Your car’s liability insurance works by covering certain damages if you get involved in a traffic accident. It is a crucial aspect of car ownership because it guarantees financial accountability during a collision.
Indiana requires drivers to have insurance coverage for their motor vehicles. Driving a car or vehicle without liability insurance that meets the minimum qualifications set by the state is illegal. Additionally, your insurance coverage must follow the required standards:
- $25,000 for physical injury or fatality of one person
- $50,000 for physical injury or fatality of more than one person in an incident
- $25,000 for total property damage in one incident
It is also known as the 25/50/25 liability insurance rule. If authorities catch drivers without proper coverage, they could face penalties, including driving suspension or fees.
Situations that require proof of insurance coverage
The Bureau of Motor Vehicles (BMV) will ask you for proof of insurance in specific circumstances such as:
- Traffic collisions
- Moving traffic offenses
- Any misdemeanor or felony traffic offense
- A repeat moving traffic offense after facing suspension due to inability to provide proof of insurance
If you got involved in any of these incidents, the BMV would notify you that you must verify your insurance coverage by submitting a certificate of compliance.
Fortunately, you can request this document from your insurer and electronically submit it to the BMV. You might lose your driving rights if you fail to provide it within 90 days of receiving the notice.
If you face suspension, you could ask your insurer to file an SR-22 form to help you regain your driving rights, but it is valid only for 180 days. You would need to sort out your coverage and get the proper documentation to resolve any issues.