Teen Driver Insurance in Indiana: Parent & New Driver Guide
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
Minimum Coverage Requirements in Indiana
Teen drivers move through a graduated licensing system overseen by the Indiana Bureau of Motor Vehicles: a learner's permit starting at age 15, an intermediate license at 16 (with passenger and nighttime restrictions), and an unrestricted license at 18 or after completing 180 days violation-free. While Indiana does not legally mandate a good student discount, most major carriers in the state offer one — parents should ask specifically and provide proof of a B average or 3.0 GPA to qualify.
Bodily Injury Liability
Property Damage Liability
Uninsured/Underinsured Motorist Coverage
Collision Coverage
Comprehensive Coverage
What Drivers Pay in Indiana
$203–$388/mo
Typical monthly rate in Indiana, adding a driver aged 16–19 to a parent's policy
Rate data: Insurify and ValuePenguin, 2025
What Affects Your Rate
- Parents must request this discount and provide a report card or transcript — it's not automatically applied.
- Indiana BMV recognizes several accredited programs — ask your insurer which courses qualify before enrolling.
- Older vehicles with liability-only coverage cost significantly less to insure than newer vehicles requiring full coverage.
- A separate policy makes sense only if the parent has a poor driving record or the teen qualifies for a specialized young driver program.
Cover Your New Driver for Less
Compare Teen Driver Insurance RatesRules 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
Coverage Types
Full Coverage (Liability + Collision + Comprehensive)
Liability plus collision and comprehensive coverage. Required by lenders if the vehicle is financed or leased, and recommended by most parents if the vehicle is worth more than $5,000.
Liability-Only Coverage
Covers only damage and injury your teen causes to others. No coverage for damage to the teen's own vehicle. This is the most affordable option and makes sense for older, paid-off vehicles.
Uninsured/Underinsured Motorist Coverage
Protects your family if your teen is hit by a driver with no insurance or insufficient coverage. Pays for medical bills, lost wages, and vehicle damage that the at-fault driver cannot cover.
Collision Coverage
Pays to repair or replace your teen's vehicle after an at-fault accident, minus the deductible. Required by lenders; optional for paid-off vehicles.
Comprehensive Coverage
Covers non-collision damage: theft, vandalism, weather, fire, and animal strikes. Especially relevant in Indiana due to deer activity and seasonal hail.
Medical Payments Coverage (MedPay)
Pays for medical expenses for you and your passengers after an accident, regardless of fault. Covers costs before health insurance kicks in, including deductibles and copays.