Indiana car insurance costs around $1,009 annually for full coverage and $480 for minimum coverage, calculated for a 40-year-old driver with strong credit and a spotless record. Indiana ranks well nationally at 8th for full coverage and 11th for minimum coverage, offering rates 31% and 30% below average respectively.
Average Cost of Car Insurance in Indiana
Updated: October 27, 2025
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Key Takeaways
Depending on driver profile, coverage and location, car insurance costs can be between $480 and $4,488 per year on average in Indiana.
With rankings of 11th for minimum coverage and eighth for full coverage, Indiana offers some of the most budget-friendly car insurance rates in the nation.
To secure the cheapest car insurance in Indiana, start by deciding your coverage requirements, then research various companies before comparing quotes extensively.
Average Car Insurance Cost In Indiana
| Full Coverage | $84 | $1,009 |
| Minimum Coverage | $40 | $480 |
Adding comprehensive and collision coverage to liability costs an additional $529 yearly, roughly $44 per month. Premium variations occur based on individual risk factors, coverage choices and personal details.
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Average Indiana Car Insurance Cost by Category
Young drivers pay the steepest premiums in Indiana at $199 monthly for full coverage, while older vehicle owners enjoy modest additional savings at $78 monthly. Driver demographics influence Indiana's competitive car insurance market.
Adult drivers with clean records benefit from affordable baseline rates at $82 monthly for full coverage and $40 for minimum coverage. Credit-impaired drivers face elevated costs at $230 for full coverage and $104 for minimum since insurers use credit scores as risk predictors.
| Young Drivers | $98 | $199 |
| Adult Drivers | $40 | $82 |
| Senior Drivers | $59 | $112 |
| Drivers With An Accident | $57 | $120 |
| Drivers With A DUI | $75 | $163 |
| Drivers With A Speeding Ticket | $51 | $108 |
| Drivers With Bad Credit | $104 | $230 |
| Drivers With Low Income | $70 | $154 |
| Drivers With Newer Cars | $51 | $110 |
| Drivers With Old Cars | $37 | $78 |
Indiana's favorable insurance environment keeps rates reasonable across categories, though inexperience and credit factors still create substantial premium differences between driver groups.
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Average Indiana Car Insurance Cost by Company
GEICO offers the lowest full coverage rates in Indiana at $64 monthly. Auto-Owners charges $82 monthly for full coverage but provides the cheapest minimum coverage at $32 monthly.
Full coverage premiums across major insurers range from $64 to $82 monthly, a difference of up to $215 annually, depending on which carrier you choose.
| State Farm | $18 | $56 |
| American National | $22 | $56 |
| Geico | $25 | $57 |
| Grange Insurance | $24 | $73 |
| Farm Bureau | $27 | $73 |
Average Indiana Car Insurance Cost by City
Full coverage car insurance in Indiana ranges from $76 monthly in Lafayette to $114 in Gary. Your city affects your rate, whether you live in a metro area or rural town.
The $38 monthly difference between the cheapest and most expensive cities makes location-based rate shopping worthwhile, with industrial areas and cities near major metropolitan centers typically showing higher rates. Compare rates for your city below.
Data filtered by:
Advance
| Full Coverage | $81 | $970 |
| Minimum Coverage | $39 | $467 |
Is Indiana Car Insurance Expensive?
Indiana ranks 11th for minimum coverage affordability and eighth for full coverage. However, this is only an overall statistic comparing average rates for entire states, and affordability rankings for your city compared to the rest of the United States will vary widely.
Why Is Car Insurance More Affordable In Indiana?
Below we'll explore the reasons for Indiana's high car insurance rates:
Lower Rate of Uninsured Drivers
Indiana requires all auto insurance policies to include uninsured and underinsured motorist coverage at the same limits as your liability coverage, unless you reject this coverage in writing. This requirement exists because an average of 16% of drivers in Indiana don't have car insurance, meaning there's roughly a 1 in 6 chance the other driver won't have coverage if you're in an accident. With the state's rising number of uninsured drivers, this coverage has become increasingly important for financial protection.
Severe Weather Risks
Indiana is positioned as one of the regions prone to hail in the nation, with frequent occurrences of thunderstorms, hailstorms and tornadoes. Hailstones account for between 50% and 80% of homeowner insurance claims annually from severe convective storms, and hail has become an increasing contributor to claims in recent years due to frequency and severity. Comprehensive coverage is important for Indiana drivers to protect against weather-related car damage.
Moderate Healthcare Costs
Indiana operates under a traditional at-fault insurance system, meaning the driver who causes an accident is financially responsible for damages. Unlike no-fault states, Indiana drivers turn to the at-fault party's insurance for compensation after accidents. This system typically results in lower base insurance costs compared to no-fault states because drivers aren't required to carry expensive personal injury protection coverage. Indiana's fault-based approach means bad or reckless drivers end up paying more, while good, responsible drivers pay less.
