Indiana Auto Insurance Requirements: 25/50/25, the 51% Bar, and UM/UIM
Indiana requires 25/50/25 liability and follows modified comparative fault at a 51% bar. Learn why minimums rarely cover serious accidents and how UM/UIM protects Hoosier drivers when roughly 1 in 6 Indiana drivers is uninsured.
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Get a Free QuoteIndiana Minimum Auto Liability: 25/50/25
Indiana law requires minimum auto liability of 25/50/25 — $25,000 per person for bodily injury, $50,000 per accident, and $25,000 for property damage. Indiana also mandates uninsured motorist (UM) coverage at 25/50 bodily injury and $25,000 property damage unless rejected in writing.
These minimums meet Indiana's legal floor but often fall short in serious accidents involving hospitalization, lost wages, or multi-vehicle damage. VKOVR recommends most Indianapolis, Fort Wayne, and Indiana drivers carry at least 100/300/100 with matching UM/UIM.
The 51% Modified Comparative Fault Bar
Indiana follows modified comparative fault at a 51% bar — a driver found 51% or more at fault cannot recover any damages. If you are 50% or less at fault, recovery is reduced by your share of fault. This differs from Illinois (same 51% rule) and Iowa (also 51%), but contrasts with Alabama (pure contributory negligence — 1% bars recovery).
In disputed-fault accidents, dashcam video, witness statements, and police reports matter significantly. VKOVR advises Indiana drivers on appropriate limits and evidentiary best practices.
Uninsured Motorists in Indiana: ~1 in 6 Drivers
Indiana has roughly a 16% uninsured-driver rate — higher than the national average. With Indiana's mandatory UM minimum at 25/50, many drivers are underinsured. VKOVR recommends Indiana policyholders stack UM/UIM to at least 100/300 to match recommended liability.
Indianapolis event-economy surge traffic (Indy 500, NCAA events) amplifies UM/UIM exposure — visiting drivers frequently have lower limits. Coverage that matches your own risk profile is essential.
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