Indiana Commercial Auto Insurance Requirements

Indiana requires commercial auto insurance with 25/50/25 liability limits, but minimums increase based on vehicle weight, passenger capacity, cargo type and whether you hold an auto dealer license.

Learn more about the commercial auto insurance coverage you need for your business in Indiana, motor carrier thresholds, passenger transport requirements and dealer mandates below.

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# Indiana Commercial Auto Insurance Requirements

Written by Blest Papio

Updated: March 12, 2026

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What Commercial Auto Insurance Is Required in Indiana?

Indiana law under IC 9-25-4-5 sets a 25/50/25 liability baseline for commercial auto insurance requirements, broken down below:

$25,000 for bodily injury or death of one person per accident
$50,000 for bodily injury or death of two or more people per accident
$25,000 for property damage per accident

These minimums cover any vehicle used for business purposes on Indiana roads, whether it's a company car, a delivery van or a contractor's pickup. Businesses involved in passenger-for-hire services, freight hauling under a USDOT number or licensed auto dealership operations are held to separate, higher thresholds detailed in the sections below.

Indiana's weight-based insurance thresholds apply to for-hire carriers transporting non-hazardous property intrastate, starting at $300,000 CSL for vehicles rated at 10,000 lbs or less. If your vehicles operate across state lines, federal motor carrier insurance minimums apply instead of Indiana's intrastate tiers.


10,000 lbs or less	$300,000 CSL	For-hire carriers hauling non-hazardous freight
10,001–26,000 lbs	$750,000 CSL	For-hire carriers hauling non-hazardous freight
26,001 lbs or more	$750,000 CSL	For-hire carriers hauling non-hazardous freight

CSL = Combined Single Limit (one limit covering bodily injury and property damage per incident)

Your vehicle's gross vehicle weight rating (GVWR) determines which insurance tier applies and can be found on the manufacturer's label on the driver-side door jamb, in the owner's manual or on the manufacturer's website. GVWR is the maximum loaded weight the manufacturer designed the vehicle to carry, not the vehicle's current weight on a scale, so a half-empty truck still falls into the tier set by its rated capacity.

For-hire passenger carriers in Indiana face liability minimums far above the standard 25/50/25, starting at $1,500,000 CSL for vehicles seating 15 or fewer and reaching $5 million for 16 or more. Businesses that only transport their own employees or make deliveries aren't subject to these thresholds and fall under Indiana's standard liability minimums or weight-based freight tiers instead.


15 or fewer	$1,500,000 CSL	For-hire passenger carriers (charter, shuttle, livery)
16 or more	$5,000,000 CSL	For-hire passenger carriers (buses, large shuttles)
Any (medical purpose)	$1,500,000 CSL	Non-emergency medical transportation (NEMT)
TNC driver (app on, no ride accepted)	50/100/50 liability	Rideshare (Period 1)
TNC driver (ride accepted or in progress)	$1,000,000 per incident	Rideshare (Periods 2 and 3)

Indiana's Transportation Network Company Act (IC 8-2.1-19.1) requires rideshare insurance the moment a driver logs on to a TNC's digital network, not just when a passenger is in the vehicle. Traditional taxi, livery and charter operations licensed under Indiana's DOR motor carrier authority follow the passenger count thresholds above, not the TNC phases below.


App on, waiting for ride request	TNC driver, TNC or combination of both	50/100/50 liability (split limit)
Ride accepted, en route to passenger	TNC driver, TNC or combination of both	$1,000,000 per incident (CSL)
Passenger in vehicle, ride in progress	TNC driver, TNC or combination of both	$1,000,000 per incident (CSL)

Indiana law under IC 8-2.1-19.1-10 explicitly allows personal auto insurers to exclude coverage for any loss that occurs while a driver is logged on to a TNC's digital network. If a TNC driver's own coverage lapses or falls short of Indiana's required minimums under IC 8-2.1-19.1-8, the TNC's insurance must step in from the first dollar of the claim, but comprehensive and collision coverage for the driver's own vehicle isn't guaranteed unless the TNC's policy specifically includes it.

Indiana adopts federal FMCSA hazmat insurance minimums under 49 CFR Part 387 through IC 8-2.1-24-18, while non-hazmat cargo requirements are set by vehicle GVWR ($300,000 CSL under 10,001 lbs, $750,000 CSL at 10,001 lbs or more). These cargo thresholds apply to for-hire freight operations, not to businesses using vehicles solely for passenger transport or personal errands.


