Car Insurance Requirements in Indiana (2024)

Indiana drivers need $25,000 in bodily injury coverage per person ($50,000 per accident) and $25,000 in property damage insurance.

Michelle Lambright Black
Michelle Lambright Black

Michelle Lambright Black is a credit expert, freelance writer, and founder of CreditWriter.com. She has over 20 years of experience writing and speaking about credit and money, and focuses on helping families and small business owners make smart, informed decisions about their credit, money, and financial products (including insurance). Michelle's work has appeared in publications such as Yahoo! Finance, Reader's Digest, Parents, FICO, Forbes, Bankrate, The Seattle Times, MarketWatch, BuySide from Wall Street Journal, USA Today, and more. She's also a three-time finalist for the best personal finance freelancer award from the Plutus Foundation. When she isn't writing or speaking about credit and money, Michelle loves to travel with her family or read a good book. You can connect with Michelle on Instagram or Twitter

Danny Smith
Edited byDanny Smith
Photo of an Insurify author
Danny Smith
  • Licensed auto and home insurance agent

  • 4+ years in content creation and marketing

As Insurify’s home and pet insurance editor, Danny also specializes in auto insurance. His goal is to help consumers navigate the complex world of insurance buying.

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Updated February 1, 2024 at 11:00 AM PST

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Car insurance requirements vary on a state-by-state basis. But in nearly every state, you must carry a minimum amount of car insurance to comply with the law.

If you want to avoid fines, license suspension, or other potential negative consequences, it’s critical to learn and follow the car insurance requirements for your state.

Quick Facts
  • Indiana is an at-fault state for car insurance.

  • High-risk drivers can find car insurance through the Indiana Auto Insurance Plan.

  • Indiana drivers must carry liability insurance to legally operate a vehicle.

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Indiana car insurance requirements

The minimum liability car insurance requirement in Indiana is 25/50/25, meaning Indiana drivers must have at least $25,000 in bodily injury coverage per person, $50,000 in total bodily injury coverage per accident, and $25,000 in property damage insurance per accident.[1]

Here’s a closer look at the protection this type of coverage provides.

Bodily injury liability insurance

When you’re in an at-fault car accident, bodily injury liability insurance covers the medical bills for physical injury. On top of medical expenses, this type of coverage could also pay for legal fees if an injured person files a lawsuit against you.

Indiana law requires drivers to carry the following minimum amount of bodily injury liability insurance:

  • $25,000 in bodily injury coverage per person

  • $50,000 in bodily injury coverage per accident

Property damage insurance

Property damage liability insurance is another type of mandatory coverage in most states, including Indiana. This type of insurance covers damage that you (or other drivers operating your car) cause to another motor vehicle in an accident. It can also help pay for damage that you or other drivers of your vehicle cause to property like buildings, fences, and signs.[2]

Indiana requires drivers to carry the following minimum amount of property damage insurance:

  • $25,000 per accident for property damage or destruction

Uninsured/underinsured motorist

Car insurance companies must also include uninsured/underinsured motorist coverage in every new Indiana auto insurance liability policy. Indiana drivers can decline this type of coverage but must do so in writing.[3]

Uninsured and underinsured motorist coverage can protect you if someone without insurance (or without enough insurance coverage) causes a car accident that injures you, your passengers, or damages your property. With this type of coverage, you can collect damages from your insurance company if you’re in a covered accident.

If you carry it, the minimum liability limits for uninsured motorist coverage in Indiana are as follows:

  • $25,000/$50,000 for bodily injury (uninsured motorists)

  • $25,000 for property damage (uninsured motorists)

  • $50,000 for bodily injury (underinsured motorists)

Important Information

While you might save a little money on your monthly insurance premium if you waive this coverage, you’ll be putting yourself in a risky financial position. If you’re ever in an accident with someone who doesn’t have insurance or doesn’t have enough insurance to pay for your losses, you’ll be financially responsible.

Indiana Auto Insurance Plan

Although having car insurance is a requirement, not every car insurance company has to approve your application for coverage. If an insurance company considers you high risk due to your driving record, credit rating, the car you drive, or other factors, it could turn you down when you apply for an auto insurance policy.[4]

On a positive note, Indiana drivers have a resource if they’re turned down for car insurance coverage: the Indiana Auto Insurance Plan (INAIP). You can apply for this specialty insurance plan through any insurance agent in the state.[4]

To be eligible for coverage, you must:

  • Show proof of denial from at least three Indiana auto insurance companies

  • Have a valid driver’s license

  • Have a vehicle registered in Indiana

Do you need more than the state minimum coverage in Indiana?

