The Best Cheap Car Insurance in Indiana for 2021

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Under Indiana law, you cannot operate a motor vehicle in the state without proper car insurance. Some drivers are okay with the state minimum liability-only requirement. However, if you want to cover your personal medical expenses and the cost of possible repairs for your vehicle, you should include collision and comprehensive coverage. Erie typically offers the most affordable coverage among the auto insurance companies in Indiana, whether for the state minimum of 25/50/25 or upgraded 50/100/50 coverage.

Average Cost for Liability Coverage

To identify the best car insurance firms in Indiana, MoneyGeek analyzed multiple factors, including claims, customer satisfaction, financial strength and affordability. To calculate the score for each element, MoneyGeek assessed data from industry-standard reports like J.D. Power’s U.S. Auto Insurance Study and AM Best’s financial strength ratings. Equal weight was given to each criterion to arrive at MoneyGeek’s final rating out of 100.

While USAA scores highly in many areas, this provider is only available to military members, veterans and their families.

Market Share by Company

According to the National Association of Insurance Commissioners (NAIC), State Farm, Progressive and Allstate are the largest insurers in the state of Indiana. See below for a breakdown of the top insurance coverage in the state.

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Carriers arrive at your auto insurance cost after considering several factors. MoneyGeek determined the average prices for 100/300/100 collision and comprehensive insurance for a 40-year-old man driving a Toyota Camry with no record of accidents or tickets. Your car insurance premium may be more or less than these Indiana averages depending on your location, age, coverage level and driving history.

• Average Driver: $725
• DUI: $1,099
• Speeding Ticket: $930
• Poor Credit Score: $1,242
• Seniors: $742
• Students: $1,641

Getting a DUI in Indiana is costly and can affect your chances of getting cheap car insurance for years after the incident. According to the CDC, Indiana drivers who admitted to driving after drinking “too much” is 1.5%, just under the national average of 1.7% of drivers surveyed regarding the 30 days prior to the survey. From 2009-2018, 2,068 drivers in Indiana were killed in alcohol-related crashes.

Recent data from the Indiana University Public Policy Institute show a decrease of 1.14 % in alcohol-impaired crashes from 2017 to 2018.

Average Car Insurance Rates With a DUI

As you can see from the table above, insurance rates can increase dramatically after a DUI. In Indiana, a driver can also face fines, jail time, license suspension and possibly an ignition interlock — even after the first offense. A DUI can affect your insurance rates for years after you’re convicted and you will have far fewer auto insurance companies to choose from to find the best rates. Those you do find may not be very affordable. Take the time to understand how getting a DUI in Indiana can affect your chances of getting cheap car insurance.

Driving distracted is not only an easy way to get into an accident, but it’s also an easy way to get a ticket. Texting while driving is one of the most common reasons for distracted driving and is against the law in Indiana. Getting a ticket for speeding or distracted driving can affect your chances of getting cheap car insurance rates.

The following table showcases estimates of how a speeding or distracted driving ticket can impact auto insurance rates in Indiana.

Average Car Insurance Rates With a Ticket

Not only can your car insurance rates increase for years after a distracted driving or speeding ticket conviction, but you can also be fined up to $500, according to the Indiana Department of Labor. Learn about how your auto insurance can be affected by receiving a ticket for speeding or distracted driving.

In Indiana, credit can impact auto insurance rates. According to Experian, the average credit score in Indiana is 699, just under the national average of 703. Check out the following table for estimates on what Indiana residents who have bad credit can expect to pay with some of the state’s top insurers.

Average Car Insurance Rates for Drivers With Bad Credit

Insurance companies use credit to determine your premium based on how likely you are to pay your bills on time and file a claim. If you think your credit score is preventing you from getting the most affordable car insurance quotes in Indiana, check out ways to improve your score.

Indiana seniors accounted for 13.8% of the drivers involved in fatal Indiana crashes during 2017. Seniors may find that after the age of 65, their auto insurance rates may increase. They also have to renew their driver’s license in person and more frequently in Indiana — from every five years to every three. Seniors should take the time to find car insurance that works for their needs. The following table features estimates of what seniors in Indiana can expect to pay for their auto insurance. As always, consulting with an insurance company directly can provide more accurate quotes.

Average Car Insurance Rates for Seniors

Seniors tend to have slower response times when driving. However, they take more preventative measures like wearing a seatbelt (71% of the time compared to 48% in age groups under 65) than younger drivers do, both of which can affect insurance rates. The clearer a senior’s driving record is, the more affordable their insurance will likely be.

