Indiana: Insurance and financial responsibility Practice Test
Indiana’s minimum insurance, the SR22, proof of financial responsibility after an accident and financial liability for minors.
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Questions are original and based on the official manual "Indiana Driver’s Manual" (July 2026), Indiana Bureau of Motor Vehicles.
All 31 questions in this practice test
Take the test above first, then use this list to study. Tap “Show answer” to see the correct answer and explanation.
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What must a DCS applicant under 18 also provide when applying for a driver's license or learner's permit?
- Proof of an insurance policy meeting Indiana's minimum liability standards
- A signature from a DCS caseworker given in person at the branch
- Proof of enrollment in a licensed driver training school
- A notarized statement of financial liability from the DCS
Show answer
Correct answer: Proof of an insurance policy meeting Indiana's minimum liability standards
The DCS applicant must also provide proof of an insurance policy meeting Indiana's minimum liability standards.
Source: Indiana Driver’s Manual (July 2026), page 8 · Open this page in the manual (Manual page 8)
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Driving without what is against the law in Indiana?
- A current liability insurance policy that meets the state minimum standard
- A collision insurance policy covering damage to your own vehicle
- A comprehensive policy covering theft and weather damage to the vehicle
- A BMV-issued insurance card carried inside the vehicle at all times
Show answer
Correct answer: A current liability insurance policy that meets the state minimum standard
Driving without a current liability insurance policy that meets the state minimum standard is against the law.
Source: Indiana Driver’s Manual (July 2026), page 22 · Open this page in the manual (Manual page 22)
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What is the state minimum insurance standard for bodily injury to, or the death of, one individual?
- $10,000
- $15,000
- $25,000
- $30,000
Show answer
Correct answer: $25,000
The state minimum is $25,000 for bodily injury to, or the death of, one individual.
Source: Indiana Driver’s Manual (July 2026), page 22 · Open this page in the manual (Manual page 22)
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What is the state minimum insurance standard for bodily injury to, or the death of, two or more people in any one accident?
- $30,000
- $40,000
- $100,000
- $50,000
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Correct answer: $50,000
The state minimum is $50,000 for bodily injury to, or the death of, two or more people in any one accident.
Source: Indiana Driver’s Manual (July 2026), page 22 · Open this page in the manual (Manual page 22)
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What is the state minimum insurance standard for property damage in any one accident?
- $25,000
- $10,000
- $15,000
- $20,000
Show answer
Correct answer: $25,000
The state minimum is $25,000 for property damages in any one accident.
Source: Indiana Driver’s Manual (July 2026), page 22 · Open this page in the manual (Manual page 22)
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What is the state minimum liability insurance standard commonly called?
- 10/20/10 liability insurance
- 15/30/15 liability insurance
- 25/50/25 liability insurance
- 50/100/50 liability insurance
Show answer
Correct answer: 25/50/25 liability insurance
The state minimum standard is commonly referred to as 25/50/25 liability insurance.
Source: Indiana Driver’s Manual (July 2026), page 22 · Open this page in the manual (Manual page 22)
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What does Indiana law require the BMV to impose on motorists found to have operated a vehicle without proof of the state minimum auto insurance?
- Vehicle impoundment and a mandatory driving skills exam
- Driving privilege suspensions and financial penalties
- A written warning and mandatory attendance at a Driver Safety Program
- Loss of the learner’s permit and a longer waiting period for a license
Show answer
Correct answer: Driving privilege suspensions and financial penalties
Indiana law requires the BMV to impose driving privilege suspensions and financial penalties on motorists who cannot show the state minimum insurance.
Source: Indiana Driver’s Manual (July 2026), page 22 · Open this page in the manual (Manual page 22)
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You receive a BMV notification to provide proof of financial responsibility. What should you do immediately?
- Mail a printed copy of your insurance card to the BMV and wait for a reply
- Visit a BMV branch and show your insurance card to a clerk
- Ask your insurer to electronically submit a Certificate of Compliance (COC) to the BMV
- Wait until the BMV sends a second notice before contacting your insurer
Show answer
Correct answer: Ask your insurer to electronically submit a Certificate of Compliance (COC) to the BMV
You should not delay: immediately contact your insurance provider and request that it electronically submit a Certificate of Compliance (COC) to the BMV.
