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Indiana is an at-fault (tort) state. Drivers must carry at least 25/50/25 in coverage, and the average full-coverage premium is $2,156 a year, 26% below the national average of $2,922. This guide covers what Indiana requires, what drivers pay, the rules on fault, uninsured drivers, penalties, teen drivers and phone use, and how to pay less.
| Minimum coverage | 25/50/25 |
| Fault system | At-fault (tort) |
| Average full coverage | $2,156 a year ($180 a month), 26% below the national average of $2,922 |
| Uninsured drivers | 14.0% (2023), the 22nd highest rate of 51 |
| Filing after serious violations | SR-22 |
Indiana requires $25,000 bodily injury liability per person, $50,000 per accident, and $25,000 property damage liability (Indiana Bureau of Motor Vehicles, "Proof of Financial Responsibility").
The minimums are a legal floor, not a recommendation. Property damage limits in particular don't go far when a new car can cost more than the limit to replace, and anything above your limits is your personal responsibility. See how limits and deductibles work and every type of coverage explained.
The average full-coverage premium in Indiana is $2,156 a year, 26% below the national average of $2,922. That makes Indiana the 9th cheapest of 49 (48 states plus D.C.; Alaska and Hawaii aren't in the data) (Experian, "Car Insurance Average Costs by State," published September 9, 2026; full coverage, 12 months to August 2026).
Within Indiana, prices still vary a lot by ZIP code, driving record and car, and 14.0% of drivers on Indiana roads were uninsured in 2023, so the coverage you choose matters as much as the premium.
Your own price depends on your ZIP code, age, driving record, car and coverage. Try our car insurance calculator with Indiana preselected for a personal estimate, and see what determines your car insurance cost.
Indiana uses modified comparative fault with a 51% bar: your damages are reduced by your share of the blame, and you recover nothing if you are more than 50% at fault. (Matthiesen, Wickert & Lehrer, "Contributory Negligence/Comparative Fault Laws in All 50 States," updated June 10, 2026)
An estimated 14.0% of Indiana drivers were uninsured in 2023, the 22nd highest rate among the 50 states and D.C. (Insurance Research Council, uninsured motorist estimates for 2023, via Insurance Information Institute "Facts + Statistics: Uninsured motorists"). Uninsured and underinsured motorist coverage protects you when one of them hits you. See coverage types.
The BMV can ask you to verify coverage, for example after a violation or crash. Your insurer must send a Certificate of Compliance (COC), and if the BMV hasn't received and processed it within 90 days of its request, your driving privileges are suspended. (Indiana Bureau of Motor Vehicles, "Common Traffic Violations")
Driving without the required insurance leads to suspension of your driving privileges. Reinstatement fees are $250 for a first no-insurance suspension, $500 for a second and $1,000 for a third or later one (for suspensions after January 1, 2015). (Indiana Bureau of Motor Vehicles, "Reinstating Your Driving Privileges")
A conviction for driving uninsured also follows you into your next policy. In CarInsurance.com's rate analysis, it raised the average full-coverage premium in Indiana from $1,515 to $2,018 a year, an increase of 33% (CarInsurance.com, "Penalty for driving without insurance in every state," updated March 24, 2026; rate analysis).
Beyond the penalties, driving uninsured leaves you personally liable for any damage you cause. See what happens if you drive without car insurance.
If your privileges are suspended for failing to file insurance, Indiana lets you regain them by having your insurer file an SR-22 and keeping SR-22 coverage for 180 consecutive days. (Indiana Bureau of Motor Vehicles)
Indiana uses graduated driver licensing (Insurance Institute for Highway Safety, "Graduated licensing laws" table):
Adding a teen is usually the biggest single increase in a family's premium. Keeping them on the family policy, a good-student discount and a safe, modest car help most.
A distracted-driving ticket can count against your record and your premium. (Insurance Institute for Highway Safety, "Electronic device laws" table)
See how to compare car insurance quotes, or get quotes for your ZIP code.
For questions about a policy, a claim or an insurer's conduct, contact the Indiana Department of Insurance. It handles consumer questions and complaints about insurers in Indiana.
AutoInsuranceQuery editorial team. Last reviewed: September 29, 2026.
