Indiana Car Insurance Quotes, Laws, and Other Info


We have all the information you need to know about Indiana car insurance. Keep reading to learn about required coverage, penalties for driving uninsured, important coverage decisions, and more.

Mandatory insurance law

Indiana is a “tort” state where all drivers are required to have insurance. You’ll have to prove that you have coverage whenever you get in an accident or get ticketed for serious traffic offenses.

Minimum Indiana coverage requirements

Indiana law has certain standards for car insurance policies. Every policy must include a minimum amount of liability coverage. The following table breaks down the requirements.

Required coverage types Minimum amount of coverage
Bodily injury liability $25,000 for each person’s injuries in an accident
$50,000 total for all injuries in an accident
Property damage liability $10,000 total per accident
Uninsured/underinsured (UM/UIM) motorist bodily injury $25,000 for each person’s injuries in an accident
$50,000 total for all injuries in an accident
Uninsured motorist (UM) property damage $10,000 total per accident

Liability

When someone driving your car causes an accident, it pays for victims’ medical and repair bills. However, it only pays up to a certain amount. Minimum policies include $50,000 worth of coverage for all medical bills and $10,000 for property damages. If you get the minimum amount of liability insurance, you may see it referred to as 25/50/10 coverage. You can buy more than the minimums to be better protected.

Remember, liability doesn’t cover the driver’s medical bills or car repairs. It only covers those expenses for victims of an accident.

Uninsured/underinsured (UM/UIM) motorist bodily injury

It pays your medical bills and the medical bills of your family and passengers after an accident. It does so when the driver who caused the accident either:

  1. Doesn’t have insurance or fled the scene of the accident
  2. Has insurance, but not enough to cover all your medical bills

Minimum policies include $50,000 worth of this coverage for medical bills.

The law requires that insurers include this coverage in all policies, but you can reject it in writing if you don’t want it.

Uninsured motorist (UM) property damage

It pays for repairing damage to your car or property. It does so when the driver who caused the accident doesn’t have insurance or fled the scene of the accident.

Minimum policies come with $10,000 worth of this coverage for property damage.

The law requires that insurers include this coverage in all policies, but you can reject it in writing if you don’t want it.

Penalties for driving uninsured

If you break the law and don’t buy coverage, it could cost you. You could get stuck having to pay other people’s medical and repair bills if someone crashes your car. You could also get your driving privileges suspended. On top of that, you could have to pay hundreds of dollars in fees.

Number of offenses License suspension period
1st 90 days to 1 year & until you pay $150 reinstatement fee
2nd (within 3 years) 1 year & until you pay $225 reinstatement fee
3rd (within 3 years) 1 year & until you pay $300 reinstatement fee

Electronic proof of insurance

In Indiana, you can prove that you’re insured with your smartphone or other electronic device. That means your insurer might have an electronic copy of your insurance ID card that you can display on your smartphone or tablet. This is known in the industry as an “e-card.” The electronic proof law in Indiana went into effect in 2013.

For the electronic document to be valid proof of insurance, it should clearly state all of the following:

  • Name of the insurer
  • Insurance policy number
  • Policy period
  • Name and address of each insured driver
  • Policy limits
  • Make and model of each covered vehicle

Coverage considerations

Optional coverages

In addition to liability coverage, there are optional coverages you can add. They’ll raise the cost of your insurance, but they’ll also provide greater protection. The following are the most widely available coverage add-ons in the state.

Comprehensive

It pays for repairing or replacing the insured car if it’s damaged by something other than a collision. Some examples of this type of damage are vandalism, hail damage, and theft. More than 3 out of every 4 drivers in Indiana bought this coverage in 2011, according to data from the National Association of Insurance Commissioners (NAIC).

Collision

It pays for repairing or replacing the insured vehicle after an accident. More than 7 out of every 10 drivers in Indiana bought this coverage in 2011, according to data from the NAIC.

Rental reimbursement

It pays for the cost of renting a car after an accident.

