Best car insurance in Indiana for 2021

1
f11photo/Getty Images
Bankrate Logo

Why you can trust Bankrate

While we adhere to strict , this post may contain references to products from our partners. Here's an explanation for . This content is powered by HomeInsurance.com (NPN: 8781838). For more information, please see our

The state of Indiana had nearly 4.6 million licensed drivers as of 2019, with 49.10% male and 50.90% female drivers. With so many drivers on the road, having an auto insurance policy to protect your finances in the event of an accident could be a prudent measure.

If you are looking for the best car insurance in Indiana, there are several factors to consider. Bankrate understands that there are numerous insurance companies, rating factors and coverages to review. Our insurance editorial team has done the research to determine Indiana’s best auto insurance companies to make your insurance search easier.

Best car insurance companies in Indiana

We reviewed third-party customer satisfaction ratings, financial strength rankings, coverage options, and available discounts to find the best car insurance companies in Indiana. 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 score, the higher a company ranked in each scoring category.

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

Provider Bankrate Score Average annual full coverage premium J.D. Power auto claims satisfaction score
Auto-Owners 4.6 $1,102 890 / 1,000
Erie 4.4 $1,027 880 / 1,000
Geico 4.6 $1,202 871 / 1,000
State Farm 4.4 $913 881 / 1,000
USAA* 4.7 $834 890 / 1,000

*USAA is not officially ranked by J.D. Power due to eligibility restrictions.

Auto-Owners

Auto-Owners is a regional carrier selling coverage in 26 states, including Indiana. The company received the highest official ranking from J.D. Power of the companies on our list. Auto-Owners offers several coverage options to choose from, including gap insurance, diminished value coverage and new car replacement. However, Auto-Owners does not provide quotes online at this time. You will need to work with a local agent to get a quote and sign up for insurance.

Erie

Erie is another regional carrier available in Indiana, and it is highly rated with J.D. Power. The company offers an impressive array of discounts and coverage options. One of Erie’s most unique offerings is Erie Rate Lock, which guarantees that your rate will not change unless you make specific changes to your policy, like getting a different vehicle or adding a driver. However, like Auto-Owners, Erie’s digital tools are not as robust as some of the other companies on our list.

Geico

Geico is well-known in the insurance industry for having some of the lowest rates available. Although Geico’s average annual full coverage premium in Indiana is the highest on our list, it is still lower than Indiana’s average full coverage premium. The company also offers a wide array of discounts to help customers lower their premiums even more. However, Geico does not offer as many optional coverages as some other carriers, and its policies are relatively basic.

State Farm

State Farm is one of the best-known insurance companies in the industry. The company may appeal to you if you prefer to do business with a live agent rather than handling your insurance needs online, as it sells its products through local agents. The company has several endorsement options and online resources to help you better understand your coverage. State Farm received an above-average rating from J.D. Power. However, the company has a higher-than-average overall complaint index score from the National Association of Insurance Commissioners (NAIC). A 1.00 score represents an average number of complaints. State Farm’s score is 1.44, meaning that the NAIC receives more complaints than average regarding State Farm.

USAA

USAA is one of the top-rated insurance companies nationwide, with excellent customer satisfaction, pricing, coverage options and discounts. USAA offers the lowest average annual full coverage premium on our list and provides numerous discounts for its policyholders, which may help save even more. However, the company is not eligible for official ranking with J.D. Power due to its eligibility restrictions. USAA insurance is only available to military members and veterans, so not all drivers will qualify for its coverage.

Average car insurance cost in Indiana

Indiana is one of the more affordable states in the nation for car insurance, partially due to its low population density and competitive insurance market. Indiana drivers can expect to pay an average cost of just $367 per year for minimum coverage and $1,254 per year for full coverage. These average rates are cheaper than the national average cost of car insurance, which is $565 for minimum coverage and $1,674 for full coverage.

Indiana’s low cost of insurance may be linked to its decreasing number of licensed drivers. Between 2011 and 2015, the number of licensed drivers in the Hoosier state dropped. Fewer drives on the road may mean fewer accidents.

Average annual premium for minimum coverage in Indiana Average annual premium for full coverage in Indiana
$367 $1,254

State minimum insurance requirements in Indiana

Indiana requires that drivers purchase at least minimum levels of auto insurance coverage. If you live in Indiana, you must have at least the following coverage and limits to drive legally:

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

Insurance carriers must also offer you uninsured and underinsured motorist coverage, although you can reject it in writing.

