Yes, it is a legal requirement to have car insurance in Indiana. Indiana requires insurance for all drivers in order to be legal on the roadway. There is no doubt about this. It’s just the law! Within this series, Indiana’s is remarkable for the clarity of its tiered penalty structure, as precise reinstatement fees, suspension periods, and SR-22 requirements are assigned to each offense level over a five-year period. It is also significant that the escalation criteria of Indiana Code 9-25-8-2 for drivers who are convicted of failing to provide insurance coverage and then knowingly operate without insurance progresses from infraction to Class C misdemeanor.
Key Takeaways
- In the state of Indiana, driving without insurance is against the law. Indiana has mandated that all vehicles be insured and drivers have insurance on their person when operating a motor vehicle.
- The minimum coverage requirements in Indiana are 25/50/25 or $25,000 for bodily injury per person, $50,000 per accident, and $25,000 for property damage. Uninsured motorist coverage must also be provided at the same limits, but the coverage can be waived in writing.
- First time driving without insurance is usually a violation, where the driver’s license will be suspended for a period of 90 days and a $250 reinstatement fee will be charged. The second time in five years, the suspension is one year and the reinstatement fee is $500. A third or repeat violation within five years will result in a $1000 reinstatement fee, one year suspension and vehicle registration suspension.
- IC 9-25-8-2 makes it a Class C misdemeanor to knowingly or intentionally drive a vehicle without insurance and to have a prior conviction. Class C misdemeanor is punishable by up to 90 days imprisonment and a fine of up to $500.
- Driving without car insurance in Indiana is not a criminal offense for a first offense, but subsequent offenses and being aware of a violation are misdemeanor offenses.
- Under a modified comparative fault law, Indiana will permit a plaintiff to recover if they are at least 50% at fault. If you’re 51 percent or more responsible, you can’t recover any damages. Indiana also has a “no pay, no play” law that limits uninsured drivers’ recovery of non-economic damages.
- The Indiana Automobile Insurance Plan is a safety net for high-risk drivers who are turned down by three or more standard market insurance companies.
Indiana Law requires that drivers have car insurance
The Indiana statute demands that all vehicles be insured and that all drivers have insurance proof on hand when operating the vehicle, which can be electronic proof on a phone or tablet.
The minimum coverage in Indiana is $25,000 for bodily injury per person and per accident, and $25,000 for property damage liability per accident. Insurers are required to provide uninsured and underinsured motorist bodily injury coverage at the same levels ($25,000 per person, $50,000 per accident), but policyholders can opt out of the coverage by signing a waiver.
Your Indiana auto insurance company will automatically report coverage information to the BMV when you buy coverage. Proof of coverage will also be required at vehicle registration. Indiana allows both paper and electronic forms of your insurance ID as proof of insurance. Always have a physical copy of the phone in the car in case you do not have your phone on hand if you are pulled over by the police.
Failing to have car insurance coverage is a different offense than failing to show proof of car insurance coverage. You can be cited for an administrative violation if you have insurance but can’t present proof at the time of your stop or accident, just as you can be cited for a seat-belt violation. In Indiana, your citation might be dismissed if you can provide the court with proof of valid insurance for the date of the citation on or before your court date.
The primary law for the state of Indiana is the Indiana Code 9-25-8-2
The driving without insurance is usually an infraction but if you are driving without insurance and have a prior conviction or judgment under the section, it becomes a Class C misdemeanor under Indiana Code 9-25-8-2. A Class C misdemeanor comes with a possible penalty of up to 90 days in jail and a fine of up to $500.
This escalation pathway sets Indiana apart from other states such as Arizona and Ohio where there is no jail exposure regardless of offense history. In Indiana, if a motorist is convicted of an uninsured driving offense and they are subsequently arrested for another, they are subject to the possibility of a criminal misdemeanor charge. The important element is the knowledge or intent element. It is still a violation if it is an accidental lapse that occurs without a history. When a person is convicted of a crime and then commits another, the second crime is a Class C misdemeanor if it is deliberate.
You may be charged with more serious and/or additional crimes for driving without insurance and not reporting an accident, causing an injury or fatal crash, driving under the influence, or driving with a suspended license.
