Best car insurance in Indiana in 2023

Best car insurance companies in Indiana

According to our research, Geico, USAA, State Farm, Auto-Owners and Progressive offer some of the best auto insurance in Indiana. Bankrate’s insurance editorial team systematically reviewed third-party customer satisfaction ratings from J.D. Power’s 2022 U.S. Auto Insurance Satisfaction Study, financial strength ratings from AM Best, coverage options and available discounts for the largest auto insurance companies by market share in the Hoosier State. We also reviewed average quoted premiums obtained from Quadrant Information Services. These factors were then converted into a Bankrate Score on a 5.0 scale. The higher the Bankrate Score, the higher a company ranked in each scoring category.

Based on our research, the five best insurance companies in Indiana are:

How Bankrate chose the best car insurance companies in Indiana

Indiana drivers can choose from dozens of companies for their car insurance needs, but Bankrate knows that the best insurance company in Indiana is different for each consumer. Our goal in reviewing the Indiana car insurance market is to help you find the best insurance for you. We started by reviewing average car insurance rates from Quadrant Information Services for the largest auto insurers in Indiana by market share. Next, we analyzed third-party customer satisfaction reviews from J.D. Power and the National Association of Insurance Commissioners (NAIC) as well as financial strength ratings from AM Best. We finished by doing a thorough review of each company's coverage offerings, discounts, digital tools and other perks.

We combined these metrics into a single Bankrate Score on a scale of 0.0 to 5.0. A higher overall score means that a company ranked more highly in the underlying categories. Using our Bankrate Score metric can help you easily see how companies compare to each other using a single data point, making the shopping process easier and more seamless for you.

How much is car insurance in Indiana?

Indiana is one of the more affordable states in the nation for car insurance, perhaps due to its low population density and competitive insurance market. The average cost of car insurance in Indiana is $327 per year for minimum coverage and $1,295 per year for full coverage. These average costs are cheaper than the national average cost of car insurance, which is $622 annually for minimum coverage and $2,014 annually for full coverage.

Average rates in Indiana are also significantly cheaper than those in Michigan, the state’s neighbor to the north, where minimum coverage costs an average of $1,104 per year and full coverage costs an average of $2,691 per year. To the south, Kentucky drivers also pay more than drivers in Indiana, with average rates of $678 per year for minimum coverage and $2,124 per year for full coverage. Indiana’s low cost of insurance may be linked to its decreasing number of licensed drivers. Between 2011 and 2019, the number of licensed drivers in the Hoosier State dropped from over 6.5 million to just under 4.6 million. Fewer drivers on the road may mean fewer accidents.

How to find the best car insurance in Indiana

Everyone’s needs are different, so car insurance is highly personalized to each driver. That means the best car insurance in Indiana ultimately depends on you and your unique situation. However, you can take some steps to make finding the right policy for your needs a little easier.

Consider minimum insurance requirements in Indiana

Indiana auto insurance law requires that drivers purchase at least minimum levels of auto insurance coverage. If you live in Indiana, you must purchase at least the state’s minimum limits of bodily injury liability and property damage liability to drive legally. Auto insurance companies must also offer you uninsured motorist coverage and underinsured motorist coverage, although you can decline these in writing. You cannot purchase lower than your state’s minimum limits, so there’s no need to memorize the legal requirements. However, understanding the minimum coverage limits could help you identify if you need higher limits or optional endorsements.

Consider lender requirements

If you have a loan or lease on your vehicle, your insurance needs may be different than a driver who owns their vehicle outright. Because you share ownership of your vehicle with a financial institution, you will likely be required to carry both comprehensive and collision coverage, often called “full coverage.” Both comprehensive coverage and collision coverage give you financial protection for damage to your vehicle. You may also want to consider gap insurance, which is designed to pay the difference between the cash value of your vehicle and the balance of your loan if your vehicle is stolen or totaled.

Consider your individual needs

Life happens, and when it does, your car insurance might change. If your teen driver gets their license, for example, you will likely be facing increased premiums. Or perhaps you rear-end another driver, get a speeding ticket or are convicted of a DUI. These incidents could flag you as a high-risk driver and increase your rates. Understanding your own specific scenario could help you find a company that sells coverage geared toward your situation. Households with teen drivers could look for companies with student discounts, for example.

Frequently asked questions