Indiana car insurance

Car insurance in Indiana costs an average of $50 per month for state minimum coverage and $161 per month for full coverage in 2026. 

Indiana requires 25/50/25 liability limits, which means $25,000 per person and $50,000 per accident for bodily injury, plus $25,000 for property damage. As an at-fault (tort) state, the driver who causes an accident is financially responsible for the resulting damages.

The average car insurance cost in Indiana depends on your coverage level. Full-coverage policies average $1,936 per year ($161 per month), while state minimum liability averages $603 per year ($50 per month).

Full-coverage policies include liability, collision, and comprehensive coverage. Minimum coverage pays only for the other party's injuries and property damage when you're at fault. It does not cover your own vehicle.

Indiana's average premiums fall below the national average, making it a relatively affordable state for car insurance. Your actual rate depends on your driving history, location, age, and credit.

Indiana law requires all drivers to carry liability insurance with minimum limits of 25/50/25.¹ This means:

Indiana's $25,000 property damage minimum is at the higher end of what most states require, giving Indiana drivers somewhat more built-in protection in at-fault crashes.

Is Indiana a no-fault or at-fault state?

Indiana is an at-fault (tort) state. The driver who causes an accident is responsible for paying the other party's damages, and your liability insurance covers those costs up to your policy limits.¹

Indiana also follows a modified comparative fault rule. If you're partly at fault, your recovery is reduced by your percentage of fault, and you cannot recover damages from the other driver at all if you are more than 50% at fault.²

Your rates will likely increase after an at-fault accident. Indiana drivers with an at-fault accident pay an average of $2,748 per year, compared to $1,858 for drivers with clean records.

Is minimum coverage enough in Indiana?

A single serious accident can easily exceed Indiana's $25,000 per-person bodily injury limit or its $25,000 property damage limit, leaving you personally liable for the difference.

Consider these scenarios:

• A rear-end collision totals a $40,000 SUV, and you owe $15,000 out of pocket.

• An injury requiring surgery could exceed $100,000, and your $25,000 limit only covers a fraction.

The Indiana Department of Insurance recommends drivers consider higher limits, especially if you have assets to protect.¹

Do you need uninsured motorist coverage in Indiana?

If an uninsured driver hits you, your own policy covers your injuries and vehicle damage only if you carry uninsured motorist (UM) coverage. Nationally, 15.4% of drivers, or about one in seven, were uninsured in 2023, according to the Insurance Research Council.³

Indiana gives UM/UIM coverage a stronger legal footing than most states. Insurers must offer it at limits equal to your bodily injury liability limits, and underinsured motorist coverage cannot be sold with limits below $50,000, higher than the state's own liability minimums.⁴

The coverage is automatically part of your policy unless you reject it in writing.⁴ The Indiana Department of Insurance notes that UM/UIM coverage protects you when:¹

• An uninsured driver causes an accident.

• A hit-and-run driver can't be identified.

• The at-fault driver's coverage is insufficient for your damages.

UM/UIM coverage is worth considering, especially since it's relatively inexpensive to add. If you're injured by an uninsured driver and don't have UM coverage, your main recourse is suing the at-fault driver directly, who likely has no assets if they couldn't afford insurance.

Travelers Group and GEICO show the lowest average annual premiums in Indiana. Here's how major carriers compare:

The $2,231 gap between Travelers and Farmers shows why comparing car insurance quotes matters. Each carrier weighs risk factors differently, so the same driver profile can produce very different premiums from one insurer to the next.

The cheapest carrier for your neighbor may not be the cheapest for you. Your driving record, credit, vehicle, and location all shape which company offers your best rate.

That's why comparing quotes matters more than picking a carrier by reputation. Luva lets you compare Indiana carriers side by side using your own driver profile, so you can see which one actually prices you lowest.

Your Indiana car insurance rate depends on several factors, with your driving record having one of the largest impacts.

• Driving record: A single speeding ticket adds a roughly 33% surcharge per month to the average premium, and a DUI nearly doubles it.

• Credit history: Indiana allows insurers to use credit-based insurance scores. Indiana drivers with poor credit pay $300 a month on average, while those with excellent credit pay an average of $132.

• Age: Young drivers under 25 pay the highest rates. Luva research found that about 36% of shoppers under 25 have at least one violation on their record, compared to about 18% of shoppers 75 and older.⁵

• Vehicle type: Newer, more expensive vehicles cost more to insure. Sports cars and luxury vehicles have higher theft and repair costs.

• Deductible: Higher deductibles lower your premium but increase out-of-pocket costs after an accident.

Does location matter in Indiana?

Yes, insurers use your location as a factor when setting your premium. Rates differ by city and ZIP code based on traffic density, accident rates, theft rates, and other risk factors.

How do violations affect Indiana car insurance rates?

Violations raise Indiana premiums quickly. Here’s a look:

Beyond higher premiums, serious violations trigger Indiana BMV penalties. Driving without insurance leads to a license suspension, and reinstatement fees escalate with each offense: 

• $250 for a first suspension

• $500 for a second

• $1,000 for a third or subsequent suspension⁶

The fee is waived entirely if your suspension ended because you maintained proof of financial responsibility, such as an SR-22, for the required period.⁶

Drivers convicted of serious offenses, including DUI, must also have their insurer file an SR-22 (certificate of financial responsibility) with the BMV. The SR-22 typically stays on file for three years, though some violations without a suspension require only 180 days of continuous coverage, and a third suspension extends the requirement to five years.⁷

Finding affordable Indiana car insurance comes down to comparing your options and claiming every discount you qualify for. These steps can lower your costs:

• Compare quotes from at least three carriers. Luva shows rates side by side from multiple insurers in one place, making it easy to see how carriers rate your driver profile.

• Bundle auto and home insurance. Bundling discounts vary by carrier. Indiana Farm Bureau, for example, advertises an 18% auto discount for bundling.⁸

• Ask about discounts. Common Indiana discounts include safe driver, multi-vehicle, good student, defensive driving course, and low mileage discounts.

• Raise your deductible. According to the Insurance Information Institute, increasing your deductible to $1,000 can cut collision and comprehensive costs by 40% or more.⁹ Just make sure you can afford the higher out-of-pocket cost.

• Maintain good credit. Indiana insurers use credit-based insurance scores, so paying bills on time and reducing debt can help lower your rate over time.

• Shop annually. Rates change, and comparing quotes at renewal can uncover savings — especially if your circumstances have changed.