The most affordable insurer in Indianapolis for you depends on your driver profile and needs. Auto-Owners Insurance Co has the lowest rate for minimum coverage, while American Family is the cheapest for full coverage or with an at-fault accident or DUI. Nationwide is the cheapest insurer for teens, while USAA is the ideal choice for military-affiliated drivers. We recommend American Family if you want the best combination of affordability and service.
Cheapest and Best Car Insurance in Indianapolis
Cheapest Minimum Liability Car Insurance in Indianapolis
On average, the cheapest car insurance companies for a minimum coverage policy in Indianapolis are:
- Auto-Owners Insurance Co: $296 per year
- State Farm: $299 per year
Allstate is the most expensive provider for minimum coverage, with a policy costing an average of $735 per year. As of October 2022, Auto-Owners Insurance Co also offers the cheapest car insurance in Indiana at an average annual rate of $240, making this company’s minimum coverage insurance cost around $56 more in Indianapolis than the state’s average premium. Your location does influence the cost of car insurance.
State law determines liability limits for a minimum coverage policy. In Indiana, minimum liability extends to bodily injury and property damage coverage at these amounts:
- $25,000 bodily injury liability per person
- $50,000 bodily injury liability per accident
- $25,000 property damage liability per accident
Your liability coverage will pay for expenses related to other people’s injuries and damages to property. For example, if you have a $25,000 liability limit for property damage per at-fault accident, your insurer will pay only up to $25,000 in total property damage. Costs that go beyond this limit will come out of your pocket.
Cheapest Full Coverage Car Insurance in Indianapolis
On average, the cheapest car insurance companies for a full coverage policy in Indianapolis are:
- American Family: $649 per year
- State Farm: $692 per year
Allstate has the most expensive full coverage policy, averaging $1,108 per year. At an average annual rate of $552, American Family is also the cheapest auto insurance company for full coverage in Indiana. In Indianapolis, American Family is more expensive by about $97 than the company’s state average price, showing that location affects car insurance costs, even with the same company.
Full coverage insurance dials up your level of protection by adding comprehensive and collision insurance to your liability policy.
- Collision Insurance: It helps cover the repair or replacement of your vehicle if it sustains damage in an at-fault accident, such as a collision with another vehicle or an object.
- Comprehensive Insurance: This helps cover the repair or replacement of your vehicle if it sustains damage in a non-accident incident like theft, vandalism or a weather-related event.
We recommend purchasing full coverage if you have a newer and more expensive car, but it might not be sensible to pay the added cost if you have an older vehicle with a low value.
Cheapest Car Insurance in Indianapolis After a Driving Offense
The average cheapest car insurance companies for a full coverage policy after driving violations in Indianapolis are:
- Speeding ticket: State Farm ($755 per year)
- At-fault accident: American Family ($878 per year)
- DUI: American Family ($834 per year)
Allstate has the highest average annual premium after a ticket ($1,388), while Westfield charges the average highest rate following an at-fault accident ($1,872) or a DUI ($2,257). An unfavorable driving record has quite an impact on an insurance premium, so even the cheapest insurers might charge up to hundreds of dollars more compared to rates for safe drivers.
Having a severe violation on your record could drive up your insurance premium. Indianapolis drivers with a speeding ticket or DUI pay around $329 or $745 more, respectively, for full coverage compared to those with a clean record. There are options to explore to get affordable car insurance for drivers with bad driving records.
Cheapest Car Insurance in Indianapolis for Teens and Their Families
On average, the cheapest car insurance companies for a 16-year-old teen on a family policy in Indianapolis are:
- Nationwide: $1,766 per year for female teens; $1,940 per year for male teens
- State Farm: $1,866 per year for female teens
- Allstate: $2,158 per year for male teens
Auto-Owners Insurance Co offers the least affordable full coverage for teens at roughly $3,170 for female teens or $3,308 for male teens on a family policy. Male teens are generally thought of as more impulsive and thrill-seeking, which could make them prone to driving recklessly. That results in a higher rate, but the good news is that any sex-specific difference in premium evens out starting in early adulthood.
Including a teen driver on a family policy could save hundreds of dollars in auto insurance. For instance, the average 16-year-old male driver in Indianapolis who purchases an individual policy pays around $4,369 per year for full coverage. If on a family policy, the total cost reduces to roughly $2,057 per year, a savings of around $2,312 annually. Don’t forget to shop around to find the cheapest auto insurance for teens.
Cheapest Car Insurance in Indianapolis for Military Drivers
The cheapest car insurance companies for active or veteran military families in Indianapolis are:
- USAA: $453 per year
- American Family: $649 per year
What’s shown above are the average rates for a full coverage policy. USAA not only has the cheapest auto insurance for military-affiliated drivers, but it also has an extensive list of coverages and services that are specifically tailored to the needs of military personnel. For an even more affordable option, you could purchase USAA’s minimum coverage policy, which only costs around $195 per year. Auto-Owners Insurance Co offers the second-cheapest minimum coverage policy at roughly $296 per year.
How to Compare Cheap Indianapolis Car Insurance Quotes Online
Comparing rates from various auto insurance providers in Indianapolis could help you identify the cheapest company for you, but completing the online form could take up to 15 minutes for each company. You’ll need to provide a lot of personal information.
With MoneyGeek’s car insurance calculator, you’ll benefit from the thousands of quotes that we’ve collected from different providers. You’ll only need to provide your age, vehicle type, preferred coverage level and driving record to get a personalized ballpark estimate of your premium.
Auto Insurance Calculator
See how the Average Annual Auto Insurance Rates vary with the options chosen.
