Cheapest car insurance in Indiana for 2022

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Indiana drivers pay below-average car insurance premiums compared to the rest of the country. However, affordability can be different for each driver based on how much coverage they need to be financially protected. Of the Indiana carriers we assessed, Pekin offers the cheapest minimum and full coverage car insurance policy in Indiana, based on Bankrate’s analysis of quoted annual premiums from Quadrant Information Services. A minimum coverage policy from the company averages $216 per year and full coverage averages just $673 per year.

Indiana drivers can find cheap car insurance even if they buy more than just a minimum coverage policy. Getting cheap car insurance in Indiana requires choosing the right provider for your needs, taking advantage of discounts and knowing how other factors affect your rate. Our insurance editorial team’s research on the cheapest car insurance companies in Indiana may help provide a baseline for your rate-comparison shopping and help you make an informed purchasing decision.

The cheapest car insurance companies in Indiana

Not all cheap car insurance companies provide equal service. Choosing the best provider with the most affordable rates should also 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 measure up with third-party rating agencies on the basis of financial strength and customer satisfaction.

Based on the findings, Bankrate determined that Pekin, USAA, Grange, Westfield and Auto-Owners have the cheapest rates for minimum coverage insurance. On the other hand, Pekin, Hastings Mutual, USAA, Grange and State Farm are the cheapest car insurance companies for full coverage insurance.

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:

Car insurance company Average annual minimum coverage premium Average monthly minimum coverage premium
Pekin $216 $18
USAA $239 $20
Grange $249 $21
Westfield $250 $21
Auto-Owners $292 $24

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. 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.

Car insurance company Average annual full coverage premium Average monthly full coverage premium
Pekin $673 $56
Hastings Mutual $734 $62
USAA $834 $70
Grange $872 $73
State Farm $913 $76

Events that can impact your cheap rates in Indiana

Different factors unique to your situation can impact the cost of car insurance in Indiana. In addition to things like age and driving 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 younger drivers to offset the risk of claims, most also offer discounts aimed at young drivers. Rates will typically decline over time as the teen driver gets older.
  • Receiving a speeding ticket: Getting ticketed for speeding will negatively impact your insurance rate, as speeding is 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. 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, causing a collision will generally drive up the cost of car insurance. After an at-fault accident, your insurance premium will likely increase for roughly 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 rate 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 get convicted of a DUI or get caught driving uninsured. 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-50 or similar type of form.

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
Portland $324 $27
Bryant $325 $27
Bristow $326 $27
Milton $326 $27

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 vehicle theft 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 to be the cheapest cities in Indiana for full coverage:

City Average annual full coverage premium Average monthly full coverage premium
Decatur $1,119 $93
Geneva $1,128 $94
Richmond $1,131 $94
Berne $1,131 $94

Minimum coverage requirements for Indiana drivers

According to Indiana’s car insurance laws, every driver must carry a minimum amount of car insurance for liability coverage and uninsured motorist coverage. The minimum coverage requirements are as follows:

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

Uninsured and underinsured motorist coverage must be offered on all Indiana car insurance policies, but this can be rejected 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 up to an amount they can reasonably afford. Minimum coverage is unlikely to cover the full cost of a collision 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.

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. Shop for new quotes once every year or so and make sure to get quotes from several different insurance providers before buying coverage. Comparing car insurance quotes and getting new quotes at least once per year will help ensure you are getting the lowest rate for the type and amount of coverage you want.
  • Avoid insurance claims. When you file an insurance claim, you may see rates affected. 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. Avoiding unnecessary insurance claims can help keep your rates from suddenly increasing.

Frequently asked questions

What is the best car insurance in Indiana?

Because insurance is highly based on your budget and preferences, a single company may not be the best for every driver. To find the best car insurance in Indiana for your needs, compare quotes and coverage options from multiple insurers to establish a baseline. In addition, customer reviews and third-party ratings can help point you to which might be the best insurer for your situation.

Are car accidents common in Indiana?

In 2019, there were 217,387 car accidents 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. Risk of collision is a primary reason experts recommend having adequate financial protection in your car insurance policy.

Do I have to buy uninsured motorists coverage in Indiana?

Technically, uninsured motorist coverage is not a requirement for Indiana drivers. It must be offered by insurers when you request a quote and you may reject it in writing if you choose not to purchase it. Many insurance professionals recommend this coverage, however, to give you financial protection in the event that you are hit by someone who lacks an insurance policy.

How can I get car insurance online?

Getting car insurance online is made easy through most insurance companies. Online quotes typically require some basic information, like your name, address, the car’s VIN and the type and amount of coverage you want. From there, you should receive an estimated premium for your elected coverage types and amounts. If you are happy with the quote, you may be able to complete the policy application online, pay your first premium with a credit card and download or print your ID cards. Some insurers even offer a discount for quoting and/or purchasing a policy online, which can result in an even cheaper car insurance rate.

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 coverage that meets 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.