Cheap Car Insurance in Indiana 2021

Last modified: September 30, 2021

Are you searching for cheap car insurance in Indiana?

If your answer is yes, you’re not alone. 

Home to the Indianapolis 500, the Hawkeye State has a prominent history celebrating the automobile. While you perhaps do not drive a race car, you still must have Indiana auto insurance. In fact, there are several coverage options that you’ll want to consider when searching for auto insurance in Indiana. 

Therefore, protect yourself against any unanticipated outlays and damages with the best coverage provider.

Remember, the average cost of auto insurance differs widely from state to state, which is why we have put together this review on the best cheap car insurance in Indiana

To make an educated decision, we have covered everything you need to know. Keep all these Indiana auto insurance facts in mind when you hunt for coverage that best suits your requirements. If you want to explore the quotes nationwide, make sure to check our list of best car insurance companies in the US. 

Indiana Car Insurance Requirements

The Hawkeye State obliges all drivers to carry liability auto coverage for all vehicles. The insurance covers property damage or bodily injury liability, depending on your auto insurance’s coverage limits. The stated minimum coverage when you hit the road is 25/50/25. 

If you fulfill one of the alternative ways to substantiate your financial responsibility, the Bureau of Motor Vehicle will also deem your duty fulfilled. 

Liability coverage entails property damage or any bodily injury produced by you, any member of your family, and any other individual driving the vehicle with your consent. 

Likewise, you and the members of your family are protected when driving another person’s car, such as private rental passenger vehicles. Non-owned cars, for example, company cars are not included in liability coverage.

Indiana State Minimum Car Insurance 

The following coverage is considered as mandatory insurance by the Hawkeye State to legally operate an automobile:

Property damage: $25,000 per accident is the minimum legal requirement. 

Bodily injury liability: The minimum legal requirement is $50,000 per accident and $25,000 per person.

Uninsured motorist bodily injury:  $25,000 per person and $50,000 per accident is the minimum legal requirement.

Underinsured motorist bodily injury: Minimum of $50,000 per accident and $50,000 per person

Uninsured motorist property damage: Minimum of $25,000 per accident

There are several other types of auto insurance available to drivers in Indiana. If you cause an accident and your liability coverage does not cover everyone’s bills, note that you can still be sued for the remaining individuals involved in the accident. 

That’s the financial risk of low liability limits. It makes perfect sense to seek higher liability coverage limits if you have any valuable assets such as land or investments that you might potentially lose in a lawsuit.

Average Costs

Car insurance is typically inexpensive in Indiana as compared to other US states. The average car insurance cost in Indiana is $1,133 every year — which is 20.6% less than the national average.

In the table below, we have shown the average Indiana car insurance rates. Remember that car insurance quotes in Indiana are affected by factors other than your location such as your age, driving record, marital status, past claims, zip code, vehicle model, etc. All these factors play a significant role when car insurance companies in Indiana decide insurance rates.

Average Costs by Age and Gender

Age  Average Price for Men Average Price for Women
25  $1,205 $1,147
35  $993 $986
60  $903 $864

 

Young drivers are often charged more because of their higher frequency of accidents and limited driving experience.

Out of the age group presented in the table, 60-year-old drivers have the cheapest car insurance in Indiana. Whereas people who are in their mid-20s have the most expensive auto insurance rates in Indiana.

Head to the next table to learn about the average car insurance cost in Indiana as per top cities. 

Cost of Car Insurance by Top Cities

City Average Rate
Indianapolis $1,636
Fort Wayne $1,466
Evansville $1,557
South Bend $1,473

 

According to the data presented above, you can see that Indianapolis has the highest auto insurance rates ($1,636), followed by Evansville ($1,557), and South Bend ($1,473). While Fort Wayne ($1,466) has the cheapest car insurance in Indiana

Cheapest Car Insurance Indiana

In this section, we have shared some of the cheapest car insurance in Indiana. 