No. The state’s minimum insurance is exactly that: the minimum amount of insurance you must have. In general, insurance professionals will encourage you to buy more coverage if you can afford to do so. Otherwise, you leave yourself exposed to many potential risks when you and others are behind the wheel of any vehicle you own.

If you cause a car accident that injures others or causes property damage that exceeds your policy limits, you’d be responsible for paying additional costs out of your own pocket. And medical expenses and car repairs can be expensive. 

Good to Know

The average cost of a car accident involving a death is nearly $1.8 million, according to the National Safety Council. Car crashes involving injuries ranged in cost from $24,000 to $155,000 depending on severity.[5]

Minimum coverage is typically only something to consider if you can’t afford better protection. But it’s important to understand that if you’re in an accident, being underinsured could put you in a financial bind later. Even if you don’t want full coverage because your vehicle is older or due to another factor, minimum coverage could still leave you financially vulnerable.

If you want to fully protect your car and finances, even if you’re at fault, full coverage is worth considering. Full-coverage car insurance includes all state minimum requirements plus collision and comprehensive coverage. Personal injury protection (PIP) isn’t part of Indiana’s minimum-coverage requirements, so full-coverage policies may also include this coverage.

The cost of liability-only car insurance in Indiana

Indiana drivers can purchase minimum-liability car insurance for an average of $69 per month.

Yet rates vary among insurance companies, and the details from your application could also affect your premiums. Therefore, it’s smart to shop around and compare quotes from insurance companies in your area.

The below rates are estimated rates current as of: Thursday, February 1 at 11:00 AM PST
Insurance CompanyAverage Monthly Quote
Auto-Owners28
State Farm29
USAA31
GEICO32
American Family43
Clearcover44
Progressive55
Travelers58
National General58
Farmers61
Dairyland63
Allstate69
Direct Auto69
GAINSCO70
Midvale Home & Auto70
Safeco71
The General76
Nationwide76
Liberty Mutual77
Elephant78
CSAA91
Bristol West94
State Auto104
Foremost113
AssuranceAmerica114
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.

The cost of full-coverage car insurance in Indiana

Full-coverage car insurance provides you with more financial protection in the event of an accident — even accidents that are your fault. In addition to collision coverage, which can cover your vehicle when you’re in an accident with another vehicle or object, full coverage includes comprehensive coverage. This type of insurance could protect you from losses resulting from vandalism or theft and natural disasters like hail or floods.

Drivers in Indiana pay an average of $137 for full-coverage insurance. However, it’s smart to shop around and compare rates from different insurance companies to make sure you get the best deal available for the type of coverage you want.

The below rates are estimated rates current as of: Thursday, February 1 at 11:00 AM PST
Insurance CompanyAverage Monthly Quote
Auto-Owners52
State Farm55
USAA58
Clearcover60
GEICO61
American Family81
Travelers93
Progressive102
Direct Auto102
Midvale Home & Auto110
Nationwide113
Farmers113
Elephant115
GAINSCO122
National General123
Allstate129
Safeco130
AssuranceAmerica157
CSAA162
Dairyland167
The General168
Liberty Mutual168
Bristol West199
State Auto208
Foremost223
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.

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Penalties for driving without proof of insurance in Indiana

Indiana doesn’t take it easy on drivers who get caught operating a vehicle without insurance. The Indiana Bureau of Motor Vehicles (BMV) may request proof that drivers have current minimum liability insurance at any time.

The Indiana BMV is required to request proof of insurance under several circumstances. So, if you’re ever in an auto accident or a serious traffic violation, there’s a chance you might have to submit proof of insurance to the BMV.[1]

If the BMV sends you a request for proof of insurance, it’s important to notify your insurance company right away. Your insurance company must send the BMV proof of your current insurance policy within 90 days. This is called a certificate of compliance, or COC.

Below are some consequences you could face if you don’t provide proof of insurance to the Indiana BMV upon request:

  • Suspension of driving privileges: If the BMV doesn’t receive your COC within 90 days, the state will suspend your driving privileges. To remove this suspension from your driving record, your insurance company can submit an electronic copy of your COC showing you had insurance on the date of the accident or incident.

  • Take out an SR-22 insurance policy: If your driving privileges are suspended due to insurance violations and can’t be reinstated right away, you might have to apply for an SR-22 insurance policy. In this scenario, you may need to keep an SR-22 certificate for 180 days before becoming eligible to apply for a standard auto insurance policy again.[1]

Optional car insurance coverages to consider

Indiana state law requires drivers to carry a minimum amount of liability insurance. But it’s a good idea to consider additional types of car insurance coverage as well:

  • illustration card https://a.storyblok.com/f/162273/x/169fdfde11/liability-coverage.svg

    Collision coverage

    Collision coverage can help you repair or replace your vehicle when you’re in an accident with another vehicle or object and at fault.

