Auto insurance rates differ based on factors such as age, location and driving record, so you should regularly get customized quotes to find the best car insurance in Indiana. MoneyGeek ranked the leading auto insurance carriers in the state based on their quality of customer support, pricing and other factors. You can use these ratings to find suitable coverage options for your requirements. When you compare car insurance costs from some of the best providers in Indiana, you could save up to $390.
The Best Cheap Car Insurance in Indiana for 2021
The Cheapest and Best Car Insurance in Indiana
When it comes to cheap car insurance, the most affordable option for Indiana drivers is a liability-only policy. This is basic insurance that only meets the state minimum car insurance requirements. If you want additional protection, you should look into a policy with better coverage.
The cheapest auto insurance companies for Indiana drivers with minimum liability-only coverage are:
- Eris: $290 per year
- GEICO: $298 per year
On the other hand, the most expensive car insurance company in Indiana is Allstate, with an average annual rate of $613.
Average Cost for Minimun Liability Coverage
These rates are based on the average premium for the average driver in Indiana and should not serve as a guide when comparing quotes between insurance providers.
These prices are only estimates based on rates for an average Indiana driver and should not be used to compare insurance prices.
The minimum coverage policy is the cheapest insurance in Indiana, but it only covers bodily injury and property damage liability. Drivers who want higher liability coverage amounts or those who want protection against the cost of damages to their own vehicle should consider a full coverage policy.
Some Indiana drivers want a full coverage policy that has higher liability limits and comprehensive and collision insurance that protects them against most road and off-road accidents in the state. Getting a full coverage policy costs more than getting the minimum coverage. However, it covers the cost of damages to your car. The best way to find the most accurate auto insurance in Indiana is to compare quotes.
The cheapest car insurance companies for drivers looking for a comprehensive and collision insurance policy in Indiana are:
- Erie: $546 per year
- GEICO: $572 per year
Allstate has an average annual premium of $936 for a similar policy, making it the most expensive option.
Average Comprehensive and Collision Rates in Indiana
Your individual premium will be based on your circumstances as a driver and will not be the same as the examples provided. These rates are based on a comprehensive and collision insurance policy with a total of $100,000 bodily injury liability coverage per person, $300,000 bodily injury liability coverage per accident and $100,000 property damage coverage per accident.
The Best Car Insurance Companies in Indiana for 2021
MoneyGeek ranked car insurance companies in Indiana. The best carriers for most drivers are:
- Best Overall: Erie
- Runner-up: United Farm Bureau of IN Group
USAA received the highest score in Indiana by MoneyGeek's rating system. However, because USAA is only available to military members, veterans and their families, it is not listed as best overall.
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.
USAA ranked first among all car insurance companies in Indiana due to its high ratings across multiple categories. It’s important to note that only current and former military members can get a USAA policy.
If you qualify for USAA, they have rewards programs for loyal customers. This gives policyholders additional saving opportunities. For example, you can get a discount if your parents had USAA policies. Additionally, active military members are entitled to a discount if they garage their vehicle on base.Read MoneyGeek's USAA auto Insurance Review
Erie also ranked well across categories, making it the second-best car insurance company in Indiana. For drivers who do not qualify for USAA policies, Erie is the best option.
Erie had perfect ratings for user satisfaction and affordability. It also provides unique perks for policyholders. For example, you can get automatic accident forgiveness if you have been an Erie customer for at least three years. The company also offers a diminishing deductible, which lessens your deductible by $100 for every year that you do not file a claim.Read MoneyGeek's Erie auto Insurance Review
While USAA scores highly in many areas, this provider is only available to military members, veterans and their families.
List of the Largest Insurance Companies in Indiana
In Indiana, the largest companies by market share are State Farm, Progressive and Allstate. Market share refers to the number of premiums written by an insurer divided by the total number of premiums written in a certain state. While being a bigger company does not ensure the best auto insurance policy, it does provide security that the company is financially stable enough to reimburse claims.
