Indiana Auto Insurance Guide
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Indiana Minimum Auto Insurance Requirements
Indiana, like most other states, requires that all vehicles on the road are insured with at least a minimum of liability coverage. Liability, in insurance-speak, means financial responsibility.
Indiana’s minimum auto insurance requirements exist to pay for damages and injuries you may cause to others. Indiana law also requires you to buy uninsured motorist coverage, but this can be waived with a signature.
To drive lawfully in IN, you must have these coverages (or better):
- Bodily injury liability: $25,000 per person/$50,000 per accident
- Property damage liability: $25,000
- Uninsured motorist bodily injury: $25,000 per person/$50,000 per accident
- Uninsured motorist property damage: $25,000 per accident
- Underinsured motorist bodily injury: Minimum of $50,000 per person and $50,000 per accident
Note that uninsured/underinsured motorist coverages can be rejected in writing.
Key Takeaways
Indiana laws require that all vehicles are insured. As a driver, your liability coverage protects you from paying for damages or injuries you might cause. Seen from the viewpoint of a victim after an accident, these coverages help to pay medical bills or repair costs to autos, structures and belongings.
The bare minimum insurance you must carry in IN is:
- Bodily injury liability: $25,000/$50,000
- Property damage liability: $25,000
- Uninsured motorist bodily injury: $25,000/$50,000
- Uninsured motorist property damage: $25,000
- Underinsured motorist bodily injury: $50,000/$50,000 per accident
Remember, an Indiana driver can sign a waiver to reject uninsured motorist coverage. But if you’re in an accident caused by an uninsured/underinsured driver, you won’t be able to collect any funds to get car repairs or medical treatment.
Introduction to Indiana Auto Insurance Requirements
Indiana auto insurance minimums exist to protect everyone on the road. If all drivers play by the rules, and drive with adequate insurance, the financial repercussions of an accident will be minimized.
Every auto insurance company in IN will offer basic policies that include minimum liability coverages, and you can opt out of underinsured motorist coverages in IN.
Indiana minimum auto insurance coverage does not include “full coverage” for your vehicle. Coverages like collision, comprehensive, roadside aid and so on are not required by IN law, but they may be required by a lienholder (the bank that funds your auto loan.)
Indiana Auto Insurance Coverage Descriptions
Auto insurance in Indiana can be complicated, and consumers can feel intimidated by the legal phrases and paperwork associated with an auto policy. IN consumers should learn some insurance vocabulary to be able to speak with agents, law enforcement, and other drivers accurately.
Here are the terms you should know:
Property damage liability coverage: Sometimes called “PDL”, property damage liability coverage pays others for damages you may cause in an auto accident. For instance, if you accidentally rear-end another car, your liability coverage will pay the other driver for repairs. In Indiana, the PDL minimum is $25,000.
Bodily injury liability coverage: This coverage pays others for injuries you may cause in an accident. In Indiana, the minimum coverage required by law is $25,000 per person and $50,000 per accident.
Uninsured motorist coverages: These are required by law but can be waived with a signature in Indiana. These coverages pay for damages caused to you, or your vehicle, by uninsured drivers.
Those three types of auto insurance are required by Indiana law to drive a vehicle, legally. There are other auto insurance coverages which are not required by law but may be important to you (or your lienholder.) These include:
- Collision coverage: This helps to pay for repairs to your vehicle after you collide — or crash — with anything, a vehicle, a wall, a fence, etc.
- Comprehensive coverage: Pays for other types of damage, like theft or fire.
- Roadside aid: Helps to pay for emergency help, tow trucks, locksmiths etc.
Indiana Minimum Auto Insurance Requirements
Below, we take a closer look at IN minimum auto insurance requirements.
$25,000 Bodily Injury/$50,000 Bodily Injury Per Accident
Indiana drivers must carry bodily injury liability coverage, at least $25,000/$50,000 worth. $25,000 covers one person in an accident. $50,000 covers two or more people in an accident.
Many drivers feel this is not enough coverage, however, and buy extra liability when they can afford it. That’s because medical care costs have skyrocketed in recent years.
