The national guide explains the personal auto policy (ISO PP 00 01): liability, medical payments, uninsured motorists, physical damage, and duties after a loss. Indiana is an at-fault state with no PIP requirement. Indiana auto questions focus on four areas:

• financial responsibility (IC 9-25);
• UM/UIM (IC 27-7-5);
• auto cancellation and nonrenewal (IC 27-7-6);
• Indiana's body parts and rideshare laws.

Fault and minimum limits

• Comparative fault (IC 34-51-2): a claimant is barred only if their fault is greater than 50%, that is, greater than the fault of everyone else combined. At 50% or less, damages are reduced by the claimant's share. For example, a defendant 70% at fault on $100,000 of damages pays $70,000.
• Financial responsibility is required: a vehicle may not be registered or driven without it. Violators face suspension of their driving privileges, their registration, or both (IC 9-25-4-1).
• Minimum limits: $25,000 per person / $50,000 per accident for bodily injury and $25,000 for property damage, or 25/50/25. The property damage minimum rose from $10,000 on July 1, 2018 (IC 9-25-4-5).
• Proof: proof may be a liability policy, a bond, or a deposit of money or securities (IC 9-25-4-7). Proof shown to police may be electronic.
• Unpaid judgments: after a suspension for an unpaid judgment, the driver must give proof of future financial responsibility for 3 years (IC 9-25-6-7).

Who the policy covers

• Permissive users: an Indiana owner's policy must cover anyone using the vehicle with express or implied permission (IC 27-1-13-7(b)(3)).
• Spouses: the only personal-auto exclusion allowed is a spouse on a jointly owned vehicle, with the other spouse's written consent (IC 27-1-13-7(c)). Named driver exclusions are expressly allowed on commercial vehicle policies.
• "You" under the PAP: in the standard PAP, "you" means the named insured and a resident spouse. Other resident relatives are "family members."
• Notice to an agent: notice given to any authorized Indiana agent counts as notice to the insurer.
• Insured's bankruptcy: an insured's insolvency doesn't release the insurer (IC 27-1-13-7(b)).

UM and UIM (IC 27-7-5)

• Required unless rejected: UM and UIM must be provided at limits at least equal to the bodily injury limits unless the insured rejects in writing (IC 27-7-5-2).
  • The rejection must say whether UM, UIM or both are rejected, and when the rejection takes effect.
  • A rejection by one named insured binds all insureds, and carries over to renewals until coverage is requested in writing.
• UIM minimum: UIM may not be sold below $50,000.
• Underinsured vehicle: one whose available BI limits are less than the insured's UIM limits. This is a limits-to-limits test, not a comparison with the insured's damages (IC 27-7-5-4(b)).
• Insolvent insurer: a vehicle is uninsured if its insurer becomes insolvent within two years after the accident.
• UM property damage (UMPD) (IC 27-7-5-3):
  • It must be offered with no deductible. An optional deductible may be no more than $300.
  • The deductible is waived for a legally parked, unoccupied car.
  • UMPD covers the vehicle and personal property in it, but not loss of use.
  • The at-fault driver must be identified.
  • UMPD requires UM bodily injury coverage.
• UIM settlements: if the UIM insurer doesn't advance the offered amount within 30 days after notice of a bona fide settlement offer, it loses its subrogation rights (IC 27-7-5-6).
• Umbrella policies need not offer UM/UIM. A rejection on the underlying policy applies to the umbrella.

Cancellation and nonrenewal (IC 27-7-6)

• Scope: policies on private passenger vehicles owned by natural persons. Assigned-risk and garage-type policies are excluded. Policies of six months or less are treated as six-month terms, and multi-year policies as one-year terms.

• First 60 days: the limits on cancellation reasons don't apply to a new policy in its first 60 days.

• Permitted reasons after that (IC 27-7-6-4) include:

  • nonpayment;
  • a suspended or revoked license of the named insured or a household driver;
  • a household driver treated for epilepsy or heart disease who doesn't provide a physician's certificate.

  A change of policy form is not a cancellation.

• Notice periods (IC 27-7-6-5, 27-7-6-6):

• Reasons on request: the insured asks in writing at least 15 days before the effective date. The insurer answers within 5 days.
• Hearing: the insured may apply to the commissioner for a hearing at least 10 days before cancellation. The $20 fee is refunded if the insured wins.
• Assigned risk: notices other than for nonpayment must mention possible eligibility through the assigned risk plan (IC 27-7-6-8).
• Drivers with disabilities: a licensed driver with a disability can't be refused or cancelled solely because of the disability (IC 27-7-6-12).

Body parts and repairs (IC 27-4-1.5)

• The insured's choice: before directing a body shop on exterior repairs, the insurer must give written notice of the insured's right to approve the type of parts. The choices are:
  • new manufacturer parts;
  • new non-manufacturer parts;
  • used parts.
• Time limit: the rule applies for five years after the vehicle's model year.
• Violations: directing a shop to use a different type of part than the insured approved is an unfair claim practice.

Rideshare (IC 8-2.1-19.1)

• Logged on and waiting: 50/100 bodily injury and $50,000 property damage (the PD figure applies after June 30, 2024).
• During a ride: $1,000,000.
• Lapsed coverage: the TNC's insurance pays from the first dollar if the driver's coverage lapses.
• Personal policies may exclude all coverage while the driver is logged on.

Common exam traps

• Indiana minimums are 25/50/25.
• A claimant more than 50% at fault is barred. At exactly 50%, they still recover.
• UM/UIM equals the BI limits unless rejected in writing. UIM is never below $50,000.
• Indiana tests underinsurance limits against limits.
• Only a joint-owner spouse may be excluded from a personal owner's policy.
• Auto notice periods: 20 days to cancel, 10 days for nonpayment, 30 days for nonrenewal.