Legal Minimum Liability Limits in Indiana
Indiana law requires drivers to carry at least $25,000 per person for bodily injury, $50,000 per accident for bodily injury, and $25,000 for property damage (often shown as 25/50/25). These are the lowest amounts you can legally purchase; any lower leaves you uninsured and subject to penalties.
More from this site
Keep reading the latest coverage
What the Minimum Covers and What It Doesn't
The mandated limits only pay for injuries to other drivers and damage to their property. They do not cover your own vehicle repairs, medical bills, or lost wages. If you're at fault in a serious crash, you could be liable for amounts far exceeding the state minimum, potentially leading to lawsuits or wage garnishment.
Optional Add‑Ons Worth Considering
Even if you meet the 25/50/25 baseline, many drivers add:
- Collision coverage – pays for damage to your car regardless of fault.
- Comprehensive coverage – protects against non‑collision events like theft, fire, or weather.
- Medical payments (MedPay) or Personal Injury Protection (PIP) – covers your own medical expenses up to a set limit.
- Uninsured/Underinsured Motorist (UM/UIM) coverage – fills gaps when the other driver lacks sufficient insurance.
These options increase premiums but can prevent out‑of‑pocket costs that exceed the statutory minimum.
Factors That Influence the Cost of Minimum Coverage
Insurance carriers calculate rates using a mix of personal and regional data. In Indiana, the biggest drivers are:
- Age and driving history – younger drivers and those with accidents or tickets pay more.
- Vehicle type – high‑performance or expensive cars attract higher rates.
- Location – urban counties like Marion tend to have higher premiums than rural areas.
- Credit score – many insurers use credit-based insurance scores where allowed.
Shopping around and bundling policies (e.g., home and auto) can lower the price of even the minimum required coverage.
Comparing Minimum vs. Recommended Coverage
| Coverage | Indiana Minimum | Common Recommended Level |
|---|---|---|
| Bodily Injury – Per Person | $25,000 | $100,000 |
| Bodily Injury – Per Accident | $50,000 | $300,000 |
| Property Damage | $25,000 | $100,000 |
Choosing higher limits protects you from personal financial risk while still complying with state law.