Insurance Center

It's estimated that roughly 20% of Indiana drivers don't have auto insurance. These drivers are taking a huge financial gamble―and potentially breaking state law.

Financial Responsibility

Indiana law requires that drivers be able to pay for all costs associated with an accident for which they are at fault. In other words, be able to take financial responsibility for their actions. (If you're younger than 18, you'll need to have a parent, legal guardian or another appropriate adult sign for your financial responsibility. See our Driver Education section for details.)

You can demonstrate proof of financial responsibility through filing of a bond or a certificate of self-insurance, or having a deposit of $40,000 in cash or securities with the state. Details on this are provided in the
Indiana Vehicle Code.

However, the simplest and most practical method to prove financial responsibility for most people is through having liability insurance.

Insurance Minimums

Indiana laws requires that motorists carry coverage of at least $25,000 per injured person (up to $50,000 per accident), as well as having at least $10,000 of property insurance.

You should note that these coverages are just state minimums; it doesn't mean that it's a sound idea to only have this amount of coverage. In fact, many experts feel that much more insurance is needed to help financially safeguard yourself, as well as others.

Providing Proof

You will need to show that you have financial coverage if you are involved in an accident and file a report, and also if you receive a ticket for certain moving violations.

If you're in an accident, the police report is first sent to the state police, and then forwarded to the Bureau of Motor Vehicles (BMV). If your insurance company does not give your information to the state police, the BMV will in turn send you a certificate of compliance, asking you to prove your financial responsibility.

Once the certificate has been issued, you'll have 40 days to see to it that the certificate is completed by your insurance agent, and returned to the BMV. Keep in mind, though, that it normally takes the BMV roughly a week to process the certificate. So, you should give yourself a little time cushion.

Also, if you've been convicted of a traffic offense and one of the following applies, you'll also be required to show proof using the same system:

• The moving violation is a misdemeanor or felony.

• You've had two other moving traffic offenses in the past 12 months for which points were assigned.

• You've had your license suspended before for failing to show proof of financial responsibility.

It's important to note that in both instances, the certificate of compliance will be sent to the address listed on your license. It's up to you to keep the BMV informed of any address changes.

License Suspension

If you fail to meet this deadline proving that you had adequate financial coverage on the day of your accident or your ticket, your license will be suspended for 90 days.

Afterwards, you may apply for reinstatement, as long as you have proof of financial responsibility, at any of the eight reinstatement branches located throughout Indiana. You'll also have to pay a reinstatement fee.

Reinstatement Fees

The first time you lose your license, you'll have to pay a $150 reinstatement fee. If it happens again, you'll have to pay $225, plus you'll lose your license for another 90 days. If it happens three or more times, it'll cost you $300 each time, plus the suspension. Also, if you violate this law twice within three years, you will lose your license for one year.

More Information

For more information on financial responsibility requirements, contact the contact the Indiana Department of Insurance:

• Indiana Department of Insurance

• Consumer Service

• 311 West Washington St.

• Indianapolis, IN 46204-2787

• Phone: (317) 232-2395

• InState WatsLine: 1-800-622-4461

• Fax: (317) 232-5251

• E-mail: doi@doi.state.in.us