$25,000 Property Damage
This coverage helps to pay for damage you do to others’ belongings. It covers autos, homes, technology, structures, public property and more. If, for instance, you lose control of your vehicle and crash into a fence, the property damage part of your insurance policy will pay to repair the fence.
However, it will not pay to repair your vehicle. You would need collision coverage for that.
Underinsured / Uninsured Motorist Coverages in Indiana
Indiana drivers can waive these coverages, but they exist to protect you from uninsured motorists on the road. If you can afford them, they can be very helpful.
According to the Insurance Information Institute (III), nearly 16% of Indiana drivers are uninsured. To put that in perspective, next time you’re driving, know that at least one in ten drivers on the road have no insurance.
New Driving Laws in Indiana
Indiana has launched some new driving laws in 2022 and 2023.
2023: The New Indiana Turn Signal Law
In IN, drivers must use their turn signal at least 200 feet before every turn. If you’re traveling fast, like on a highway, you must try to signal at least 300 feet before your turn. You can get a ticket for turning without proper signals in IN.
2022: New Lane Changing Law
Indiana drivers must only move over one lane at a time. Crossing several lanes on a highway is dangerous, and you will get a ticket if law enforcement sees it.
Penalties for Failure to Carry Indiana Auto Insurance
Driving without insurance in Indiana is forbidden. First time offenders pay a fine of $250 to $1,000. You may also have to carry SR-22 insurance (an added certificate of insurance at an added cost) for 180 days, and your license may be suspended for 90 days.
Repeat offenders pay more and must carry SR-22 insurance longer. The fine for driving without insurance a second time is $500, and the third time, you will pay $1,000.
How to Get the Cheapest Indiana Insurance Policy
The best way to get affordable auto insurance in Indiana is to shop around every few years. Insurance companies slowly raise their rates over time, even for safe drivers with no claims history. Other companies will try to lure you to them with attractive, low rates.
Since uninsured/underinsured motorist coverages can be waived in IN, you can do that if you’re experiencing a financial crisis. Your insurance costs will decrease, but you’re assuming a significant risk. Remember, 16% of Indiana drivers have no insurance. If you are the victim of a hit-and-run accident (because that driver has no insurance), you will handle your own medical care and auto repairs.
Read More: 8 Simple Ways to Save You 90% On Your Car Insurance
Indiana State Auto Insurance Premiums
Auto insurance companies consider many factors when deciding how much to charge customers for insurance. They will consider your:
- Age and years of driving experience
- Gender
- Marital status
- Vehicle value and age
- Type of vehicle and its weight
- Claims history
- Tickets, moving violations and DUIs
- Zip code and garage location
- Auto theft statistics in your neighborhood
IN Auto Insurance Rates by Carrier
We scoured the internet to find the best IN auto insurance rates. But remember, these numbers can change a lot based on the points listed above.
| Insurer | State Minimum Cost per Year | Full Coverage Cost per Year |
| Allstate | $887 | $2,581 |
| American Family | $463 | $1,255 |
| USAA | $231 | $861 |
| GEICO | $266 | $861 |
Indiana Auto Insurance Frequently Asked Questions
Below are the most common questions we hear about auto insurance in Indiana.
Is auto insurance mandatory in IN?
Yes. Indiana laws require drivers to keep liability coverage. If you are caught driving without insurance, you will pay significant fines, lose your license for a time, and be required to carry SR-22 insurance.
What is the cheapest auto insurance in Indiana?
Our research suggests GEICO may offer the most affordable rates for safe drivers who call Indiana home. However, rates can change from time to time, and insurers consider many points when deciding on your auto insurance premiums.
How often should one shop for auto insurance?
If you shop around every few years, you will save money.
Do I need full coverage auto insurance in Indiana?
No. No there is no Indiana law which requires you to maintain full coverage auto insurance. However, you might feel more comfortable knowing your vehicle is protected from issues like theft, wind, hail, fire, and so on.
Indiana Regulating Agencies and References
Indiana Bureau of Motor Vehicles (BMV)
Indiana Department of Insurance
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