Guide to Car Insurance in Indiana

Indiana only requires liability coverage, which comprises bodily injury coverage and property damage coverage.

Minimum Limits

These are the minimum coverage limits you need in Indiana:

• Bodily injury liability: $25,000 per person, $50,000 per accident
• Property damage liability: $25,000¹

Penalties for Driving Without Insurance

Of course, not everyone is as law-abiding as you are. Some people take the risk and drive without insurance. These are the legal penalties for driving without insurance in Indiana:

• First offense: License suspension for 90 days to a year, $150 reinstatement fee, three years of carrying an SR-22, proof of minimum insurance (more on this topic below)
• Second offense: License suspension for a year, $225 reinstatement fee, registration suspension of a year maximum, three-year SR-22
• Third and subsequent offenses: One-year license suspension, $300 reinstatement fee, registration suspension of a year maximum, three-year SR-22²

Liability coverage isn’t enough to protect you, as it only applies to the other party’s injuries and property damage in at-fault accidents (accidents you caused). In other words, if you only had liability coverage, your injuries and damages wouldn’t be covered.

Indiana’s limits are relatively low, which certainly contributes to its affordable insurance. However, we recommend getting liability limits of $500,000 for both property damage and bodily injury coverage.

But how much car insurance do you need overall? Aside from what’s required, you should consider some additional coverage options.

We recommend getting full coverage, which includes liability coverage and adds on collision, comprehensive, medical payments coverage, and uninsured/underinsured motorist coverage. Let’s discuss all of the necessary coverages and the limits we suggest (if you can afford them).

• Collision coverage: Collision coverage covers your property damages from collisions that were your fault. That includes crashes with other cars as well as pothole coverage. Your coverage limit will be your car’s actual market value.
• Comprehensive coverage: Comprehensive coverage covers your property damages from incidents other than collisions. Think hail, floods, fires, car theft, vandalism, etc. As with collision insurance, your comprehensive limit is your car’s actual market value.
• Medical payments coverage: Medical payments coverage covers your injuries in at-fault accidents, so you should match your limit with your bodily injury limit.
• Uninsured/underinsured motorist coverage: If you get into a car accident with someone with insufficient or no insurance, this will cover your bodily injuries and property damage. Keep it at $500,000 to match your liability limits.

Indiana is one of the most affordable places to buy car insurance, with annual costs 27 percent lower than the national average. The average car insurance policy costs $766 annually, according to the most recent data from 2020.

But that’s just an average. We’ve seen ranges from $273 all the way up to $4,808 for 16-year-old drivers, as there are many factors that affect car insurance rates. For example, your driving record, speeding tickets, age, and ZIP code will affect your car insurance premium. Young drivers pay a higher average rate, for example.

Of course, drivers in Indiana can’t know their exact cost until they get an insurance quote from a licensed agent or broker.

If you’re looking for car insurance in Indiana, you can choose from the following providers:

• Allstate
• American Family Insurance
• Amica
• Auto-Owners
• Erie
• Esurance
• Farmers
• GAINSCO
• GEICO
• Indiana Farm Bureau
• MAPFRE
• National General
• Nationwide
• Progressive
• State Farm
• The General
• Travelers
• USAA

Looking for cheap car insurance? Join the club. Here are some ways to get there:

1. Bundle your car insurance with another type of insurance you already pay for, like renters insurance.
2. Raise your deductible (but make sure you could still afford to pay it tomorrow if you have a covered claim).
3. Lower your limits.
4. Drop coverages that aren’t required by law. For example, an older car probably doesn’t need comprehensive coverage, as the repairs would likely cost more than the car’s actual market value, making it a total loss.
5. Ask your insurance agent for car insurance discounts. Even an action as simple as enrolling in paperless billing can save you money with some carriers.

In Indiana, you need not only insurance, but also proof of insurance while you’re driving.

Penalties for Not Having Proof of Insurance

If you lack proof of insurance, you could face license and registration suspensions, reinstatement fees, and SR-22s. An SR-22 is proof that you have the minimum insurance required. If your license is suspended because you don’t have proof of insurance, you’ll need to carry an SR-22 for three years after the suspension ends.

