Indiana (IN) Teen Auto Insurance Laws, Rates & Requirements

In the state of Indiana, teen drivers must complete two licensing stages before they are eligible to receive a full unrestricted driver’s license. Decreasing the number of teen car crashes in Indiana is one of the state’s top priorities, which is why it has enacted Graduated Licensing laws, as well as a number of additional laws aimed at ending distracted driving and teen drunk driving. Continue reading to learn more about Indiana teen driving laws and the consequences for violating them.

Indiana Graduated Driver Licensing (GDL) and Driver License Requirements

Indiana Graduated Licensing (GDL) has two phases: learner permit and operator license. Teen’s aged 15 or older can apply for a driver education learner permit or if 16, a validated learner permit. The learner permit or “learner license” allows the student driver to enroll in a state approved driver education course.

To obtain a learner permit, the applicant must:

•    Provide proof of identity and age
•    Pass a vision test
•    Provide proof of enrollment in a state approved driver education program
•    Provide a signed proof of financial responsibility form from a parent or legal guardian (if under age 18)

An intermediate license or operator license allows the teen to practice driving with an adult that holds a valid drivers license. To obtain an intermediate license, the applicant must be at least 16 years of age, and he must:

•    Pass a written roadway test
•    Pass a vision test
•    Provide a signed proof of responsibility for from a parent or guardian
•    Provide proof of age and identity

Under Indiana’s GDL program, a teen is eligible to apply for an Indiana driver’s license after successful completion of all phases, provide he is age 17 or older and has maintained a clean driving record. To apply for an unrestricted Indiana driver’s license, the applicant must provide all of the documentation above and provide a waiver that states that he does  not have to take a roadway skill test. Many applicants qualify for this waiver. If you do not qualify for the waiver, you will have to take a roadway test with a Bureau of Motor Vehicles (BMV) examiner.

Indiana Teen Driving Laws and Enforcement

In the state of Indiana, each licensing phase carries restrictions. During all GDL phases, Indiana teens must be accompanied by a licensed driver over the age of 21 at all times. The licensed driver must also be a relative of the licensee. In addition, all passengers in the vehicle must wear seatbelts at all times and if you are under 18 you cannot drive between the hours of  11 p.m. and 6 a.m. Sunday-Thursday or 1 a.m. and 5 a.m. Friday and Saturday. There are exceptions to this rule including:

•    To or from school
•    To or from religious activities
•    To or from a government sponsored or non-profit sponsored activity

Violation of any of these laws will result in a moving violation conviction. This could delay your unrestricted driver’s license if you have not already obtained one or your license could be suspended. Fines will apply as well.

Indiana Cell Phone Use/Texting While Driving Laws

In the state of Indiana, it is against the law for teens under the age of 19 to use a cell phone while driving. This includes texting and hands free use. If you get caught talking on your phone or texting while driving in the state of Indiana, you will be charged with a class D infraction. The only exceptions to the law are:

•    Emergency situations
•    Operators of authorized emergency vehicles
•    Operator of a medical services vehicle
•    Volunteer firefighters

This law became effective on July 1, 2009. If you ignore the ban and you get caught, you will receive a ticket and have to pay a fine up to $500. 

Indiana Teen DUI Laws

In the state of Indiana, all it takes is a blood alcohol concentration level of 0.02% to convict a teen of DUI. A BAC of anywhere between  0.02% and 0.08% could result in a 1 year license suspension and a fine up to $500. If you get caught driving with a BAC higher than 0.08%, you face the same DUI penalties as an adult. This could include license suspension for two years, jail time, community service, interlock, fines up to $1,000 or more, and attendance in an alcohol treatment program.

Indiana Teen Auto Insurance Requirements

In the state of Indiana, driving without auto insurance is against the law. Teens are no exception. All residents must carry minimum liability coverages of $25,000 per injured person up to $50,000 per accident, and $10,000 for property damage 25/50/10.  While Indiana’s minimum liability amounts are the law, they might not be enough – especially to cover the average teen. Because the risk of an auto collision is significantly higher during a teen’s first year behind the wheel, Indiana auto insurance companies recommend purchasing higher amounts of coverage than the legal limits.

It is important to keep in mind that Indiana follows a Tort liability system, so there are no restrictions on lawsuits. If your teen is involved in an accident, someone must be found to be the cause or fault of the accident. The person deemed at fault is responsible for all damages. Damages are usually handled through the at-fault person's insurance company. Most Indiana auto insurance companies highly recommend that driver’s carry higher coverages than the state minimums based on the Tort system as well.

If you plan to add a teen driver to your policy, keep in mind that your annual rate will increase anywhere from $1,200 to $4,900 a year - or an average of $2,171 a year. Although auto insurance premiums will increase if you add a teen to your policy or purchasing teen auto insurance will always be pricier than other policies, there are ways to qualify for discounts on teen auto insurance. Auto insurance companies offer discounts ranging from 10-15% or more for:

•    Maintaining at least a B average
•    Successful completion of a state approved safe driver course

You can also lower your premiums on teen auto insurance if you avoid purchasing sports and luxury cars for your teen, if you opt for a higher deductible, or if you combine insurance policies into one (i.e. life, home, health, renter’s, etc.).