The full Indiana penalty structure is in effect
First Offense
If a driver fails to present valid proof of insurance when requested by law enforcement officials, they could lose their driver’s license for 90 days. In order to reinstate the license, the person will have to obtain insurance and pay a $250 fee to get their license back. If a person is discovered to be driving without insurance, he or she will need to submit proof of future financial responsibility for three years from the time the license is suspended.
In Indiana, driving without insurance is a violation that could lead to a license suspension and three years of additional monitoring after the initial offense.
Second Offense Within Five Years
The second time a driver is caught without insurance in this 5-year period, his or her driver’s license will be suspended for one year. In this instance, their license will be reinstated for $500. The second offense results in a one-year license suspension, $500 fine and three-year SR-22 requirement.
Third and Subsequent Offenses Within Five Years
A third offense of driving without insurance within five years will result in a one-year suspension of driving privileges. Additionally, the driver will have to pay a reinstatement fee of $1,000 to get their license back. Registration of vehicles will also be suspended for a year. In this case, an individual will need to get an SR-22 certificate for five years.
The following is a summary of the complete penalty escalation:
| Offense | License Suspension | Reinstatement Fee | SR-22 Requirement |
| First offense | 90 days | $250 | 3 years (180 days minimum) |
| Second offense (within 5 years) | 1 year | $500 | 3 years |
| Third offense (within 5 years) | 1 year + registration suspension | $1,000 | 5 years |
| Class C misdemeanor (knowing repeat) | Additional penalties | Additional fees | Extended |
Indiana’s Verification System: The Certificate of Compliance Process
The State of Indiana has a Certificate of Compliance system in place to ensure financial responsibility at certain triggering events.
When certain incidents occur, a proof of insurance must be submitted to the Indiana Bureau of Motor Vehicles within a certain time frame. These include an accident in which a report was filed, if you were arrested for a misdemeanor or felony traffic violation, if you received a third point-eligible moving violation within a year of two others, or had a point-eligible moving violation after a previous suspension for not having insurance.
The BMV will have 90 days from the request to verify financial responsibility to receive and process the Certificate of Compliance or your driving privilege will be suspended. Important: This certificate can only be submitted by your insurance company to the BMV. This can’t be done by you or your lawyer.
If your driving privileges are suspended, you can remove a BMV suspension from your driving record by getting your insurance company to fill out a COC to prove that you have financial responsibility. With the receipt of the Certificate of Compliance by the BMV, your license will be reinstated.
Indiana SR-22 Requirements
Indiana law says that if you have had your driving privileges suspended for not filing insurance with the BMV, you may be able to restore your driving privileges by getting your insurance provider to file an SR-22 form and having the insurance provider keep your policy in force for 180 consecutive days.
SR-22 is supplemental coverage to your policy that proves financial responsibility, and will run an extra $30 to $80 a month. If the BMV receives proof of SR-22 coverage, your suspension will be suspended and you will be able to legally drive again. SR-22 coverage is required for 180 days in a row. Any coverage gap during this time will result in a lapse of coverage and the 180 day period will be reset.
Repeat violations will result in the requirement to obtain an SR-22 for up to 5 years. This five-year SR-22 requirement for third offense drivers is one of the longest in this state series, longer than the three-year requirement in Texas, Virginiaand Tennessee.
Does Indiana have a no insurance law?
While it is not technically unlawful to drive without car insurance in Indiana on the first offense, there are other serious consequences to be faced, including license suspension and up to $1,000 in fines.
There are two special cases for the jail exposure. First, if a person commits a knowing or intentional repeat violation, it is a Class C misdemeanor punishable by up to 90 days in jail and a fine of up to $500 under Indiana Code 9-25-8-2. Second, it’s a Class A misdemeanor in Indiana to provide false insurance information of any kind, which carries a maximum penalty of one year in jail and a fine of up to $5,000.
This two-tier escalation system is similar to Tennessee, which has no jail sentence for the first offense, but misdemeanor exposure for certain escalating circumstances.
A critical consideration of the “No Pay, No Play” Law in Indiana
Indiana has a “no pay, no play” statute which restricts the recovery of non-economic damages for injury in an accident for uninsured drivers.
If you are in a car accident without insurance and not at fault in Indiana, you may still be able to receive compensation for your injuries and property damage through the at-fault driver’s liability coverage. But your payment depends on the limits of the driver that caused the crash. After these limits are reached, you would need to file a lawsuit against the at-fault driver to seek additional compensation, and might not receive any non-economic damages related to pain and suffering under Indiana’s “no pay, no play” law.
