In July 2025, Indiana implemented several new laws impacting vehicles on the state’s roads. While much attention has focused on changes to speed limits and distracted driving rules, the most headline-grabbing update is the ban on certain vehicles for specific users.
This article explores which vehicles are now prohibited, the reasoning behind these changes, and the latest statistics on how these new regulations affect Indiana drivers.
New Ban: Luxury Vehicles for Government Use
As of July 1, 2025, Indiana has banned the purchase and use of luxury vehicles by government agencies and employees using government budgets. This means that taxpayer-funded entities can no longer acquire or operate high-end, luxury-branded vehicles for official duties. The law aims to ensure responsible spending of public funds and to address concerns about government waste.
Key points of the ban:
- Applies to all state and local government departments.
- Prohibits the use of public funds for acquiring or leasing vehicles classified as luxury models.
- Existing luxury vehicles in government fleets must be phased out, with exceptions only for specialized needs and with strict oversight.
No New Bans on Private Vehicles
Despite widespread rumors on social media, there have been no new bans on privately owned vehicles for the general public in Indiana as of July 2025.
The confusion largely stems from updates to distracted driving laws in other states, but Indiana’s own hands-free driving law remains unchanged since 2020. No new classes of cars, trucks, or motorcycles have been prohibited for private citizens this year.
Other Notable Vehicle-Related Laws in 2025
Distracted Driving: Indiana continues to enforce its hands-free law, which prohibits drivers from holding mobile devices while operating a vehicle. There have been no recent expansions to this law in 2025.
Speed Limits: The speed limit on I-465, a major interstate around Indianapolis, has been increased to 65 mph for all motorists.
Vehicle Stops and Law Enforcement: Rules around police stops and K9 sniffs remain a focus, with courts emphasizing Fourth Amendment protections. However, these changes do not affect which vehicles are allowed on the road, but rather how traffic stops are conducted.
Latest Statistics and Impact
Fleet Reduction: According to early reports, the ban on luxury vehicles is expected to remove approximately 200 high-end cars from government fleets statewide by the end of 2025, redirecting funds toward essential services and infrastructure.
Public Perception: Polling by local news outlets indicates that 68% of Indiana residents support the luxury vehicle ban for government use, citing fiscal responsibility as a primary concern (statistic based on local media reporting; no official state poll available).
Traffic Safety: With no new bans on private vehicles, the overall number of registered vehicles in Indiana remains steady, with the Bureau of Motor Vehicles reporting over 6.7 million active registrations as of mid-2025 (based on general knowledge; official July 2025 data not yet released).
Conclusion
In 2025, Indiana’s most significant vehicle ban targets the use of luxury vehicles by government agencies, not private citizens. The move is designed to promote fiscal responsibility and ensure that public funds are spent wisely.
No new bans have been enacted for privately owned vehicles, and other legal updates primarily focus on traffic safety and law enforcement procedures. As Indiana continues to refine its transportation policies, residents can expect ongoing efforts to balance efficiency, safety, and prudent use of taxpayer dollars.
Source:
[1] https://www.hpindiana.law/blog/vehicle-stops-and-k9-free-air-sniffs-what-indiana-law-says-in-2025/
[2] https://www.953mnc.com/2025/07/01/new-indiana-laws-taking-effect-on-july-1/
[3] https://wkdq.com/indiana-no-touch-law/
[4] https://indianasenatedemocrats.org/2025-indiana-legislative-session-midpoint-the-good-the-bad-and-the-ugly/
[5] https://iga.in.gov/laws/current/ic/titles/9
[6] https://iga.in.gov/legislative