How Much is Car Insurance in Indiana? Rates by Coverage Level, Age, Driving History and Location

The average car insurance cost in Indiana is $725 per year, which is the second cheapest rate in the country and extremely cheap when compared with the national average cost of car insurance, which is $1,424 per year. The averages are across multiple companies and locations for one sample driver profile. MoneyGeek broke down the averages by age, driving history, coverage level, location and credit score in this guide.

Loading...

The average cost of car insurance in Indiana is $725 per year. This average applies to a sample 40-year old driver with a full coverage policy and a clean driving record.

If the same 40-year-old driver were to purchase a car insurance policy in Indiana with the state minimum required coverage, it would cost about $409 per year on average. On the other hand, it costs an average of $1,816 per year for a 16-year-old to purchase a full coverage policy. Depending on your profile and unique circumstances, insurance costs can vary greatly.

To give you a clearer idea of how rates change with various factors, MoneyGeek has analyzed average insurance costs in Indiana based on several factors.

Average Cost of Car Insurance in Indiana: Summary

MoneyGeek researched the average car insurance costs in Indiana based on the factors that have the most impact on the cost of auto insurance.

In the case of Indiana, the factors that have the most effect on car insurance prices are age and credit score. You can find out more about the average costs for a specific driver profile in the table below.

Average Costs of Car Insurance in Indiana

Scroll for more

swipe icon

Why are Car Insurance Rates Cheap in Indiana?

According to MoneyGeek’s research data, Indiana has the second cheapest car insurance rates among all states due to its low occurrences of natural disasters and relatively moderate rates of motor vehicle theft and urban population.

In areas prone to natural disasters, insurance providers automatically assume additional risk, making car insurance expensive. Indiana has a very low statistical probability of natural disasters, which keeps insurance costs down.

Similarly, a moderate number of motor vehicle thefts in the state further decrease risk and help keep car insurance costs at affordable levels.

Average Cost of Car Insurance in Indiana: Full Coverage vs. Minimum Coverage

In Indiana, a car insurance policy meeting the minimum coverage requirements of the state costs an average of $409 per year. In contrast, a full coverage policy has an average annual cost of $725. This is roughly a $316 difference between these two policy types.

Car insurance policies have many components, like comprehensive and collision coverage and liability insurance. A liability-only policy costs less but provides only basic protection. On the other hand, a full coverage policy provides more extensive protection but costs more.

The average cost of car insurance in Indiana varies according to the level or type of coverage you purchase. If you choose a policy with higher liability limits or extra features, you would have to pay more every month.

Average Cost of Car Insurance in Indiana by Coverage Level

Minimum vs. Full Coverage Car Insurance Costs in Indiana - By Company

How much you pay for your car insurance in Indiana depends on the insurance provider you buy your policy from. Every company will quote you a different rate. It pays to shop around to find the best value.

If you are looking for cheap liability-only car insurance or affordable full coverage auto insurance in Indiana, the most affordable company is Erie. This company charges an average of $290 per year for minimum liability coverage and $546 for full coverage.

On the other hand, the most expensive average annual liability-only and full coverage car insurance in Indiana both come from Allstate, which charges $613 for minimum coverage and $936 for full coverage, on average.

Average Annual Costs of Car Insurance in Indiana - By Company

Scroll for more

swipe icon
Loading...

How Much Is Car Insurance in Indiana by Age

Age plays a crucial role in determining average car insurance costs. Young drivers are more likely to be involved in driving incidents and are therefore riskier to insure. That’s why young drivers usually pay higher rates for car insurance.

According to MoneyGeek’s data, there is a difference of $1,091 per year on average between the insurance costs of a 16-year-old and a 40-year-old buying similar policies.

However, young drivers can save money on insurance premiums by getting added to their parents’ car insurance plan. First-time drivers often pay similar rates as teenagers due to a similar lack of driving experience.

Average Costs of Full Coverage Car Insurance in Indiana - By Age

Scroll for more

swipe icon

How Does Driving History Affect Car Insurance Costs in Indiana?

People with driving violations or accidents on their records are considered high-risk individuals by insurance companies and usually pay much higher rates every month for car insurance. However, it might still be possible to find relatively affordable deals in Indiana by shopping around.

According to MoneyGeek’s data, having a speeding ticket can cause you to pay an extra $205 per year on average compared with someone with a clean driving record. The cost difference depends on the severity of the violation.

Average Costs of Full Coverage Car Insurance in Indiana - By Driving History

Scroll for more

swipe icon
  • Driving Violation
    Annual Premium
  • Safe Driver
    $725
  • Speeding Ticket
    $930
  • At-Fault Accident
    $1,123
  • DUI
    $1,099

Credit Scores and the Cost of Car Insurance in Indiana

In Indiana, your credit score can play an important role in deciding your car insurance costs.

According to MoneyGeek’s analysis, people with poor credit scores in Indiana pay about $518 more per year on average compared with people with a good credit score. Also, if you have excellent credit, you will pay an average of $126 less per year compared with people with a good credit score.

For drivers with bad credit, having to pay more for car insurance can be expected but there might still be affordable insurance plans in Indiana that you can find by shopping around.

Average Costs of Full Coverage Car Insurance in Indiana - By Credit Score

Scroll for more

swipe icon
  • Credit Score
    Annual Premium
  • Excellent
    $576
  • Good
    $703
  • Fair
    $856
  • Below Fair
    $1,022
  • Poor
    $1,220

How Much Is Car Insurance in Your City?

In Indiana, the cheapest city for car insurance on average is Fort Wayne, with rates about 7.6% less expensive than the state average. Meanwhile, the most expensive is Indianapolis, which is 4.6% more expensive than the state average.

Car insurance costs vary widely between different states but can also vary within a specific state across different locations. This can happen due to several factors.

For example, people living in urban centers would have to pay more for insurance due to higher rates of vandalism and theft. Living in a densely populated area or one that is prone to natural disasters can also cause insurance costs to increase significantly.

Average Costs of Full Coverage Car Insurance in Indiana - By City

Scroll for more

swipe icon

Frequently Asked Questions About Indiana Car Insurance Rates

Here are some frequently asked questions about car insurance costs in Indiana.

Methodology

For this guide, MoneyGeek collected car insurance quotes in Indiana in collaboration with Quadrant Information Services. Policies were for a 40-year-old driver with a clean driving record and a full coverage policy unless directed otherwise by the factors described above, including age, coverage levels, driving history and credit score. The specific limits of the full coverage policy are laid out on our methodology page.

MoneyGeek also collected data on traffic, the urban population share, vehicle theft rates and uninsured motorists.

  • Highway traffic density was calculated with 2019 data from the Federal Highway Administration
  • Data on uninsured motorists drawn from 2019 data from the Insurance Research Council
  • Urban share of population was calculated using the latest data from the U.S. Census Bureau
  • Data on motor vehicle theft rate was drawn from the FBI Crime in the United States Report for 2019

About the Author


expert-profile

Mark Fitzpatrick is a senior content manager with MoneyGeek specializing in insurance. Mark has years of experience analyzing the insurance market and creating original research and content. He graduated from Boston College with a Bachelor of Arts and Johns Hopkins University with a Master of Arts.