Indiana law requires all drivers to demonstrate Financial Responsibility when operating a motor vehicle. Responsibility is legally defined as the ability to pay any and all costs associated with an accident if the driver is found to be at fault. Proof may be demonstrated through the filing of a bond or certificate of self-insurance, or with the deposit of $40,000 in cash or securities into an account held by the state. A far more cost efficient means of demonstrating responsibility is through the purchase of auto insurance. Car insurance policies can cover basic liability requirements under the Financial Responsibility Law, or drivers may seek more comprehensive coverage for collision damage, additional liability claims, and to protect against uninsured drivers.

Insurance coverage in Indiana must meet certain minimums defined statute and regulations. At minimum drivers must carry $25,000 in liability coverage for bodily injury to 1 person. At minimum drivers must carry $50,000 in liability coverage for all bodily injuries. At minimum drivers must carry $10,000 in liability coverage for property damage. All new Indiana auto policies written for liability must include uninsured and under insured motorists coverage or that coverage must be declined in writing. Minimum liability amounts are uninsured motorists -- bodily injury, $25,000--$50,000, under insured motorists, bodily injury--$50,000, property damage -- $10,000.

Any driver cited for operating a motor vehicle in Indiana without proper proof of financial responsibility may be subject to a 90 day suspension of driving privileges, fines, and a $150 fee for license reinstatement. Fines and fees may increase with subsequent offenses.

Hazardous weather can make Indiana a particularly challenging place to drive in winter. Snow, icy roads, and whiteouts lead to an increase in weather related accidents. Comprehensive auto insurance with sufficient collision coverage is a necessity in states where winter impacts road conditions and driving deteriorates accordingly with each new storm. While much of Indiana is rural with modest traffic, urban areas, particularly around Indianapolis, or in the congested Chicago-land corridor call for careful attention to defensive driving. Rush hour traffic in and out of the Chicago area can be especially fierce. Drivers are encouraged to keep their vehicles in sound mechanical condition before venturing into commuter zones.