Most insurance professionals advise that you purchase higher liability limits if you can afford to. State minimum limits may not be high enough to pay for the damages that you cause in an at-fault accident and could leave you with hefty out-of-pocket expenses.

If you need or want coverage for damages to your vehicle, you will need full coverage, which includes comprehensive and collision coverages. If you have a loan or lease on your car, your lender will likely require you to have these coverages since the vehicle is still their asset.

How to get the best car insurance

Everyone’s needs are different, so car insurance is highly customized to each driver. That means the best car insurance in Indiana ultimately depends on you. When shopping for insurance, you may want to:

  • Evaluate your needs: Car insurance companies in Indiana consider several factors before determining your insurance rate. This includes the kind of coverage you need, what type of driving record you have and your age. Understanding your rating factors and what needs you have, like discounts for teen drivers or roadside assistance coverage if you travel often, could help you to narrow down your company options.
  • Consider state factors: While you have to carry at least state minimum limits to be a legal driver in Indiana, there may be other location-specific factors you should consider. If you live in an area prone to hail storms and store your vehicle outside, you may want to purchase comprehensive insurance. If your area is known for heavy traffic, you may want to increase your liability limits to protect your finances better if you cause an accident.

Talking with an insurance agent can be helpful when determining coverages. Agents may be able to help you choose which coverages and levels are right for your needs.

Car insurance discounts in Indiana

Although Indiana drivers tend to pay less for insurance than drivers elsewhere in the nation, there are ways to save even more on your car insurance premium. Most companies offer discounts to help you lower your premium. Some common car insurance discounts in Indiana include:

  • Multi-policy discount: This is often one of the most significant discounts, and most companies that offer both auto and home insurance offer this discount. If you insure your home and auto with the same company, also known as bundling, you may get a discount on each policy.
  • Mileage discounts: If you drive fewer than a certain number of miles each year, you may qualify for a low mileage discount.
  • Affiliation discounts: If you are a member of a club or affiliated with an organization, you may get a car insurance discount.
  • Student discounts: If you have a young driver on your policy, they may qualify for a good student discount, driver training discount or distant student discount.

Because each company offers its own discounts and has its own underwriting rules, talking with an agent is often the best way to identify savings opportunities. Not all companies share all of their available discounts online.

Frequently asked questions

What is the best car insurance in Indiana?

Some companies may offer the cheapest car insurance in Indiana, but the best car insurance company depends on you and what you are looking for in a policy. Factors like customer satisfaction, policy options, and financial stability are aspects of a company that you may want to consider before choosing a car insurance provider in Indiana.

What happens if I drive without insurance in Indiana?

Driving without insurance is a serious offense. If you are caught driving without insurance, even if you do not cause an accident, you could face fines and a license suspension. You will have to obtain insurance to reinstate your license, and your insurance will likely be more expensive than it would have been had you had prior insurance. If you cause an accident, you will be responsible for covering the cost of the damages and injuries you cause out of pocket.

How do I change insurance companies?

If you have current insurance and have found a new provider, switching your insurance carrier is relatively easy. Once you have received a quote, you can start your new policy by going online, calling your provider or talking to an agent, depending on the company. Be sure to note when your new policy is effective, as you will need to call your current company to cancel your old policy.

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.

Bankrate Scores

Bankrate scores primarily reflect a weighted rank of industry-standard ratings for financial strength (AM Best, S&P, Moody’s) and customer experience (J.D. Power, NAIC), in addition to average quoted rates from Quadrant Information Services. The J.D. Power studies utilized include the 2020 Auto Insurance Study and the 2020 Auto Claims Study. Our Bankrate editorial team’s extensive research and analysis provided a secondary assessment of each insurer’s online and mobile resources and policy management options, which also contributed to overall ratings.

Written by
Cate Deventer
Insurance Editor
Cate Deventer is a writer, editor and insurance professional. She is currently pursuing a Bachelor’s degree in English with a concentration in professional and technical writing from Indiana University East. She began writing for Bankrate in January 2021 and has nearly a decade of experience in the insurance industry as a licensed insurance agent. Cate has worked with over a dozen insurance companies and is experienced with auto, home, flood, umbrella and life insurance.