Source: Indiana Driver’s Manual (July 2026), page 22 · Open this page in the manual (Manual page 22)
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Which of these situations may lead to a BMV notice to verify financial responsibility?
- Renewing a driver’s license online
- An auto accident
- Changing your mailing address
- Completing a Driver Safety Program
Show answer
Correct answer: An auto accident
An auto accident is one of the situations in which the BMV may send a notice to verify financial responsibility.
Source: Indiana Driver’s Manual (July 2026), page 22 · Open this page in the manual (Manual page 22)
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A pointable moving traffic violation within what period of receiving two other pointable moving traffic violations may lead to a notice to verify financial responsibility?
- Within six months
- Within two years
- Within three years
- Within one year
Show answer
Correct answer: Within one year
A pointable moving violation within one year of receiving two other pointable moving violations may lead to a notice.
Source: Indiana Driver’s Manual (July 2026), page 22 · Open this page in the manual (Manual page 22)
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A serious traffic violation such as what may lead to a BMV notice to verify financial responsibility?
- A misdemeanor or felony
- A parking citation
- A warning for a minor equipment problem
- A request for a replacement credential
Show answer
Correct answer: A misdemeanor or felony
A serious traffic violation such as a misdemeanor or felony may lead to a notice to verify financial responsibility.
Source: Indiana Driver’s Manual (July 2026), page 22 · Open this page in the manual (Manual page 22)
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Any pointable moving traffic violation by a driver previously suspended for what reason may lead to a notice to verify financial responsibility?
- Failing to provide proof of financial responsibility
- Failing to complete a Driver Safety Program
- Driving 26 or more miles per hour over the limit
- Failing to renew a license on time
Show answer
Correct answer: Failing to provide proof of financial responsibility
A pointable moving violation by a driver previously suspended for failing to provide proof of financial responsibility may lead to a notice.
Source: Indiana Driver’s Manual (July 2026), page 22 · Open this page in the manual (Manual page 22)
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Within how many days of the BMV’s mailing of a request to verify financial responsibility must the COC be received electronically and processed, or driving privileges will be suspended?
- 30 days
- 45 days
- 90 days
- 60 days
Show answer
Correct answer: 90 days
The COC must be received electronically from your insurer and processed by the BMV within 90 days of the BMV’s mailing, or driving privileges are suspended.
Source: Indiana Driver’s Manual (July 2026), page 22 · Open this page in the manual (Manual page 22)
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What does a properly filed Certificate of Compliance (COC) demonstrate?
- That you have completed a Driver Safety Program within the previous three-year period
- That the vehicle you were operating was insured to the state’s minimum liability protection
- That your vehicle has passed a safety inspection and is properly registered
- That you have held a driver’s license without a suspension for two years
Show answer
Correct answer: That the vehicle you were operating was insured to the state’s minimum liability protection
A properly filed COC demonstrates that the vehicle you were operating at the time was insured to the state’s minimum liability protection (25/50/25).
Source: Indiana Driver’s Manual (July 2026), page 22 · Open this page in the manual (Manual page 22)
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How can a BMV-imposed suspension for not providing proof of financial responsibility be removed from your driving record?
- By completing a BMV-approved Driver Safety Program course and waiting for processing
- By paying a fine to the court and waiting for the suspension period to end
- By showing a paper copy of your insurance card at a BMV Connect kiosk
- By having your insurance provider submit proof of financial responsibility
Show answer
Correct answer: By having your insurance provider submit proof of financial responsibility
A BMV-imposed suspension may be removed by having your insurance provider submit proof of financial responsibility.
Source: Indiana Driver’s Manual (July 2026), page 22 · Open this page in the manual (Manual page 22)
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You were operating a company-owned or rental vehicle. Who must fill out the Affidavit – Proof of Financial Responsibility for Employer or Rental Vehicles (State Form 55434)?