Cheap Auto Insurance in Indiana for Full Coverage 

Rank  Company  Annual Rate 
1 Erie  $1,066
2 Progressive  $1,218
3 State Farm $1,303
4 Auto-Owners $1,577
5 American Family $1,585
6 GEICO $1,710
7 Allstate $2,561
N/A* USAA $892

 

*USAA isn’t ranked as only former and current military affiliates and their families qualify for it. 

The data presented in the table above shows that the auto insurance company with the cheapest statewide average in Indiana is Erie ($1,066), followed by Progressive ($1,218), State Farm ($1,303), Auto-Owners ($1,577), and American Family ($1,585). The two most expensive auto insurance providers in Indiana are GEICO ($1,710) and Allstate ($2,561). Though USAA ($892) is the cheapest, it is worth mentioning that USAA membership is exclusively available to current and former members of the military (and their families), so many people do not qualify for it. 

The table below shows the best car insurance companies in Indiana that offer the cheapest rates for the presented categories:

Category Cheapest Company
Single Young Adult Drivers Erie
Married Male Adult Drivers GEICO
Married Female Adult Drivers Progressive
Senior Drivers GEICO
Drivers with Good Credit Erie
Drivers with Poor Credit GEICO
Drivers with a Clean Record Erie
Drivers with One Speeding Violation Erie
Drivers with One Accident American Family
Drivers with One DUI American Family
Low-Mileage Drivers GEICO
High-Mileage Drivers GEICO
Drivers with Low Coverage GEICO
Drivers with High Coverage GEICO
Drivers with Used Cars GEICO
Drivers with New Cars GEICO

 

Note: USAA is not included in this segment evaluation because of its restricted membership.

Indiana Car Insurance Laws

Indiana’s traffic laws and related penalties may vary from other US states, and hence any violations may result in higher car insurance rates.

Indiana texting and driving laws

  • Ban on text messaging for all drivers
  • Ban on all cell phones for drivers under 18 years of age

Indiana DUI laws

Indiana doesn’t have a typical lookback period. Courts consider a driver’s 5-year and 10-year conviction history when determining penalty or sentence. Anyone with a BAC of 0.08% or greater in the Hawkeye State will have their license suspended for a minimum period of 30 days.

First-time DUI offenses in Indiana lead to:

  • Up to $5,000 in fines
  • Up to 1 year in jail
  • A license suspension of almost two years 
  • Possible requirement to attend a victim impact panel
  • Possible attendance in a substance abuse education course
  • Towing and impound of the vehicle
  • Possible submission to urine testing

Ticket Impact on Indiana Car Insurance Rates 

If you receive a ticket, your Indiana car insurance rates may rise. How much your premium spikes depends entirely on the pricing standards of your auto insurance provider, the severity of the breach, and local insurance regulations. That is why tickets might have an altered impact on coverage in your state as compared to the national average. 

Below is a look at car insurance quotes in Indiana after some common citations:

Violation Avg. Annual Auto Insurance Rate % Insurance Rate Increase $ Insurance Rate Increase
Hit & Run $1,756 53% $607
Refused Chemical Test/Breathalyzer $1,631 42% $482
DUI $1,631 42% $482
Racing $1,756 53% $607
Reckless Driving $1,719 50% $569
Driving with a Suspended License $1,756 53% $607
At-Fault Accident $1,603 39% $454
Driving with an Open Container $1,487 29% $338
Operating a Vehicle Without Permission $1,498 30% $349
Passing a School Bus $1,411 23% $262
Improper Passing $1,411 23% $262
Following Too Closely $1,380 20% $230
Speeding $1,377 20% $227
Failure to Stop at a Red Light $1,380 20% $230
Illegal Turn $1,369 19% $219
Driving Wrong Way/Wrong Lane $1,426 24% $276
Failure to Yield $1,380 20% $230
Speeding in a School Zone $1,350 17% $200
Driving Too Slowly $1,350 17% $200
Distracted Driving $1,369 19% $219
Driving with Expired Registration $1,150 0% $0
Failure to Show Documents $1,150 0% $0
Not-at-Fault Accident $1,186 3% $37
Failure to Use Child Safety Restraint $1,150 0% $0
Failure to Wear a Seat Belt $1,150 0% $0
Driving Without Lights $1,150 0% $0

 

 

Penalties for Driving Without Insurance in an Accident

Indiana has fixed stringent penalties in case anyone is caught driving without appropriate car insurance. 

