Cheapest and Best Car Insurance in Indianapolis, IN (July 2024)

In Indianapolis, Indiana, Auto-Owners offers the cheapest minimum coverage car insurance. American Family has the lowest rates for full coverage and is the best overall, balancing cost and service. Nationwide is the most affordable for families with teens. Westfield is the top choice for customer service. The best option depends on individual preferences and coverage requirements.

MoneyGeek found that Auto-Owners is the cheapest car insurance in Indianapolis, offering minimum coverage at the best rates.

• Auto-Owners: $307 per year
• American Family: $363 per year

Farmers has the most expensive minimum coverage policy in Indianapolis, with an annual premium of $692 — significantly higher by $385 than the cheapest policy from Auto-Owners. This rate contrast underlines the importance of comparing car insurance quotes to ensure you're not overpaying for minimum coverage.

In Indiana, state law mandates car insurance requirements. These are the required minimums:

• $25,000 bodily injury per person
• $50,000 bodily injury per accident
• $25,000 property damage liability per accident

If you're insured for the minimum of $25,000 in bodily injury per person and cause an accident, your insurance will cover up to that amount for each person injured. But, if their medical bills exceed $25,000, you'll likely pay for the difference out of pocket. If multiple people are injured and the expenses surpass the $50,000 limit per accident, the remaining amount could be your financial responsibility.

MoneyGeek found that American Family offers the cheapest full coverage car insurance in Indianapolis. These are the two most affordable providers:

• American Family: $696 per year
• Auto-Owners: $702 per year

Farmers has the most expensive full coverage policy, costing an annual premium of $1,261. This is $565 more than American Family's policy, highlighting the significance of comparing quotes to find the cheapest full coverage car insurance. Full coverage is more costly than minimum coverage because it includes additional protections like comprehensive and collision coverage.

Full coverage policies feature higher liability limits and include comprehensive and collision insurance.

• Collision Insurance: This component provides financial protection against damage to your vehicle from a crash with another car or an object such as a fence or pole. It also covers rollover accidents and pothole damage.

• Comprehensive Insurance: This coverage addresses damage to your car caused by non-collision-related incidents such as theft, vandalism, fires, natural disasters or being hit by an animal like a deer.

Opting for full coverage insurance is advisable for new cars to protect the significant investment they represent. For older vehicles, the benefit of the extra premium may not be justifiable due to the vehicle's depreciated value. Figuring out the right amount of car insurance for you involves weighing higher coverage against the risk of increased premiums and the potential financial consequences of being underinsured. Your car insurance coverage should always be tailored to your financial situation and the value of the vehicle you're insuring.

MoneyGeek found that the cheapest companies for drivers with a poor driving record in Indianapolis vary depending on the driving violation. These are the cheapest providers for each type of offense:

• Speeding Ticket: Auto-Owners ($873 per year)
• At-Fault Accident: Auto-Owners ($916 per year)
• DUI: American Family ($897 per year)

The most expensive rates for these offenses are offered by different companies, with Westfield being the most expensive for drivers with a DUI at $2,822 per year. The severity of an offense significantly influences car insurance rates, highlighting how important it is to maintain a good driving record to secure lower insurance premiums.

Insurance rates in Indianapolis and other cities can be significantly impacted by the severity of a driving offense. For example, drivers with a DUI pay an average annual rate of $2,459, while those with a speeding ticket are charged around $1,764. This substantial difference underscores why individuals with driving infractions must diligently compare insurance rates; it could lead to substantial savings, especially when their driving record is less than perfect.

MoneyGeek found that Nationwide offers the cheapest car insurance for teens in Indianapolis, ensuring parents can secure their teen's coverage at a cost-effective rate.

• Nationwide: $1,766 per year for female teens and $1,940 per year for male teens
• State Farm: $1,866 per year for female teens; Allstate: $2,158 per year for male teens

These rates are for family policies with two parents and a teenage driver. Auto-Owners has the most expensive family policy option for male teens in Indianapolis at $3,308 per year, highlighting the significant variation in premiums. With an annual premium difference of $1,368 between the cheapest and the most expensive insurer for male teens, the importance of comparing quotes is evident, especially for higher-risk drivers like teenagers.

