Best cheap car insurance in Indianapolis

A lot of people want the cheapest car insurance, but cheap car insurance isn’t always good car insurance. Drivers in Indianapolis pay on average $411 for minimum coverage and $1,398 for full coverage, which is more than the state as a whole. However, it’s understandable why carriers charge more for this city because Indianapolis easily has the most accidents in Indiana year after year (in 2018, there were 36,932 collisions in this city alone).

To find the best carriers offering the best rates, we looked at a variety of factors. These included, customer satisfaction scores, average cost for minimum coverage, average cost for maximum coverage, available discounts and coverage options.

Best car insurance companies in Indianapolis

To determine the best cheap car insurance in Indianapolis we considered multiple criteria. These included J.D. Power ratings (an independent third party customer satisfaction review company), average annual premiums for both minimum and full coverage and available discounts.

The five companies below represent the best car insurance in Indianapolis.

Allstate

Allstate offers multiple routes for drivers to save through easy to achieve discounts, and the provider knows how to treat its customers when insurance is needed most (two of the most important factors when considering an insurance provider). Allstate also offers a few unique ways drivers can save month to month: Drivewise and Milewise. Both use a mobile app to monitor how you drive and how much you drive to help you save on your premium. If you’re a responsible driver, strongly consider these options.

Erie

Erie is just one point behind State Farm when it comes to customer service, meaning they’re basically tied. Indianapolis drivers who choose Erie likely love the amount they can save with Erie’s discounts, but our favorite thing about Erie is its rate lock program. Using Rate Lock, your premium will stay the same as long as you leave your policy alone, meaning you don’t change your address or add or remove a driver or vehicle. It will even stay the same if you have to file a claim.

Geico

Compared to other companies, Geico usually beats other providers when it comes to the amount of discounts it offers. Not only that, but the discounts are significant, too. You can save a lot of money by insuring multiple vehicles, bundling, going claims free, and having an anti-theft device installed (just to name a few). Indianapolis drivers should also appreciate Geico’s mobile app. You can do anything through Geico’s mobile app, including request roadside service, pay your bill, file a claim and even make changes to your policy.

Nationwide

Nationwide has some cheap premiums compared to other carriers on the market, and it provides a multitude of ways customers can save even more. SmartRide, for example, rewards safe driving habits based on feedback it receives from your smartphone. You save 10% for signing up, but you could save up to 40% if Nationwide likes what it sees.

State Farm

State Farm is a solid insurance company to have no matter where you live, but this is especially true for residents of Naptown. With an average annual premium priced around $324 for minimum coverage and $987 for full coverage, it’s one of the most affordable insurance carriers in the nation.

State Farm also offers plenty of discounts you can take advantage of in Indianapolis. One of the more interesting ones State Farm offers is the Drive Safe & Save discount. With this discount, State Farm uses data received from your smartphone to analyze your driving habits. If it likes what it sees, you receive a discount for your safe driving habits.

Cheapest car insurance in Indianapolis

Look closely and you’ll notice there are a lot of similarities between our best car insurance list and our cheapest car insurance list (hint: Geico, State Farm, and Nationwide are all listed on both). This is great news for Indianapolis because you want your best to also be your cheapest.

Indianapolis pays considerably more than the rest of the state. On average, the state as a whole pays $354 for minimum and $1,281 for full coverage (vs $411 for minimum and $1,398 for full).

Based off of our research, the top 5 cheapest providers in Indianapolis are:

As far as J.D. Power, each company listed above has a strong customer satisfaction rating. USAA actually scores the best, but we didn’t list them in the previous section because they only service either retired or active military (as well as their immediate family members).

Each company is also financially strong, too. Here’s how AM Best graded each:

• USAA: A++
• Geico: A++
• State Farm: A++
• Auto-Owners: A++
• Nationwide: A+

A strong financial rating means the company will be able to handle a lot of claims with no issue, and also means the company will be less likely to challenge or nitpick claims.

Geico and State Farm offer the most when it comes to discounts. Auto-Owners has great coverage options, and Nationwide has a very well received usage-based discount that revolves around driving habits. Called SmartRide, it uses a smartphone app to monitor you as you drive.

Looking for the best car insurance quotes in Indianapolis? These companies will help you save on your premium and give you excellent service, too.

Indianapolis insurance requirements

Car insurance in Indianapolis requires, at minimum, a 25/50/25 policy. This means that to be properly insured in Indiana your policy must provide 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

However, all drivers should consider purchasing more than basic coverage. Should you get into an accident and found to be at fault, you will be expected to cover any amount that exceeds your coverage limits (25/50/25), which is easily done with property damage alone. Many new cars cost well over $40k.

You also need to take other drivers into account when considering what types of coverage you need. For example, Indiana is currently the 8th worst state for uninsured drivers. As of the Insurance Information Institute’s latest study, 16.7% of drivers in Indiana are driving uninsured. You could try to recoup in court, but there’s no guarantee you would get the money you would need to recover even if you won.

Plan on leasing or financing a car? Your dealership will expect you to have full coverage. (minimum coverage isn’t an option).

When shopping around, don’t judge a company by the average cost of its minimum policies. Compare the average cost for full coverage, how much liability protection you can purchase, as well as available discounts and the amount you would save with each.

Car insurance discounts in Indianapolis

As a resident of Indianapolis, you have access to a lot of discounts to help lower your auto insurance premium. Here are the ones to likely save you the most every month.

• Multiple car: Just about every insurance provider gives a pretty sizable discount to anyone that insures more than one vehicle through them. The amount you’ll save varies with each provider, but it’s always enough to keep you from shopping around.
• Anti-theft: You’ll want to weigh the cost benefits against the added extra cost of having a security system installed. That said, the discount you receive through most providers is often between 5-15%.
• Bundle: Rent an apartment or own your home? Getting your insurance through your car insurance provider can often save you up to 25% on your premium. It’s worth doing in Indianapolis and everywhere else.
• Pay-in-full: If you can pay your entire premium for the year in one payment, you’ll be able to save yourself up to 10% on your premium. When done in conjunction with other discounts, it’s possible to really save a lot of money on your car insurance.

Frequently asked questions

What is the best car insurance company?

We consider the best overall to be Amica Mutual based on customer satisfaction and discounts. However, there are a lot things to consider when ranking insurance companies (such as financial strength, coverage options, and B.B.B. ratings). For a deep dive on this very subject, please refer to our Best Car Insurance Companies article.

Methodology

Bankrate utilizes Quadrant Information Services to analyze 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 cleaning 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 sample drivers own a 2018 Honda Accord, commute five days a week and drive 12,000 miles annually.

These are sample rates and should be used for comparative purposes only. Your quotes may be different.