By the Yellow Ribbon Insurance team · Bill Cline, Licensed Insurance Agent
The latest NAIC figures put Indiana's average car insurance cost at $926 per insured vehicle (2023). Here's where that number comes from, why other published figures differ, and what actually moves the price of an Indiana auto policy.
Quick answer
Indiana drivers spent an average of $926 per insured vehicle on car insurance in 2023, according to the National Association of Insurance Commissioners (NAIC), well below the $1,282 national figure. A policy carrying liability, collision and comprehensive averaged $1,032. Both are statewide averages from 2023, not a quote for your car. Your driving record, vehicle, ZIP code, limits and deductibles set your actual cost.
- The liability part of coverage averaged $485 in Indiana in 2023, per the NAIC.
- Indiana's average rose about 14% from 2022 to 2023, and about 19% since 2019.
- Online "average" prices for 2026 usually price a sample driver profile, or quotes from their own users, at set limits and deductibles, so they can land far above or below what Indiana drivers actually paid.
- Indiana allows credit-based insurance scores, but state law limits how insurers use them.
Do this: have your declarations page ready and ask for a quote at the limits and deductibles you'd actually carry, so the number you see is for the coverage you need.
Free quote · about 30 seconds
Get your free Indiana car insurance quote
Start with your ZIP. A licensed agent from our New Albany office reviews every request personally.
Please enter a valid 5-digit ZIP code.
4.8★ from 214 Google reviewsVeteran-ownedLicensed in Indiana & Kentucky
Prefer to talk? (812) 577-8749 · Mon–Thu 9–6, Fri 9–5 ET
Almost done
Where should we reach you?
A licensed agent from our New Albany office reviews every request personally.
Please add your first and last name, a 10-digit phone number and a valid email.
Request received
A licensed agent from our New Albany office will reach out to go over your coverage.
You searched for what car insurance costs in Indiana and got five different answers, some a few hundred dollars a year and some more than two thousand. Then your own renewal arrived and matched none of them. This guide explains the most reliable published number for Indiana, where it comes from, why the other figures disagree, and what actually moves the price for your car. For coverage basics, start with our Indiana car insurance guide; this page goes deep on cost.
Indiana car insurance cost: key facts
| Average spent per insured vehicle (2023) | $926 in Indiana vs. $1,282 U.S.NAIC 2023 Average Premium Supplement, Table 4 |
|---|---|
| Policy with all three coverages (2023) | $1,032 in Indiana vs. $1,438 U.S.NAIC, Table 5 |
| Liability average premium (2023) | $485 in Indiana vs. $737 U.S.NAIC, Table 1C |
| Change, 2022 to 2023 | About 14% higher in IndianaNAIC, Table 4 |
| Legal minimum | 25/50/25 liabilityIndiana BMV; IC 9-25-4-5 |
| Who sets rates? | Insurers file their own rates with the stateIndiana Department of Insurance |
| Consumer help | Indiana Department of Insurance, 1-800-622-4461IDOI complaints |
How much does car insurance cost in Indiana on average?
The short answer: Indiana drivers spent an average of $926 per insured vehicle on car insurance in 2023, according to the NAIC, about 28% below the $1,282 national average.
What Indiana drivers spent on car insurance per insured vehicle in 2023, on average, versus $1,282 countrywide. Source: NAIC 2023 Auto Insurance Database Average Premium Supplement (June 2025), Table 4. Checked September 2026. Not a quote for your car.
That $926 is the most useful starting point because it reflects money Indiana drivers actually paid, not a price generated for a sample driver profile. As of September 2026, 2023 is the newest year the NAIC has published by state. Here are the other figures from the same dataset:
| NAIC figure (2023) | Indiana | U.S. |
|---|---|---|
| Liability average premium | $485 | $737 |
| Collision average premium | $357 | $464 |
| Comprehensive average premium | $189 | $238 |
| Average expenditure (all insured vehicles) | $926 | $1,282 |
| Combined average premium (all three coverages) | $1,032 | $1,438 |
The trend matters as much as the level. Indiana's average expenditure was $781 in 2019, $769 in 2020, $767 in 2021 and $814 in 2022 before jumping to $926 in 2023, per NAIC Table 4. That's a rise of about 14% in a single year. The countrywide average rose by a similar amount, and the NAIC reported the national combined average premium climbed 14.42% from 2022 to 2023.
