Indiana Car Insurance Laws and Requirements (Updated 2023)

WRITTEN BY: Julia Matseikovich


Indiana offers the second-cheapest average car insurance rates nationwide. The Hoosier State also features low minimum car insurance requirements, which makes policies relatively cheap. However, Indiana’s high rate of uninsured drivers, crowded roads, and weather also affect motorists. Here’s what you need to know about Indiana car insurance laws, coverage limits, and where to save. 

Indiana car insurance minimum requirements

Indiana’s car insurance minimum is 25/50/25, though drivers may opt for full coverage of higher limits. The 25/50/25 is

  • $25,000 per person for bodily injury
  • $50,000 per accident for bodily injury
  • $25,000 per accident for property damage

Insurance providers must offer underinsured motorist bodily injury liability insurance for $50,000. Still, a driver can reject it in writing. 

Liability coverage in Indiana

Liability coverage insurance in Indiana applies to damages and injuries you cause another driver after an accident. State minimum liability insurance for bodily injury is $25,000 per person and $50,000 per accident. Indiana car insurance laws also require $25,000 per accident for property damage. The minimum liability insurance means your car insurance provider will pay up to $25,000 and $50,000 for these damages. 

State-mandated auto insurance limits you should know

Each state sets a minimum auto insurance limit for all drivers. In Indiana, the state-mandated auto insurance limit is $25,000 per person and $50,000 per accident for bodily injury or death. Indiana also requires $25,000 per accident for property damage. 

Are Indiana’s minimum requirements providing enough coverage?

Indiana car insurance laws require higher coverage limits than other states, such as Florida or Arizona. The property damage limit of $25,000 is $15,000 more than those states’ limits. However, car repair costs continue to rise. If you get into an accident with a pricy or brand-new car, repair may quickly surpass $25,000, especially as the average vehicle frame repair costs $600 to $10,000 alone. 

The bodily injury liability limits Indiana features might not also meet the needs of the estimates, especially if you cause a crash with a driver with one or more passengers, as your coverage of $50,000 applies to the accident and $25,000 per person. If you can afford it, you may want to up your liability limits as much as possible. 

Penalties for driving without proof of insurance in Indiana

Driving without insurance in Indiana may result in several consequences, such as fines, fees, SR-22 requirements, and the loss of driving privileges. 

OffenseReinstatement FeeAdditional PenaltiesSR-22?
1st$250 Up to 90-day license suspensionYes, 3 years
2nd$500License suspension and possibly registration for up to one yearYes, 3 years
3rd and subsequent$1,000License suspension and possibly registration for up to one yearYes, 5 years

Indiana optional car insurance coverage

Add-on car insurance in Indiana lets drivers increase the strength of their auto policy and save on out-of-pocket costs. Indiana car insurance laws don’t require this optional car insurance coverage, but you may need it for a lease or car loan. 

  • Comprehensive: If your vehicle suffers damage from a non-collision event, such as theft, weather, or collision with an animal, comprehensive covers it 
  • Collision: Covers damages from a collision with another driver’s vehicle or object
  • Gap Coverage: Helps pay a loan of a totaled car while the balance owed is more than the vehicle’s worth 
  • Medical Payments: If you get into an accident, this coverage helps with medical bills of you and your passengers
  • Roadside Assistance: Roadside assistance coverage helps with breakdowns, flat tires, tows, and battery jump needs
  • Uninsured/Underinsured Motorist: Coverage that helps with bills incurred from a crash with an uninsured or underinsured driver 

Why it’s important to follow Indiana’s car insurance laws and requirements

Indiana sets car insurance laws and requirements to keep policies affordable and reduce expenses after an accident. If you drive without minimum state liability car insurance and cause an accident, you may face license suspension, fines, and expensive bills. Driving without insurance may also increase your car insurance rates. 

How much does the minimum car insurance cost in Indiana?

Indiana has an average minimum car insurance cost of $409 a year or around $34 a month. The state is at risk of tornadoes and features a high rate of uninsured drivers, with 16% of drivers without required car insurance.

Cheapest minimum liability car insurance in Indiana

Regional provider Erie offers Indiana’s most affordable minimum car insurance at an average rate of $24 a month or $290 a year. GEICO is similar at $25 a month. Your rate may vary based on age, gender, vehicle, location, and driving history. 

State Farm$27
United Farm Bureau of Indiana$34

Minimum car insurance requirement in Indiana when leasing a car

Indiana drivers with a leased vehicle may need full coverage car insurance. The minimum liability of 25/50/25 may not meet most leasing companies’ requirements, and drivers may need a minimum of 100/300/50. If you lease a car in Indiana, check with the company to ensure your insurance meets their requirements. 


Do Indiana car insurance laws require uninsured motorist insurance?

No. New auto insurance policies must include uninsured motorist coverage. You may waive it by rejecting it in writing. 

Does Indiana require SR-22 insurance?

Yes, if you’re a high-risk driver in Indiana. The first and second offense requires a minimum of three years, while subsequent offenses require up to five years.  

What insurance company has the cheapest car minimum car insurance in Indiana?

Both GEICO and Erie offer the cheapest car insurance in Indiana. On average, the carriers’ insurance policies meet Indiana’s car insurance laws at less than $30 a month.

Does Indiana require proof of insurance?

Yes. Indiana requires proof of insurance from all motorists. The Bureau of Motor Vehicles may ask for proof of insurance if you’re in an auto accident or commit moving violations. The request for financial responsibility verification comes via mail to your address on file.

How much car insurance do I need to drive legally in Indiana?

Indiana car insurance laws require a minimum of $25,000 per person for bodily injury or death, $50,000 per accident for bodily injury or death, and $25,000 per accident for property damage. 

Get Coverage That Meets Indiana’s Car Insurance Requirements

Indiana car insurance law features low coverage requirements. Drivers in the Hoosier State enjoy the second-lowest average rates in the country. State minimum car insurance might not be enough for the average car accident in Indiana as repair costs rise. To save money on your Indiana car insurance, retrieve insurance quotes from various carriers. You can compare and save here; request your free quotes now.