Objective We observe the driving performance effects of gesture-based interaction (GBI) versus touch-based interaction (TBI) for in-vehicle information systems (IVISs). Background As a contributing factor to a number of traffic accidents, driver distraction is a significant problem for traffic safety. More specifically, visual distraction has a strong negative impact on driving performance and risk perception. Thus, the implementation of new interaction systems that use midair gestures to encourage glance-free interactions could reduce visual distraction among drivers. Methods In this experiment, participants drove a projection-based Vehicle-in-the-Loop. The projection-based technology combines a visual simulation with kinesthetic, vestibular, and auditory feedback from a car on a test track. While driving, participants used GBI or TBI to perform IVIS tasks. To investigate driving behavior related to critical driving situations and car-following maneuvers, vehicle data based upon longitudinal and lateral driving were collected. Results Participants reacted faster to critical driving situations when using GBI compared to TBI. For drivers using TBI, steering performance decreased and time headway to a preceding vehicle was higher. Conclusion Gestures provide a safe alternative to in-vehicle interactions. Moreover, GBI has fewer effects on driver distraction than TBI. Application Potential applications of this research include all in-vehicle interaction systems used by drivers.