Cheapest car insurance in Indiana for 2021

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Indiana had 4,467,848 licensed drivers on the road in 2015, the most recent year with available data. Indiana, like most states, requires drivers to carry car insurance to legally drive on its roads. Because it is a required expense, many Hoosiers want to find cheap car insurance in Indiana.

Currently, Indiana drivers pay around $367 a year for minimum coverage and $1,254 for full coverage, which is well below the national average annual cost of insurance, which is $565 for minimum coverage and $1,674 for full coverage. Although Hoosiers already pay less than the national average for auto insurance, knowing which carriers tend to offer the cheapest auto insurance in Indiana could help you to save even more.

The cheapest car insurance in Indiana

Indiana drivers have a lot of great options when it comes to finding the cheapest car insurance Bankrate used Quadrant Information Services to obtain current 2021 quoted premiums from Indiana insurance companies. The companies that offer the lowest average rates in the Hoosier state are:

Car insurance company Average annual premium for minimum coverage Average annual premium for full coverage
USAA $239 $834
Auto-Owners $292 $1,102
State Farm $299 $913
Geico $309 $1,202
Erie $312 $1,027

USAA

Although USAA does offer the cheapest average minimum and full coverage premiums in Indiana, the company currently only serves both active and retired military, as well as their immediate family members. If you qualify for coverage, USAA could be a good option for your car insurance. Although it is not officially eligible for ranking by J.D. Power due to its eligibility restrictions, USAA did receive the highest number of points in the 2020 U.S. Auto Insurance Study for the North Central region, which includes Indiana.

USAA also offers discounts to help policyholders save even more. You may be able to earn a discount by garaging your vehicle on a military base, being a loyal customer, driving safely or owning a new vehicle. USAA is a member-based organization. By joining, you could gain access to insurance products, banking services, investment options and financial guidance.

Auto-Owners

Auto-Owners offers insurance products in 26 states, including Indiana, through a network of independent agents. To get a quote, you can use the “Find an Agent” tool on the company’s website to locate an independent agency to contact.

If you have a classic vehicle or a vehicle that has been converted or modified, Auto-Owners may be a good fit for your auto insurance, as the company offers options for these types of vehicles. You may be able to save money on your car insurance by taking advantage of numerous discounts, including paid in full, multi-policy and advanced quote.

State Farm

State Farm is the largest insurer of private passenger vehicles in the United States, with just over 16% of the market share. However, State Farm’s auto insurance policy is relatively basic, with only a few options for customization, like ridesharing coverage and car rental insurance.

Although its average full coverage premium is already the second lowest on our list, State Farm offers an impressive array of discounts that could help you save even more. There are two safe driver programs available, Drive Safe & Save for adults and Steer Clear for teens, as well as discounts for insuring multiple cars or multiple policies, having vehicle safety features and avoiding accidents and tickets.

Geico

Although Geico is not the lowest provider on our list, the company offers the most extensive list of discounts. You may be able to save by being a federal employee, a military service member, using your seatbelt and being a safe driver.

If you like to handle your policy online or on an app, Geico could be a good option. The company offers a robust customer service portal on its website. The mobile app allows customers to file claims, pay bills, print ID cards and even call for roadside assistance.

Erie

Erie ranked highly in the 2020 J.D. Power U.S. Auto Insurance Study and claims that it retains more than 90% of its customers each year. The company offers several unique features on its auto insurance policies, including pet coverage and personal items coverage.

One of Erie’s most appealing features is the Erie Rate Lock option. This feature keeps your premium level, meaning you will not be charged for an accident or see your premium creep up year after year. The cost of your auto insurance will only change if you make certain adjustments to your policy, like adding or removing a car or driver.

Affordable coverage for Indiana drivers

Indiana drivers are required to carry at least the state-required minimum liability limits to drive legally. The minimum amount of liability coverage you must have in Indiana is 25/50/25. This means that in an accident your provider will cover up to:

  • $25,000 per person for bodily injury/ death
  • $50,000 per accident for bodily injury/ death
  • $25,000 per accident for property damage

Choosing minimum coverage limits may help you pay a lower premium, but insurance experts generally advise that you purchase higher liability limits or even full coverage if you can afford it. If you cause an accident, minimum liability limits are often too low to cover the full amount of damages. This could leave you with out-of-pocket expenses. Additionally, minimum coverage does not provide any coverage for your vehicle; you need to add comprehensive and collision to obtain that coverage. If you have a loan or lease, your lender will likely require you to have full coverage auto insurance.

How to get cheap auto insurance in Indiana

If you are looking for the cheapest insurance in Indiana, getting quotes from numerous companies is often helpful. Every company uses a series of factors to calculate how much you will pay for a policy with them. Such factors include things like driving history, location, type of car and marital status. However, each company weighs the importance of each factor differently. Therefore, something like your marital status may be less important with one company than it is with another. This is why it is so important to shop around and to get quotes from multiple companies.

Comparing discounts is also a great way to determine if a company is the right fit for you. Each company offers different discounts. If you can find a company that offers several discounts that you can take advantage of, you may be able to lower your premium. Most companies list discounts online, but you could also call an agent to confirm if which discounts you may be able to apply to your policy.

In addition to choosing your company and discounts wisely, there are other ways to save. If you have decided to purchase comprehensive or collision coverage, you could increase the deductibles on these coverage. Your deductible is the amount you will pay out of pocket if you file a claim. Generally, the higher your deductible, the lower your premium. However, be sure to have your agent quote this change before you make it, as it does not always save a significant amount. Also be sure to choose a deductible level you can reasonably afford to pay if you file a claim. Increasing your credit score, keeping your driving record clean and driving a cheap car may also help to keep your premium low.

Frequently asked questions

What is the best car insurance in Indiana?

Everyone has different wants and needs when it comes to car insurance, so the best car insurance company will be different for everyone. Knowing what coverages, discounts and features you want from a company can help you narrow down your choices, and getting quotes from several providers could help you find the coverage you want for a lower price.

Are car accidents common in Indiana?

In 2019, there were 217,387 car crashes in Indiana, with the highest numbers occurring in Marion, Lake and Allen counties. These are all metropolitan areas, so there is likely a high concentration of vehicles on the roads. In that same year, 800 people were killed in motor vehicle accidents and 46,310 suffered non-fatal injuries.

Do I have to buy uninsured motorists coverage in Indiana?

No, uninsured motorists coverage is not a requirement for Indiana drivers. However, you must be offered this coverage when you request a quote, and you must reject it in writing if you choose not to purchase it. Most insurance professionals recommend this coverage, though, to give you financial protection in the event that you are hit by someone who has no insurance.

Methodology

Bankrate utilizes Quadrant Information Services to analyze 2021 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. 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 coverages that meet each state’s requirements. Our base profile drivers own a 2019 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.