This rule is akin to the Ohio rule, and establishes a meaningful civil liability limitation for uninsured Indiana drivers, in addition to the normal administrative and criminal penalties.
Indiana’s Modified Comparative Fault Standard
Indiana has a modified comparative negligence model, meaning that you may not be able to recover for the entire cost of the accident if you are determined to be at least partially at fault for the accident.
If you are in an at-fault state like Indiana, your car damage and any medical expenses you incur may be the responsibility of the driver at fault. Indiana, however, has a slightly different comparative negligence system that has a 51 percent bar. If a driver is determined to be 51 percent or more responsible for the accident, he or she will not be able to receive any compensation from the other driver.
Under this standard, Indiana is in the modified comparative fault category and much more favorable than Virginia’s contributory negligence doctrine, which would allow no recovery if the plaintiff had one percent of the fault.
If You Cause an Accident Without Insurance in Indiana?
Indiana is a tort state (not a no-fault state), meaning that in case of an accident, the fault will be assigned to at least one of the drivers.
Even if you were at fault in an accident while driving without coverage in Indiana, you will face the penalties for driving without coverage. Besides the legal penalties of driving without car insurance, you may be liable for the other driver’s car damage, hospital costs and your own medical expenses, along with the cost of your vehicle repairs. If the other driver doesn’t have uninsured motorist coverage or personal injury protection, you may be stuck with increasing debts or even bankruptcy.
Violations could lead to fines up to $10,000. If you are driving without insurance and cause an accident, you will probably be fined more than a driver who is caught without insurance and is found to be under-insured. The driver whose license or registration is suspended will be charged with a reinstatement fee and impoundment fee, which can be as high as $1,000 per suspension, depending on the number of previous offenses.
The Indiana Automobile Insurance Plan: Safety Net for High-Risk Drivers
The last resort for the state is the Indiana Automobile Insurance Plan and guaranteeing coverage for all drivers. The plan was designed to provide coverage to high-risk drivers who are in need of assistance in obtaining coverage from traditional carriers. You will need to submit three insurance denials from Indiana insurance companies within 60 days to be eligible for INAIP. If you’re interested, you can call INAIP at 877-463-3800 and connect with a licensed agent who will be able to put you in touch with a provider.
This safety net means that even if a driver has a history of uninsured driving violations, he or she will still have options when it comes to coverage.
How Indiana’s No-Fault Insurance Law Impacts Future Car Insurance Premiums
In addition to the legal consequences, you can expect your car insurance premium to go up. Being uninsured and failing to show proof of insurance are two different offenses with the same consequences regarding premiums.
The average cost of an auto insurance policy in Indiana with full coverage is $1,751 yearly, while the average cost of an auto insurance policy with minimum coverage is $445 yearly. This is significantly lower than the $2,678 average for full coverage and $799 average for minimum coverage across the country. Once you’ve been uninsured for a while, obtaining insurance may be more challenging because you will be viewed as a high-risk driver.
The financial incentive to be uninsured is also less in Indiana than in higher-cost states such as Florida or Michigan, because Indiana’s rates are 27 percent lower than the national average. The average minimum coverage premium of approximately $445 per year is much lower than the $250 first offense reinstatement fee plus the cost increase for SR-22 coverage and the longer monitoring period after any one uninsured driving offense.
How Indiana is doing compared to other states
| Feature | Indiana | Michigan | Tennessee | Virginia | Texas | Arizona | Florida | Ohio | California |
| First offense classification | Infraction | Misdemeanor | Class C misdemeanor | Class 3 misdemeanor | Civil violation | Civil traffic violation | Non-criminal infraction | Administrative | Infraction |
| First offense suspension | 90 days | 30 days or until insured | Until proof | Until proof | 2+ offenses | 3 months | Up to 3 years | First offense | Registration only |
| First offense reinstatement fee | $250 | $125 | $65 | $145 | $100 | $10-$25 | $150 | $40 | Not specified |
| Jail time possible | Yes (Class C misdemeanor repeat) | Yes (all offenses) | Yes (injury accident) | Yes (fraud) | Yes (serious accident) | No | Yes (suspended license) | No | No |
| SR-22 period | 3-5 years | N/A (not confirmed) | 3 years | 3 years | 2-3 years | 3 years | Varies | 1-3 years | N/A (first) |
| No pay no play | Yes | No | No | No | No | No | No | Yes | No |
| Fault system | At-fault (modified comparative) | No-fault | At-fault | At-fault | At-fault | At-fault | No-fault | At-fault | At-fault |
| Min bodily injury | $25,000/$50,000 | $250,000/$500,000 | $25,000/$50,000 | $50,000/$100,000 | $30,000/$60,000 | $25,000/$50,000 | PIP $10k | $25,000/$50,000 | $30,000/$60,000 |
The five-year SR-22 requirement for third offense drivers is the longest in this state series. It has a “no pay, no play” provision which establishes civil limitations for those driving without insurance coverage similar to Ohio’s.