Lower Insurance Fraud Rates
Indiana takes insurance fraud seriously, with violations ranging from Class A misdemeanors to Level 5 felonies depending on the severity and value involved. First-time insurance fraud convictions carry penalties of prison time with fines. Insurance companies in Indiana work directly with local, state and federal law enforcement to investigate potential fraudulent claims and collaborate with organizations like the National Insurance Crime Bureau.
Moderate Population Density
Indiana's average annual premium for full coverage auto insurance is significantly less than the national average. It's difficult to say why insurance prices are lower in Indiana, especially since the state ranks among the top half of states for uninsured drivers, population density and auto thefts. The state's competitive insurance market and cost-effective options, combined with lower population density leading to fewer accidents and claims, contribute to more reasonable insurance rates.
Lower Vehicle Theft Rates
Teenage drivers in Indiana face higher insurance costs, with 16-year-old drivers having the highest crash rate and paying substantially more annually for full coverage. Data shows that 16-year-old drivers have crash rates more than 1½ times higher than 18 to 19-year-olds, with their risk of crashing being highest in the first months of obtaining their license.
Balanced Driver Demographics
Indiana requires minimum liability insurance of 25/50/25, which includes $25,000 for bodily injury per person, $50,000 for bodily injury per accident and $25,000 for property damage per accident. The state's minimum coverage costs less than the national average. However, these minimum limits may not provide adequate protection for serious accidents, making higher coverage limits a wise consideration for most drivers.
Competitive Market Rates
Indiana law may require drivers to hold SR-22 insurance to regain driving privileges after certain violations or insurance-related suspensions. Drivers with serious traffic violations like speeding or DUI may need to file for SR-22 insurance, which can increase premiums and remains valid for three to five years from the most recent offense. The SR-22 demonstrates that you have a motor vehicle insurance policy meeting state minimum standards and can't be cancelled without prior notice to the Indiana BMV.
How to Lower Car Insurance Costs In Indiana
Below we've created a step-by-step guide to lowering your car insurance costs.
- 1Decide on coverage needs beforehand
Deciding on your coverage needs beforehand is an important step that you need to take so that you're not oversold on too much coverage. Consider your financial situation, driving habits, vehicle details and your risk tolerance when making this decision.
- 2Research costs and discounts
To save money for your particular profile, know your average costs for your desired coverage level. Research car insurance discounts you may qualify for and look into the best home and auto insurance or other bundles for the most balanced perspective.
- 3Look into company reputations and coverage options
Cost isn't everything. Consider add-on coverage options and customer experiences with different providers to help narrow down which companies you'd like to compare quotes from. Use resources like industry studies, review forums and public forums like Reddit.
- 4Compare quotes through multiple means
Compare multiple company quotes to find the best deal possible. Also, we recommend using multiple methods of getting quotes like online comparison sites and independent agents since pricing varies widely between method.
Cost of Car Insurance in Indiana: Bottom Line
Indiana car insurance costs are among the most affordable in the United States, but smart shopping can still help you save even more. Decide on coverage needs beforehand, do thorough research and compare quotes from the right insurers for your situation.
Cost of Car Insurance in Indiana: FAQ
Below are answers to frequently asked questions about Indiana car insurance costs:
How much is Indiana car insurance per month?
Per month, Indiana car insurance costs $40 for minimum coverage and $84 for full coverage policies. However, rates can range anywhere from $37 to $230 monthly depending on your unique driver profile and coverage choice.
What factors affect Indiana car insurance costs?
Primary factors include driving history, age, and location - with accidents, violations, and younger drivers facing higher rates, while urban areas cost more than rural ones.
Why is Indiana car insurance affordable?
Indiana operates a traditional at-fault system with mandatory uninsured motorist coverage, protecting against the state's 16% uninsured driver rate. The state faces frequent severe weather including hail storms and tornadoes, making comprehensive coverage valuable. Despite these risks, Indiana offers affordable rates averaging $887 annually for full coverage, well below the national average. Teen drivers face higher costs due to crash statistics.
How expensive is Indiana car insurance?
With rankings of 11th for minimum coverage affordability and eighth for full coverage, Indiana stands out as one of the more budget-friendly destinations for auto insurance across the U.S.
How We Determined Indiana Car Insurance Costs
We used the following profile and modifications of this profile to determine Indiana auto insurance costs across all available zip codes and cities in the state:
- 40-years-old
- Clean driving record
- Good credit
- 2012 Toyota Camry LE
Minimum coverage was defined as a state's minimum liability coverage and full coverage is a policy with 100/300/100 liability limits and a $1,000 deductible for comprehensive and collision coverage.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
He writes about economics and insurance, breaking down complex topics so people know what they're buying.
