Dirhodium(II)‐catalyzed intramolecular insertion of aryldiazoacetates into an unactivated primary C−H bond was described in this study. The insertion reaction of aryldiazoacetates with ortho‐isopropyl or ortho‐ethyl groups in the presence of a catalytic amount of dirhodium(II) tetrakis(triphenylacetate), Rh2(tpa)4, at room temperature proceeded site‐selectively to afford 2‐unsubstituted indane‐1‐carboxylates in 75%–96% yields. In the case of o‐isopropyl‐substituted aryldiazoacetates, cis‐isomers were obtained as major products. Furthermore, a chemoselective C−H insertion reaction of aryldiazoacetate bearing 1‐oxyethyl‐substituent at the ortho position was achieved by using a bulky and electron‐deficient pivaloyl group as the protecting group of a highly active oxygen atom. The present reaction provided a direct route to 2‐unsubstituted indanes.