Cheapest Liability Car Insurance in Indiana (2026)
Indiana drivers can find the cheapest liability-only car insurance from Auto-Owners, with rates at $44 per month.
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Written byJanet Berry-Johnson
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Janet Berry-JohnsonInsurance Writer, CPA
8+ years writing about insurance, taxes, and personal finance
Certified public accountant
Janet applies her experience in personal finance, taxes, and accounting to make complex financial topics accessible. Her byline has appeared on numerous web media.
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Edited byMatthew Gross
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Matthew GrossEditor
Matthew Gross is an insurance editor at Insurify. He aspires to help readers make more informed decisions through well-crafted content. Matthew’s background in journalism and SEO taught him the value of keeping readers at the core of his work. Prior to Insurify, Matthew brought his user-centered approach to his work with global brands like Apple and Adobe. He holds a bachelor’s degree in Journalism from Illinois State University.
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Reviewed byMacKenzie Korris
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MacKenzie KorrisLicensed P&C Agent, Insurance Copy Editor
Licensed property and casualty insurance agent
10+ years editing experience
NPN: 21630969
MacKenzie Korris is an insurance copy editor with a producer’s license for property and casualty insurance in Missouri.
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Table of contents
What is liability car insurance?
Indiana state law requires drivers to have liability insurance to cover medical costs and repair expenses after causing a crash.
Liability car insurance pays for bodily injury and property damage you cause to other drivers and their passengers in an accident. It also covers injuries you cause to pedestrians and damage to other property, like a wall or fence.
Liability-only insurance doesn’t pay to repair your own vehicle, though. For that, you need full-coverage car insurance. Full coverage typically includes liability, collision, and comprehensive coverage to pay for your injuries and vehicle damage.
Cheapest liability car insurance in Indiana
Drivers in Indiana pay an average of $67 per month for liability-only coverage and $123 per month for full-coverage car insurance.
But these rates are just average. Your actual rate will vary based on factors like your driving history, age, and even your ZIP code. That’s why rates in Indianapolis differ from those in Fort Wayne or Evansville, for example.
You can find the cheapest car insurance in Indiana by comparing quotes from multiple companies. The table below shows some of the cheapest liability-only car insurance quotes in Indiana, according to Insurify data.
The below rates in Indiana are estimated rates current as of: Monday, March 9 at 12:00 PM PDT.
Insurance Company  | Average Monthly Quote: Liability Only |
|---|---|
| Auto-Owners | $44 |
| Progressive | $47 |
| State Farm | $47 |
| USAA | $50 |
| First Chicago | $51 |
| GEICO | $52 |
| Direct Auto | $63 |
| National General | $63 |
| American Family | $70 |
| Trexis | $72 |
| Hugo | $73 |
| First Acceptance | $74 |
| Safeco | $74 |
| Dairyland | $75 |
| Root | $75 |
| Trexis One | $75 |
| The General | $75 |
| AssuranceAmerica | $79 |
| CSAA | $81 |
| GAINSCO | $85 |
| Elephant | $87 |
| Mendota | $88 |
| Bristol West | $91 |
| Travelers | $93 |
| Farmers | $97 |
| Liberty Mutual | $98 |
| Allstate | $111 |
| Insurify Car | $112 |
| Nationwide | $122 |
| State Auto | $232 |
Disclaimer: Table data sourced from real-time Indiana car insurance quotes from Insurify's 500+ partner insurance providers and quote estimates from Quadrant Information Services. Actual car insurance quotes in Indiana may vary based on the policy buyer's unique driver profile.
Find Cheap Car Insurance in Indiana
Compare rates in the Hoosier State starting at $44 per month
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Minimum liability car insurance requirements in Indiana
Indiana requires drivers to have a minimum amount of liability insurance. The table below shows the coverage you need to legally drive in the Hoosier State.[1]
Coverage | What It Covers | Minimum Limits in Indiana |
|---|---|---|
| Bodily injury liability | Pays for other people’s medical bills if you cause an accident | $25,000 per person / $50,000 per accident |
| Property damage liability | Pays to repair or replace someone else’s vehicle or property | $25,000 per accident |
Still, these limits don’t cover damage to your own car. For example, if you rear-end another car, liability coverage pays for their repairs and injuries up to your limits. But you must pay out of pocket to fix your own vehicle, unless you have collision coverage as part of a full-coverage policy.
Is minimum liability coverage enough in Indiana?
Indiana’s minimum liability coverage isn’t enough for most drivers. Minimum coverage can leave you financially vulnerable after a serious crash.
Let’s say you cause a crash during rush hour, injuring two people in the other car. Each person’s medical bills cost $40,000, for a total of $80,000 in bodily injury costs. The other vehicle also has $30,000 in damage.
With Indiana’s 25/50/25 limits, your insurance company would pay up to $50,000 for bodily injury and $25,000 for property damage. That means you’re responsible for the remaining $30,000 in medical bills and $5,000 in repairs. The injured parties could sue you to recover that $35,000.
