Indiana Minimum Coverage Car Insurance: Requirements and Costs (2024)

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Updated: May 20, 2024

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Drivers in Indiana must meet the minimum car insurance requirements, which include bodily injury liability of $25,000 per person and $50,000 per accident and property damage liability of $25,000 per accident. Indiana operates under an at-fault system, meaning the driver who is responsible for an accident is also responsible for covering the damages.

The cost of meeting the state minimum for car insurance varies, but Indiana drivers can find policies at an average monthly premium of just $30. You can compare options and find the cheapest car insurance in Indiana, which matches your needs.

Why Trust MoneyGeek? MoneyGeek analyzed data from Quadrant Information Services and the Indiana Department of Insurance to give you the most accurate cost data for a range of Indiana drivers.

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These rates reflect the cost of minimum coverage car insurance requirements in Indiana as of June 2024.

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Indiana Minimum Coverage Car Insurance Requirements

In Indiana, the law requires you to carry minimum coverage auto insurance to legally operate a vehicle. The coverage requirements are as follows:

  • $25,000 for bodily injury liability per person
  • $50,000 for bodily injury liability per accident
  • $25,000 for property damage liability per accident

The type of insurance system — fault versus no-fault — can significantly influence your insurance premium. Indiana is a fault state, meaning that the driver who is found to be responsible for an accident is liable to pay for the bodily injuries and property damage resulting from the accident.

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Indiana does not mandate drivers to carry collision or comprehensive coverage as part of its minimum coverage auto insurance requirements. However, financing or leasing companies typically require these coverages. Collision insurance covers damages to your car from accidents, while comprehensive insurance protects against non-collision events such as theft or natural disasters. If you're financing or leasing a car in Indiana, you'll likely need to secure collision or comprehensive insurance.

What Does Minimum Coverage Cover?
What Liability Insurance Covers
What Liability Insurance Doesn't Cover

Injuries to others if you are at fault in an accident

Your injuries

Damage to another person’s property if you are at fault in an accident

Damages to your car

Some coverage for injuries caused by uninsured/underinsured drivers, depending on your policy

Repairs for weather-related accidents or if you were hit by an animal

Property damage caused by uninsured/underinsured drivers unless additional coverage is purchased

The table reflects Indiana's minimum car insurance requirements, including bodily injury and property damage coverage. Specific coverage details depend on an individual's policy terms and conditions.

Average Cost of Minimum Coverage Car Insurance in Indiana

Age is a factor that influences the cost of minimum coverage car insurance. In Indiana, younger drivers, specifically those aged 22 to 29, tend to face the highest premiums due to their relative inexperience behind the wheel, which is statistically linked to more frequent accidents. The table provided outlines the average cost for minimum coverage car insurance in Indiana by age group.

22-29Annual Premium$416Monthly Premium$35
30-59Annual Premium$354Monthly Premium$30
60 +Annual Premium$361Monthly Premium$30

Cheapest Companies for Minimum Coverage Car Insurance in Indiana

In Indiana, you can find cost-effective minimum coverage auto insurance from Auto-Owners and Westfield; these have the most affordable rates.

  • Auto-Owners: $238 per year and $20 per month
  • Westfield: $285 per year and $24 per month

While affordability is key, you should search for the best car insurance in Indiana, which meets your needs.

Data filtered by:Results filtered by:
Age Group:
Age Group:30-59
Auto-Owners Insurance CoAnnual Premium$238Monthly Premium$20
WestfieldAnnual Premium$285Monthly Premium$24
American FamilyAnnual Premium$324Monthly Premium$27
ProgressiveAnnual Premium$342Monthly Premium$29
TravelersAnnual Premium$371Monthly Premium$31
Indiana Farm BureauAnnual Premium$380Monthly Premium$32
Grange InsuranceAnnual Premium$382Monthly Premium$32
GEICOAnnual Premium$403Monthly Premium$34

Optional Add-On Coverages in Indiana

In Indiana, available optional add-on coverages include comprehensive, collision, uninsured/underinsured motorist coverage, medical payments and roadside assistance. These options provide financial protection against a variety of incidents beyond state minimum requirements. Understanding how much car insurance you need can ensure adequate protection for all drivers.

Add-On Coverage
What It Covers
What It Doesn't Cover

Uninsured/Underinsured Motorist Coverage

Medical expenses, lost wages and repair costs if you're hit by a driver with no or insufficient insurance.

Damage to your vehicle if you are at fault or damages that exceed policy limits.

Personal Injury Protection (PIP)

Medical expenses, lost income and funeral costs for you or your passengers regardless of who's at fault.

Vehicle damage or injuries to the other driver.

Roadside Assistance

Services like towing, flat tire changes and jump-starts when your car breaks down.

Cost of parts or repairs needed after the tow.

Gap Insurance

Pays the difference between your car's current value and what you still owe if it's totaled or stolen.

Vehicle depreciation or overdue loan payments.

Rental Car Reimbursement

The cost of a rental car while your vehicle is being repaired after a covered event.

Fuel, insurance or other rental extras.

Penalties for Driving Without Insurance in Indiana

The cost of a ticket for driving without insurance in Indiana can vary significantly depending on whether it's your first offense or if you've been caught driving uninsured before. For a first offense, the penalties may include fines and a potential license suspension. Subsequent offenses often lead to harsher consequences, including higher fines and longer suspension periods.

  • License suspension and reinstatement fee: Your driving privileges can be temporarily revoked, and you'll have to pay to get them back.
  • Vehicle impoundment with associated fees: Your car could be taken away, and there are costs to retrieve it.
  • Vehicle registration suspension: You might lose the right to legally have your car on the road.
  • SR-22 requirement: You may have to provide proof of future financial responsibility for a specified duration.
  • Up to six months in jail if uninsured in an accident: If you're in a collision while uninsured, serious legal consequences like jail time are possible.

Always ensure your vehicle is insured to avoid these penalties and drive safely and responsibly.

What to Do if Your Policy Is Canceled

If your car insurance policy is canceled in Indiana, it's essential to obtain new coverage immediately and refrain from driving until you're insured again. You should contact your insurance agent to understand why your policy was canceled and discuss your options for securing new coverage.

The Indiana BMV will be notified if you’re uninsured due to the state's electronic insurance reporting system. For drivers struggling to find insurance after a cancellation, Indiana does not directly offer a program to find minimum coverage auto insurance. However, you can research through various insurers who specialize in high-risk policies or consider the Indiana Auto Insurance Plan. In Indiana, it's mandatory to maintain at least the state minimum coverage.

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Your car insurance policy in Indiana may have been canceled for a few reasons:

  • Non-Payment: If you don't pay your premiums on time, the insurance company can cancel your coverage.

  • License Suspension: If your driver's license gets suspended, you lose your eligibility for car insurance.

  • Fraud: Lying on your insurance application or about a claim can lead to cancellation.

  • Too Many Accidents or Traffic Violations: This can make you a high-risk driver, and the insurer might not want to cover you.

Remember, you must have minimum coverage to drive legally in Indiana. If your policy is canceled, you should find new insurance quickly to avoid penalties.

FAQ: Indiana Minimum Coverage Car Insurance

Here, we provide clear answers to commonly asked questions about the mandatory coverage needed to drive in Indiana.

What is the minimum car insurance coverage in Indiana?
Why does Indiana require minimum automobile liability coverage for motorists?
Do you need comprehensive insurance in Indiana?
What happens if you drive uninsured in Indiana?

About Mark Fitzpatrick

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Mark Fitzpatrick has analyzed the property and casualty insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. Currently, he leads P&C insurance content production at MoneyGeek. Fitzpatrick has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.

Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.