Rachael Brennan has been working in the insurance industry since 2006 when she began working as a licensed insurance representative for 21st Century Insurance, during which time she earned her Property and Casualty license in all 50 states. After several years she expanded her insurance expertise, earning her license in Health and AD&D insurance as well. She has worked for small health insuran...

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Chris Harrigan has an economic degree from Limestone College and an MBA from Clemson University. He previously managed auto insurance claims for Enterprise Rent-A-Car. Currently, he is using his business and insurance expertise to provide insurance data analysis and visualizations to enhance the user experience.

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Reviewed by Chris Harrigan
Former Auto Insurance Claims Manager Chris Harrigan

UPDATED: Aug 18, 2021

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Key takeaways...

  • Auto insurance is a mandatory requirement in nearly all U.S. states; New Hampshire is the only exception.
  • Failure to adhere to the state-mandated car insurance requirement can lead to hefty fines, suspension of the driver’s license and possible jail time in some states.
  • An SR 50 form proves that a driver has met all the necessary auto insurance requirements spelled out in the state auto insurance laws.
  • The SR 50 form specifically applies to the state of Indiana and can be used or is a requirement in the reinstatement of a suspended driver’s license.

Also referred to as the SR-50 Affidavit of Current Insurance, the SR-50 form is used as a proof of minimum state-mandated auto insurance requirements.

The Indiana Bureau of Motor Vehicles (BMV) demands that all drivers carry the piece of document failure to which you will be ticketed, something that will reflect poorly on your driving records.

Drivers who fail to maintain a clean driving record will face higher auto insurance rates; nobody wants that.

You can significantly decrease your car insurance rates by using our online comparison tool to compare quotes and score a better auto insurance deal. Enter your zip code above to get started.

Reasons to Have Auto Insurance

There are countless reasons as to why every single driver on U.S. roads needs to have insurance. Minimum liability is required in all but one U.S. states.

In the state of Indiana, drivers are also required to carry uninsured/underinsured coverage on top of the liability coverage (property damage bodily injury coverage).

Failure to carry state-mandated minimum auto insurance will result in any of the following penalties, depending on your home state:

  • Suspension of your vehicle registration
  • Community service
  • Being sent to jail
  • Hefty amounts of fines
  • Your driver’s license might be suspended
  • In Indiana, you will be required to carry the SR-50 Affidavit of Current Insurance if your documents are suspended

Having car insurance will protect you from financial problems that would arise from an accident such as medical costs, repair or replacement of your totaled vehicle, damage to other people’s property as well as other related expenses.

With the high number of accidents recorded on American roads on a daily basis, having auto insurance coverage will give you peace of mind.

Carrying a sufficient amount of auto insurance coverage will protect you from financial devastation in the case of a natural disaster that leaves your car damaged.

Therefore, having the state-mandated auto insurance coverage is not enough. You need to be sufficiently covered in case of other incidences.

What if you get hit by an uninsured or underinsured motorist? And if someone steals your car and you don’t have comprehensive coverage, what are you going to do?

There are some considerations first. Don’t just buy any form of coverage just because some agent recommends it. You many end up spending a whole lot of money on unnecessary coverage.

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Reinstating Suspended Licenses in Indiana

When it comes to the reinstatement of a suspended driver’s license, the state of Indiana’s Bureau of Motor Vehicles takes a unique approach. Drivers are required to file an SR 50 form, a proof of adherence to current auto insurance requirement.

The document shows that you as a driver, you meet the state’s minimum auto insurance requirements at the moment.

Types of Personal Auto Insurance in Indiana

There are two major categories of car insurance:

  • Non-owner’s policy – also known as the named operator auto insurance coverage, this type of policy is designed for people who don’t own a car
  • Regular auto insurance coverage – this type of policy is carried by people who drive their own cars

With each type of coverage, you have to attach the right document, either the SR-50 form or the SR-22 form. Both documents are used to verify that an individual is carrying the minimum required level of liability coverage.

The SR-50 proves to the BMV that you have purchased state-mandated level of auto liability coverage. On the other hand, the SR-22 assures the BMV that you will continue to carry state-mandated liability insurance for the given period (usually three years).

Therefore, in simpler terms, the SR-50 is proof of current liability coverage, and the SR-22 is a proof of financial responsibility in the future.

If you need proof of auto insurance coverage for a given period, the BMV requires that you electronically submit your SR-50 form, directly from your auto insurer.

In itself, the SR-50 is not an auto insurance policy; it is just a document proving that you have had coverage within a given time frame. The document indicates the beginning and expiry of your auto insurance coverage at the moment.

Here Are A Few Factors To Consider Before Purchasing A Car Insurance Policy:

  • The make and model of your vehicle Some models are more expensive to insure than others. Think about that before you even purchase the vehicle.
  • The value of your car Expensive vehicles will come with higher rates and will probably need more coverage than older cars.
  • Your state’s auto insurance laws Car insurance laws vary from one state to another. Visit your state’s DMV office for driving and insurance regulations.
  • Your hometown/city Cities or towns with bigger populations get higher premiums because of the high-risk factor.
  • Driving history Bad driving history and traffic violation will negatively impact your rates.
  • The number of people who will be driving your car If you are a parent and you have teenage children and young adults in your household, you should consider including them as additional drivers. This might slightly raise your rates.

Conduct your own research before you settle on an insurance policy. After you have decided on exactly what you need, get auto insurance quotes from as many providers as you can and compare to get the best rates.

If you live in Indiana, you might consider talking to an agent for advice on how the auto insurance system works. Alternatively, you can visit the state’s BMV site and get the information yourself.

Before making any final decisions on your insurance company, it is important to learn as much as you can about your local insurance providers, and the coverages they offer. Call your local insurance agent to clear up any questions that you might have. Questions to consider asking include, “What is the best coverage plan for me/my family/my situation?” “What are the minimum coverage requirements in my state and what form of coverage do you recommend?” “Do you guys offer any bundle discounts if I take out both my auto insurance and home insurance with you?” and “What is the average rate of insurance quotes you guys offer?”

Before making any big insurance decisions, use our free tool to compare insurance quotes near you. It’s simple, just plug in your zip code and we’ll do the rest!

Compare car insurance rates today by entering your zip code below.