Indiana Car Insurance: How to Get the Cheapest Rates
Indiana is one of the top five for having the lowest rates. The average rate (with “full coverage”) being $964 per year.
That may not seem low if you’re paying anything close to that premium. But it is lower than what drivers are paying in all but a handful of states.
Even though car insurance is relatively inexpensive in Indiana, this guide will help you find the lowest rate for the type of coverage you'll need.
What are Average Car Insurance Rates in Indiana?
Statewide average premiums in Indiana for three popular car insurance coverage levels (all premium information we’ll be providing comes from our sister site, CarInsurance.com.)
- “Full coverage” –100/300/100***, with comprehensive and collision coverage, including a deductible of $500 – $964 per year.
- Liability only, with 50/100/50 – $424 per year.
- Liability only, using the state minimum coverage levels – $400 per year.
(***100/300/100 refers to liability coverage levels.
The first number represents bodily injury or death to one person in a single at-fault accident.
The second number represents bodily injury or death to two or more people in a single at-fault car accident.
The third number refers to property damage caused to other vehicles in an at-fault accident.
Full coverage also includes collision and comprehensive coverage, which pays for repairs to your vehicle no matter who is at fault.)
Factors that Will Affect Your Indiana Car Insurance Premium
Below are seven factors that will determine the premium you’ll pay for Indiana car insurance.
Though gender is commonly a factor in many states, with men typically paying more than women for an equivalent amount of insurance, there’s not much difference in rates between genders in Indiana. A 30-year-old male will pay $141 per month for full coverage, while a 30-year-old female will pay $142 per month for the same policy.
As is the case in every other state, drivers under the age of 25 will pay higher rates. Younger drivers are considered higher risk to insurance companies. An 18-year-old male driver living in Gary will pay $199 a month, or $2,388 per year, for state minimum coverage. A 30-year-old male also living in Gary with the same coverage will pay $46 a month, or $552 per year.
Once you reach the age of 65, you could see an increase in your premium. A 75-year-old male will pay $58 per month, or $696 per year, while a 30-year-old male with the same policy will pay $46 per month, or $552 per year. As a general rule, premiums begin to creep higher starting at age 65.
Your driving history will be the biggest factor when it comes to your premium. Speeding no more than 10-15 miles over the limit will produce a 24% premium increase. Speeding 16 miles over the limit will produce a 26% premium increase.
The average increase in Indiana is 37% for a DUI/DWI first offense (subsequent offenses will be much higher and carry serious penalties).
At-fault accidents will also bring an increase in your premium. A typical car insurance premium in Indiana will increase by 19% after an accident claim that’s determined to be your fault. Since that number is just an average, it may not apply to you. Bodily injury as well as property damage will come into play. Another factor will be your insurer, each company assesses risk differently.
As unlikely as it seems, insurers will look to your credit score when determining your rate. Drivers in Indiana with bad credit will pay 71% more on their premium than drivers with good credit. The good news is that even if you have poor or bad credit, comparing companies may help you to find a lower premium. While all insurance companies consider credit as a factor, some are more lenient than others.
We’ve already listed the factors that will make up the statewide average premium for the most popular coverage. In case you need a refresher, a policy with liability limits of 100/300/100 is $964 per year, while liability coverage limits of 50/100/50 is $424. State coverage for minimum liability is $400 per year.
You may not want to carry state minimum liability, as it may not be enough. Using your net worth is the way to determine your liability limits. For example, if your net worth is less than $50,000, you might be able to take the state minimum coverage. If your net worth is between $50,000 and $100,000, choose at least 50/100/50. If it's more than $200,000, choose at least 100/300/100. Too little coverage can have you in a bad place if you're stuck with a major lawsuit or claim. This could force you to pay any out-of-pocket expenses if your policy limits are exceeded.
The Vehicle(s) You’re Covering
The type of vehicle you drive, as well as its value, is a major factor in determining your premium. Newer vehicles and higher end models, like sports cars, luxury vehicles, pickup trucks and SUVs will have higher premiums than older vehicles.
One of the big reasons for this is collision and comprehensive. The more valuable a vehicle is, the more it will cost to ensure. But if you have an older vehicle that’s worth no more than a few thousand dollars, you may be able to drop collision and comprehensive coverage completely. That will take a big chunk out of your car insurance premium.