In Indianapolis and other cities, teens seeking car insurance can expect to pay significantly more for individual policies than if they were added to a family plan. A teen's average annual premium for an individual policy is a steep $5,132 compared to an average of $2,402 per year when included in a family policy. This substantial rate difference is primarily due to the heightened risk insurers associate with teen drivers, who statistically are more prone to accidents. Getting approval for individual policies may also pose a challenge for teens due to these risk assessments. Opting for a joint policy with parents or guardians is generally more economical and offers a higher likelihood of acceptance.

MoneyGeek found that USAA is the cheapest car insurance for military backgrounds in Indianapolis, offering savings on a full coverage policy for those who have served our country. The two most affordable providers in Indianapolis are:

• USAA: $572 per year
• American Family: $696 per year

USAA offers services specifically tailored to the needs of active-duty military members and veterans. However, note that eligibility is exclusive to those with a military affiliation. American Family is the next best affordable alternative, accessible to a broader customer base.

In Indianapolis, finding the best car insurance rates is key to savings. However, the process often entails over an hour of research.

MoneyGeek’s car insurance calculator is an efficient tool that narrows down the most crucial factors affecting auto insurance premiums. You receive a tailored rate estimate by inputting your age, driving history, credit score, coverage preferences and other relevant details.

Choosing the best auto insurance depends on your priorities, such as service quality, cost-effectiveness and coverage. MoneyGeek's tailored research evaluates different metrics for each category in Indianapolis's car insurance market.

• Best overall: American Family (MoneyGeek score 88 out of 100)
• Best for service: Westfield (MoneyGeek score 90 out of 100)
• Best cheap: Auto-Owners (MoneyGeek score 90 out of 100)

American Family is the best overall, balancing quality service and affordability. Auto-Owners, scoring equally with Westfield, offers the best rates for those prioritizing budget without compromising on the service experience. Westfield distinguishes itself in service, making it ideal for those who place a premium on exceptional customer experiences. Each winner demonstrates strengths in its respective area, catering to the diverse needs of Indianapolis drivers.

MoneyGeek found that American Family offers the best car insurance in Indianapolis, with an outstanding blend of service quality and affordability.

• American Family: MoneyGeek score of 88 out of 100 ($696 per year)
• Auto-Owners: MoneyGeek score of 86 out of 100 ($702 per year)

American Family distinguishes itself with top marks in satisfaction and affordability, demonstrating a commitment to customer service and cost-efficiency. This score pertains to a full coverage policy, making American Family a cost-effective option and a provider of comprehensive protection for Indianapolis drivers.

MoneyGeek found that Westfield offers the best car insurance in terms of customer service in Indianapolis. This assessment is based on general satisfaction, claims handling and coverages, with a focus on quality rather than rates.

• Westfield: MoneyGeek score of 90 out of 100 ($1,033 per year)
• American Family: MoneyGeek score of 84 out of 100 ($696 per year)

Westfield distinguishes itself as the leading insurer. Top-notch customer satisfaction and claims handling are the highest contributing factors to its MoneyGeek score. Customers choosing Westfield can anticipate superior service that goes beyond the policy's value.

MoneyGeek found that Auto-Owners provides the best cheap car insurance in Indianapolis, delivering top-tier affordability without compromising on the quality of claims handling and overall customer satisfaction. This balance makes it the premier choice for financially savvy consumers looking for value.

• Auto-Owners: MoneyGeek score of 90 out of 100 ($307 per year)
• Westfield: MoneyGeek score of 88 out of 100 ($383 per year)

Auto-Owners stands out significantly due to its excellent affordability and superior service, making it the leading provider of minimum coverage policies in Indianapolis. The high scores in satisfaction and claims handling are a testament to the company's commitment to serving its customers well.

In Indianapolis, Indiana, the average cost of car insurance is $1,013. This cost is higher by $95 than the Indiana state average of $918. The state average is significantly lower than the national average of $1,781 — a difference of $863.

Several factors contribute to determining individual car insurance rates. However, location is significant, as geographical variables like local crime rates, traffic congestion and the probability of accidents can greatly influence premiums. Among the cities in Indiana analyzed by MoneyGeek, Indianapolis has the most expensive average premium at $1,013 per year. On the other hand, South Bend is the cheapest city, with an average of $889 per year. This $125 difference supports the role of location in car insurance rates. Rates may be even cheaper in non-metropolitan areas where traffic density is lower, highlighting the significance of location in determining insurance costs.