Indiana car insurance at a glance
| Requirement | Indiana rule |
|---|---|
| Minimum liability | 25/50/25 ($25,000 bodily injury per person, $50,000 per accident, $25,000 property damage) |
| Fault system | At-fault (tort), with a no pay, no play rule for uninsured drivers |
| Uninsured motorist coverage | Included by default at 25/50, rejectable in writing |
| SR-22 | Required to reinstate after DUI, driving uninsured, or serious violations |
What Indiana requires by law
Indiana requires liability coverage of at least $25,000 per injured person, $50,000 per accident, and $25,000 for property damage. Policies also include uninsured and underinsured motorist coverage by default unless you reject it in writing. Do not.
Driving uninsured in Indiana carries a double penalty. The visible one: license suspension from 90 days to a year, escalating reinstatement fees, and an SR-22 filing requirement. The hidden one: Indiana’s no pay, no play law bars uninsured drivers from collecting pain-and-suffering damages even when the other driver caused the crash. Opt out of the system and the system opts out of you.
Is the minimum enough? Usually not. One hospital admission can clear $25,000, and the average new vehicle costs more than the property damage limit. The redeeming feature of buying insurance in Indiana is price: base rates run below the national average, so real limits are cheap here.
Treat 50/100/50 as the floor.
What drives premiums in Indiana
- Freight corridors. Indiana calls itself the Crossroads of America for a reason. I-65, I-70, I-80/94, and I-69 carry enormous truck volumes, and crashes involving commercial traffic are severe and expensive.
- Hail and spring storms. Central Indiana sits in the path of recurring hail and tornado outbreaks, feeding comprehensive claims most years.
- Uninsured drivers. The Insurance Research Council put 14 percent of Indiana drivers as uninsured in 2023, near the national average. Keep your UM coverage.
- Indianapolis density. Marion County’s traffic and theft rates price above the rest of the state, though far below Chicago-scale extremes next door.
How to pay less in Indiana
- Shop the regional carriers, not just the national brands. Midwestern mutuals and farm-bureau style insurers price Indiana hard. Start with our cheapest auto insurance guide.
- Buy real limits while they are cheap. Indiana’s below-average base rates make 100/300/50 affordable. Minimum coverage in a cheap state is a missed opportunity, not a savings.
- Raise comprehensive and collision deductibles and drop full coverage on aging vehicles.
- Keep continuous coverage. Indiana’s penalties escalate with each lapse, and insurers price lapse history for years.
- Stack discounts: multi-policy, paid-in-full, good student, telematics. Full list in how to lower your premium.
For coverage basics and all 50 state guides, visit the auto insurance hub, then pull quotes built for your ZIP code.