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Bureau of Motor Vehicles

myBMV > Learner's Permits and Driver's Licenses > Obtaining A Learner's Permit > Agreement of Financial Liability Agreement of Financial Liability

If you are younger than 18 years of age Indiana law requires that applications for a permit or license must be signed and sworn to or affirmed by one of the following in order of preference:

  1. The parent having custody of the minor applicant or a designee of the custodial parent specified by the custodial parent.
  2. The noncustodial parent (as defined in IC 31-9-2-83) of the minor applicant or a designee of the noncustodial parent specified by the noncustodial parent.
  3. The guardian having custody of the minor applicant.
  4. In the absence of a person described in subdivisions (1) through (3), any other adult who is willing to assume the obligations imposed by the provisions of financial liability under IC 9-24-9.

An individual who signs a permit or license application for a minor agrees to be responsible jointly and severally with the minor applicant for any injury or damage that the minor applicant causes by reason of the operation of a motor vehicle if the minor applicant is liable in damages.

The adult signing the agreement of financial liability must present documents of identification proving his or her identity and age. 

Terminating the agreement of financial liability

The agreement of financial liability is terminated when the minor driver turns 18-years-old.
If the adult who signed the agreement of financial liability dies, the agreement of financial liability is terminated, in which case the minor must notify the bureau and another adult must sign an agreement of financial liability for the minor driver.

The adult who signed the agreement of financial liability may subsequently file with the bureau a written request that the permit or license be canceled at which point the adult is relieved from liability. The request may be submitted on a completed Written Request to Cancel Financial Liability – State Form 55834 or in the form of a letter. 

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