Car Insurance in Indiana

Posted & filed under States.

Indiana QuarterIndiana Auto Insurance Requirements
Reviewed by Dr. Christine Berry
Indiana has financial responsibility requirements that are mandated by state law and the Indiana Department of Insurance. The following minimum coverage is required on every registered vehicle, except as noted below:

Table showing minimum required auto insurance coverage in Indiana

(Source: Indiana Department of Insurance)

Driving without meeting financial responsibility requirements in Indiana is an “A” infraction for the first offense, and could theoretically result in a $10,000 fine and one-year suspension of driving privileges at the court’s discretion, as well as  reinstatement fee and license points. Subsequent offenses are classed as misdemeanors and subject to higher fines, reinstatement fees, and jail time.

The Indiana Automobile Insurance Plan is available to drivers who are unable to obtain required coverage through the voluntary market. More information is available on the AIPSO website.

Alternatively, drivers not wishing to carry basic liability insurance in Indiana may deposit cash or securities in the amount of $40,000 with the state treasurer, or obtain a surety bond, and provide receipt of same to the Bureau of Motor Vehicles, who will issue a certificate of financial responsibility in lieu of an insurance card.

Factors Influencing Car Insurance Premiums in Indiana

Getting a quote for cheap car insurance in Indiana requires some research and rate comparisons between different insurance companies, even though Indiana ranks below national averages for car insurance costs. Some factors that impact insurance rates in Indiana include:

– Vehicle repair costs are generally less expensive in Indiana than elsewhere
– Overall accident fatality rates are lower than national averages
– A much higher percentage of uninsured drivers compared to national averages
– Vehicle theft rates near national averages

The average auto insurance premium for residents in Indiana is $620.

Tips for Obtaining Cheap Car Insurance in Indiana

– If you’re over 55, take a state-approved defensive driving course for a policy discount
– Bind multiple policies (homeowners, life, auto) with the same provider
– Maintain a good credit score
– Create a personal “emergency fund” of up to $1500 and increase deductibles accordingly
– Discuss affinity discounts with your insurance provider
– Drop comprehensive and collision insurance on older vehicles that are paid off and are worth less than $1,000

Indiana Statistics

Auto Theft: Indiana has a relatively high vehicle theft rate, but it has been decreasing (as is the case in most states) consistently over the past 10 years. This can be attributed primarily to anti-theft devices being standard on recent model cars, as well as public awareness of the issue:

Chart showing per capita motor vehicle theft in the state of Indiana from 1990 to 2010

Chart showing decline in total motor vehicle theft in Indiana from 1990 to 2010

Table showing number of motor vehicle thefts in Indiana, 1990 to 2010

(Source: Indiana Criminal Justice Institute)

Automobile Accidents: The total vehicle miles traveled in Indiana has increased in recent years, but vehicle accident fatality rates have declined. Indiana is below the national average in numbers of deaths in car crashes, despite having a fairly high population concentration.

Table showing number of deaths from car accidents in the state of Indiana, 2006 to 2010

(Source: National Highway Traffic Safety Administration)

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