Indiana also sits below its neighbors in that table: Kentucky's 2023 average expenditure was $1,046, Ohio's $947, Illinois's $1,153 and Michigan's $1,443. The NAIC warns that state comparisons "should be treated with a high degree of caution." Indiana is a comparatively lower-cost state, but the statewide number says little about your own premium.
Bill Cline
Licensed insurance agent · Veteran · Licensed since 2018
Bill owns Yellow Ribbon Insurance in New Albany. More about Bill.
Where do the Indiana averages come from?
The short answer: They come from the NAIC's Auto Insurance Database, which divides the premiums insurers actually wrote in Indiana by the number of insured vehicles, so they measure real spending rather than a sample quote.
Each NAIC figure answers a slightly different question. Knowing which one you're looking at is most of the battle.
| Figure | What it measures | Sample and year |
|---|---|---|
| Average expenditure ($926) | Total premium written for liability, collision and comprehensive, divided by the number of vehicles with liability coverage. The NAIC calls it an estimate of what consumers in the state spent, on average. | Every insured private passenger vehicle in Indiana, including liability-only policies. Data year 2023; published June 2025. |
| Combined average premium ($1,032) | The liability, collision and comprehensive average premiums added together: the NAIC's estimate for a policy that carries all three coverages. | Same statewide data, 2023. Closest NAIC figure to what people call "full coverage." |
| Liability average premium ($485) | Liability premium divided by liability-insured vehicles, at whatever limits Indiana drivers chose. | Same statewide data, 2023. Not a price for minimum limits specifically. |
The NAIC is candid about the limits. Its report says the calculations use aggregate premiums "with no distinction as to policyholder classifications, vehicle characteristics, or the selection of specific limits or deductibles, all of which significantly impact the cost of coverage." The NAIC also notes that newer reports can revise earlier years as insurers send updated data.
Data-year check: if you see an Indiana average in the $760s, it's in line with the NAIC's older 2020–2021 figures (about $765–$769), not 2023. Always look for the data year next to any number, including ours.
There's also a lag: the 2023 figures were published in 2025 and 2026, and prices keep moving. Nationally, the Bureau of Labor Statistics reported its motor vehicle insurance price index fell 0.8% in August 2026, after a 0.3% dip in July. That's context, not a forecast for your renewal.
Why do published Indiana car insurance costs disagree?
The short answer: Each figure measures a different thing, from what every insured Indiana driver spent to what a sample driver profile would be charged today, so they can sit hundreds of dollars apart and still be accurate.
Most 2026 "average cost" figures online come from rate-comparison websites. They typically price a sample driver profile, or quotes from their own users, at set limits and deductibles, often for a 40-year-old with a clean record and good credit across many ZIP codes. That's a legitimate method; it just answers a different question from the NAIC's. Here's what separates the numbers:
- Liability-only vs. full coverage. A statewide average includes drivers who carry no collision or comprehensive coverage. A "full coverage" sample assumes everyone does.
- Limits. A sample priced at 100/300/100 liability costs more than one at Indiana's 25/50/25 minimum. The NAIC average blends whatever limits drivers actually bought.
- Deductibles. A $500 deductible and a $1,000 deductible produce different premiums for the same car.
- Driver profile. One clean-record, good-credit sample driver isn't the average Indiana household, which includes teens, retirees and drivers with tickets.
- ZIP mix. The NAIC figure is weighted by where insured cars actually are. A sample that gives every ZIP code equal weight can shift the result up or down.
- Data year. 2023 premiums paid and 2026 prices quoted are different moments in a market that has been moving.