Best Car Insurance in Indianapolis: Summary
How much you value affordability, service quality, coverage and other factors will determine the best car insurance company and type of policy for you. We rounded up MoneyGeek’s top picks for the best car insurance in Indianapolis, Indiana, by category:
- Best overall: American Family (MoneyGeek score of 80 out of 100)
- Best for service: Westfield (MoneyGeek score of 68 out of 100)
- Best cheap: Auto-Owners Insurance Co (MoneyGeek score of 84 out of 100)
Note that factors are weighed differently in each category, so you might notice that a company’s overall MoneyGeek score changes by section. American Family offers many essential coverages, which you can add to the cheapest full coverage policy in Indianapolis, making it the best auto insurance company in Indiana and the city of Indianapolis. Receiving a MoneyGeek score of 85 out of 100, USAA is another insurer that’s worth considering if you meet its eligibility requirements.
Best Overall Car Insurance in Indianapolis
These are the best car insurance providers in Indianapolis that offer the ideal combination of affordability and service quality:
- American Family: MoneyGeek score of 80 out of 100 ($649 per year)
- Auto-Owners Insurance Co: MoneyGeek score of 77 out of 100 ($723 per year)
American Family rightfully earned the top spot on our list by providing essential coverages in exchange for the average cheapest full coverage premium in Indianapolis. USAA is another insurer that military personnel on active duty and veterans should consider. It received a MoneyGeek score of 85 out of 100.
Offers the cheapest full coverage policy, averaging $649 per year
Received a high score for customer satisfaction
Offers all four of the essential coverages
Weak claims management
Doesn’t offer deductible modification
American Family gets the basics right by offering essential add-on coverages like roadside assistance, rental car reimbursement and gap insurance, plus original equipment manufacturer (OEM) coverage. If your car is involved in an accident, you would want the damaged parts to be replaced with original products from your car’s manufacturer. That ensures an optimal match without sacrificing quality and function. With American Family’s OEM coverage, you’re guaranteed to receive original product replacements and not aftermarket parts from a third-party manufacturer that might be compatible with your car but could compromise the safety or overall look of your vehicle. Even a single accident could create a massive dent in your finances, but having American Family’s auto death indemnity coverage could help ease the burden of costs related to death or injuries.
Best Car Insurance in Indianapolis for Customer Service
These are the best car insurance companies in Indianapolis for customer service after excluding cost in our analysis:
- Westfield: MoneyGeek score of 68 out of 100 ($807 per year)
- Auto-Owners Insurance Co: MoneyGeek score of 66 out of 100 ($723 per year)
Most of Westfield’s policyholders are highly satisfied with the overall service that they receive and with how the company processes claims. While other insurers charge higher rates for delivering superior service, Westfield’s policies remain reasonably priced, ranking as the fifth cheapest option in Indianapolis for full coverage.
Provides the best customer experience out of 11 insurers
Three out of four of the essential coverages
Offers gap insurance and a coverage package
Limited coverage options
Average claims management
Doesn’t offer deductible modification or original equipment manufacturer (OEM) coverage
Westfield might seem to have limited options for add-on coverages, but these could already be sufficient for many drivers. If you bundle your auto and home policies, you could get a coverage package that includes loan/lease coverage, trip protection coverage, replacement cost coverage and other benefits all neatly packed into your policy. Westfield also ticks three out of the four essential coverages: rental car and/or travel reimbursement, roadside assistance and gap insurance. Note that rental car coverage is included in the coverage package, which makes it a great value for the money. Whether you’re frequently on the road or just drive occasionally, roadside assistance is a must for worry-free travel. Westfield also offers 24/7 roadside assistance as an add-on to a standard policy. If you have a loan on your car, your Westfield policy’s gap insurance coverage will pay $5,000 from your balance if your car is totaled.
Best Cheap Car Insurance Companies in Indianapolis
After analyzing rates and service quality for a policy that only meets Indiana’s minimum coverage requirements, we found that the best auto insurance companies in Indianapolis are:
- Auto-Owners Insurance Co: MoneyGeek score of 84 out of 100 ($296 per year)
- Westfield: MoneyGeek score of 80 out of 100 ($335 per year)
Most drivers will find that a minimum coverage policy is the cheapest option that’s available to them. This type of policy has a serious downside that you need to be aware of before signing up: minimum coverage provides the least amount of protection against liability costs, and it won’t cover damages to your car after an accident.
An affordable minimum coverage policy costs around $296 per year
Cheapest for minimum coverage out of 11 insurers
Offers three of the four essential coverages: roadside assistance, rental car reimbursement and gap insurance
Average rating on claims management
No defensive driving or driver’s education discount
Auto-Owners Insurance Co offers the cheapest minimum coverage policy in Indianapolis with a good selection of optional coverages. It also features an impressively long list of discounts, including ones that are easily available to most insurance buyers. You could maximize your savings through a bundling discount by purchasing your auto policy in addition to a qualified home, life, condo or renter’s insurance policy from Auto-Owners Insurance Co. You’ll also get discounts for being a safe driver and for having safety features in your car, like an anti-lock brake system, airbags or an anti-theft device. Auto-Owners Insurance Co also awards sizable discounts to policyholders who go paperless, pay in full or have paid their premium on time for the last 36 months. If you have a teen driver in the family, having a permanently installed GPS device could help you get more affordable rates by qualifying for a teen driver monitoring discount.
Average Cost of Car Insurance in Indianapolis
The average cost of car insurance in Indianapolis is $847 per year. This is around $69 more than the average cost of car insurance in Indiana ($778), but is still roughly $418 cheaper than the national average ($1,265).
The sample full coverage policy in our study has $100,000 in bodily injury liability per person, $300,000 in bodily injury liability per accident and $100,000 in property damage liability per accident. Although the average premium in Indianapolis tends to be lower than in other cities in the country, location is just one of several key factors that insurers look at when calculating a premium.
About Mark Fitzpatrick