Finding cheap car insurance for young drivers can be difficult in Indiana because they account for a disproportionate amount of car crashes. Data collected from the Indiana University Public Policy Institute shows that in 2018, drivers between the ages of 15 and 20 had the highest rate of crashes in Indiana.

To get the best and cheapest car insurance rates in Indiana for young drivers, there are some best practices to follow. Teens and college students with good grades who drive cars with more safety features can get better insurance rates than students with poor grades who drive flashy sports cars. Additionally, college students who go to school over 100 miles away may qualify for a discount.

Parents and teens should take the time to understand how to get affordable coverage without sacrificing coverage limits. The table below shows the average rates for the top-rated auto insurance companies in Indiana for young drivers.

Average Car Insurance Rates for Students

Whether you're one of the state's approximately 960 active duty military personnel or a veteran, ask insurance companies about discounts before you buy a policy in Indiana. Rates can vary between companies. Even with a military discount, you'll still need a good driving record to get the best rates available.

The Indiana Department of Insurance outlines state requirements for coverage. Military personnel from Indiana and active-duty personnel stationed in Indiana have a choice: register in Indiana or their home (or temporary) state. The following table outlines what active-duty personnel and veterans may pay for their auto insurance. For the most accurate estimates, contact the insurance companies directly.

Average Rates for Indiana service members

25 years$1,434
50 years$1,156

25 years$1,318
50 years$1,142

Expert Advice on Finding Cheap Car Insurance in Indiana

To help you find trustworthy and accurate details on car insurance in Indiana, MoneyGeek collected expert advice from proven professionals. The perspectives and sentiments expressed are those of the individual contributor.

1. What are the key factors drivers in Indiana should look for when searching for the best auto insurance coverage?

   Dr. Crystal Karn

   First, look for a reputable company. Look at the history of the company and see if there is a history of good claims coverage. Also, ask yourself if you want to work with a local agent. Is having someone in the area that you can visit if you have questions important?

   Shop for quality of coverage, not just price. When you are getting an insurance quote, make sure that you are getting comparable quotes from each company. Make sure you are looking at the same coverage features for each insurer.

   Ask about discounts. Discounts can range from multiple lines to good student discounts. You need to ask to make sure you are taking advantage of discounts offered by the insurance company.

   Also, if you have a less than perfect driving record, an insurance broker may be able to help you find good coverage.

2. What steps can drivers in Indiana take to find affordable car insurance?

   Craig Seidelson

   Having trouble finding a plan that fits your budget? Ask about the Indiana Auto Insurance Plan. Every insurance company in the state is required to participate. The program is aimed at helping drivers who are having difficulty purchasing insurance.

   Jeff Prince

   Get quotes! It sounds simple, but people often overpay simply because they don't shop around.

   Dr. Crystal Karn

   The first step in any financial process is to take a look at what you can afford. If you haven’t already created a budget, this would be the first step. Creating a budget allows you to see what you can spend and what would be a good price range for your insurance coverage.

   Next, ask for referrals from friends and family. Do your homework. Check out promotions from different insurance companies. Comparison shop coverages and rates. Please keep in mind that there are many factors that go into the calculation of insurance rates.

3. How do regulations and rules in Indiana impact insurance pricing and how consumers might shop for coverage?

   Craig Seidelson

   When shopping for car insurance in the state of Indiana, it's important to understand your rights and responsibilities. Insurance providers must file their rates with the Indiana Dept. of Insurance. Mandatory filing makes it easy for you to compare rates. When shopping around for a policy, it's important to remember that Indiana drivers can't hit the road without bodily injury coverage of at least $25,000 per person and $50,000 per accident. In addition, the state minimum for property damage liability is $25,000 per accident. There are no state minimums of coverage for medical payments, collision, theft, or damage to vehicles outside of collision. Once you've decided on a policy, be extra careful. In Indiana, insurance companies have the right to cancel policies within the first 60 days of issuance. After 60 days, your provider can only drop your policy if you miss a payment or lose your license. Pay attention when your policy is ending. Indiana insurance companies have the right to deny renewal. But, they must give you at least 20 days advance notice.

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Dr. Crystal KarnAssociate Professor of Business at Indiana TechREAD ANSWERS

Craig Seidelson Assistant Professor of Operations and Supply Chain Management at the School of Business, University of IndianapolisREAD ANSWERS

Jeff PrinceProfessor of Business Economics at Indiana UniversityREAD ANSWERS

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About the Author

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Mandy Sleight is a freelance writer and a licensed insurance producer since 2005. She has extensive knowledge in property and casualty insurance as well as life and health insurance. She writes on topics including insurance, sustainability, budgeting, nutrition, and fitness.

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