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Car Insurance in Indiana

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Indiana is one of the most diverse states in the entire country. Besides being the largest steel-producing state in the U.S., Indiana has three national parks, snow skiing, and a rich Native American cultural past and present. Nicknamed the “Hoosier State,” Indiana is the 38th largest state in size and has an impressive array of beautiful lakes, as well as having a Lake Michigan shoreline within its borders. There are many great colleges and universities in Indiana, including University of Notre Dame and Purdue University.

In 2019, there were more than 4.5 million drivers in Indiana, so making sure you are protected with good, cheap car insurance is very important for you and your family.

Quick Facts

  • In 2019, there were 217,396 car wrecks with 739 fatal car crashes.
  • Indiana drivers pay $367 per year for minimum car insurance.

How Much Is Car Insurance in Indiana?

On average, Indiana drivers pay $367 per year for the basic car insurance required by the state. Considering that the national average cost of car insurance is $565 per year, Indiana is a pretty good state for saving money on your car insurance.

As usual, the exact answer depends on what kinds of insurance you have and the exact details of your policy.

For example, the state requires a certain level of minimal car insurance (more on this later). If you pay only that amount, you will pay very little for car insurance, while those who opt for additional coverage (including full coverage) will pay more.

What Is the Average Premium in Indiana for Full Coverage Car Insurance?

As we noted before, different levels of car insurance lead to different prices. The most expensive kind of auto insurance is full coverage. Average full coverage car insurance in Indiana is $1,254 annually.

What is “full coverage?” This is not a separate policy in and of itself. Instead, full coverage refers to drivers who have liability, collision, and comprehensive coverage as part of their insurance policy. This offers enhanced protection for you and your vehicle (for example, comprehensive insurance can protect your car from Indiana’s many tornadoes), but it can increase the premium that you pay.

This higher monthly premium means enjoying the peace of mind that comes from protecting your car from any unexpected accidents, vandalism, theft, and even certain natural disasters! And you can reduce your monthly cost by raising your deductible.

How Much Is It for Just the Minimum Required Car Insurance in Indiana?

Previously, we covered what you can expect to pay if you get full coverage insurance, which is a combination of liability, collision, and comprehensive coverage. The minimum car insurance required by the state costs, on average, $367 per year, or $31 per month.

If you get only the minimum car insurance for Indiana, then you are getting only liability coverage. Later on, we’re going to explore the exact amounts of liability coverage you will need to comply with state requirements.

While that may sound like a great way to save money, keep in mind that those with only minimal car insurance protection may be very vulnerable in the event of a car accident.

How Do Rates Compare Across Major Cities in Indiana?

Many Indiana drivers don’t realize that where they live plays a part in how much they pay for car insurance. In fact, moving to a different city or even just a different zip code can affect the average cost of car insurance.

To help illustrate this point, our chart below indicates the average cost of the minimum required car insurance across different cities within the state. If you’ve been pondering about moving to a different city, this may give you a good idea of how much you’ll end up paying for your car insurance!

City Average monthly premium for basic coverage
Indianapolis $42
Fort Wayne $37
Evansville $42
South Bend $41
Fishers $40
Bloomington $36
Hammond $45

Is There a Good Driver Discount in Indiana?

One thing you likely have in common with other Indiana drivers is that you’d like to pay less on your car insurance. Did you know you might be able to achieve this goal with a single phone call?

That is because every insurance company offers discounts for certain driver actions. This may include everything from keeping grades up as a college student to installing anti-theft devices within your car.

The exact discounts offered vary from insurance company to insurance company. However, every insurance carrier offers good driver discounts that help you save money if you have few (or no) insurance claims within a certain period of time.

You won’t know exactly what the discount is, or exactly how much you can save, until you contact your insurance carrier and ask. Some common discounts include:

  • Pink icon of a document with a checklist

    Bundling

  • Money in hand icon

    Paying your annual premium up front

  • Green icon of a military man

    Millitary

  • Blue icon of a graduation cap

    Good student

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Indiana Car Insurance Laws

Like every state, Indiana has car insurance rules and regulations. We are going to detail the mandatory car insurance requirements in Indiana momentarily, but one of the most important things you need to understand is that Indiana is an “at fault” state.

Simply put, this means that when there is a car accident, the person who is at fault is the one who will be paying for the damages. This is why everyone is required to have liability insurance: If a driver causes a car accident, this insurance will help them pay for the bodily damage and property damage of the other driver.

But that is the primary reason that we recommend getting more than liability insurance. If there is an accident and you are found at fault for it, then simply having liability insurance means you will receive no payout to help cover the damage to your vehicle.

What Are the Mandatory Car Insurance Requirements in Indiana?

We have already covered that Indiana requires drivers to have liability insurance. However, it’s important to get this coverage in the right amounts to be in compliance with the state.

So, what coverage amounts do you need? At a minimum, you need liability insurance with $25,000 coverage per person, $50,000 coverage per accident, and $25,000 for property damage.

At first glance, these amounts may seem sufficient for most accidents. But imagine that a driver crashes their vehicle into a storefront. In that case, damage may exceed $25,000 very quickly!

In other words, even if you stick to only liability insurance, you may want to consider higher coverage limits. And, as we touched on before, you should strongly consider getting additional forms of coverage (such as collision, which will pay out to cover damage to your car even if you were at fault for the accident).

What Factors Does Indiana Law Allow in Determining Your Premiums?

