Your income is not used when car insurance companies calculate your insurance premiums. The factor that drives up the cost of your car insurance in Indiana is adding a teen driver to your policy. Your age is another consideration, with younger and senior drivers paying more than middle-aged drivers, and your credit score can make a big difference in price. In this guide, MoneyGeek compares car insurance rates for low-income families and individuals in Indiana based on their credit scores.

Is There Car Insurance for Low-Income Families and Individuals in Indiana?

There is no government program in Indiana to assist low-income drivers with the cost of car insurance. Approximately 15.8% of all drivers in Indiana are uninsured drivers, even though the law is that drivers must be insured. The high cost of car insurance may be the problem.

The best option for low-income families and individuals in Indiana is to opt for a minimum coverage policy that meets Indiana’s state minimum requirements. Another option is a pay-per-mile coverage that best suits drivers who don’t drive very often.

Does Indiana Have a Government Program to Support Low-Income Drivers with Insurance?

There are no government car insurance programs in Indiana to support low-income drivers. If you’re looking for the cheapest car insurance, you may wish to consider a policy with minimum coverage. Do shop around and compare quotes from several companies to make sure you get the best deal. MoneyGeek found the cheapest car insurance for low-income drivers in Indiana to help you with your search.

The Cheapest Indiana Car Insurance Companies for Low-Income Drivers

Car insurance companies don’t base your car insurance premiums on your income in Indiana. However, they might look at other factors related to income like your age and claims history. While a state minimum coverage policy might be the cheapest option for low-income drivers, it also provides the least protection.

MoneyGeek analyzed the cheapest minimum coverage car insurance for low-income drivers in Indiana and found that Erie is the cheapest for families, adult individuals and students, while GEICO is the most affordable for low-income seniors.

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The Cheapest Indiana Car Insurance Companies for Low-Income Families

Having a low income does not have a bearing on the cost of your car insurance, although your credit card scores can make a major difference. Yearly premiums in Indiana for single parents with a teen driver and poor credit scores are $1,028 higher on average than those with good credit. Similarly, the cost of insurance for couples with a teen driver and poor credit is $1,229 more on average than for those with good credit.

The two cheapest car insurance companies in Indiana for couples with a teen driver and poor credit scores are:

  • Erie: $2,055 per year
  • Progressive: $2,146 per year

The two cheapest Indiana car insurance providers for single parents with a teen driver and poor credit scores are:

  • Erie: $1,712 per year
  • GEICO: $1,827 per year

You may have a low income, but that doesn’t mean you have poor credit. Use the table below to find the cheapest option for you based on your driver profile.

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Single parent w/ a kid

Switch by Credit Score:

Good Credit Score

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  • Company
    Annual Rates
  • Erie
    $986
  • GEICO
    $1,052
  • State Farm
    $1,069
  • Progressive
    $1,215
  • United Farm Bureau of IN Group
    $1,333
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The Cheapest Indiana Car Insurance Companies for Low-Income Individuals

For our sample 40-year-old driver in Indiana, a poor credit score means paying about $310 more per year for car insurance. The following companies have the cheapest rates for a 40-year-old driver with poor credit:

  • Erie: $518 per year
  • GEICO: $532 per year

A low income doesn’t automatically mean a poor credit score. If you are a low-income individual with a good credit score, your car insurance rates will be significantly cheaper. In this case, Erie costs an average of $299 per year, with GEICO coming in at $307.

Switch by Credit Score:

Good Credit Score

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  • Company
    Annual Rates
  • Erie
    $299
  • GEICO
    $307
  • State Farm
    $334
  • Progressive
    $355
  • United Farm Bureau of IN Group
    $417

The Cheapest Indiana Car Insurance Companies for Low-Income Students

Students in Indiana are charged more for car insurance because of their lack of experience behind the wheel, not their income. Although they aren’t being charged for having lower income, young drivers in high school or college and graduates just starting their careers tend to have lower incomes, and their car insurance premiums will likely take up a large share of their income.

The two cheapest car insurance companies for low-income students with poor credit in Indiana are:

  • Erie: $1,163 per year
  • GEICO: $1,194 per year

Students with good credit scores can save a lot of money compared to those with poor credit. On average, Erie costs $670 per year and GEICO costs $687 per year for low-income students with good credit scores.

Switch by Credit Score:

Good Credit Score

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  • Company
    Annual Rates
  • Erie
    $670
  • GEICO
    $687
  • State Farm
    $750
  • Progressive
    $795
  • United Farm Bureau of IN Group
    $935

The Cheapest Indiana Car Insurance Companies for Low-Income Seniors

Senior drivers pay more for car insurance than middle-aged drivers. Risks like impaired hearing and eyesight are more common to older drivers and may interfere with safe driving. Credit scores also play a role in how much senior drivers in Indiana pay for their car insurance.

A senior driver in Indiana with poor credit can expect to pay $330 more per year on average than their counterpart with good credit.

The cheapest car insurance companies in Indiana for low-income senior drivers with a poor credit score are:

  • GEICO: $541 per year
  • Erie: $560 per year

Having a low income does not mean you have a poor credit score. If you are a low-income senior driver with good credit, you’ll pay less for your car insurance in Indiana. On average, car insurance from GEICO for seniors with good credit costs $312 per year, and from Erie $323.

Switch by Credit Score:

Good Credit Score

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Horizontal swipe icon
  • Company
    Annual Rates
  • GEICO
    $312
  • Erie
    $323
  • State Farm
    $334
  • United Farm Bureau of IN Group
    $385
  • Progressive
    $405

Does Income Affect Car Insurance Rates in Indiana?

Insurance companies cannot price your car insurance rates based on how much you earn. But they can look at your age and credit scores when calculating your premiums.

While low-income individuals aren’t charged based on their income, they are expected to make more claims because they likely can’t afford to pay for repairs themselves. Auto insurance companies will look at your claims history, which could raise your rates.

According to our analysis, the three most important factors that can impact the cost of car insurance in Indiana are:

  • Your age.
  • Your credit score.
  • Adding a teen driver to your policy.

The coverage level you select and your car model are also important considerations.

Factor
How it Affects Your Rates

Adding a Teen Driver

In Indiana, adding a teen driver to your car insurance policy can make your rates 3.2x as expensive.

Age of Driver

Young drivers in Indiana pay 2.2x more than middle-aged drivers.

Credit Score

Having poor credit scores can increase your car insurance premiums by 2.1x.

Coverage Levels

In Indiana, full coverage policies cost 2.1x more than minimum coverage.

Car Model

Recent car models are twice as expensive as older car models.

Frequently Asked Questions About Low-Income Car Insurance in Indiana

Below, MoneyGeek answers a few of the most frequently asked questions about low-income car insurance in Indiana.

Does Indiana have a government-supported low-income car insurance program?
How can low-income families get affordable car insurance in Indiana?
Does your income affect the cost of car insurance in Indiana?

Methodology

MoneyGeek calculated the cost of car insurance for low-income drivers in Indiana using quotes sourced in partnership with Quadrant Information Services. The sample driver is either a 40-year-old male, a single 40-year-old parent with a 16-year-old child, an adult couple (each 40 years old) or a couple with a 16-year-old child. The individual or family drives a 2010 Toyota Camry LE. The driver buys the minimum car insurance required in Indiana.

Costs for poor and good credit scores were extrapolated based on MoneyGeek’s dataset of credit score rate adjustments by score categorization.

About Mark Fitzpatrick


Mark Fitzpatrick headshot

Mark Fitzpatrick has analyzed the property and casualty insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. Currently, he leads P&C insurance content production at MoneyGeek. Fitzpatrick has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.

Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.