- CompanyMarket Share
How to Compare Cheap Indiana Car Insurance Quotes Online
When comparing car insurance rates in Indiana, drivers can get personalized quotes online. Most carriers let you get reasonably accurate rates on their website.
- Determine how much coverage you need, then use the same requirements when getting quotes. If you get a quote for a policy with $100,000 bodily liability insurance coverage per accident from one insurer, use the same number when you ask for quotes from other carriers.
- Compare quotes by entering your ZIP code below or look for car insurance companies by checking MoneyGeek’s price data.
- Based on average rates, the cheapest companies in Indiana are Erie, GEICO and State Farm. Drivers looking for auto insurance in Indiana can begin their search by getting quotes from these insurers.
What Is the Average Cost of Car Insurance in Indiana?
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
If you have a severe driving violation like a DUI on your record, insurance companies in Indiana will likely treat you as a riskier driver and charge you higher rates. The average cost for Indiana drivers with a DUI is $1,099 per year, which is higher than the annual average of $725 for drivers with a clean record.
The cheapest options for a full coverage policy for drivers with a DUI in Indiana are:
- American Family: $826 per year
- Progressive: $838 per year
While Erie and GEICO are the cheapest companies for the average Indiana driver with a clean record, American Family and Progressive have the best rates for those with a DUI.
Average Car Insurance Rates With a DUI
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.
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.
Minor driving violations, such as tickets, will increase your auto insurance premium in Indiana. The average cost of car insurance for an Indiana driver with a speeding ticket is $930 per year. This is $205 more than drivers with a clean record pay.
An Indiana driver with full coverage and a speeding ticket may find the cheapest rates from:
- Erie: $589 per year
- State Farm: $701 per year
Erie offers the cheapest rates for drivers with a ticket and drivers with a clean record. State Farm offers lower rates for drivers with a speeding ticket than GEICO, the second cheapest option for a driver with a clean record.
Average Car Insurance Rates With a Ticket
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 above table showcases estimates of how a speeding or distracted driving ticket can impact auto insurance rates in Indiana.
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.
Drivers with poor credit will likely have higher auto insurance rates in Indiana than those with good scores. The average annual cost for a driver with bad credit and full coverage is $1,242. Meanwhile, a similar policy for a driver with a clean record typically costs $725 per year.
The cheapest car insurance companies in Indiana for drivers with poor credit scores and full coverage are:
- GEICO: $825 per year
- Progressive: $1,017
Although Erie is the cheapest car insurance company for Indiana drivers with good credit, GEICO and Progressive offer lower rates for those with poor credit scores.
Average Car Insurance Rates for Drivers With Bad Credit
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.
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.
Senior drivers in Indiana tend to have slightly higher rates than young adults and middle-aged drivers. On average, the rate of a full coverage policy for senior drivers in Indiana is $742 per year. That is $17 more than the average cost of a similar policy for a 40-year-old driver.
The cheapest car insurance companies in Indiana for seniors with full coverage are:
- GEICO: $561 per year
- Erie: $591 per year
Similar to a full coverage policy for a 40-year-old driver, the cheapest options for seniors are GEICO and Erie.
Average Car Insurance Rates for Seniors
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.
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.
Car insurance companies in Indiana view students as riskier drivers due to inexperience. As a result, they charge them more than adult drivers. In Indiana, the average annual cost of a full coverage policy for students is $1,641. The average cost for a 40-year-old driver is only $725 per year.
The cheapest car insurance providers for student drivers with full coverage in Indiana are:
- Progressive: $1,275 per year
- GEICO: $1,412 per year
Progressive offers lower rates for students with full coverage than Erie, which is the cheapest option for a 40-year-old driver with a similar policy. GEICO offers the second most affordable rate for both demographics.
Average Car Insurance Rates for Students
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.
