Indiana Auto Insurance Requirements

Minimum Liability Coverage: 25/50/25

Indiana law requires all registered vehicles to carry minimum liability insurance:

Uninsured/Underinsured Motorist Coverage

Under Indiana Code 27-7-5-2:

Uninsured Motorist (UM)

• Must be offered on every auto policy
• Automatically included unless rejected in writing
• Minimum limits: $25,000/$50,000 for bodily injury
• Protects against uninsured and hit-and-run drivers

Underinsured Motorist (UIM)

• Must be offered on every auto policy
• Automatically included unless rejected in writing
• Minimum limits: $50,000 (cannot be sold for less)
• Protects when at-fault driver's coverage is insufficient

Rejection Requirements

• Named insured may reject UM, UIM, or both in writing
• Once rejected, insurer need not offer again on renewals
• Policyholder may later request coverage in writing

Proof of Insurance

Indiana requires drivers to:

• Carry insurance ID card (paper or electronic)
• Show proof to law enforcement upon request
• Electronic proof on smartphones is accepted
• Proof required for vehicle registration

Indiana Tort System & Modified Comparative Fault

Indiana follows an at-fault tort system with modified comparative fault:

51% Bar Rule

Under Indiana Code 34-51-2-6:

• Injured party can recover only if less than 51% at fault
• Damages reduced by percentage of fault
• 51% or more at fault = NO recovery

Example: If you are 30% at fault and damages are $100,000:

• Recovery = $100,000 × (100% - 30%) = $70,000

Government Claims Exception

Claims against government entities follow pure contributory negligence:

• Any contribution to the accident = no recovery from government

Exam Tip: Indiana requires UM/UIM coverage unless rejected in writing. Remember the 51% bar rule - a party 51% or more at fault cannot recover any damages.