On the Indiana Property & Casualty exam, the Personal Automobile Policy appears both as a standard ISO-style contract and as a set of Indiana auto statutes you must apply. This standalone guide reviews the policy's coverage parts, then drills into the Indiana overlay: the 25/50/25 financial-responsibility minimums, the at-fault (tort) system with modified comparative fault, the uninsured- and underinsured-motorist offer rules, and cancellation/nonrenewal notice. The Indiana-specific material is where most state credit is earned.

Policy structure (the national base)

The Personal Auto Policy (PAP) is a packaged contract organized into lettered parts:

• Part A — Liability: pays bodily injury (BI) and property damage (PD) the insured is legally liable for; the insurer provides a defense, and supplementary payments (defense costs and certain expenses) are paid in addition to the limit.
• Part B — Medical Payments: pays medical/funeral costs for occupants regardless of fault.
• Part C — Uninsured/Underinsured Motorists: pays the insured's injuries when the at-fault party is uninsured or underinsured.
• Part D — Coverage for Damage to Your Auto: Collision and Other Than Collision (Comprehensive), each with a deductible, settled at Actual Cash Value (ACV).
• Part E — Duties After an Accident or Loss and Part F — General Provisions.

Limits may be written as split limits (e.g., 100/300/50) or as a Combined Single Limit (CSL). Insureds include the named insured, resident spouse, resident relatives, and permissive users. Eligible vehicles are private passenger autos, pickups, and vans not used mainly for business. That framework is national; Indiana governs the limits and the liability environment around it.

Indiana uses a tort (at-fault) liability system

Indiana is an at-fault / tort state, not a no-fault state. The driver who causes a crash is financially responsible, and the injured party collects from that driver's liability coverage or by filing suit. This is why liability coverage and financial responsibility dominate Indiana auto law.

Indiana applies modified comparative fault. The rule to remember: a claimant who is more than 50% at fault is barred from recovering anything (often described as a 51% bar—verify). If the claimant's share is 50% or less, they may recover, but the award is reduced by their own percentage of fault. (Contrast this with pure comparative states, where even a 90%-at-fault claimant recovers a sliver, and with Indiana's older contributory rule that has been replaced for most claims.)

Financial responsibility: 25/50/25

Every Indiana driver must show financial responsibility, usually by carrying liability insurance at or above the minimum split limits:

• $25,000 bodily injury per person
• $50,000 bodily injury per accident
• $25,000 property damage per accident

Shorthand: "25/50/25." These are statutory floors; producers routinely recommend higher limits. Driving without coverage brings fines and license/registration suspension, and a driver who has had a lapse or certain violations may be required to file an SR-22—a certificate proving the required liability coverage is in force. A deposit or bond can technically satisfy financial responsibility, but liability insurance is the standard method.

Uninsured and underinsured motorist rules

This is a heavily tested Indiana area:

• Uninsured Motorist (UM) coverage pays the insured's injuries when the at-fault driver carries no insurance or flees (hit-and-run).
• Underinsured Motorist (UIM) pays the gap when the at-fault driver's liability limits are too low to cover the insured's damages.
• In Indiana, insurers must offer UM and UIM coverage, and the insured may accept or reject it (rejection generally must be in writing)—verify the current rule. So unlike a state where UM is built in and cannot be removed, an Indiana applicant can decline it through the proper written waiver.
• The other driver must be legally at fault for UM/UIM to respond.

Memorize the headline: in Indiana, UM/UIM must be offered, and the insured may reject in writing.

Optional and physical-damage coverages

• Medical Payments (Med Pay) is optional and pays medical/funeral costs regardless of fault. Indiana does not mandate PIP/no-fault.
• Collision and Comprehensive (Other Than Collision) are optional but typically required by a lender. Hitting an animal—or a windshield cracked by a flying rock—is Comprehensive, not Collision.
• Stacking of UM limits across multiple covered vehicles may be available where allowed.

Cancellation and nonrenewal

Indiana regulates how an insurer may end a personal auto policy. The timelines are commonly cited as:

• Mid-term cancellation generally requires advance written notice, with a shorter window for nonpayment of premium (verify the exact days).
• Once a policy has been in force a set period, cancellation is limited to specific reasons such as nonpayment, license suspension/revocation, or fraud/material misrepresentation.
• Nonrenewal at the end of the term generally requires advance written notice so the insured can find replacement coverage.

Keep the shorter nonpayment-cancellation notice distinct from the longer ordinary cancellation / nonrenewal notice.

Required vs. optional coverages

Key Indiana numbers to memorize

Common exam traps

• Indiana is at-fault (tort), not no-fault. There is no mandatory PIP.
• 25/50/25—the third number ($25k) is property damage; don't slide it into a BI slot. Note Indiana's PD floor is $25k, not the $20k some neighboring states use.
• UM/UIM is offered, not mandatory—the insured may reject it in writing (different from a state that builds it in).
• Modified comparative fault: more than 50% at fault = barred (the 51% bar—watch the exact wording).
• UIM fills the gap up to your UIM limit minus the other driver's BI payment; it is not a separate full payout.
• Hitting an animal is Comprehensive, not Collision (national rule still applies).
• Liability supplementary payments / defense costs are paid on top of the limit (national rule that still applies in Indiana).

Quick recap

• The PAP's Parts A–F structure is national; Indiana sets the limits and legal framework.
• Indiana is a tort/at-fault state using modified comparative fault—a claimant more than 50% at fault recovers nothing.
• Minimum liability is 25/50/25.
• Uninsured and Underinsured Motorist coverage must be offered, and the insured may reject it in writing.
• Indiana has no mandatory no-fault/PIP; Med Pay and physical damage are optional.
• Cancellation for nonpayment uses a shorter notice; ordinary cancellation/nonrenewal uses a longer notice—verify the exact days.