Insurance Rate Information for Military Drivers and Veterans
Average Rates for Indiana service members
Car Insurance in Indiana: What You Need to Know
You must insure any vehicle driven on Indiana’s roads and highways. Drivers should consult with their insurance company and the state's Bureau of Motor Vehicles about any specific concerns regarding their vehicle’s insurance to avoid administrative hassles or fines.
Proof of Insurance in Indiana
Indiana drivers can provide proof of insurance with a printed card or digitally through their smartphones. Indiana’s policy is to make sure people have proper insurance coverage by requesting proof of insurance in the following situations:
- Registering the vehicle
- After an accident
- If you commit a traffic violation
Anyone receiving a notification requiring proof of insurance from the Bureau of Motor Vehicles will need to call their insurance agent and ask them to send a Certificate of Compliance to the Bureau.
Minimum Liability Insurance Requirements in Indiana
Like nearly every other state, Indiana requires its drivers to insure their vehicles. Its minimum requirements for liability insurance are:
- $25,000 to cover an injury to one person
- $50,000 to cover injuries to multiple people
- $10,000 to cover property damage
Insurance groups generally recommend up to 10 times those figures in liability coverage for injury and accidents. Drivers must also carry uninsured motorist coverage at these minimum levels unless they opt out in writing:
- $25,000 for injuries to one person
- $50,000 for injuries per accident
- $10,000 for property damage
Alternatives to Insurance in Indiana
Insurance-wary drivers have two alternatives to dealing with an insurer. They can file a surety bond or deposit cash, securities or trust funds worth $40,000 with the state treasurer. Afterward, they'll need to bring their receipt to the BMV.
Like other drivers, they'll still have to show proof of financial responsibility in the event of an accident, but unlike other drivers, they may not be able to expand their coverage for comprehensive and collision coverage. Nor will they be immune to paying more than the bond or deposit is worth, should they cause a catastrophic accident.
How Much Coverage Do You Need in Indiana?
Cheap car insurance and the best car insurance are not necessarily synonymous. In Indiana, the amount of coverage required by law will likely fall short of what a bad accident will cost you. Many insurance experts recommend carrying liability coverage of $100,000 per injury and $300,000 per accident in case of a catastrophic collision.
Because Indiana has a relatively high proportion of uninsured drivers, it makes sense to keep the uninsured/underinsured motorist coverage that comes with a policy. Collision and comprehensive insurance are also solid investments for any vehicle worth more than a deductible and several years' worth of premiums.
Average Insurance Rate by City in Indiana
FAQs About Car Insurance in Indiana
Getting the best car insurance in Indiana requires consideration of various factors. For many drivers, the most common questions about auto insurance center around the cost of the policy and how much coverage one should buy.
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.
- What are the key factors drivers in Indiana should look for when searching for the best auto insurance coverage?
- What steps can drivers in Indiana take to find affordable car insurance?
- How do regulations and rules in Indiana impact insurance pricing and how consumers might shop for coverage?
Associate Professor of Business at Indiana Tech
Assistant Professor of Operations and Supply Chain Management at the School of Business, University of Indianapolis
Professor of Business Economics at Indiana University
About the Author
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- Centers for Disease Prevention and Control. "Sobering Facts: Alcohol-Impaired Driving State Fact Sheets." Accessed January 13, 2021.
- Consumer Reports. "The Secret Score Behind Your Rates." Accessed March 8, 2020.
- Experian. "2019 Consumer Credit Review." Accessed March 8, 2020.
- Governing: The Future of States and Localities. "Military Active-Duty Personnel, Civilians by State." Accessed January 18, 2021.
- Indiana Department of Labor. "Distracted Driving." Accessed March 8, 2020.
- Indiana University Public Policy Institute. "Indiana Traffic Safety Facts." Accessed March 8, 2020.
- National Association of Insurance Commissioners. "2018 Market Share Reports." Accessed March 8, 2020.
- National Highway Traffic Safety Administration. "Traffic Safety Facts." Accessed January 13, 2021.