Best Cheap Car Insurance Companies for High-Risk Drivers in Indiana

High-risk drivers often pay more for car insurance since insurers think they are more likely to file claims. Shopping around and comparing rates is the best way to save money on your premium if you’re considered a high-risk driver.

MoneyGeek found Erie has the lowest-priced car insurance for high-risk drivers in Indiana at around $741 annually. The company also balances affordability with quality service the best, making it the top choice in the state.

In the eyes of insurers, high-risk drivers are those who have been convicted of a DUI, drivers with a history of a suspended or revoked license, those with at-fault accidents or several traffic violations and reckless drivers. Drivers with sports cars and teenagers without much driving experience also belong in the high-risk category.

Your driving record has a huge impact on the cost of your car insurance. Compared to drivers with clean records, high-risk drivers pay around 29% more for car insurance in Indiana.

They pay more for insurance because of the possibility of getting into an accident, requiring insurers to charge more as they anticipate covering expenses in a claim.

MoneyGeek found that the cheapest high-risk car insurance in Indiana is from Erie. High-risk drivers have an average premium of $741 per year for a car insurance policy with this company. We analyzed its car insurance by diving into its coverage options, discounts and features in our Erie car insurance review.

MoneyGeek compared rates, customer service and financial stability of different insurers to gather an overall rating of each company. Erie came out at the top, with a score of 97 out of 100, and American Family ranked second, with a score of 82 out of 100.

The cheapest car insurance company in Indiana for drivers with a DUI is American Family. On average, drivers with a DUI pay $835 annually for an American Family car insurance policy.

USAA may also be an affordable option. However, its policies are only available to veterans, active members of the military and their family members. If you’re eligible for a USAA policy, check out our USAA car insurance review to know more about its pros, cons, coverages and discounts.

Based on MoneyGeek’s analysis, the most affordable car insurance in Indiana for teenage drivers is from GEICO. A car insurance policy from GEICO costs $2,849 per year on average for teenage drivers. To know more about this company, our review of GEICO car insurance details its coverages, discounts, customer service quality, etc.

In Indiana, GEICO offers the cheapest car insurance for drivers with bad credit. The average annual premium for drivers with bad credit is $787. To give you more information about this company, MoneyGeek created a review of GEICO’s car insurance to weigh its pros and cons.

The cost of car insurance significantly changes once you’re considered a high-risk driver. For instance, the average premium in Indiana increases by around $304 per year. Car insurance costs around $710 per year for clean-record drivers and roughly $1,014 per year for high-risk drivers.

Car insurance is more expensive for high-risk drivers because insurance companies think they have a higher chance of filing claims. Your driving history is a huge factor that affects your car insurance premium.

MoneyGeek’s Indiana car insurance calculator can give you a rough estimate of your rate. It allows you to tweak specific factors based on your profile, needs and preferences to find a policy that best suits your circumstances. Playing around with different factors helps you see how each factor affects your premium.

Given that insurance is a voluntary market, insurance companies may decide not to cover you. Sometimes, an insurance provider won’t grant you coverage because they think you’re too risky of a driver. You can still get a car insurance policy by looking for alternative options through the auto insurance residual market.

The auto insurance residual market provides coverage if you've been turned down by car insurance companies. To insure high-risk drivers through the residual market, the risk of covering these customers is split among several car insurance companies. A non-profit organization known as the Automobile Insurance Plan Service Office (AIPSO) is in charge of overseeing the residual market.

Back in 1948, the Indiana Automobile Insurance Plan was created to offer car insurance for drivers who have difficulties securing a policy from insurance companies. Insurance agents with valid licenses to offer car insurance services voluntarily participate in the Plan. They are required to accept applications depending on the insurance they provide in Indiana.

MoneyGeek answered the most important questions about high-risk auto insurance in Indiana to assist you.

MoneyGeek calculated average rates using full coverage car insurance policies with 100/300/100 liability insurance and comprehensive and collision coverage with a $1,000 deductible. Minimum coverage car insurance policy rates were calculated based on each state’s minimum car insurance requirement.

To calculate rates for high-risk drivers, MoneyGeek averaged the premiums insurance companies charge for three of the most common driving violations: speeding, at-fault accident and DUI.

To determine the best car insurance company for high-risk drivers, MoneyGeek scored companies based on affordability, customer satisfaction and complaints — obtained from J.D. Power surveys and NAIC complaint scores — and financial strength ratings as calculated by AM Best. Affordability received the greatest weighting in our calculations.