📊 Indiana at a Glance
Avg Annual Premium
$1,709
full coverage
National Ranking
#8
cheapest!
vs National Avg
-$988
huge savings
Uninsured Rate
15.8%
#14 nationally
🎉 Great News: Top 10 Cheapest State
Indiana ranks as the 8th cheapest state for car insurance. At $1,709/year for full coverage, Hoosiers save nearly $1,000 compared to the national average. Low population density and fewer severe weather events keep rates down.
📋 Indiana Minimum Coverage Requirements
| Coverage Type | Minimum Required |
|---|---|
| Bodily Injury (per person) | $25,000 |
| Bodily Injury (per accident) | $50,000 |
| Property Damage | $25,000 |
| Uninsured Motorist (UM) | Optional (recommended) |
| PIP / Personal Injury Protection | Not required |
⚠️ Note: Indiana's 25/50/25 minimums are standard but may not cover serious accidents. Consider higher limits, especially with 15.8% of drivers uninsured.
⚖️ How Indiana's Insurance System Works
At-Fault (Tort) State
The at-fault driver's insurance pays for damages. Standard tort liability system.
Modified Comparative Fault
You can recover damages if you're less than 51% at fault. Award reduced by your percentage.
💰 Cheapest & Most Expensive Cities
✓ Cheapest Cities
✗ Most Expensive Cities
Gary (near Chicago) has significantly higher rates due to urban risks. College towns like Bloomington offer some of the lowest rates.
🏆 Best Insurance Companies in Indiana
| Insurer | Best For |
|---|---|
| State Farm | Strong local presence, bundling |
| GEICO | Good drivers (often cheapest) |
| Progressive | Snapshot telematics, drivers with violations |
| Indiana Farm Bureau | Rural drivers, member benefits |
| Erie Insurance | Rate Lock, excellent claims service |
💳 Credit Score Impact
Credit-based insurance scoring is allowed in Indiana.
Your credit history can significantly affect rates. Drivers with poor credit may pay 50-80% more than those with excellent credit.
🎁 Available Discounts
Defensive driving course
Good student discount
Bundle home + auto
Telematics/usage-based
💡 Tips for Indiana Drivers
- ✓ You're already saving - IN rates are $988 below national average
- ✓ Add UM/UIM coverage - 15.8% uninsured rate warrants protection
- ✓ Quote Indiana Farm Bureau - Excellent for rural Hoosiers
- ✓ Consider higher limits - 25/50/25 may not cover serious accidents
- ✓ Use IN DOI resources - in.gov/idoi for complaints and comparison
The Bottom Line
Indiana is one of the cheapest states for car insurance at just $1,709/year—nearly $1,000 below the national average. Low population density and fewer weather disasters keep rates affordable.
Best strategy: GEICO often offers the lowest rates for good drivers. Don't get complacent with cheap rates—consider higher coverage limits since 25/50/25 won't cover serious accidents. Add UM/UIM coverage for the 15.8% uninsured drivers on the road.