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Cheapest car insurance in Indiana for 2023
Finding the cheapest auto insurance may be easier for Indiana drivers than for drivers in other states, thanks to Indiana’s lower-than-average rates. If you’re looking for a minimum coverage policy in Indiana, Bankrate found that Pekin offers the lowest minimum coverage premium in the state, with an average rate of $204 per year. If you’re looking for more robust coverage but still want a low rate, you might want to get quotes from Hastings Mutual. The carrier’s average full coverage premium is $549 per year, which is the lowest in the state, based on Bankrate’s research.
The cheapest car insurance companies in Indiana
Not all cheap car insurance companies provide equal service. Drivers looking for the best provider with the most affordable rates may also want to take into account varied levels of customer experience and the range of product offerings available. To find the best and cheapest car insurance in Indiana, we reviewed data from Quadrant Information Services and compared the average rates with how the companies are assessed by third-party rating agencies on the basis of their financial strength ratings and customer satisfaction scores.
Based on the findings, Bankrate determined that Pekin, Hastings Mutual, Grange, Geico and USAA have some of the cheapest rates for both minimum and full coverage insurance.
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The cheapest companies for minimum coverage in Indiana
Minimum coverage car insurance is a baseline requirement in Indiana for all drivers. Typically, minimum coverage insurance is the cheapest option because it provides a minimal amount of financial protection. If you are interested in purchasing a minimum coverage car insurance policy, here are the average annual premiums from some of the cheapest insurers we found in the state:
The cheapest companies for full coverage in Indiana
A full coverage car insurance policy is typically more expensive than minimum coverage, as it provides significantly more financial protection — including physical damage coverage for your vehicle and comprehensive coverage, which includes non-collision losses from storm damage, theft and vandalism. Indiana drivers may find the cheapest full coverage auto insurance rates from Pekin, Hastings Mutual, USAA, Grange and State Farm. Below are the average annual and monthly premiums from these five providers. Keep in mind that eligibility restrictions apply with USAA as it only insures active-duty military, veterans and their respective eligible family members.
|Car insurance company||Average annual full coverage premium||Average monthly full coverage premium|
Events that can impact your cheap rates in Indiana
Numerous rating factors unique to your situation can impact the cost of car insurance in Indiana. In addition to factors like your age, gender, motor vehicle history, location, credit-based insurance score and claims history, certain life events can also cause your car insurance premium to increase. If you are shopping around for cheaper car insurance due to a recent life change, here some things to consider:
- Adding a teen driver to your policy: If you add a newly-licensed driver to your policy, you can expect your premium to increase. This is because inexperienced drivers are statistically more likely to cause accidents than older drivers. Although insurance companies charge higher premiums for teen drivers to offset the risk of claims, most also offer discounts specifically geared for young drivers, such as good grades and students living away from home at college without a vehicle. Rates will typically decline over time as the teen driver gets older and has more experience behind the wheel.
- Receiving a speeding ticket: Getting ticketed for speeding will negatively impact your insurance rate, as speeding is considered by insurers a type of reckless driving behavior that also commonly leads to costly claims. Most speeding tickets stay on your record for three years, during which time your car insurance premium will likely be higher via a surcharge. To help make rates more affordable, you could consider raising your deductible, taking advantage of discounts or adjusting your coverage limits.
- Being involved in an at-fault accident: Unless you have accident forgiveness coverage, causing a collision will generally drive up the cost of car insurance. After an at-fault accident, your insurance premium will likely increase for three to five years (depending on the circumstances surrounding the collision). Minor collisions may have a smaller impact on rates, whereas more serious incidents can cause your premium to increase more drastically.
- Being a high-risk driver: Certain events can cause your insurance company to put you in the “high-risk driver” category. You might be deemed a high-risk driver if you are convicted of a DUI, get caught driving uninsured or have received multiple moving violations. Also, keep in mind that you might have to purchase car insurance from a non-standard carrier, particularly if you need to obtain an SR-22 or similar type of form. These policies are typically more expensive than coverage offered by standard auto insurers.
Cheapest cities in Indiana for minimum coverage
Your ZIP code can have a big impact on the average cost of car insurance in Indiana. If you move to a new city, you may find savings opportunities by reshopping for insurance quotes and checking ZIP codes of interest. The table below includes the cities with the cheapest auto insurance in Indiana for minimum coverage, for comparison.
|City||Average annual minimum coverage premium||Average monthly minimum coverage premium|
Cheapest cities in Indiana for full coverage
Location can also impact the cost of full coverage car insurance in Indiana. For example, full coverage insurance premiums may be generally higher in areas that have a more expensive cost of living, or have higher incidence of vehicle theft, vandalism or other crime rates.
The only way to know for certain how much you will pay for full coverage is to get a personalized quote using your ZIP code. In our study, we found these four rural communities to be the cheapest in Indiana for full coverage:
Minimum coverage requirements for Indiana drivers
According to Indiana’s car insurance laws, every driver must carry at least a minimum amount of car insurance liability coverage to satisfy the state’s financial responsibility law. The minimum coverage requirements are as follows:
- $25,000 bodily injury liability per person
- $50,000 bodily injury liability per accident
- $25,000 for property damage liability per accident
Indiana car insurance companies must all offer all drivers uninsured motorist coverage and underinsured motorist coverage, but these options can be declined in writing.
Although a minimum coverage policy is often the cheapest option to satisfy state insurance requirements, insurance experts encourage most drivers to opt for higher limits for liability coverage, which provide greater financial protection. Minimum coverage may leave you with high out-of-pocket costs if you cause an accident, and it does not offer any protection for damages to your vehicle. If you lease or finance your vehicle, a full coverage policy is typically required by your lender or leasing company.
Here is how to find (and keep) cheap car insurance in Indiana
In addition to finding cheap rates, here are a few tips for keeping affordable auto insurance in Indiana:
- Get multiple quotes. Getting quotes from several different insurance providers before buying coverage can help you compare rates and policy features. Comparing car insurance quotes can also help ensure you are getting the lowest rate for the type and amount of coverage you want.
- Maintain a clean driving record. Avoiding accidents by practicing safe driving and limiting your vehicle’s risk for damage, like parking in a covered space, can help reduce the chance of having to file a claim, which can increase auto insurance rates. Avoiding unnecessary insurance claims can help keep your rates from suddenly increasing.
Frequently asked questions
Bankrate utilizes Quadrant Information Services to analyze 2022 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates are based on a 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:
- $100,000 bodily injury liability per person
- $300,000 bodily injury liability per accident
- $50,000 property damage liability per accident
- $100,000 uninsured motorist bodily injury per person
- $300,000 uninsured motorist bodily injury per accident
- $500 collision deductible
- $500 comprehensive deductible
To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our base profile drivers own a 2020 Toyota Camry, commute five days a week and drive 12,000 miles annually.
These are sample rates and should only be used for comparative purposes.