Non-hazmat freight (GVWR 10,000 lbs or less)	$300,000 CSL	General freight, household goods, equipment
Non-hazmat freight (GVWR 10,001 lbs or more)	$750,000 CSL	General freight, household goods, equipment
Standard hazmat	$1,000,000 CSL	Regulated materials per federal DOT rules as defined in 49 CFR Part 171
High-risk hazmat	$5,000,000 CSL	Tanks exceeding 3,500 gallons, Class A or B explosives, poison gas, Division 2.3 Hazard Zone A materials and Division 6.1 Packing Group I Hazard Zone A materials
Oil transport	$1,000,000 CSL	Any federally regulated quantity of oil or petroleum products

The $5 million high-risk hazmat requirement applies to both private and for-hire carriers regardless of vehicle size, including vehicles with a GVWR under 10,000 lbs.

WHEN DOES FEDERAL LAW APPLY OVER INDIANA LAW?

Federal insurance rules under 49 CFR Part 387 replace Indiana's state minimums whenever a vehicle with a GVWR of 10,001 lbs or more carries cargo or passengers across state lines, and hazmat carriers are subject to federal thresholds at any weight. To confirm which rules govern your operation, check with the Indiana Department of Revenue's Motor Carrier Services division or consult the FMCSA's insurance filing requirements.

Indiana Commercial Auto Insurance Requirement Exemptions

Indiana's financial responsibility laws under IC 9-25 exempt farm vehicles with covered farm vehicle certification (49 CFR 390.5) from most commercial motor carrier insurance requirements when operated by farm personnel within 150 air miles of the farm. Businesses unsure whether their vehicles qualify can verify status through the Indiana BMV or the Indiana Department of Revenue's Motor Carrier Services division at (317) 615-7200.


Vehicle used only for personal, non-business purposes	Personal auto insurance rules under IC 9-25-4-5
Covered farm vehicle with valid certification (within 150 air miles of farm)	Exempt from commercial motor carrier insurance; standard liability still required
Off-road equipment not operated on public roads (construction equipment, forklifts)	Not subject to on-road liability insurance mandates
Government vehicle covered under an authorized self-insurance program	Government self-insurance statutes under IC 9-25-4-11
Vehicle not registered for road use (yard-only, private property)	No road-use liability requirement
Self-insured business with BMV-issued certificate of self-insurance	Self-insurance under IC 9-25-4-11 (must demonstrate financial ability to meet minimum liability obligations)

Indiana's commercial auto insurance requirements apply in full across Indianapolis, Fort Wayne, Evansville, South Bend and every other municipality, with no geographic exemptions within the state. If you're unsure whether a specific vehicle or operation qualifies for an exemption, contact the Indiana Department of Revenue Motor Carrier Services at (317) 615-7200 or a licensed insurance professional.

Indiana Commercial Auto Insurance Alternatives

Indiana allows three alternatives to a standard commercial auto insurance policy for meeting financial responsibility requirements under IC 9-25-4, Article 25 of the Indiana Motor Vehicle Code.

Surety bond: Under IC 9-25-4-9, a business can file a surety bond with the Indiana BMV instead of carrying a standard insurance policy. The bond must be issued by a surety company authorized in Indiana and conditioned to pay in amounts equivalent to the applicable liability minimums, whether that's 25/50/25 for standard vehicles or higher limits for your vehicle class. The bond can't be canceled unless 10 days' written notice is given to the BMV.
Cash deposit: Under IC 9-25-4-10, a business or individual can deposit $40,000 in cash or qualifying securities with the Indiana Treasurer of State. Indiana's Treasurer won't accept the deposit unless the depositor provides evidence of no unsatisfied judgments in the circuit court of their county of residence. Indiana's cash deposit is subject to execution to satisfy liability judgments but is otherwise protected from unrelated claims.
Self-insurance: The Indiana BMV may issue a certificate of self-insurance under IC 9-25-4-11 to a business that demonstrates the financial ability to meet liability obligations at or above the required minimums. Indiana doesn't publish a specific vehicle count or asset floor for eligibility. The BMV evaluates applications case by case and may cancel a certificate with 10 days' written notice if the holder no longer qualifies.

Indiana Commercial Auto Insurance Special Coverage Circumstances

Several common business situations in Indiana create insurance gaps or additional requirements beyond standard commercial auto liability minimums.

Leased commercial vehicles

If your business leases vehicles rather than owning them, the leasing company will almost always require you to carry higher liability limits and physical damage coverage (comprehensive and collision) than Indiana's state minimums. Your lease agreement dictates the coverage floor, and your commercial auto policy must list the lessor as an additional insured or loss payee. Review the insurance requirements in your lease before binding a policy, because failing to meet them can put you in default even if you satisfy Indiana's legal minimums.