- Your own insurance provider
- Your employer or the rental company
- The court that convicted you
- The BMV branch that received the notice
Show answer
Correct answer: Your employer or the rental company
If you were operating a company-owned or rental vehicle, your employer or the rental company must fill out the affidavit.
Source: Indiana Driver’s Manual (July 2026), page 22 · Open this page in the manual (Manual page 22)
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You are convicted by a court for operating a vehicle without insurance. What must you do to find out whether the conviction can be removed from your driving record?
- Contact the BMV to request that the conviction be dismissed after 90 days
- Ask your insurance provider to file an SR22 with the court
- Wait two years until the points are no longer active on your record
- Contact the court to see whether you can give it proof of insurance
Show answer
Correct answer: Contact the court to see whether you can give it proof of insurance
You must contact the court to determine if you can provide proof of insurance to it to remove the conviction from your driving record.
Source: Indiana Driver’s Manual (July 2026), page 22 · Open this page in the manual (Manual page 22)
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Your driving privileges are suspended after a court conviction for operating a vehicle without financial responsibility. What must your insurance provider electronically file for your privileges to be reinstated?
- An SR22 form
- A COC
- An Affidavit for Employer or Rental Vehicles
- A Driver Safety Program completion certificate
Show answer
Correct answer: An SR22 form
Indiana law requires your insurance provider to electronically file proof of future financial responsibility with an SR22 form for reinstatement.
Source: Indiana Driver’s Manual (July 2026), page 22 · Open this page in the manual (Manual page 22)
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Your driving privileges were suspended after a court conviction for operating a vehicle without financial responsibility. What happens if no SR22 is filed?
- The suspension ends automatically after 90 days without a filing
- The BMV files the SR22 for you and reinstates your privileges
- The suspension continues until your insurer files an effective SR22
- The suspension is lifted once you pay the reinstatement fee
Show answer
Correct answer: The suspension continues until your insurer files an effective SR22
A failure to file an SR22 results in the continuation of the suspension until your insurance provider files an effective SR22.
Source: Indiana Driver’s Manual (July 2026), page 22 · Open this page in the manual (Manual page 22)
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What does an SR22 form demonstrate?
- That you have an insurance policy meeting the state’s minimum standards
- That you have paid all of your outstanding traffic tickets in full
- That you have completed a defensive driving course approved by the BMV
- That your vehicle has passed a required safety inspection this year
Show answer
Correct answer: That you have an insurance policy meeting the state’s minimum standards
The manual says the SR22 form shows that your policy meets the state’s minimum standards and cannot be canceled without prior notice to the BMV.
Source: Indiana Driver’s Manual (July 2026), page 23 · Open this page in the manual (Manual page 23)
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An SR22 policy cannot be canceled without what?
- A court hearing with a judge
- A written request from the driver’s employer
- Prior notice given to the BMV
- A new vehicle registration
Show answer
Correct answer: Prior notice given to the BMV
An SR22 policy cannot be canceled without prior notice given to the BMV.
Source: Indiana Driver’s Manual (July 2026), page 23 · Open this page in the manual (Manual page 23)
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What kind of suspension applies to no-insurance suspensions that became effective on or after 12/31/2021?
- A 30-day suspension
- An indefinite suspension
- A one-year suspension
- A suspension that ends automatically after 180 days
Show answer
Correct answer: An indefinite suspension
Such no-insurance suspensions are indefinite suspensions.
Source: Indiana Driver’s Manual (July 2026), page 23 · Open this page in the manual (Manual page 23)
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How long must SR22 be maintained continuously to terminate an indefinite no-insurance suspension?
- 30 days
- 90 days
- One year
- 180 days
Show answer
Correct answer: 180 days
An indefinite no-insurance suspension can be stayed when the BMV receives an SR22 and terminated by maintaining SR22 continuously for 180 days.
Source: Indiana Driver’s Manual (July 2026), page 23 · Open this page in the manual (Manual page 23)
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What is an SR26?
- A form that proves you completed a driver improvement course
- A court order granting specialized driving privileges
- A notice from your insurance provider cancelling your SR22 insurance
- A receipt for a paid reinstatement fee
Show answer
Correct answer: A notice from your insurance provider cancelling your SR22 insurance
The manual describes the SR26 as the cancellation of SR22 insurance notice sent by your insurance provider.
