Cheapest Liability Car Insurance in Indiana (2026)

What is liability car insurance?

Liability insurance helps you pay for damages if you cause a car accident. It’s composed of two parts:

• Bodily injury liability: Pays medical bills for pedestrians or passengers in other cars

• Property damage liability: Pays for damage to other people’s belongings, including damage to their car

Importantly, liability coverage doesn’t protect you or your own car at all. For that, you’ll need to buy full coverage, which adds two policies to protect your vehicle: collision coverage and comprehensive coverage. If you’re paying off or leasing your car, your lender will require you to buy full coverage.

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Liability quotes in Indiana start at $35/mo.

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Cheapest liability car insurance in Indiana 

The average cost of car insurance in Indiana is $65 per month for a minimum liability policy and $128 for full-coverage car insurance. 

Your exact car insurance premium may be higher or lower depending on factors such as your age, driving record, car type, and more. Another big factor is which insurance company you choose because every insurer weighs factors differently. 

This table shows the cheapest car insurance quotes from different insurers in Indiana:

The below rates in Indiana are estimated rates current as of: Sunday, May 31 at 5:00 PM PDT. 

Insurance Company	Average Monthly Quote: Liability Only
Auto-Owners	$35
State Farm	$36
Progressive	$39
USAA	$39
GEICO	$40
First Chicago	$41
National General	$48
Direct Auto	$51
American Family	$54
First Acceptance	$56
The General	$57
Trexis	$58
Hugo	$59
Safeco	$59
AssuranceAmerica	$61
Dairyland	$61
Root	$61
Trexis One	$62
GAINSCO	$64
Liberty Mutual	$69
Elephant	$72
Travelers	$72
Mendota	$73
CSAA	$75
Bristol West	$76
Farmers	$76
Allstate	$86
Insurify Car	$93
Nationwide	$95
State Auto	$180

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.

Minimum liability car insurance requirements in Indiana

Under Indiana car insurance laws, you must carry a policy with limits of at least 25/50/25. Here’s what that includes:^[1]

Type of Insurance	Minimum Limit	Type of Insurance
Bodily injury	$25,000 per person / $50,000 per accident	Bodily injury
Property damage	$25,000 per accident	Property damage

Indiana also requires all new policies to include uninsured/underinsured motorist (UM/UIM) coverage unless you reject it in writing.^[2]

This minimum amount of coverage only covers other people if you cause an accident. If someone causes an accident and hits you, their liability insurance would cover you. But unless you have full coverage, you’ll be on the hook to pay for damage to your own car in many cases, such as:

• Hitting a deer

• Fixing your windshield after a hailstorm

• Paying off your car loan if you total your vehicle in an at-fault accident

Is minimum liability coverage enough in Indiana?

Buying a policy with minimum coverage means you’ll pay the cheapest rates while staying road-legal in Indiana. But in many cases, you’ll either want or need to purchase higher coverage limits, or even a full-coverage auto insurance policy:

• If you lease or are paying off your car, you’ll need to buy full coverage.

• If you want coverage through other insurance products, like MedPay, UM/UIM coverage, or gap insurance.

• If you have a lot of assets you could lose in a car accident lawsuit, you might consider higher coverage limits.

Things can get expensive if you’re behind the wheel in an at-fault accident. The national average claim for bodily injury in 2024 was $28,278, for example.^[3] In this case, Indiana’s minimum coverage won’t fully cover the amount you’d have to pay.

Penalties for driving without liability insurance in Indiana

Car insurance isn’t always affordable for everyone, and it can be tempting to go without. But if you’re caught, or worse, get into an accident, the consequences could be far more dire.

If you’re caught driving uninsured in Indiana, the state will suspend your driver’s license indefinitely until you take steps to get it back.^[4] To do this, you’ll need to purchase SR-22 insurance and maintain it for 180 days. Choose an insurance company you like, because during this time, you won’t be able to change insurers. You’ll need to maintain the insurance policy.

You can start driving again as soon as you have SR-22 coverage, although technically, your license is still suspended. The state will put a temporary stay on your suspension during this period, allowing you to drive. After the 180 days are up, your license will be fully reinstated, and you’re free to swap car insurance companies.^[5]

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How to find cheap liability car insurance in Indiana

Indiana already has some of the cheapest car insurance rates in the nation, according to Insurify data. But it’s possible to find even lower auto coverage costs if you know what moves to make. Here are a few ideas:

Choose a higher deductible

If you have collision and comprehensive coverage, increase your insurance deductible to the highest amount you can comfortably afford to pay if you need to file a claim.



Maintain healthy credit

Work on keeping your credit history healthy, since Indiana companies may use it when setting your insurance premiums.^[6]



Look for discounts

Look for companies offering car insurance discounts for bundling different insurance products (renters and auto, for example).



Compare quotes

Get insurance quotes from at least three insurance companies every six months to make sure you’re currently paying the cheapest rates.



Try telematics programs

Ask your insurance agent if the company offers a telematics app or device that records your driving to help you get lower rates.



Keep a clean record

Practice safe driving at all times; if you can avoid a ticket for speeding, causing an accident, or operating a vehicle while intoxicated (OWI), you can avoid big rate hikes for being a high-risk driver. A violation in Indiana puts points on your record that stay there for at least two years.^[7]

Liability car insurance in Indiana FAQs