Interstate commerce with neighboring states

Indiana shares borders with Michigan, Ohio, Kentucky, Illinois and Wisconsin, making interstate freight and passenger operations common for Hoosier businesses. Once a vehicle crosses any state line, even for a single delivery, federal FMCSA insurance minimums replace Indiana's state requirements. Businesses that routinely operate across borders should confirm their policy meets the higher federal thresholds and includes coverage that's valid in every state where vehicles travel.

Farm vehicles operating on public highways

Indiana's covered farm vehicle exemption releases qualifying agricultural vehicles from commercial motor carrier insurance rules, but that exemption ends the moment a farm vehicle is used on a public highway for non-farm commercial purposes. A farmer hauling produce to a local market under a covered farm vehicle certification is exempt, but using the same truck to haul freight for hire requires full commercial auto coverage at the applicable weight-based tier. If your operation blends farming and commercial hauling, work with your insurer to make sure the policy covers both uses or carry separate coverage for each.

Auto dealer operations

Licensed Indiana auto dealers face separate insurance requirements under the Indiana Secretary of State's Auto Dealer Services Division. Dealers must carry garage liability coverage at minimum limits of 100/300/50, well above the standard 25/50/25, and file proof with the Secretary of State's office as a condition of licensure. Indiana transport operators seeking transport plates must also confirm their certificate of insurance specifies the number of plate sets they're approved to use.

Indiana Commercial Auto Insurance Enforcement and Penalties

Indiana's BMV verifies financial responsibility through traffic stops, accident reports and its electronic EIFS program, which requests proof of coverage and suspends driving privileges if a Certificate of Compliance isn't filed within 90 days. Operating without insurance is a Class A infraction under IC 9-25-8-2, with penalties escalating within a five-year window.


First (no prior within 5 years)	Class A infraction penalties	90 days	$250 fee + SR-22 filing
Second (within 5 years of prior)	Class A infraction penalties	1 year	$500 fee + SR-22 filing
Third or more (within 5 years of prior)	Class A infraction penalties	1 year	$1,000 fee + SR-22 filing

Indiana requires an SR-22 filed electronically by your insurer with the BMV for reinstatement, and it must remain on file for three years after a first or second offense or five years after a third. If your insurer files an SR-26 cancellation notice at any point during that period, the BMV will immediately reactivate the suspension.

How to Verify Your Business Meets Indiana Commercial Auto Insurance Requirements

Follow these steps to make sure every vehicle in your fleet carries the coverage Indiana or federal law requires for its specific use.

1
Rule out any applicable exemptions first
Check whether any vehicles qualify for an exemption, such as covered farm vehicles with valid certification or equipment that never leaves private property. Even exempt vehicles may still need standard liability coverage under IC 9-25-4-5.
2
Map each vehicle to its business function
Determine whether each vehicle transports passengers for compensation, moves freight, connects to a TNC digital network or handles everyday business tasks. Indiana's coverage tier depends on what the vehicle does, not what industry your business falls under.
3
Look up the GVWR for every vehicle in your fleet
Find the GVWR on the manufacturer's label on the driver-side door jamb, in the owner's manual or on the manufacturer's website. Indiana's insurance tiers shift at 10,000 lbs and 26,001 lbs.
4
Figure out whether Indiana or federal rules control
Any vehicle that crosses a state line, participates in an interstate shipment chain or carries hazardous materials is likely governed by federal FMCSA minimums. Contact Motor Carrier Services at (317) 615-7200 to verify your status.
5
Match each vehicle's liability limits to its requirement tier
A standard business vehicle needs 25/50/25, but a for-hire passenger van needs $1,500,000 CSL, a freight truck over 10,001 lbs needs $750,000 CSL and a licensed auto dealer needs 100/300/50. Cross-reference your policy declarations page against the applicable tier for each vehicle.
6
Make sure your policy classifications reflect reality
Insurers classify vehicles by use type, and a mismatch between the policy classification and actual use is one of the most common reasons claims get denied. Update your insurer whenever you add vehicles, change drivers or shift how a vehicle is used.
7
Identify Indiana-specific gaps that could leave you exposed L
Lease agreements almost always require coverage above state minimums, and businesses operating across Indiana's borders need policies that satisfy federal thresholds. If any employees drive for a rideshare platform, verify their personal auto policies haven't excluded TNC activity under IC 8-2.1-19.1-10.

