How Much Is Car Insurance in Indiana? (2023)

Various factors influence car insurance premiums, including your insurer, age and coverage levels. The average annual full coverage rates offered to Indiana drivers range from $555 from American Family to $1,015 from Allstate. However, a 25-year-old driver will pay $598 yearly for the same policy from American Family and $1,180 from Allstate.

Insurers will also consider your location, driving record and credit score when setting premiums.

The average cost of car insurance in Indiana is $772 per year, but insurance rates can change drastically depending on your unique profile.

Coverage amount and driving record are two of the most critical factors that impact average costs. Drivers with a speeding ticket will pay a yearly average of $970 for a full coverage policy, while drivers at fault for an accident will pay around $1,176 annually. A DUI will harshly increase your rates, resulting in a yearly average of $1,289 for full coverage premiums. Opting for a minimum coverage policy leads to a decrease in costs.

Indiana’s full coverage car insurance policies cost an average of $722 annually, which is relatively affordable compared to the national average of $1,054 yearly.

These cheap rates are likely due to lower population density and a lower frequency of auto theft. These factors reduce the number of claims filed, leading to reduced prices. However, your insurance costs may vary depending on your driving record and age. Typically, teenagers and drivers with violations on their record tend to have higher rates.

Average car insurance rates in Indiana are unreliable since rates differ between insurance providers. For a minimum coverage policy, Auto-Owners has the cheapest car insurance in Indiana at $228 per year ($598 for full coverage). Allstate charges the most expensive minimum coverage premiums at $660 per year ($1,015 for full coverage).

Even though liability-only policies are cheaper than full coverage policies, finding cheap full coverage insurance is still feasible by comparing quotes from various providers.

Raising your liability limits will usually increase insurance costs. In Indiana, car insurance costs range from a yearly average of $344 for a state minimum policy to $865 for a full coverage policy with maximum liability limits. Adding comprehensive and collision insurance will typically increase your premiums by several hundred dollars.

You may opt for a higher deductible which translates to cost savings on your rates. Insurance companies usually charge lower premiums in exchange for taking on a higher out-of-pocket expense when you file a claim.

Indiana requires drivers to carry bodily injury liability and property damage liability insurance. Applying only the minimum coverage requirements in Indiana, state minimum policies are cheaper than other plans. However, these plans do not protect the policyholder with comprehensive or collision insurance.

Insurance providers may offer policies with higher liability limits than the state requirements. Insurers refer to these limits as 50/100/50 or 100/300/100. A policy with liability limits of 50/100/50 would include the following coverage:

• $50,000 in bodily injury liability insurance per person
• $100,000 in bodily injury liability insurance per accident
• $50,000 in property damage liability insurance per accident

Most insurers offer a maximum liability of 300/500/300 to cover damage or medical expenses to others. Drivers who want to ensure that they are also protected against medical costs and damages to their vehicle should opt for a full coverage policy that includes comprehensive and collision insurance.

Different age groups also see a difference in car insurance rates. Car insurance for new drivers is typically more expensive but often decreases as they get more experience on the road. The following rates are for a full coverage policy in Indiana by age group:

• 22–29: $877 per year
• 30–59: $722 per year
• 60+: $683 per year

While drivers in their 20s generally face higher insurance premiums, rates remain relatively consistent for individuals between 30 and 59. However, premiums tend to decrease once drivers reach 60 and above.

Car insurance rates for teen drivers in Indiana are much higher than the average adult driver. A 16-year-old male on a family policy will spend around $2,133 annually for full coverage. An individual policy for the same driver costs even more, at an annual average of $4,526.

Your rates tend to decrease as you gain more experience behind the wheel. A 19-year-old teen driver on a family plan pays an average of $1,539 annually, whereas a 22-year-old pays around $1,277 annually. You’ll find cheaper auto insurance in Indiana for teens by comparing quotes from multiple providers.

Gender also plays a role when rating premiums. A 16-year-old female driver pays a yearly average of $1,917 for a full coverage policy, $216 less than the male counterpart.

New vehicle owners in Indiana can expect to spend around $908 per year for full coverage car insurance. Insuring an older vehicle will be hundred dollars cheaper, at an average of $717 per year.

Newer cars cost more to insure due to their greater actual cash value. Your car’s actual cash value (ACV) is the amount your insurer would need to pay if it is totaled. As your car ages, its ACV depreciates significantly, allowing the provider to spend less on any claims. Newer cars are also more likely to be stolen and cost more to repair.

A full coverage insurance policy is recommended for new vehicle owners, as it covers damages to others and your own vehicle.

A driver with no record of traffic offenses pays significantly cheaper premiums than drivers with violations. Indiana drivers pay the following average rates based on their driving history:

• Clean record: $722 per year
• Speeding ticket: $970 per year
• At-fault accident: $1,176 per year
• DUI: $1,289 per year

Rates increase more as the violations get more severe. Drivers with a speeding ticket record pay much cheaper rates than drivers with a DUI. By comparing rates from multiple providers, you can find the most affordable car insurance in Indiana for drivers with poor records.

Insurance providers determine your likelihood to file claims based on factors like your credit score. If you have poor credit, your insurance rates in Indiana may average $1,161 per year. Meanwhile, drivers with excellent credit pay an annual average of $569. The following amounts are the average rates for drivers based on their credit score:

• Excellent: $569 per year
• Good: $691 per year
• Fair: $827 per year
• Below fair: $973 per year
• Poor: $1,161 per year

Insurers may value credit scores differently depending on their policies, making it worthwhile to compare quotes to find affordable auto insurers in Indiana for drivers with poor credit.

Your location within Indiana can substantially impact your car insurance rates. Drivers in Indianapolis pay the highest full coverage policy premiums in the state, averaging $847 per year. Drivers in Fort Wayne pay the least expensive average rates at $754 per year.

Generally, areas with heavier traffic and higher population density, such as Indianapolis, tend to have pricier car insurance rates. This increase is due to drivers in these areas filing more claims on average.

We answered some of the most frequently asked questions about car insurance rates in Indiana so you can choose the provider that suits your needs. Remember that your costs will depend on your driving profile and your location.