Also Read: Is It Illegal To
Expert and Legal Perspectives
The Law Offices of Ryan E. Lackey of Fort Wayne state that driving without insurance is typically an infraction in Indiana, but the following are all defenses that can be raised in challenging a ticket for driving without insurance: proving that the driver was actually covered, a clerical error, not being the person driving the vehicle, or assuming coverage when driving an employer’s vehicle.
According to Fountain Injury Law, all motorists must have insurance for legal operation on the roadway in Indiana and the penalties for a third offense include a $1,000 reinstatement fee, a license and registration suspension for one year and a five-year SR-22 requirement.
According to ValuePenguin, the Indiana Bureau of Motor Vehicles may revoke your license for one year if you’re caught driving without the minimum insurance coverage in Indiana, and you may have to pay $250 to $1,000 to reinstate your license, while also being required to file an SR-22 certificate for up to five years.
Conclusion
It is illegal not to have car insurance in Indiana. Indiana has a mandate that all vehicles must be insured, and all motorists must have proof of insurance on their person at all times. The consequences are clearly progressive over three offense levels over five years, ranging from a 90 day suspension and $250 reinstatement fee for the first offense to a one year suspension and reinstatement fee of $1,000 and five year SR-22 requirement for the third offense.
There is a criminal escalation pathway established in Indiana Code 9-25-8-2. A knowing or intentional repeat violation is a Class C misdemeanor with a possible jail sentence of up to 90 days and a fine of up to $500. The penalty for giving false insurance information is up to a year in jail and a $5,000 fine, Class A misdemeanor. The state’s “no pay, no play” statute reduces the amount of non-economic damages that an uninsured motorist can recover even if he or she is not at fault, and the state’s modified comparative fault doctrine prohibits recovery if he or she is 51 percent or more at fault.
The average minimum coverage premium in Indiana is approximately $445 per year, which is one of the lowest in the nation, and the cost of having legal coverage is much less than the cost of any one uninsured driving offense. The best and most legally safe option is to have 25/50/25 coverage, have proof with them at all times, and act immediately when the BMV issues a Certificate of Compliance request.
To learn more about the national law on driving without insurance, check out Is It Legal to Drive Without Insurance?
Frequently Asked Questions
1. Does Indiana require car insurance?
Yes. Indiana mandates that all motorists carry proof of insurance and that all vehicles are covered by insurance. No insurance is not allowed and penalties can include fines, license suspension, SR-22 requirements, and for repeat offenders, Class C misdemeanor charges.
2. In Indiana, can you be jailed for driving without insurance?
Not for a regular first offense. Under Indiana Code 9-25-8-2, however, a “knowing or intentional” recurrence of the violation is a Class C misdemeanor punishable by up to 90 days in jail and a $500 fine. The penalties for giving false insurance information are up to a year in jail and up to $5,000 in fines, and it is a Class A misdemeanor.
3. What is the required insurance coverage for the State of Indiana?
Indiana’s bodily injury liability is $25,000 per person, $50,000 per accident, and $25,000 in property damage liability. Insurers are required to provide uninsured motorist coverage at the same coverage limits but may be waived in writing.
4. What is Indianas no pay, no play law?
The no pay, no play statute in Indiana restricts the rights of uninsured drivers to seek non-economic damages, such as pain and suffering, even if they are not at fault in an accident. The at fault driver’s insurance will cover compensation up to the limits of their policy, and the uninsured driver will need to take legal action if they are not covered.
5. In Indiana, the SR-22 requirement lasts for how long?
The first offense will require the SR-22 to be in effect for 180 days, and a total of 3 years from the end of the suspension. The SR-22 requirement is one of the longest in this state series for a third or subsequent offense, where it is five years.