That proof can be either a physical insurance ID card or a digital one. See if your insurance provider has a mobile app or lets you download digital versions of your insurance ID.

Now that you have your car insurance down pat, it’s time to learn the rules of the road.

At-Fault State

Most importantly, you should know that Indiana is an at-fault state, meaning the at-fault party in an accident pays for the other party’s injuries and property damages. Since Indiana has modified comparative negligence laws, the victim can only recover money if they’re at less fault than the defendant. If the victim is over 50 percent at fault, they can’t recover anything.

Uninsured Motorists

Remember those uninsured motorists we talked about? An estimated 16 percent of Indiana drivers are uninsured, 30 percent higher than the national average of 12 percent. That’s 725,126 uninsured motorists on the roads every day!⁴

Fortunately, Indiana is a stacked state, meaning that if you have multiple cars on your policy, you can “stack” your uninsured/underinsured motorist coverage. So if you had a limit of $100,000 with three cars, that limit would multiply to $300,000 — yet another reason to get this type of coverage.

Fortunately, Indiana is a stacked state, meaning that if you have multiple cars on your policy, you can “stack” your uninsured/underinsured motorist coverage. So if you had a limit of $100,000 with three cars, that limit would multiply to $300,000 — yet another reason to get this type of coverage.

DUIs

The effect of DUIs on car insurance is staggering. In Indiana, DUIs will stay on your record for five years. For your first offense, your license will be suspended for 180 days, although you could have limited driving privileges throughout your suspension, like driving to work.

If your blood alcohol concentration is 0.15 percent or higher, you could receive even higher penalties, and those with repeat convictions will need to install DUI interlocks. The court will determine how long you need to have a DUI interlock installed, but it can’t exceed your maximum prison sentence, if any.⁵

Seat Belts

In Indiana, everyone 16 and older must wear seat belts. This law is under primary enforcement, meaning that the police can stop you solely for not wearing a seat belt.⁶ In other words, if you’re driving through the Hoosier State, click it or ticket.

Distracted Driving

Indiana takes a similarly strong stance on distracted driving, with a complete ban on handheld devices for drivers of all ages. You could get pulled over for texting and driving alone, as this law is also under primary enforcement. If you get caught using a handheld device while driving, you could face a fine of $500 for the first offense, plus two points for each offense. The point is, your text can wait.

Teen Drivers

The following ages can receive a probationary license in Indiana.

• Minimum age if you have completed an approved driver’s education program: 16 years and 90 days
• Minimum age if you haven’t completed an approved driver’s education program: 16 years and 270 days
• Maximum age: 21 years and 30 days

However, you’ll need to have had the following to get the probationary license:

• Learner’s permit for at least 180 days
• If you’re under 18, at least 50 hours of supervised driving with either a licensed instructor, a licensed driver at least 25 and related to you, or a spouse age 21 or older
• If you’re over 18, at least 50 hours of supervised driving with any licensed driver at least 25 or a spouse over 21
• At least 10 hours of nighttime driving with one of the above types of licensed drivers

Claims Statutes of Limitations

Now that you’re a licensed driver, you should know that you have two years to submit both property damage and personal injury claims in Indiana. If you wait past the state’s statute of limitations, your claim will be denied.⁷

Cancellation and Non-Renewal Notification Laws

Once you sign up for auto insurance, your provider can’t cancel your policy for just any reason. It can only cancel in one of the following circumstances:

• You didn’t pay your premium.
• Your license has been revoked or suspended.
• You have committed fraud or otherwise misrepresented yourself on your insurance application.

Cancellation is different from non-renewal, which means that the company decided not to renew your policy when its term ends. Insurance companies have more leeway when it comes to non-renewals, as they’re not legally required to cover you for eternity.

In Indiana, car insurance companies must notify you 20 days before a midterm cancellation, or 10 if the cancellation is due to nonpayment. If the company decides not to renew your policy, it must notify you at least 20 days before the expiration date to prevent a lapse in insurance coverage.

Self-Insurance

If you are part of a certain company or organization and have $100,000 in collateral, you may be able to self-insure your cars. However, most people will have to take the traditional route.

