Indiana State allows owners of registered vehicles to prove financial responsibility by different means, being the most common the auto liability insurance policy. Other options are a deposit with the state treasurer of $40,000 or a trust fund with the same value, and a bond issued by a surety company, amounts may vary for this bond.

The state of Indiana offers the Indiana Auto Insurance Plan, for those who have been turned down on a previous insurance request for a normal policy.

As mentioned before, the most common way to prove your financial responsibility is by the Liability Insurance for private passenger vehicles. The state requires the following minimums:

• $25,000 per person for bodily injury on a single accident
• $50,000 per more than one person or total coverage for bodily injuries in a single accident.
• $50,000 for underinsured motorist total coverage for bodily injuries coverage in a single accident.
• $10,000 coverage for property damage.

You may be required to demonstrate proof of insurance and financial responsibility at any moment you get pulled over by an officer or if you get involved in an accident. This proof may also be required when you want to register or title your vehicle. BMV offers an electronic program (Electronic Insurance Form Submission, EIFS) in which you can electronically submit your insurance information (most of the times this action is performed by your insurance agent).

When purchasing an Auto insurance policy, the carrier or insurance company must provide you with an insurance identification card, this can be used in case an officer or law enforcement official request to see your proof of liability insurance. If you are unable to demonstrate owning this financial responsibility identification, BMV will give you 40 days to certify you are insured, however if you fail to comply with this certificate of compliance your driver’s license will be suspended. To reinstate your license you must prove that you have the minimum required insurance coverage and pay a $150 fee for first offence, $225 for second and $300 for subsequent offences.

It is common to purchase additional coverage for your vehicle, this is to compensate for the fact that liability insurance will only pay for those expenses resulting from injuries and damage you cause to other parties, and never will it pay for your own. Among the most used additional coverage are comprehensive, collision and uninsured / underinsured motorist.

Comprehensive and collision coverage will take care of paying for expenses regarding the fixing of physical damage caused to your car during an event. Difference between both is that comprehensive pays for accidents not caused by another vehicle, for example extreme weather events such as tornados, fires, floods, etc. or theft and vandalism. On the other hand, collision pays for damage caused to your vehicle by another car or if you accidentally crash into not moving objects, like street lights, public posts, fences or walls.

Uninsured/underinsured motorist helps pay when the driver responsible of the accident has no insurance or the coverage isn’t enough to pay for your expenses. Also it is commonly used for hit and run situations.