Chapter 5 · Lesson 6 of 13
Insurance requirements and penalties
4 min read · Points, Suspensions, and Insurance Requirements
Explanation
Indiana drivers must have financial responsibility or current liability insurance meeting the state minimum. The minimum is 25/50/25: $25,000 for one person’s bodily injury or death, $50,000 for two or more people in one accident, and $25,000 for property damage.
Operating without proof of the minimum can bring driving-privilege suspension, financial penalties and reinstatement fees.
Example
A policy with the minimum limits is described as 25/50/25, with the final 25 representing property damage in one accident.
Common mistake
Reversing the categories in 25/50/25. The middle amount applies to bodily injury or death of two or more people.
What the manual says
Driving without a current liability insurance policy that meets the state minimum standard is against the law.
This is commonly referred to as 25/50/25 liability insurance.
Sources
- Manual p. 22
“Driving without a current liability insurance policy that meets the state minimum standard is against the law.”
- Manual p. 22
“The state minimum insurance standard is $25,000 for bodily injury to, or the death of, one individual; $50,000 for bodily injury to, or the death of, two or more people in any one accident; and $25,000 for property damages in any one accident.”
- Manual p. 22
“Penalties include reinstatement fees and suspensions of your driving privileges.”
Check your understanding
Question 1 of 3