rejection right.
Will the 25/50/25 minimum repair the insured car?
No. The Indiana Department of Insurance describes bodily injury liability as paying for injuries to other people and property damage liability as paying for damage to other people’s property. Collision, subject to a deductible, is the coverage that pays for damage to the insured car from a collision or upset.
Why compare by ZIP if the minimum amounts are statewide?
The amounts in Indiana Code 9-25-4-5 are statewide. The Indiana Department of Insurance lists place of residence among the factors that can change a filed rate, and the department does not set those rates.
Esurance is an Allstate brand. EsuranceInsurance.org is an independent comparison site and is not affiliated with Esurance or Allstate.
Liability versus full coverage by ZIP