Best car insurance in Indiana in 2022
Bankrate conducted extensive research on the largest insurance companies in Indiana by market share. Based on our analysis, some of the best car insurance in Indiana is sold by USAA, Geico and State Farm. Erie and Auto-Owners are also contenders, as they ranked highly based on our scoring metrics. Our insurance editorial team chose these companies after researching each provider’s coverage offerings, discounts, policy features and third-party scores.
Indiana drivers pay an average of $1,254 per year for full coverage, based on Bankrate’s 2021 study of quoted annual premiums. However, price is not the only factor you may want to consider when shopping for car insurance. Bankrate’s research could help you choose a company that fits your needs and budget.
Best car insurance companies in Indiana
USAA, Geico, State Farm, Erie and Auto-Owners offer some of the best auto insurance in Indiana. Bankrate’s insurance editorial team systematically reviewed third-party customer satisfaction ratings, financial strength rankings, coverage options and available discounts for the largest car 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:
|Car insurance company||Bankrate Score||Average annual full coverage premium||J.D. Power customer satisfaction score|
*Not officially ranked by J.D. Power due to eligibility restrictions
USAA offers its customers excellent customer satisfaction, low average prices, plenty of coverage options and several discounts. USAA has 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, and the company is only available to military members and veterans, as well as certain qualifying family members. Not all drivers will qualify for coverage.
Learn more: USAA Insurance review
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 coverage types as some other carriers, and its policies are relatively basic.
Learn more: Geico Insurance review
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 an in-person agent rather than handling your insurance needs online, as the company sells its products through local agents. 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 1.46, meaning that the NAIC receives more complaints than average regarding State Farm.
Learn more: State Farm Insurance review
Erie is a 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, Erie’s digital tools are not as robust as some of the other companies on our list.
Learn more: Erie Insurance review
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.
Learn more: Auto-Owners Insurance review
Average car insurance cost 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. 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 annually for minimum coverage and $1,674 annually for full coverage. Bankrate’s insurance premium data is obtained from Quadrant Information Services.
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|
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 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 liability to drive legally. You cannot purchase lower than your state’s minimum limits, so there’s no need to memorize the legal limits. However, understanding the minimum coverage requirements 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 comprehensive and collision coverage, often called “full coverage.” This type of policy covers 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 if it is totalled and the balance of your loan.
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 could be in for 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.
Car insurance discounts in Indiana
Although Indiana drivers tend to pay less for car 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:
- Young driver discounts: Many companies offer good student discounts for full-time students under the age of 25 who maintain a certain GPA. Young drivers might also benefit from teen driver programs or distance student programs, if they go away to school without a car.
- Safe driver discounts: If you have not been in an accident or gotten a ticket for a certain number of years (which varies by company), you could earn a safe driver discount. Good drivers may also benefit from a telematics program or pay-per-mile discount.
- Other discounts: If you have more than one vehicle or insurance policy, keeping everything with the same insurance company can result in significant bundling discounts. You could also consider paying in full or going paperless to lower your bills.
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 list all of their available discounts online.
Frequently asked questions
What is the best car insurance in Indiana?
The best car insurance in Indiana will vary based on your personal needs, wants and rating factors. If you are looking for the lowest-priced policy, the best company for you will likely be different from the best company for someone looking for a specific coverage type. Making a list of your wants and needs and getting quotes from several carriers could help you find the best car insurance for your circumstances.
What is the cheapest car insurance company in Indiana?
USAA, Auto-Owners and State Farm offer some of the cheapest car insurance in Indiana. However, a company’s average rates may not reflect what your policy will cost. Your premium will depend on your individual rating factors, including your age, driving history and the coverage types and levels you choose. Rates vary by carrier for even the same coverage, so getting quotes from a few companies could help you find a policy that fits your budget.
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. Forgoing insurance might save you money on a monthly basis, but you could set yourself up for expensive consequences.
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.
Bankrate utilizes Quadrant Information Services to analyze 2022 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.
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.