Towing

It pays for towing and labor due to a mechanical breakdown.

Medical payments

It pays your medical bills after an accident. Coverage also applies to your passengers. It provides coverage no matter who caused the accident.

Protection from drivers without insurance

Want to protect yourself against uninsured drivers? Minimum Indiana auto insurance policies are required to include the protection you need: uninsured/underinsured motorist coverage (UM/UIM). Although Indiana policies come with UM/UIM at first, you don’t have to keep it. You can reject this coverage in writing.

But go without it, and you may be unprotected if an uninsured driver hits you. Statewide, about 16% of drivers are uninsured, according to the Insurance Research Council. At that rate, if someone crashes into you in Indiana, you have a 1-in-6 chance that the other driver doesn’t have insurance. That means they won’t be able to pay for your damages from an accident; you’ll have to rely on your own policy.

If you reject uninsured motorist coverage, one of the only ways to get your medical bills covered after a crash with an uninsured driver is if you have medical payments coverage. Collision will help pay for repairing your car.

If you don’t have any of the coverages listed here, you may not be able to get your medical bills and/or property damages covered.

Indiana auto insurance rates

Rates for Indiana car insurance are cheaper than average. The average cost of an Indiana auto insurance policy was 22% cheaper than the 2011 national average, according to data from the NAIC. That makes it the state with the 9th-cheapest costs nationwide.

Usage-based discounts

If you drive safely, infrequently, or both, you may want to look into a usage-based discount program. These programs use a device you install in your car to track how far it’s driven and/or if it’s driven safely. Depending on how you drive, you could potentially get a discount of up to 30%.

The following major insurers offer usage-based discounts in the Hoosier State:

  • State Farm: Drive Safe & Save
  • Allstate: Drivewise
  • Travelers: IntelliDrive

How claims work in Indiana

Indiana uses a “tort” system for car insurance claims. That means if someone injures you or wrecks your car, their liability insurance pays your medical and repair bills.

But in some cases, the other driver won’t be 100% responsible for the accident. Your actions could have contributed to the accident, and you could be partially responsible. This makes things a little more complicated.

If you’re partially responsible, it reduces the amount you can get from the other driver’s insurer. Indiana uses “modified comparative fault” to sort this out. Here are the details:

If you’re more than 50% responsible for the accident: The other driver’s insurer doesn’t pay any of your bills. You have to completely rely on your own policy.

If you’re 50% or less responsible for the accident: The other driver’s insurer will pay your bills. But the amount they pay will be reduced by your percentage of fault. For example, if you’re 20% responsible for an accident, the other driver’s insurer doesn’t pay 100% of your bills. Instead, it pays only 80%, since you were 20% responsible. So in this example, if you have $10,000 in bills from an accident, the other driver’s insurer has to pay only $8,000.

So what if the other driver’s insurer doesn’t pay your bills? You use your own policy. Medical payments will help pay your medical bills. Collision will help pay your repair bills. But both of those coverages are optional. You’ll be on your own if you didn’t add them to your policy.

Indiana car insurance companies

Indiana Automobile Insurance Plan

If you’ve had a hard time finding a car insurer who will cover you (usually because of marks on your driving record), you can still turn to the Indiana Automobile Insurance Plan. The Plan is the car insurer of last resort for the state’s high-risk drivers.

Consumer complaints

Indiana’s insurance regulator lists details about complaints from consumers, so you’ll be able to know the complaint background of a company. Complaints are ranked by ratios, meaning a comparison of a company’s track record against how much in premiums it has.

Also, consumers can file a complaint about an Indiana car insurer they have a problem with, and regulatory officials will follow up with you to figure out how to solve your problem.

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Did You Know?

Cheap average rates

Indiana car insurance rates are relatively cheap compared with the rest of the country. The state’s average rates were 22% lower than the national average in 2011, according to data from the NAIC. That makes it the state with the 9th-cheapest car insurance prices.

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