Indiana Car Insurance Requirements

Minimum Coverage Requirements

Indiana requires drivers to carry minimum liability insurance of 25/50/25 — meaning $25,000 per person for bodily injury, $50,000 per accident for bodily injury, and $25,000 for property damage.

Average Car Insurance Costs in Indiana

Drivers in Indiana typically pay approximately $1,080 per year ($90/month) for car insurance, based on 2026 industry average data.

Car Insurance Rates by City in Indiana

State Regulations and Key Rules

Indiana is an at-fault state. Uninsured and underinsured motorist coverage must be offered but can be rejected. Indiana uses a comparative fault system.

What Makes Indiana Unique

Indiana has a relatively high uninsured driver rate for a Midwest state, making uninsured motorist coverage a smart addition despite it not being required.

Uninsured Drivers in Indiana

Approximately 15.8% of drivers in Indiana are estimated to be uninsured.

Risk Factors Specific to Indiana

Indiana sees significant tornado activity, particularly in the southern part of the state. Deer collisions are common statewide in fall. Winter weather brings lake-effect snow to northern Indiana near Lake Michigan.

What Indiana’s Minimum Actually Covers

Indiana’s minimum is 25/50/25: $25,000 per injured person, $50,000 total per accident for injuries, and $25,000 for property damage. With new vehicles averaging roughly $50,000, the $25,000 property damage limit would leave about $25,000 unpaid if you totaled an average new car — and that gap becomes your personal debt.

No-Fault, PIP, and Required Add-Ons in Indiana

Uninsured motorist coverage isn’t mandatory in Indiana, though insurers generally must offer it and you may have to reject it in writing.

How Indiana Compares: Uninsured Drivers and Price

An estimated 15.8% of Indiana drivers are uninsured — roughly 1 in 6 — a middle-of-the-pack uninsured rate. At that rate, uninsured motorist coverage is one of the most valuable add-ons you can buy.

Our average premium estimate of $1,080 a year puts Indiana among the ten least expensive states in our 50-state estimates (median $1,395).

How to Save on Car Insurance in Indiana

Indianapolis has the highest rates in the state — suburban drivers often save significantly by confirming their garaging location is accurate on their policy. Indiana's competitive insurance market rewards annual comparison shopping. Good student discounts are widely available and meaningful for young drivers.

• Indiana's minimum liability requirement of 25/50/25 is the legal floor, not a safe target — since PIP isn't required in Indiana, a separate medical payments (MedPay) add-on is worth pricing out.
• With an estimated 15.8% of Indiana drivers uninsured, carrying uninsured/underinsured motorist coverage above the state minimum is one of the highest-value add-ons you can buy.

Frequently Asked Questions

What is the minimum car insurance in Indiana?

25/50/25: $25,000 of bodily injury liability per person, $50,000 per accident, and $25,000 of property damage liability.

Is Indiana a no-fault state?

No. Indiana is an at-fault state, so the driver who causes an accident is responsible for the resulting injuries and damage, usually through their liability insurance.

How many drivers are uninsured in Indiana?

An estimated 15.8% of Indiana drivers are uninsured, roughly 1 in 6.

The information on this page is provided for general informational purposes only and reflects estimated industry averages and state requirements as of 2026. Insurance regulations and rates change periodically; always verify current requirements with your state's department of insurance or a licensed insurance professional before making coverage decisions. City-level and statewide premiums shown are approximations — individual rates will vary based on personal factors.