One more reason prices vary: the Indiana Department of Insurance says it "does not set auto rates," but "companies must file their rates and forms with us before they are implemented." Each company's price follows its own filed rating plan.
What moves an Indiana car insurance premium?
The short answer: Your driving record, age and experience, vehicle, where the car is kept, how much you drive, the limits and deductibles you choose, and, within limits set by Indiana law, your credit-based insurance score.
The Indiana Department of Insurance lists the factors insurers consider: age and sex, marital status, driver record, car use, place of residence, policy limits, deductibles, type of car, driver training, claims history and credit scores. Here's how the big ones work.
Driving record and claims
Tickets, at-fault accidents and past claims all feed the price. A clean record helps.
Age and experience
Teens ages 16–19 have a higher crash risk than any other age group, so newer drivers typically cost more to insure.
The vehicle
Its value, repair costs, theft rate, engine size and safety record all feed the collision and comprehensive price.
Where it's garaged
The ZIP code where the car is kept matters. Urban areas tend to cost more than small towns or rural areas.
Miles and use
More miles mean more chances for an accident. Commuting, business use and low-mileage driving can be rated differently.
Limits and deductibles
Higher liability and UM/UIM limits cost more; higher deductibles cost less up front but more after a claim.
The mileage, location, parking and vehicle points come from the Insurance Information Institute, and the teen crash-risk point from the CDC. The NAIC's consumer guide, which the Indiana Department of Insurance hosts, adds prior insurance coverage to the list.
Uninsured and underinsured motorist coverage (UM/UIM) is part of the price too. In Indiana it's included on each newly written auto liability policy unless you reject it in writing, and insurers must offer it at limits at least equal to your bodily injury liability. We don't recommend rejecting it to lower a premium: it's the coverage that answers when the other driver can't pay. Garaging questions for Floyd County are covered in our guide to car insurance in New Albany.
Free quote · about 30 seconds
See what your car would cost to insure in Indiana
Start with your ZIP. A licensed agent from our New Albany office reviews every request personally.
Please enter a valid 5-digit ZIP code.
4.8★ from 214 Google reviewsVeteran-ownedLicensed in Indiana & Kentucky
Prefer to talk? (812) 577-8749 · Mon–Thu 9–6, Fri 9–5 ET
Almost done
Where should we reach you?
A licensed agent from our New Albany office reviews every request personally.
Please add your first and last name, a 10-digit phone number and a valid email.
Request received
A licensed agent from our New Albany office will reach out to go over your coverage.
What does minimum coverage cost compared with full coverage in Indiana?
The short answer: A policy at Indiana's 25/50/25 minimum costs less than full coverage because it pays only for harm you cause to others, while full coverage adds collision and comprehensive for your own car.
Indiana Code 9-25-4-5 sets the minimum at $25,000 for bodily injury to one person, $50,000 for bodily injury to two or more people in one accident, and $25,000 for property damage, which the Indiana BMV shortens to 25/50/25. "Full coverage" isn't a legal term. It usually means liability plus collision and comprehensive, often with UM/UIM and higher limits.
We won't invent a price for either one, because it depends on the driver and the car. The NAIC figures show the shape of the gap, though. In 2023, liability coverage averaged $485 in Indiana, while a policy with liability, collision and comprehensive averaged $1,032. Collision and comprehensive together added about $546 on average, and they're the fastest-growing part: collision rose about 17% and comprehensive about 22% from 2022 to 2023, compared with about 10% for liability.
Illustrative scenario
A driver with minimum 25/50/25 limits causes a crash that totals another driver's $40,000 pickup and injures two people, whose medical bills come to $35,000 each.
| Property damage: $40,000 − $25,000 limit | $15,000 left over |
| Injuries: two × ($35,000 − $25,000 per-person limit); the policy pays $50,000 | $20,000 left over |
| Amount the policy doesn't pay | $35,000 |
Illustrative figures only, not a quote or a prediction of how any claim is paid. The at-fault driver's own car isn't covered at all without collision coverage. Your policy wording and the facts of the loss decide the outcome.
