Insurance in Indiana: State Rules and Requirements

Insurance in Indiana

The rules that shape car, home and business insurance in Indiana, each linked to its official source, and how to get coverage shopped here. Sam Alishahi holds an Indiana nonresident insurance producer license (#4271655, NPN 21022298) and places Indiana policies directly.

By Sam Alishahi · Reviewed October 2026

Car insurance in Indiana (25/50/25)

Minimum car insuranceIndiana requires at least $25,000 bodily injury per person, $50,000 per accident and $25,000 property damage. Every new liability policy must include uninsured and underinsured motorist coverage unless the buyer rejects it in writing. PIP is not required. Source
Fault systemIndiana is an at-fault (tort) state: the driver who causes a crash, and their liability insurer, pays for the damage they cause. Source

Business insurance rules in Indiana

Workers’ compensationEvery employer covered by the Worker's Compensation Act must insure or get approval to self-insure. Farm and agricultural employees and household employees are excluded. Independent contractors who do not elect coverage can get a certificate of exemption, and anyone hiring them must keep a copy. Indiana is not monopolistic and does not allow opting out. Source
Contractor licensingIndiana has no statewide general contractor license. Cities and counties license or register general contractors, while plumbing is licensed statewide through the Indiana Plumbing Commission at the Professional Licensing Agency. Bond and insurance requirements depend on the local jurisdiction. Source

Home insurance in Indiana

Home insurer of last resortThe Indiana FAIR Plan writes basic dwelling-fire and limited homeowners policies, up to $250,000 on a dwelling, for owners who have been turned down by at least three insurers. Wind, hail and tornadoes from severe storms are the main catastrophe exposure for Indiana homes. Source

High-value homes in Indiana.

Disasters, floods, hail, tornadoes and earthquakes in Indiana

Indiana disasters, floods, hail, tornadoes and earthquakes, from federal records
Measure	Indiana	Rank among the states	Detail
Federal major disaster declarations since 2000	22	#33 (tied) of 51	Most often for severe storm (18), flood (3), tornado (1). Vanderburgh County has been in 12 of them.
National Flood Insurance Program claims, 2005–2025	10,022	#21 of 51	$235.8 million paid; 22% of claims with a known flood zone were outside FEMA’s high-risk zones.
Homes in high-risk flood zones with a federal flood policy	17%	#34 of 50	9,605 policies for 58,191 homes in the counties FEMA can measure; US: 40%.
Hail reports, 2016–2025	1,456	#19 of 51	109 of them 2 inches or larger. Largest stone 4 inches, Tippecanoe County, May 2019.
Tornadoes, 2016–2025	343	#17 of 51	53 rated EF2 or stronger; 1,763 recorded since 1950.
Earthquakes of magnitude 4.0+, 2000–2025	1	#28 of 51	Largest: magnitude 4.6, 6 km SW of Parkers Settlement, Indiana, June 18, 2002.

From the public FEMA, NOAA, Storm Prediction Center, USGS and FMCSA records behind each linked report; ranks count all 50 states and Washington, DC unless noted.

Look up the storm history of any county in Indiana.

The property risks that matter in Indiana

Indiana regularly sees spring tornado outbreaks, and basement flooding makes water backup coverage worth reviewing.

Tornadoes are a regular part of spring in Indiana. Wind is usually covered, but check for a wind/hail deductible, confirm your additional living expense limit, and keep a home inventory off-site.

Hail is one of the most frequent property claims in Indiana. Read how your policy settles roof claims: some pay replacement cost, others pay actual cash value on roofs past a certain age, and cosmetic-damage exclusions are increasingly common. Impact-resistant (Class 4) shingles may earn a discount.

Standard homeowners and renters policies exclude flood. In Indiana, flood coverage comes from the National Flood Insurance Program (NFIP) or a private flood insurer, and NFIP policies generally carry a 30-day waiting period, so buy before storm season. Check your address on FEMA's Flood Map Service Center.

Worth knowing in Indiana

Indiana has a formal state process for sole-proprietor independent contractors to opt out of workers' compensation. They file with the Department of Revenue for a certificate of exemption, and anyone hiring them must keep a copy of that certificate.

Annual review checklist for Indiana

Compare your auto liability limits with the Indiana minimum of 25/50/25 and with your actual assets.
Confirm whether your wind/hail deductible is a flat amount or a percentage.
Read the roof settlement clause and ask whether Class 4 impact-resistant shingles earn a credit.
Check your address on FEMA's Flood Map Service Center and price an NFIP or private flood policy before storm season (NFIP usually has a 30-day wait).
Add water backup coverage and keep heat on when the home is empty.
Keep a current home inventory stored off-site.

Indiana’s insurance regulator

Insurance in Indiana is regulated by the Indiana Department of Insurance, which handles consumer complaints and licenses insurers and agents.

Sam Alishahi holds an Indiana nonresident insurance producer license (#4271655, NPN 21022298) and places Indiana policies directly.

Common questions

What is the minimum car insurance in Indiana?

Indiana requires at least $25,000 bodily injury per person, $50,000 per accident and $25,000 property damage. Every new liability policy must include uninsured and underinsured motorist coverage unless the buyer rejects it in writing. PIP is not required.

Is Indiana a no-fault state?

Indiana is an at-fault (tort) state: the driver who causes a crash, and their liability insurer, pays for the damage they cause.

Do employers in Indiana need workers’ comp?

Every employer covered by the Worker's Compensation Act must insure or get approval to self-insure. Farm and agricultural employees and household employees are excluded. Independent contractors who do not elect coverage can get a certificate of exemption, and anyone hiring them must keep a copy. Indiana is not monopolistic and does not allow opting out.

What can an Indiana homeowner do if no insurer will write the house?

The Indiana FAIR Plan writes basic dwelling-fire and limited homeowners policies, up to $250,000 on a dwelling, for owners who have been turned down by at least three insurers. Wind, hail and tornadoes from severe storms are the main catastrophe exposure for Indiana homes.

Are tornadoes covered by homeowners insurance in Indiana?

Yes, as windstorm damage, subject to your deductible, which may be a separate wind/hail deductible.

Will my Indiana policy pay to replace a hail-damaged roof?

It depends on the roof settlement terms. Some policies pay replacement cost; others pay actual cash value on older roofs or exclude cosmetic damage.

More answers: Indiana homeowners insurance guide Indiana renters insurance and security deposit guide Indiana life insurance consumer guide Indiana flood risk and NFIP guide Indianapolis home and auto insurance guide Fort Wayne home and auto insurance guide

Sources

General information as of October 2026, not legal advice; confirm current rules with the agency.

Tell me what you need insured.

Home, car, business, trucks or something harder to place. One request, and I take it from there.

Alishahi Insurance · Saman Alishahi, independent insurance broker, 439 N Canon Dr, Penthouse, Beverly Hills, CA 90210. General information, not a quote or a promise of coverage.

Insurance in Indiana