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


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Updated: September 30, 2024

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Drivers in Indiana must meet the state minimum coverage 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 follows an at-fault system, meaning the driver who causes the accident pays for the damage.

The cost of meeting Indiana’s minimum car insurance requirements varies, but drivers can find policies for an average of $34 per month. Compare options to find the cheapest car insurance in Indiana that fits your needs.

Why Trust MoneyGeek? MoneyGeek analyzed data from Quadrant Information Services and the Indiana Department of Insurance to get the most accurate cost data for various Indiana drivers.

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

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Indiana Minimum Coverage Car Insurance Requirements

In Indiana, the law requires you to carry minimum coverage auto insurance to operate a vehicle legally. 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 vs. no-fault — can significantly influence your insurance premium. Indiana is a fault state, meaning that the driver found responsible for an accident is liable to pay for the bodily injuries and property damage resulting from the accident.

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ARE COLLISION AND COMPREHENSIVE COVERAGE REQUIRED IN INDIANA?

Indiana doesn't 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 damage 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 vehicle 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're at fault in an accident

Your injuries

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

Damage 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 or 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 affects the cost of minimum coverage car insurance. In Indiana, younger drivers, especially those aged 22 to 29, typically pay the highest premiums due to their higher risk and accident rates.

The table below shows Indiana's average cost of minimum coverage by age group and how rates change with age.

22-29Annual Premium$477Monthly Premium$40
30-59Annual Premium$404Monthly Premium$34
60 +Annual Premium$411Monthly Premium$34

Cheapest Companies for Minimum Coverage Car Insurance in Indiana

In Indiana, you can find cost-effective minimum coverage auto insurance from these companies:

  • Westfield: $256 per year; $21 per month
  • American Family: $320 per year; $27 per month

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

Data filtered by:Results filtered by:
Age Group:
Age Group:30-59
WestfieldAnnual Premium$256Monthly Premium$21
American FamilyAnnual Premium$320Monthly Premium$27
Auto-Owners Insurance CoAnnual Premium$340Monthly Premium$28
ProgressiveAnnual Premium$341Monthly Premium$28
TravelersAnnual Premium$353Monthly Premium$29
GEICOAnnual Premium$381Monthly Premium$32
State FarmAnnual Premium$402Monthly Premium$34
Indiana Farm BureauAnnual Premium$418Monthly Premium$35
NationwideAnnual Premium$430Monthly Premium$36
Grange InsuranceAnnual Premium$461Monthly Premium$38
AllstateAnnual Premium$546Monthly Premium$45
FarmersAnnual Premium$600Monthly Premium$50

Optional Add-On Coverages in Indiana

In Indiana, the available optional add-on coverages include comprehensive, collision, uninsured/underinsured motorist coverage, medical payments and roadside assistance. These options provide financial protection against various 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're at fault or damage that exceeds 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 have 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.

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 specializing 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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WHY WAS MY POLICY CANCELED?

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 promptly to avoid penalties.

FAQ: Indiana Minimum Coverage Car Insurance

Get answers to common questions about the mandatory minimum coverage for car insurance 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 is a Licensed Property and Casualty Insurance Producer and MoneyGeek's Head of Insurance. He has analyzed the insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. He 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.