Source: Indiana Driver’s Manual (July 2026), page 23 · Open this page in the manual (Manual page 23)
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You have an SR22 requirement and the BMV receives an SR26 notice from your insurance provider. What does Indiana law require the BMV to do?
- Suspend your privileges until an SR22 is received or the period expires
- Send you a warning letter and take no further action at this time
- Extend your SR22 requirement period by exactly one additional year
- Cancel your vehicle registration for 30 days and require a road test
Show answer
Correct answer: Suspend your privileges until an SR22 is received or the period expires
Indiana law requires the BMV to suspend your driving privileges until an effective SR22 policy is received or the SR22 requirement period expires.
Source: Indiana Driver’s Manual (July 2026), page 23 · Open this page in the manual (Manual page 23)
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What happens if the BMV receives an SR26 during the 180-day stay of an indefinite no-insurance suspension?
- The 180-day period simply starts over again with no other change
- The suspension is converted into a fixed 30-day suspension for you
- Nothing happens until the 180-day stay period has fully ended
- The BMV removes the stay and puts the suspension back into active status
Show answer
Correct answer: The BMV removes the stay and puts the suspension back into active status
Indiana law requires the BMV to remove the stay and place the suspension back into an active status.
Source: Indiana Driver’s Manual (July 2026), page 23 · Open this page in the manual (Manual page 23)
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How can you stay a suspension for failing to appear in court or pay a traffic offense?
- Pay a processing fee at the local post office within 10 business days
- Surrender your license plates to the BMV for the entire suspension period
- Take the driver’s license knowledge exam again at a BMV branch
- Have your insurance provider submit SR22 and keep it for the suspension’s duration
Show answer
Correct answer: Have your insurance provider submit SR22 and keep it for the suspension’s duration
You may stay the suspension by having your insurer submit an SR22 and keeping it in place for the length of the suspension.
Source: Indiana Driver’s Manual (July 2026), page 23 · Open this page in the manual (Manual page 23)
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A person granted specialized driving privileges by a court must maintain an effective SR22 on file with the BMV for how long?
- For the first 30 days only, then no longer
- For the duration of the privileges
- For ten years from the court date
- Until the next license renewal
Show answer
Correct answer: For the duration of the privileges
The person must maintain an effective SR22 for the duration of the specialized driving privileges.
Source: Indiana Driver’s Manual (July 2026), page 26 · Open this page in the manual (Manual page 26)
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After an accident and on request from the BMV, what form does your insurance provider electronically file as proof of financial responsibility?
- A Certificate of Title
- A Proof of Registration form
- A Declaration of Liability
- A Certificate of Compliance (COC)
Show answer
Correct answer: A Certificate of Compliance (COC)
The insurance provider must electronically file proof of financial responsibility in the form of a Certificate of Compliance (COC).
Source: Indiana Driver’s Manual (July 2026), page 58 · Open this page in the manual (Manual page 58)
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What does the Certificate of Compliance (COC) demonstrate?
- That you held a policy meeting the state's minimum liability protection at the time
- That your vehicle passed a required safety inspection before the accident
- That you were not at fault in the accident that took place
- That your policy covers the cost of repairing your own vehicle
Show answer
Correct answer: That you held a policy meeting the state's minimum liability protection at the time
The COC shows that you held an effective policy that meets the state's minimum liability protection during that accident.
Source: Indiana Driver’s Manual (July 2026), page 58 · Open this page in the manual (Manual page 58)
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You receive a request from the BMV for financial responsibility verification after an accident. What should you do?
- Mail a printed copy of your insurance policy to the BMV yourself
- Wait until your insurance provider contacts you about the request
- Ask your insurer right away to electronically send a COC to the BMV
- Take your registration to a BMV branch sometime in the next week
Show answer
Correct answer: Ask your insurer right away to electronically send a COC to the BMV
The manual says not to delay in asking your insurance provider to electronically send a COC to the BMV on your behalf.
Source: Indiana Driver’s Manual (July 2026), page 58 · Open this page in the manual (Manual page 58)