  • illustration card https://a.storyblok.com/f/162273/x/665da91bf7/comprehensive-coverage.svg

    Comprehensive coverage

    Comprehensive insurance provides coverage for your personal vehicle for damages outside of your control. Theft, vandalism, falling trees, fire, or hail are a few examples of damages that this type of insurance policy could cover.

  • illustration card https://a.storyblok.com/f/162273/x/e30eeeebc5/personal-injury-protection.svg

    Personal injury protection (PIP) coverage

    Personal injury protection (PIP) coverage can help you pay for medical and other injury-related expenses for yourself and passengers after a car accident. Medical bills, lost income, child care costs, and funeral expenses are examples of some of the costs PIP might cover.

  • illustration card https://a.storyblok.com/f/162273/x/abffe6238f/financial-protection.svg

    Gap coverage

    Gap insurance — short for guaranteed asset protection insurance — can help you pay off a financed vehicle if your car is in an accident or stolen and you owe more than the vehicle is worth.

Indiana car insurance requirements FAQs

Below, you’ll find answers to some of the most common questions regarding Indiana car insurance requirements.

  • Is car insurance required in Indiana?

    Yes. Indiana state law requires drivers to maintain a minimum amount of liability car insurance to operate a motor vehicle. State insurance minimums are $25,000 in bodily injury liability insurance per person ($50,000 per accident) and $25,000 in property damage liability insurance.

  • Does Indiana require collision insurance?

    No. Indiana doesn’t require drivers to take out a collision insurance policy to operate a motor vehicle. Nonetheless, having collision coverage on your vehicle may be a good idea from a financial standpoint.

  • Do you need car insurance to register a car in Indiana?

    Yes. When you register your vehicle with the Indiana Bureau of Motor Vehicles (BMV), you’ll need to provide a list of documents. One of those documents is proof of insurance.[6]

  • Do you need an Indiana driver’s license to get Indiana car insurance?

    No. You don’t need an Indiana driver’s license to get Indiana car insurance. However, certain restrictions may apply.

  • Does insurance follow the car or the driver in Indiana?

    It depends. Liability insurance may follow both the car and the driver in Indiana. That means if you give a family member or friend permission to drive your vehicle, your liability coverage should become available if an accident occurs. And if you’re driving a rental car, your liability coverage should kick in to cover you if you get into an accident as well.[7]

Methodology

Insurify data scientists analyzed more than 90 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 50+ 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
Full-coverage premium averages correspond to the same bodily injury and property damage limits in addition to:
  • 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

  1. Indiana Bureau of Motor Vehicles. "Proof of Financial Responsibility." Accessed October 17, 2023
  2. Insurance Information Institute. "Auto insurance basics—understanding your coverage." Accessed October 17, 2023
  3. Indiana Department of Insurance. "Auto Insurance." Accessed October 17, 2023
  4. Insurance Information Institute. "What if I can't find auto coverage?." Accessed October 17, 2023
  5. National Safety Council. "Costs of Motor-Vehicle Injuries." Accessed October 17, 2023
  6. Indiana Bureau of Motor Vehicles. "Interactive Guide: How to Title & Register a Vehicle." Accessed October 17, 2023
  7. Nolo. "Indiana Auto Insurance Requirements and Laws." Accessed October 17, 2023
Michelle Lambright Black
Michelle Lambright Black

Michelle Lambright Black is a credit expert, freelance writer, and founder of CreditWriter.com. She has over 20 years of experience writing and speaking about credit and money, and focuses on helping families and small business owners make smart, informed decisions about their credit, money, and financial products (including insurance). Michelle's work has appeared in publications such as Yahoo! Finance, Reader's Digest, Parents, FICO, Forbes, Bankrate, The Seattle Times, MarketWatch, BuySide from Wall Street Journal, USA Today, and more. She's also a three-time finalist for the best personal finance freelancer award from the Plutus Foundation. When she isn't writing or speaking about credit and money, Michelle loves to travel with her family or read a good book. You can connect with Michelle on Instagram or Twitter

Danny Smith
Edited byDanny Smith
Photo of an Insurify author
Danny Smith
  • Licensed auto and home insurance agent

  • 4+ years in content creation and marketing

As Insurify’s home and pet insurance editor, Danny also specializes in auto insurance. His goal is to help consumers navigate the complex world of insurance buying.

Featured in

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Compare Car Insurance Quotes Instantly

Secure. Free. Easy-to-use.
Based on 3,806+ reviews
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