The NAIC's own consumer guide puts it bluntly: state minimum amounts "are generally low." Minimum limits keep you legal; they may not keep you whole. If your car is financed or leased, check your loan or lease agreement before dropping collision or comprehensive, because it may require both.
Can Indiana insurers use your credit to price car insurance?
The short answer: Yes, Indiana lets insurers use credit-based insurance scores, but state law limits how, including a ban on setting your renewal rate solely on credit information.
The Indiana Department of Insurance lists credit scores among the factors insurers may use. Indiana Code chapter 27-2-21 sets the guardrails. Under IC 27-2-21-16, an insurer that uses credit information may not:
- deny, cancel or refuse to renew a personal policy solely on the basis of credit information;
- base your renewal rate solely on credit information;
- use an insurance score calculated with income, gender, address, ZIP code, ethnic group, religion, marital status or nationality;
- count a late payment or collection account coded as medical on your credit report against you;
- take an adverse action solely because you don't have a credit card account; or
- consider a lack of credit information, or an inability to calculate an insurance score, in underwriting or rating, unless it treats you as having neutral credit information or shows the commissioner that the absence relates to risk and treats you as the commissioner approves.
You also have rights you can use. The insurer or its agent must tell you, on or at the time of the application, that credit information may be obtained (IC 27-2-21-18). If an insurer takes an adverse action based on credit information, it must send notice explaining the reason, citing up to four primary factors (IC 27-2-21-19). And if a credit bureau dispute shows the information was wrong, the insurer must re-underwrite and re-rate you within 30 days and refund any overpayment (IC 27-2-21-17).
Credit tip: if a price seems out of line with your record, ask whether credit information was used and read any adverse-action notice closely. Fixing a credit-report error can change your insurance price, too.
How do tickets, lapses and SR22 filings affect Indiana car insurance cost?
The short answer: Violations, at-fault claims and coverage gaps can all raise what you pay, and an insurance-related license suspension adds an SR22 filing that the BMV requires you to keep for 180 consecutive days.
Your driver record and claims history are on the Indiana Department of Insurance's list of rating factors, and prior insurance coverage is on the NAIC's. How much a specific ticket or accident changes your price, and for how long, depends on each insurer's filed rating plan, so ask directly when you're quoted.
A lapse is where cost and law meet. According to the Indiana BMV, when it asks you to verify insurance, a Certificate of Compliance must be received and processed within 90 days, or your driving privileges will be suspended. Penalties may include reinstatement fees.
To get your license back after an insurance suspension, your insurer files an SR22, and the BMV says that requirement "is satisfied after maintaining SR22 coverage for 180 consecutive days." If the policy is canceled during that period, the insurer notifies the BMV with an SR26, and your license is suspended again until a new SR22 is on file or the period ends.
Don't let it lapse: in our experience, the most expensive car insurance decision is letting a policy lapse to save a month's premium. It can mean a suspension, reinstatement fees and an SR22 period on top of a higher price. If money is tight, call us before the due date and we'll look at your options with you.
A past accident, lapse or violation doesn't always rule out coverage. Non-standard auto options may be available depending on the driver; call us to talk it through.
How can you lower an Indiana car insurance premium without cutting protection?
The short answer: Raise deductibles only as far as your savings can cover, keep your record and coverage continuous, ask which discounts may be available, and review the policy whenever your car, commute or household changes.
The expensive mistake is rarely the premium. It's the claim that turns out to be under-covered. A few habits keep the price reasonable without opening gaps:
- Tune deductibles to your savings. A higher collision or comprehensive deductible lowers the premium, but only makes sense if you could pay it tomorrow.
- Keep coverage continuous. Switch policies with no gap in between, and keep the old one active until the new one starts.
- Ask about discounts. Multi-car, safe-driver, driver-training, anti-theft and good-student discounts may be available; eligibility varies. Insuring a home and car together can help too. Our guide to bundling home and auto explains how it works. For the home side, see our guide to Indiana homeowners coverage and our Indiana home insurance cost guide.
