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Buying car insurance in Indiana: rates and requirements

If you drive in Indiana, you’ll need car insurance coverage. Know your requirements and be aware of varying rates for coverage

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Like most states, Indiana sets legal requirements for financial responsibility for licensed drivers and car owners. If you’re buying car insurance in Indiana, know the rates and the state requirements.

Minimum state requirements

In order to drive legally in Indiana, you must hold at least a minimum amount of auto insurance. This financialindiana car insurance coverage requirements protection must include at least the following levels of coverage:

  • $25,000 per person of bodily injury liability coverage
  • $50,000 total per accident of bodily injury liability coverage (bodily injury liability coverage pays for another driver's medical bills when you cause an accident)
  • $10,000 of property damage liability protection, which pays to repair someone else's automobile or property when you cause an accident
  • $25,000 per person/$50,000 per incident of uninsured motorist bodily injury protection, which pays to treat injuries caused by a hit-and-run or uninsured driver
  • $50,000 of underinsured motorist bodily injury coverage, which kicks in if another driver causes an accident but does not carry enough insurance to pay for damages and medical bills in full

You can opt out of the state’s requirement for uninsured/underinsured motorists coverage if you formally state your desire to do so in writing and file that statement with the state’s Department of Insurance. Of course, without that coverage, you can open yourself to suits from passengers who may be injured in an accident you have with uninsured/underinsured drivers. It may also limit your options in the case of an accident caused by a hit-and-run driver.

Get a free quote for your Indiana car insurance coverage by clicking here.

Where does the state rank for rates?

Indiana has a separate Department of Insurance and while the state agency does not set rates for insurance companies, it does require insurers to submit their rates to the agency for review and acceptance. As a result, the competition among insurance companies helps keep car insurance coverage rates very reasonable for Indiana drivers,

indiana car insurance coverage rates and requirementsAccording to both the National Association of Insurance Commissioners (NAIC) and the Insurance Research Council (IRC), Indiana ranks as one of the more affordable states for providing car insurance. In 2010, the state ranked about 6th or 7th for affordability as Indiana residents paid between $600-700 annually for car insurance coverage. The state slipped a bit in 2011, ranking around 15th overall and averaging closer to the $700 level for an individual’s annual car insurance coverage costs.

At the same time, two Hoosiers with comparable Indiana auto insurance policies can still pay different rates. Indiana car insurance providers base rates on your:

  • Age and Gender
  • Marital Status
  • Driving Record
  • Car Use
  • Place of Residence
  • Policy Limits
  • Deductibles
  • Type of Car
  • Driver Training
  • Claims History
  • Credit Scores

If you have been a responsible driver, you will typically be rewarded with a lower rate than someone who has been in an accident within the past three years. (Many insurance companies in Indiana offer safe driving discounts, some as high as 30 percent off standard premium.)

The more you drive, the more likely you are to have an accident, so the more you will likely pay for your car insurance coverage.

A reliable automobile with safety features costs less to insure than a flashy target for thieves or an older car with fewer safety devices.

Rural drivers typically pay less for Indiana car insurance than city dwellers and more experienced drivers pay lower rates than most newly licensed driers.


When you are ready to buy car insurance in Indiana, there are a number of factors you will want to consider and getting the advice of an experienced agent will help. Reply! can put you in contact with local insurance professionals who understand the Indiana car insurance market and can help you get the best possible coverage for your driving needs.

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