Know the Law: Indiana Insurance Requirements

Indiana has specific requirements for insurance that all in-state citizens have to comply with. All drivers must maintain financial responsibility when they’re behind the wheel of their vehicle. While most people think that car insurance is the only option, there are actually a number of in-state offers that can cover this need.

Having options is a great bonus for people who live in Indiana. This is what the state calls a tort system, which spells out the need for someone to be found at fault for causing a car accident. Like other Indianapolis insurance options, this kind of system still requires that person to pay for financial damages from an accident.

Required Coverage

Under Indiana state law it’s imperative that some form of insurance is purchased. If someone who causes an accident and the injury of just one person is fined at least $25,000. Must-have liability coverage requirements include bodily injury and property damage for personal vehicles.

Bodily injury liability can be purchased at a minimum limit of $25,000/$50,000, and a property damage liability limit of $10,000. Indiana drivers can tack on additional coverage including comprehensive and collision coverage, medical payments, towing coverage, and rental reimbursement coverage.

Comprehensive and collision are options for drivers who seek to have the security of bonus Insurance protection. Comprehensive insurance covers vehicles if they’re stolen or in other non-collision events like natural disasters.

Indiana’s Tort System

As mentioned above, the state’s tort system is a different coverage option provided for drivers in Indiana. This determines who is at fault in an accident and charges their insurance company based on their particular policy limits. With Indiana’s tort system there are limits to the amount of insurance a driver has to uphold in order to be able to drive their vehicle.

Indiana operates a 25/50/10 rule for insurance coverage:

  • $25,000 limit for bodily injury (per injured person)
  • $50,000 limit for bodily injury (per accident)
  • $10,000 limit for property damage

Having insurance coverage is essential to all Indiana drivers. If a driver doesn’t have coverage then they are considered to be driving illegally, and if caught there can be hefty fines, property repossessions, and maybe even small civil charges in court.

About McClain Matthews Insurance

At McClain Matthews, we specialize in providing comprehensive insurance solutions for Indianapolis residents, business owners and beyond. For the last 69 years, we have established relationships within our community and pride ourselves on tailoring coverages as needed by our clients. For more information on how we can serve you, contact our friendly experts today at (317) 298-7500.