Higher liability limits can reduce your risk of costly out-of-pocket expenses. You may need more than the minimum liability limits if you:
Drive a newer or financed vehicle
Have savings, a home, or other assets you want to protect
Want coverage for theft, vandalism, or hail damage
Want protection if an uninsured or underinsured driver hits you
Penalties for driving without liability insurance in Indiana
You can face fines or license suspension for driving without car insurance in Indiana. If you lose your license after driving uninsured, the state requires you to file an SR-22 and maintain it for 180 days.[2]
You also have to pay a fee to reinstate your driver’s license.
How to find cheap liability car insurance in Indiana
Drivers in the Hoosier State pay an average of $67 per month for liability car insurance, compared to the national average cost of $99 per month. Even with Indiana’s relatively low average rates, you still want to get the best deal available.
Here’s how to find cheap car insurance in Indiana:
Ask about discounts. Many insurance companies offer a variety of discounts, like savings for safe driving, signing up for paperless billing, paying your premium in full, or having a car alarm.
Improve your credit. Indiana allows insurance companies to use credit-based insurance scores as a factor in setting rates. Maintaining good credit and taking steps to improve your score can reduce your car insurance costs. Paying bills on time and keeping credit card balances low help protect your credit.
Bundle home and auto insurance. Many insurance companies offer bundling discounts when you combine homeowners or renters insurance with your car insurance.
Apply to the Indiana Automobile Insurance Plan (IAIP). The IAIP guarantees coverage for all drivers, even if you can’t find car insurance through a private insurer or have a driving under the influence (DUI) conviction. It’s not the cheapest option, but it’s better than going without insurance.[3]
Shop around regularly. Car insurance policy terms usually last six to 12 months. Compare car insurance quotes before your renewal date to ensure you still have the lowest rate available for the coverage you need.
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Liability car insurance in Indiana FAQs
Below, you’ll find answers to some common questions from drivers about finding affordable car insurance in Indiana.
Which insurance companies typically have the cheapest liability car insurance in Indiana?
Auto-Owners has the cheapest liability car insurance in Indiana, at $44 per month, according to Insurify data. But the cheapest car insurance company for you depends on factors like your driving record, location, age, and the coverage you choose.
How can you lower your liability insurance premiums in Indiana?
You have a few ways to lower your liability insurance premiums in Indiana. Comparing quotes from multiple companies, maintaining good credit, and asking about car insurance discounts can help you save money on coverage. Many insurers also offer savings for bundling your Indiana car insurance with homeowners or renters insurance.
Is state-minimum liability insurance enough protection in Indiana for most drivers?
Not typically. Indiana’s minimum liability limits don’t provide enough protection for most drivers. If you cause an accident, medical bills and repair costs can quickly exceed the state’s 25/50/25 minimum limits. You’d have to pay out of pocket for any injuries or damages that exceed your coverage limits.
How much is liability insurance in Indiana?
Liability-only car insurance coverage in Indiana averages $67 per month, according to Insurify data. Still, your actual car insurance premiums depend on factors like your driving record, location, and the insurance company and coverage you choose.
Methodology
Insurify data scientists analyzed more than 190 million quotes served to car insurance applicants in Insurify’s proprietary database to calculate the premium averages displayed on this page. These premiums are real quotes that come directly from Insurify’s 500+ partner insurance companies in all 50 states and Washington, D.C. Quote averages represent the median price for a quote across the given coverage level, driver subset, and geographic area.
Unless otherwise specified, quoted rates reflect the average cost for drivers between 20 and 70 years old with a clean driving record and average or better credit (a credit score of 600 or higher).
Liability-only premium averages correspond to policies with the following coverage limits:
- Bodily injury limits between state-minimum rates and $50,000 per person, $100,000 per accident
- Property damage limits between $10,000 and $50,000
- No additional coverage
- Comprehensive coverage with a $1,000 deductible
- Collision coverage with a $1,000 deductible
Quotes for Allstate, Farmers, GEICO, State Farm, and USAA are estimates based on Quadrant Information Services’ database of auto insurance rates.
Sources
- Indiana Bureau of Motor Vehicles. "Proof of Financial Responsibility."
- Indiana Bureau of Motor Vehicles. "Common Traffic Violations."
- Indiana FAIR Plan. "What is the FAIR Plan."
)
Janet Berry-JohnsonInsurance Writer, CPA
8+ years writing about insurance, taxes, and personal finance
Certified public accountant
Janet applies her experience in personal finance, taxes, and accounting to make complex financial topics accessible. Her byline has appeared on numerous web media.
Featured in
Janet applies her experience in personal finance, taxes, and accounting to make complex financial topics accessible. Her byline has appeared on numerous web media.
Matthew GrossEditor
Matthew Gross is an insurance editor at Insurify. He aspires to help readers make more informed decisions through well-crafted content. Matthew’s background in journalism and SEO taught him the value of keeping readers at the core of his work. Prior to Insurify, Matthew brought his user-centered approach to his work with global brands like Apple and Adobe. He holds a bachelor’s degree in Journalism from Illinois State University.
MacKenzie KorrisLicensed P&C Agent, Insurance Copy Editor
Licensed property and casualty insurance agent
10+ years editing experience
NPN: 21630969
MacKenzie Korris is an insurance copy editor with a producer’s license for property and casualty insurance in Missouri.