Previously, we covered how where you live is one of the factors that determines how much you pay for car insurance. That is only one of many different factors that insurance carriers in Indiana are allowed to consider when setting your premium.

What are the other factors these carriers look at? Below, we have the entire list.

  • Driving history and claims record
  • Your zip code and address
  • Gender
  • Marital status
  • Age
  • Type of vehicle
  • Credit score

You may quickly notice that some of these are factors that you cannot easily change, and others are more easily in your control. If you improve your credit score or get married, it may be worth alerting your insurance carrier to see if this has a positive impact on your monthly insurance premium.

What Is the Penalty for Driving Without Insurance in Indiana?

We have discussed how some drivers prefer the risk of having only liability insurance while others prefer the peace of mind of having full coverage insurance. Here’s another question: What about drivers who have no insurance at all?

Indiana requires drivers to have minimum car insurance in the amounts we listed above. And if you are driving without any insurance at all and get caught, you can expect to face some serious penalties.

For the first offense, your license will be suspended for 90 days. Even worse, you may need to get an SR-22 certificate for the following three years.

If there is a second offense, your license is suspended for an entire year, and you must pay a $500 fine. You will be required to get an SR-22 certificate for three years.

If you commit a third offense (or any offenses beyond the third), your license is suspended for a year, and you will need to pay $1,000 to reinstate it. And you will now be forced to get an SR-22 certificate for five years.

Do you require an SR-22 Certificate in Indiana?

All of the penalties for driving without car insurance in Indiana involve getting an SR-22 certificate. But what, exactly, is the SR-22 certificate?

Basically, the SR-22 is a certificate you file with the state of Indiana that verifies you have the minimum amount of car insurance required. While the SR-22 is merely a certificate, having to get such a certificate will usually increase your insurance premiums.

For this reason, some drivers refer to “SR-22 insurance” as car insurance they can get when an SR-22 is required. This is an important distinction because there are certain carriers that may not offer car insurance to risky drivers who are legally required to file an SR-22.

Am I Required to Report an Accident in Indiana to Authorities?

When you see a car accident out on the road, you may be unsure of what to do. Should you move on or call somebody? And if you don’t call somebody, will you actually get in trouble?

In Indiana, the answers to these questions are a bit complicated. For example, you are under no legal obligation to report a minor fender bender that only damages the cars in the accident. If there is an accident that causes injury or death, or that traps someone, you need to make the call. You must also contact authorities if the accident caused any property damage beyond the vehicles themselves.

But what if you are the one involved in a car accident? Assuming there are no injuries or property damage beyond the cars involved, it is up to you and the other driver whether to call the authorities. If the other person is at fault and you are considering suing them for damages, then it is important that you contact the police as soon as possible.

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What Is Driving Like in Indiana?

How Many Car Accidents Happen in Indiana?

On the most basic level, car insurance is there to protect you and your vehicle in the event of an accident. And part of figuring out how much car insurance coverage you need involves knowing how safe it is to drive in your state.

With that in mind, how safe is it to drive in Indiana? In 2019, there were 217,396 car crashes. There were 739 fatal crashes in 2019. There were 31,194 collisions in 2019 with non-fatal injuries.

Of course, some areas are safer than others. Below, we have a breakdown of Indiana counties that had the most car accidents in 2019.

Marion – 37,726

Lake – 17,821

Allen – 13,976

Hamilton – 8,538

St. Joseph – 8,670

The sheer amount of these accidents underscores how important it is for you to get the right level of car insurance for the state.

How Many Uninsured Motorists Are in Indiana?

Another reason we recommend getting more than the minimum car insurance is simple: You can’t always count on the other driver to have enough insurance.

For example, if some other driver causes an accident that hurts you and your car, you are likely expecting their liability insurance to pay for everything. But there is a higher chance than you may imagine that they don’t have car insurance at all!

How likely is that in the state of Indiana? In this state, an estimated 15.8% of the driving population has no car insurance at all. If you want to protect yourself from such drivers, you can always add uninsured motorist coverage to your existing insurance policy. Additionally, your collision insurance coverage can help pay to repair or even replace your car in the event that the other driver does not have insurance (or simply does not have enough insurance).

Other Important Types of Car Insurance

We have already covered “the big three” when it comes to car insurance: liability, collision, and comprehensive coverage. By getting all three of these, you can enjoy the protections of “full coverage” insurance. There are still additional types of insurance that you may find beneficial as well.

Medical Payments (also known as MedPay) insurance is a great way to protect yourself in the event of an accident. MedPay helps to pay for the medical bills that you and/or your passengers may have if you are injured in an accident. MedPay has coverage limits but does not require any deductible or copay, making it a great choice for anyone who wants to keep expensive medical debt at bay.

Personal Injury Protection (also known as PIP) insurance is like an enhanced version of MedPay. That is because PIP pays for medical expenses like MedPay does, but it also pays out for things like funeral expenses, household expenses, childcare, and lost wages due to accidents. If the family breadwinner passes away in an accident, PIP will also pay a survivor’s loss benefit.

PIP is required in many states, but it is not required in Indiana. Nonetheless, this is one of the best insurance policies you can get to protect yourself and your family.

Get an Indiana Car Insurance Quote Today!

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Indiana is an amazing state, but the only way to make sure you have the protection you need while driving is to have the right car insurance. Fortunately, the best car insurance in Indiana is just a click away!

You can get started with a quote online or visit us at an Indiana office near you. You can also call us at (800) 777-5620 for a quote. Contact us today!

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