The Company You Buy Coverage From
Insurance companies tend to offer the same policies. You’ll want to compare prices as companies can charge hundreds to thousands of dollars more or less for the same policy. Shopping around and comparing companies will be the most important part of finding the coverage you need for the best price.
Below are the average statewide premiums for full coverage (100/300/100) by six major carriers operating in Indiana:
- Geico, $651 per year
- Farmers, $748 per year
- Nationwide, $866 per year
- Progressive, $854 per year
- State Farm, $1,095 per year
- Allstate, $1,569 per year
Notice that Allstate, the most expensive provider, charges premiums that are more than double those of Geico, the lowest cost provider.
Average Indiana Car Insurance Rate Based on Indiana City
Premium levels from one city or town to another can vary dramatically. Your zip code will make a difference in the rate you’ll pay. With the statewide average premium at $964 in Indiana for 100/300/100 coverage, average premiums on a local level are as follows:
- Bloomington, $968
- Evansville, $1,076
- Fort Wayne, $993
- Indianapolis, $1,160
- South Bend, $969
More populated areas, such as Indianapolis, have more traffic and potential for accidents. Rural and more remote areas are considered lower risk and will have lower rates.
What are Auto Insurance Laws in Indiana?
Car insurance laws in Indiana require that drivers carry minimum liability coverage limits of 25/50/25 on their vehicle. The minimum car insurance requirements in Indiana are listed below:
- Minimum bodily injury liability, one person – $25,000
- Minimum bodily injury liability, two or more people – $50,000
- Minimum property damage liability – $25,000
- Uninsured/underinsured motorist bodily injury – $50,000
Basic Information on Optional Coverages in Indiana
As is the case in virtually every other state, there’s a wide range of optional coverages available to add to your policy in Indiana. The most popular include:
Indiana law requires drivers to carry personal property damage liability coverage. But that won’t pay for damages to your vehicle if you are the at-fault party. That’s where collision coverage enters the picture. It will pay for damage to your vehicle, regardless of who is at fault. It’s a required coverage if your vehicle has a loan or lease on it.
Usually combined with collision coverage, comprehensive pays for damage to your vehicle while it’s parked. That can include damage caused by falling tree limbs or storms, as well as theft and vandalism. Both collision and comprehensive come with deductibles that can reduce the cost of your coverage.
Guaranteed Auto Protection (GAP)
If your car is ever stolen or totaled in an accident, this add-on can help you cover the loss by paying off the lease or loan. It’s not required (except by lenders on cars with loans greater than 80% of the vehicle’s value) but it is recommended if you believe you owe more on your car than it’s worth.
MedPay (medical payments)
MedPay offers medical and funeral expenses of covered drivers and passengers after an accident up to $25,000, no matter who's at fault. This provides you and your passengers with coverage of medical expenses if your health insurance limits are exceeded.
Tips to Get the Best Rates on Indiana Car Insurance Policies
Below are the most popular strategies to get the best rates on car insurance in Indiana:
Your driving history is a major factor in your car insurance premium, and one you have control over. Slow down, and drive more defensively. Avoiding at-fault accidents and moving violations for three years or more will enable you to get the best rates available.
Complete a safe driver course
If you have a poor driving history, your insurance company may allow you to complete an approved safe driver course. It could lower your premium by 10% or more. You’ll need to evaluate the cost of the course (which you will pay) against the amount you will save on your premium.
Shop for a new carrier periodically
As we saw above, the difference between two insurance companies can easily be $1,000 (or more) for the same coverage. Shop around and see who has the best rates. It’s best to consider your options every two or three years, since premium schedules for car insurance are frequently adjusted by carriers.
Increase the deductible on your collision and comprehensive coverage
By increasing your deductible from $500 to $1,000 could save you over $100 per year. Just be sure you have the extra funds set aside in case you’re involved in an accident and will need to cover the increased deductible.
Most insurance companies provide multiple discounts on more categories, then you can imagine. Check with your insurer to see how many discounts they have available, then take advantage of any and all that apply to you.
Maintain clean credit
You can pay 71% more for car insurance in Indiana for having poor credit.
Keeping your credit clean for at least the last two or three years will help you get a better rate.
Even though Indiana is one of the least expensive states for car insurance, it's still important to do all you can to get the lowest rate possible.
Using the strategies in this guide, you should be able to get the coverage you need at a premium you can afford.