Indiana Commercial Auto Insurance Requirements: Bottom Line

What your business needs in Indiana comes down to four variables: vehicle use, weight, whether you cross state lines and the type of cargo or passengers you carry. Once you've identified each vehicle's use, weight, interstate status and cargo type, verify that every vehicle's policy limits, use classifications and driver listings align with the Indiana requirement tier that applies, because gaps between your actual operations and your policy language are where claims fall apart.

Indiana Commercial Auto Insurance Requirements: Next Steps

Knowing the legal requirement is only the first half. The second is deciding how much coverage actually makes sense for your risk profile. State and federal minimums tell you the lowest amount you can carry, but they don't account for the size of a real-world claim against your business.

If your goal is just legal compliance

Confirm your liability limits meet the Indiana or federal minimum that applies to each vehicle, and make sure your insurer has classified every vehicle by its actual use. When you're ready, get commercial auto insurance coverage that reflects your current fleet and operations.

If your vehicles are valuable or highly visible

Indiana's $25,000 property damage floor won't go far. A single collision involving a branded service truck in downtown Indianapolis or along the I-465 loop can generate third-party vehicle and property claims that blow past that limit in minutes. Raising your property damage and bodily injury limits is one of the cheapest ways to reduce your out-of-pocket exposure after a serious accident.

If you transport passengers

The $1,500,000 and $5 million CSL thresholds Indiana sets for for-hire carriers are legal floors, not recommendations. Passenger injury claims accumulate fast, and event venues, airports and municipal transit contracts in cities like Indianapolis and Evansville frequently demand proof of coverage above the state-mandated amount.

If you haul goods or equipment

Size your coverage to the worst-case loss your loaded vehicle could cause, not just the minimum Indiana requires. A fully loaded truck on I-70 between Indianapolis and Terre Haute or the Indiana Toll Road near Gary can create liability well beyond the $750,000 CSL floor if it's involved in a multi-vehicle pileup.

If your business signs contracts

Read the insurance clause in every client agreement, subcontract and facility lease before you assume your current policy is enough. Indiana construction, logistics and government subcontracting agreements routinely set liability floors at $1 million or higher, and failing to carry the specified amount can cost you the contract even if you meet every state requirement.

About Blest Papio

Blest Papio is a Content Producer at MoneyGeek specializing in small business insurance. With five years of experience in insurance and finance writing and hands-on perspective as a former business counselor, he understands the risks that come with running a business and what it takes to protect against them.

Blest focuses on commercial auto, cyber, property and specialty business insurance. He digs deep into policy details, regulations and provider offerings so businesses can find the coverage they need and avoid financial fallout. His goal is to translate technical insurance language and insurer offerings into guides you can act on.

Whether you're insuring company vehicles, managing cyber liability or protecting your commercial property, Blest aims to guide you through your risks to help you find coverage you truly need, not sell you a policy.

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sources

Indiana General Assembly. "IC 9-25-4-5 – Financial Responsibility.." Accessed March 24, 2026.
Indiana Bureau of Motor Vehicles. "Proof of Financial Responsibility." Accessed March 24, 2026.
Federal Motor Carrier Safety Administration. "Insurance Filing Requirements." Accessed March 24, 2026.
U.S. Department of Transportation. "49 CFR Part 171 - General Information, Regulations and Definitions." Accessed March 24, 2026.
Indiana Department of Revenue. "Commercial Motor Vehicle Guidebook." Accessed March 24, 2026.

Indiana Commercial Auto Insurance Requirements

What Commercial Auto Insurance Is Required in Indiana?

Indiana Commercial Auto Insurance Requirements by Vehicle Weight

Indiana Commercial Auto Insurance Requirements by Passenger Count

Indiana Commercial Auto Insurance Requirements by Service Type

Indiana Commercial Auto Insurance Requirements by Cargo Type

Indiana Commercial Auto Insurance Requirement Exemptions

Indiana Commercial Auto Insurance Alternatives

Indiana Commercial Auto Insurance Special Coverage Circumstances

Indiana Commercial Auto Insurance Enforcement and Penalties

How to Verify Your Business Meets Indiana Commercial Auto Insurance Requirements

Rule out any applicable exemptions first

Map each vehicle to its business function

Look up the GVWR for every vehicle in your fleet

Figure out whether Indiana or federal rules control

Match each vehicle's liability limits to its requirement tier

Make sure your policy classifications reflect reality

Identify Indiana-specific gaps that could leave you exposed L

Indiana Commercial Auto Insurance Requirements: Bottom Line

Indiana Commercial Auto Insurance Requirements: Next Steps

sources