What type of insurance coverage is mandatory for for-hire vehicles in Indiana?

Liability insurance is essential for for-hire vehicles in Indiana because it provides financial protection in the event of accidents where the driver is found to be at fault. This type of insurance covers the costs associated with injury or damage to other people or property when you are responsible for an accident. Since for-hire vehicles, like taxis or rideshare services, often carry passengers, having liability insurance ensures that both the driver and the business can meet financial obligations arising from potential accidents.

In contrast, other types of insurance mentioned, such as comprehensive and collision insurance, are not mandatory. Comprehensive insurance covers damages to your vehicle from non-collision events, while collision insurance pays for damages to your vehicle in the event of a collision, regardless of fault. Personal injury protection typically covers medical expenses for you and your passengers, but it is not the primary requirement for operating a for-hire vehicle. Thus, liability insurance is the required coverage to protect others on the road and uphold the legal responsibilities of driving a for-hire vehicle in Indiana.