Indiana Auto Insurance Guide for New Drivers
Indiana requires 25/50/25 liability coverage and is an at-fault state.
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Indiana at a Glance
25/50/25
Minimum liability limits, in thousands of dollars (per person / per accident / property)
At-fault
The at-fault driver's insurance pays for the damage they cause
Optional
PIP and uninsured motorist coverage are not required by law
15
Minimum learner's permit age, 50 supervised driving hours
Source: state DMV, insurance department and statute records, verified July 2026
State Requirements
Indiana operates under a traditional tort liability system, meaning the at-fault driver is financially responsible for injuries and damages they cause. All drivers must carry proof of insurance at all times — presenting a digital insurance ID card from your phone satisfies this requirement as of 2016. The Indiana Bureau of Motor Vehicles maintains a real-time verification system that flags uninsured vehicles, and driving without coverage triggers an immediate license suspension until you file proof of financial responsibility.
Bodily Injury Liability
Property Damage Liability
Uninsured Motorist Coverage
Underinsured Motorist Coverage
Cost Overview
$262/mo
Typical monthly rate in Indiana, new drivers
Rate data: Insurify, 2026
Start Your First Policy on the Right Foot
Get Your First Auto QuoteRules for new drivers
Night driving
graduated; ~10pm/11pm-5am
Passengers
no passengers first 180 days (family exempt)
Source: IIHS and state DMV records, verified July 2026
Frequently Asked Questions
Can I use my phone to show proof of insurance in Indiana?
Yes — Indiana law explicitly permits electronic proof of insurance displayed on your phone during traffic stops, crashes, or vehicle registration. As of 2016, law enforcement and BMV staff must accept digital insurance ID cards with the same validity as paper documents. Keep your insurance app updated and accessible since you're required to provide proof immediately when requested.
Coverage Types
Liability Insurance
The foundation of any auto policy — covers injuries and property damage you cause to others. Your premium is the amount you pay (usually monthly) to maintain coverage, while your liability limit is the maximum your insurer will pay per accident. If damages exceed your limit, you're personally responsible for the difference, which can include wage garnishment and property liens in Indiana.
Full Coverage
Industry term (not a specific policy type) meaning liability plus collision and comprehensive coverage for your own vehicle. Collision pays for damage from crashes regardless of fault; comprehensive covers theft, vandalism, weather, and animal strikes. A deductible is what you pay out-of-pocket before insurance covers the rest — choosing a $1,000 deductible instead of $250 can lower your premium by $40–$70 monthly.
Comprehensive Coverage
Covers damage to your vehicle from non-collision events: theft, hail, flood, fire, vandalism, and animal strikes. You choose a deductible (typically $250–$1,000) which is the amount you pay before insurance covers the rest — higher deductibles mean lower monthly premiums but more out-of-pocket cost when you file a claim.
Uninsured Motorist Coverage
Pays your medical bills, lost income, and pain-and-suffering damages when an at-fault driver has no insurance or flees the scene. Indiana requires insurers to offer this, but you can reject it in writing — doing so means you rely entirely on the at-fault driver's ability to pay, which is unlikely if they're driving uninsured.
Collision Coverage
Pays to repair or replace your vehicle after a crash with another car or object, regardless of who caused the accident. You select a deductible (the amount you pay first), and insurance covers the remaining repair costs up to your vehicle's actual cash value — the current market worth, not what you paid or still owe.
SR-22 Insurance
Not a separate coverage type but a certificate of financial responsibility your insurer files with the Indiana BMV after certain violations — typically DUI/OWI convictions, multiple at-fault accidents, or driving uninsured. The SR-22 proves you're maintaining continuous coverage at state-required minimums or higher, and any lapse triggers automatic license suspension.