- Update the policy when life changes. A new commute, a paid-off car, a teen getting a permit or a move to a new ZIP code can all change the price in either direction.
For an accurate quote, have your current declarations page, each driver's license number, each vehicle's VIN, where each car is kept and roughly how many miles it's driven a year. We'll quote the coverage you actually want and walk through the price with you. You can see what we write on our auto insurance page, or stop by the office in New Albany.
Bottom line
In short: the NAIC's latest figure puts Indiana's average car insurance cost at $926 per insured vehicle for 2023, but that's a statewide average, not your price.
The same data puts the liability average premium at $485 and a policy with collision and comprehensive at $1,032. Online figures differ because they price different drivers, limits and deductibles. Your premium comes down to your record, your car, where it's kept, how much you drive, the coverage you choose and, within Indiana's legal limits, your credit. To know your number, price your car at the coverage you'd really carry. Our New Albany office can do that with you, across town or across the state.
Free quote · about 30 seconds
Get a free auto coverage review from New Albany
Start with your ZIP. A licensed agent from our New Albany office reviews every request personally.
Please enter a valid 5-digit ZIP code.
4.8★ from 214 Google reviewsVeteran-ownedLicensed in Indiana & Kentucky
Prefer to talk? (812) 577-8749 · Mon–Thu 9–6, Fri 9–5 ET
Almost done
Where should we reach you?
A licensed agent from our New Albany office reviews every request personally.
Please add your first and last name, a 10-digit phone number and a valid email.
Request received
A licensed agent from our New Albany office will reach out to go over your coverage.
Frequently asked questions
Why is my Indiana car insurance quote higher than the state average?
Because the average blends every insured vehicle in Indiana, including older cars with liability-only coverage and drivers with long clean records. The NAIC's $926 figure for 2023 has no adjustment for your age, vehicle, ZIP code, limits or deductibles, and the NAIC says those choices significantly affect the cost. A newer financed car with collision and comprehensive, higher liability limits, a young driver or a recent ticket can all put a quote above the average. Prices have also moved since 2023. Ask your agent which factors carry the most weight in your quote.
How often can my Indiana car insurance price change?
Your premium is normally set for the policy term and can change at renewal. Insurers file their rates with the Indiana Department of Insurance before using them, and the department doesn't set them, so a company can file new rates that apply at your next renewal. Your own changes count too: a new car, a new driver, a move, a ticket or a claim can all move the price. The NAIC's data shows how fast things can shift, with Indiana's average expenditure rising about 14% from 2022 to 2023.
Is a higher deductible a good way to lower my car insurance?
It can be, if you could comfortably pay the deductible after a crash. A higher collision or comprehensive deductible lowers the premium because you agree to cover more of each claim yourself, as the NAIC's consumer guide explains. The trap is choosing a $1,000 or larger deductible with no savings behind it, then facing a repair bill you can't pay. Deductibles don't apply to liability coverage, so raising them never reduces what the policy pays to other people you injure.
Can I get car insurance in Indiana after a lapse or a suspension?
It's possible, though the price and your options may change. If your license was suspended for an insurance violation, the Indiana BMV lets you regain your privileges once your insurer files an SR22, and you must keep that SR22 coverage for 180 consecutive days. Reinstatement fees may apply. If a past lapse, accident or violation makes a standard auto policy hard to get, we may have non-standard auto options. Eligibility depends on the driver, so call our New Albany office at (812) 577-8749 to see what fits.
What can I do if I think my credit was used unfairly on my car insurance?
Start with the paperwork. Indiana law requires an insurer that takes an adverse action based on credit information to tell you and explain the reasons, up to four primary factors. If your credit report is wrong, dispute it with the credit bureau; once the correction reaches the insurer, Indiana Code 27-2-21-17 requires it to re-rate you within 30 days and refund any overpayment. If you still have concerns, contact the Indiana Department of Insurance at 1-800-622-4461 or through its online complaint portal.