Zeller also grabbed nine rebounds while Victor Oladipo added 15 points as the Hoosiers (20-2, 8-1 Big Ten) reeled off their fifth straight win.
Combined with a loss by current No. 1 Kansas to Oklahoma State Saturday, Indiana's victory over the Wolverines could enable the Hoosiers to leapfrog both Michigan and Kansas into next week's top ranking.
Indiana started the season ranked No. 1.
Christian Watford (14 points, 10 rebounds), Kevin Ferrell (14 points) and Jordan Hulls (11) also reached double figures for Indiana.
Michigan (20-2, 7-2) saw its four-game winning streak snapped despite 25 points and eight assists from Trey Burke.
Tim Hardaway Jr. provided 18 points for the Wolverines.