Insurance — Indiana Permit Test

You may not drive in Indiana unless the vehicle has financial responsibility, meaning liability insurance that meets the state minimum.

If you cause a crash, insurance pays for the harm you did. Without it the people you hurt may get nothing.

Indiana law states a person may not operate a motor vehicle in Indiana if financial responsibility is not in effect with respect to the motor vehicle, or the person is not otherwise insured to operate the motor vehicle.

Indiana's minimum insurance covers $25,000 for injury or death of one person in a crash.

The minimum sets a floor on what an injured person can recover from a driver who caused the crash.

The state minimum insurance standard is $25,000 for bodily injury to, or the death of, one individual;

Indiana's minimum insurance covers $50,000 for injury or death of two or more people in one crash.

A crash can hurt several people, so the minimum per crash is higher than the minimum per person.

$50,000 for bodily injury to, or the death of, two or more people in any one accident;

Indiana's minimum insurance covers $25,000 for property damage in one crash, which with the injury limits is called 25/50/25.

Property coverage pays for the cars, fences and buildings you damage, not just for people who are hurt.

and $25,000 for property damages in any one accident.

If the BMV asks for proof of insurance, your insurer's Certificate of Compliance must reach the BMV within 90 days or your driving privileges are suspended.

The BMV checks that you were insured. Missing the deadline is treated the same as having no insurance.

The COC must be received electronically from your insurer and processed by the BMV within 90 days of the BMV’s mailing of a request to verify financial responsibility, or your driving privileges will be suspended.

Reinstating after a first no-insurance suspension costs a $250 fee, rising to $500 for a second and $1,000 for a third.

Each repeat costs more, so driving uninsured gets more expensive every time you are caught.

Reinstatement fees are $250 for a first no-insurance suspension, $500 for a second no-insurance suspension, and $1,000 for a third and subsequent no-insurance suspension(s) that occurred after Jan. 1, 2015.

What must be in effect before you drive a vehicle in Indiana?

Liability insurance that meets the state minimum. If you cause a crash, insurance pays for the harm you did. Without it the people you hurt may get nothing. Indiana Driver's Manual, p.22: “Indiana law states a person may not operate a motor vehicle in Indiana if financial responsibility is not in effect with respect to the motor vehicle, or the person is not otherwise insured to operate the motor vehicle.”