Inspection Requirements

Indiana doesn’t require car inspections, except for emissions tests on vehicles that meet these criteria:

• Are registered in Lake or Porter County
• Were manufactured after 1975
• Weigh 9,000 pounds or less

If your car fits that description, you’ll have to get an emissions test with the Indiana Bureau of Motor Vehicles (BMV) every two years.

SR-22s

You may be required to get an SR-22 as proof of minimum insurance if your driving privileges have been suspended because you’ve been convicted of certain offenses, like driving without insurance. If it’s a first or second offense, you’ll need to carry an SR-22 for three years after your license is restored, or five years for subsequent offenses.

Defensive Driving Courses

If you want to get a four-point reduction on your license, one option is to take a four-hour, $55 defensive driving course. You’ll be required to take one of these courses if you have two or more traffic offenses in a year or, if you’re under 21, two or more traffic offenses ever. You can find a list of the available courses on the Indiana BMV website.

Right-to-Sue Threshold

There’s no monetary or serious-injury threshold for suing in Indiana, meaning that you don’t need a certain dollar amount in damages or serious injuries in order to sue.

Accident Reporting Requirements

Many Indiana residents don’t know that if you’re in an accident that involves injuries, property damage, or deaths worth over $750, you’re required to report it to the police immediately. If you don’t, you could face license or even vehicle registration suspension.

Pricing Discrimination

Some states don’t let insurance companies determine prices based on gender or credit scores. Unfortunately for men and those with bad credit, Indiana is not one of those states, so people with poor credit scores and men pay more for car insurance.

Total-Loss Threshold

In Indiana, a car is declared a total loss when its repairs cost 70 percent or more of its actual market value. Actual market value is what the car’s value would be if you sold it tomorrow, which differs from its original selling price. If you want to get back what you paid for the car, you’ll need to purchase gap insurance, which is often a requirement with leased vehicles.

Whether you need to register your car or get a car title, use the contact information below.

Indiana Bureau of Motor Vehicles Contact Information

Here’s how to contact the state’s BMV.

• Phone: 800-457-8283
• Text: 855-463-5292
• Find an agency online: https://www.in.gov/core/find_agency.html

Do I Need Insurance to Register a Vehicle in Indiana?

You will need proof of insurance in order to register your vehicle in Indiana, so get your insurance before you register your car.

How to Get a Copy of Your Car Title

Follow these steps to get a copy of your car title by mail.

1. Print and fill out the following form: https://www.in.gov/bmv/titles/duplicate-title-application/.
2. Seal it in an envelope along with a $15 payment.
3. Send it to this address:
   • Indiana Bureau of Motor Vehicles
     100 N. Senate Ave., Room N411
     Indianapolis, IN 46204

Follow these steps to get a copy of your car title online.

1. Visit this URL: https://mybmv.bmv.in.gov/bmv/mybmv/default.aspx.
2. Fill out the online form.
3. Pay the $15 fee.

Neither option requires a notary, making the process easier on your end.

Indiana Insurance Department Contact Information

Here is the contact information for the Indiana Department of Insurance:

• Phone number: 317-232-2385
• Website: http://www.in.gov/idoi
• Mailing address:
  • 311 W. Washington St., Suite 300
    Indianapolis, IN 46204-2787

These are the average costs of car repairs in Indiana:

• Parts and labor: $357.43
• Parts: $209.84
• Labor: $147.59

Overall, car repairs in Indiana cost 7 percent less than the national average,⁸ which could contribute to the state’s lower average car insurance costs.

Car theft and traffic fatalities are inevitable parts of driving, unfortunately. But how does Indiana compare to the rest of the country?

Motor Vehicle Theft

Overall, Indiana has 229 motor vehicle thefts per 100,000 inhabitants, making car theft 8 percent less likely there than in the rest of the U.S.

Rates in cities like Louisville and Indianapolis were higher than in the rest of Indiana, which is common with large cities across the U.S.⁹

Traffic Fatalities

While Indiana has low motor vehicle theft rates overall, its traffic fatality rates are 13 percent higher than the national average. For every 100 million miles that vehicles travel in Indiana, 809 involve traffic fatalities. This statistic makes following the rules of the road even more important.

Overall, despite the relatively high number of traffic fatalities, Indiana is a great place for drivers, with lower insurance rates than average and safe driving laws. Keep reading to learn more about this state.