How Much Is Car Insurance in Indiana? (2022 Averages)
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.
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Depending on variables including the driver's history and the policy's coverage scope, the cost of auto insurance policies in Indiana can vary significantly. Minimum coverage in the state is roughly $409 per year, while the average cost of auto insurance in the state is $725 per year. If you have a traffic violation or add a young driver to your auto insurance policy, the average annual cost increases to $930 and $1,816, respectively.
The car insurance prices you pay in Indiana will also depend on your chosen auto insurance provider. For instance, Erie charges $546 a year for a full coverage auto insurance policy in Indiana, whereas Allstate charges $936 annually for the same coverage.
Methodology
Why Trust MoneyGeek? Indiana car insurance rates in this study are based on our analysis of data and information from the Indiana Department of Insurance and Quadrant Information Services.
These rates were updated in September 2022 to reflect how car insurance rates in Indiana have changed up to this month.
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The Average Cost of Car Insurance in Indiana
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
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- DriverAverage Annual PremiumAverage Monthly Premium
- The Average Driver$725$60
- Drivers Buying Minimum Coverage$409$34
- Adding a Young Driver$1,816$151
- Drivers With a Violation$930$78
- Drivers With Poor Credit$1,220$102
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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
A minimum car insurance policy is the most inexpensive auto insurance policy you can purchase.
Keep in mind that Indiana drivers can choose to expand their liability coverage to 50/100/50 or 100/300/100. These numbers represent the maximum amounts of liability coverage available under your insurance policy. For instance, 50/100/50 auto insurance coverage provides:
- $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
In contrast, a full coverage policy offers both comprehensive and collision protection for the insured vehicle. In addition to providing standard liability coverage, this policy covers the insured vehicle against damage.
Average Cost of Car Insurance 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
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- CompanyMinimum CoverageFull Coverage
- $290$546
- $298$572
- $344$626
- $324$646
- $535$790
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
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
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- Driving ViolationAnnual Premium
- Safe Driver$725
- Speeding Ticket$930
- At-Fault Accident$1,123
- DUI$1,099
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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
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- Credit ScoreAnnual 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
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- CityAnnual Premium
- $746
- $670
- $759
Frequently Asked Questions About Indiana Car Insurance Rates
Here are some frequently asked questions about car insurance costs in Indiana.
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