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IN AIP: An Insurance Option for High-Risk Drivers in Indiana

Updated February 23, 2023 | By Wilson Kehoe Winingham staff

Car insurance is mandatory for drivers in Indiana, and for good reason: Insurance can pay for property damage after an accident, replace a stolen vehicle, and provide liability protection if someone is injured or killed in a collision.

However, rates and policies vary significantly based on a variety of factors, and some drivers are considered high risk. If someone has been turned down by multiple insurance companies and cannot find coverage elsewhere in Indiana, an alternative is available.

High-Risk Drivers May Have Difficulty Finding Auto Insurance

Automobile insurance companies consider some drivers to be “high risk,” meaning that they are a greater liability and therefore more expensive. Behaviors that may identify a high-risk driver include the following:

Every insurer has a different definition of a high-risk driver.

High-risk drivers may have difficulty finding car insurance because companies may refuse to cover them. With this in mind, Indiana created an option to help high-risk drivers secure the coverage they need to operate their vehicle.

Indiana Auto Insurance Plan (IN AIP)

Drivers in Indiana are required by law to carry liability coverage for at least $25,000–50,000 in bodily injury and $10,000 in property damage. If a high-risk driver does not qualify for automobile insurance, they can take advantage of the Indiana Auto Insurance Plan (IN AIP).

IN AIP was created in 1948 and is designed to provide auto insurance for high-risk drivers who have been turned down by insurance companies in the voluntary market. It is an agreement among all licensed automobile insurance companies in the state, and the goal is to make sure that any Indiana driver who is eligible has access to coverage.

How to Apply for IN AIP

Any insurance agent licensed in the state of Indiana can enroll a driver in IN AIP. Applications are divided among insurance companies proportionate to the amount of voluntary insurance business each company conducts in Indiana, so each company takes it share of high-risk drivers.

To qualify for IN AIP, a driver must show rejections from three Indiana automobile insurance companies within the previous 60 days. Additionally, they must have both a valid driver’s license and a car registered in Indiana.

A high-risk driver who qualifies for IN AIP does not choose the insurance company their policy falls under; instead, they are assigned a company based on market share.

Contact an Automobile Accident Attorney Today

If you or a loved one have been injured as a result of a car accident, you are urged to contact the attorneys of Wilson Kehoe Winingham. An Indianapolis car accident lawyer from WKW can help you get the compensation you deserve. Call 317.920.6400 or fill out an online contact form for a free, no-obligation case evaluation.

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