Penalties in Indiana for Driving Without Insurance

While car insurance in Indiana is cheaper than the national average rate, it can be tempting to avoid paying premiums altogether and get behind the wheel without an active, adequate policy. However, the short-term savings of skipping out on a car insurance policy often outweigh the long-term costs and consequences of driving uninsured in Indiana.

Let’s check out the car insurance laws in Indiana, what might happen if you’re caught driving uninsured, and why it’s crucial to maintain adequate car insurance coverage in Indiana.

Driving with no insurance in Indiana can result in various penalties, depending on the degree of the offense. First and foremost, driving without insurance is illegal in The Hoosier state. Indiana car insurance laws require all drivers to have the following coverage:

These coverages will often appear as 25/50/25 liability coverage on your policy. Insurers must offer the same 25/50/25 limit of uninsured motorist coverage (UM) to new policyholders, but policyholders may legally reject this coverage by signing a waiver.

Carrying the legal minimum amount of car insurance is imperative to your safety and the safety of other drivers on the road. Driving without sufficient coverage puts you at legal risk and puts you, your passengers, and other drivers at severe financial risk. If you don’t have adequate coverage and you cause an accident, you’re on the hook for all the expenses associated with that accident.

The legal repercussions you may face if you’re caught driving uninsured are hefty fines, license suspension, registration suspension, and possible legal action. Not only will you have to pay any fines you incur, but you may also have to pay to restore your license and registration. These expenses can tally up quickly, especially if you’re also sued by the victim in an accident.

There is often more than one penalty for having no car insurance in Indiana. The repercussions for driving without insurance versus causing an accident and lacking sufficient coverage vary distinctly. If you cause an accident while uninsured, depending on how many previous offenses you have, you may be liable for a pretty hefty fine, license suspension, or registration suspension.

Since Indiana is a tort state, not a no-fault state, the fault must be placed on at least one driver in the event of an accident. If you’re deemed at fault in an accident while uninsured, the other party may sue you for their expenses or pain and suffering. 

It is ultimately far more cost-effective to pay for a minimum coverage car insurance policy than to run the risk of losing a significant portion of your savings to the fees incurred in an accident. Indiana’s average full coverage premium is about $1,210 annually, which is already 30% cheaper than the national average. Not only is car insurance in the state lower than average, but several of the top insurance companies in the state offer cheap base rates and plenty of discounts. 

The average minimum coverage policy is about half the cost of a full coverage policy, so roughly $600 because you get about half the coverage. Suffice it to say, the annual cost of a premium is pennies compared to what you may owe if you’re caught driving uninsured.

Let’s check out the details of each potential penalty you face when driving uninsured in The Hoosier State.

If you’re caught driving without insurance in The Hoosier State, depending on how serious the situation, you could be fined up to $1,000 for a first offense. Subsequent offenses may result in fines of up to $10,000. If you cause an accident while driving uninsured, your fine will likely be higher than one who is pulled over and found lacking sufficient coverage. Regardless of the situation, failure to provide proof of insurance in Indiana is most often punished with a fine.

Hoosiers caught driving without insurance may also face license suspension, even upon the first offense. Typically, your license will be suspended for 90 to 180 days for a first offense. After the first offense, drivers face a year or more of license suspension. 

Not only does license and registration suspension halt your daily activities, but it also may imply serious financial consequences. Drivers who have their license or registration suspended will face reinstatement and impoundment fees, sometimes up to $1,000 each, depending on the number of previous offenses. Plus, drivers who have their license suspended may face loss of wages for the lack of reliable transportation to and from work.

If you cause an accident while driving uninsured, you may be liable for any expenses or injuries incurred by you, your passengers, and the other parties in the accident. In Indiana, the other parties involved in the accident and your passengers are permitted to sue you for compensation for medical expenses, vehicle repairs, and pain and suffering. You may have to pay these expenses out of pocket, plus your own, if you’re injured.

If you end up in a legal battle with another driver or your passengers involved in an accident you caused, you may also have to pay legal fees for an attorney to defend your case. 

On top of the other legal and financial repercussions for driving uninsured, if you’re caught driving without insurance, your future insurance rates will likely increase when you go to bind a policy. Insurers will see you as a high-risk driver, require you to file for an SR-22, and charge you higher premiums for taking you as a policyholder with high risk.

You may also face difficulty when trying to obtain an insurance policy after filing an SR-22 or having your license suspended due to driving uninsured. Some insurers may outright refuse to insure you, while others may gauge your premiums due to your risk.

The Indiana law on car accidents with no insurance allows law enforcement to subject the uninsured driver to the consequence they see fit, given the severity of the offense. These consequences can range from fines to license or registration suspension. Drivers who lack sufficient insurance put themselves at severe legal and financial risk. 

The legal consequences of getting into an accident without insurance can result in a fine of up to $5,000, plus license and registration suspension, which can eventually cost up to $1,000 to restore. If the at-fault party in the accident is uninsured, they may also be on the hook for the other party’s medical expenses and vehicle repairs, not to mention their own. Driving without insurance and paying for these expenses out of pocket can lead to financial ruin.

If you’re not at fault in an accident and without insurance in Indiana, you may be liable for legal consequences for breaking the compulsory motor vehicle law. While you may luck out and have your medical expenses and vehicle repairs covered by the at-fault party’s insurance, you won’t walk away from the situation scot-free. 

In Indiana, you can’t be pulled over simply for lacking adequate insurance coverage. There’s no way for law enforcement to know that you or your vehicle aren’t covered until they have a reason to run your license plate numbers, like for speeding or a minor traffic violation like running a red light. If you’re pulled over and fail to provide proof of adequate insurance, you’ll face the consequences of driving uninsured.

Yes, it’s illegal to drive without car insurance in Indiana. Car insurance laws in the state mandate drivers to have at least 25/50/25 liability coverage on their auto insurance policies. Insurers must also offer each policyholder the same 25/50/25 limit of UM coverage when they first bind a policy. However, policyholders are permitted to reject this coverage by signing a waiver.

If you lease or finance your vehicle, your lender or leaser may require you to have collision and comprehensive coverage on your auto insurance policy. When signing a lease or financing agreement, you’re signing a legally binding document, so be sure to read the fine print and ensure you’re adequately covered.

Yes, a vehicle can be impounded if the driver is found driving a car without adequate insurance. While this is not usually the consequence for a first offense, if the accident is serious or if it’s the driver’s second or third offense, the state may suspend their registration and impound their vehicle.

If you’re currently uninsured and interested in getting a car insurance policy in Indiana, you’ve come to the best corner of the internet! The best way to find the best policy in the state with rates you can afford is to get and compare quotes online. 

Here at Clovered, we have a free quoting tool you can use to find the Indiana car insurance policy that best fits your needs. If you want to chat with an agent about your quote or have questions about Indiana car insurance, please contact us at 833-255-4117 or [email protected].