If you’re caught driving without insurance for the first time, it will result in the suspension of your driving privileges. The first offense for driving without auto insurance in Indiana is a 90-day driver’s license suspension, with the obligation of carrying an SR-22 certificate with you for 3 years.

The second offense will result in a fine of $500 and a one-year license suspension along with the obligation to carry an SR-22 for 3 years. Additionally, the 3rd and any following offenses for non-compliance will result in a fee of $1,000 reinstatement, a license suspension for one year, and an SR-22 obligation for five years.

The license suspension will not terminate until the obligatory amount of time has passed. Sometimes it is possible to receive a hardship license though. 

Bear in mind that if found without driving with coverage in Indiana, uninsured drivers are subject to losing their license at any time.

Best Car Insurance in Indiana

Company Best For Car Insurance Market Share AM Best Ratings Rates Per Year
State Farm Best Personalized Experience

Low Annual Mileage and Imperfect Driving Record

24.2% A++ $999

 

GEICO Best Rates & Discounts 14.94% A++ $1,762

 

USAA Best for Military Families 6.0% A++ $650
Erie Insurance Affordable policies & Good customer service 5.7% A+ $1,066
Progressive Drivers with Low Credit Score 13.1% A+ $1,218

 

Detailed Reviews

State Farm Auto Insurance

State Farm is one of the cheapest car insurance companies in Indiana. The company features an extensive variety of coverage options and discounts. 

State Farm has a network of over 18,000 agents and offers excellent customer service. 

Overall, State Farm is a safe and cost-effective choice for your insurance requirements, although it is better suited for individuals seeking customized services.

 

Good for 

  • People seeking several lines of insurance coverage
  • Customers that want to connect with local agents

Bad for

  • Drivers that do not qualify for any discounts

GEICO Auto Insurance

GEICO is yet another one of the best auto insurance companies in Indiana. On BBB it has an A+ rating while AM Best gave it an A++. 

If you want reliable Indiana car insurance, GEICO is ideal for you. The company offers many low-cost coverage plans. You can select from numerous discounts such as a good student, good driver, multiple policies, military, multiple vehicles, defensive driving, and federal employee discount. 

Good for

  • Fairly low rates
  • Insurance buyers who want to do everything online
  • People seeking multiple lines of insurance

Bad for

  • Drivers who had an at-fault accident within the last 5 years
  • Individuals who want to deal with a local agent directly

USAA Auto Insurance

USAA’s good customer service and low rates make it a well-liked  Indiana auto insurance provider. It is a sound choice for people who are eligible for USAA membership. 

It offers low coverage rates for both home and auto insurance in Indiana, despite not having many discounts. 

Good for

  • Eligible customers looking for top-notch customer service
  • New vehicle owners
  • First-time drivers 

Bad for

  • Drivers with leased vehicles
  • People not associated with the US military
  • Savers who prioritize discounts

Progressive Auto Insurance

Progressive is a giant in the insurance world and has over 18 million clients. The company manages to attract and maintain so many satisfied customers with an unrelenting commitment to saving its customers money on their auto insurance rates in Indiana

Progressive is a pioneer in offering safe-driving discounts, which makes it a great choice for people with a good driving record. People who switch to Progressive auto insurance in Indiana save an average of $699 annually.

Good for

  • Pet injury protection involved if you purchase collision coverage 
  • Third-largest personal car insurer in the country 
  • Rideshare coverage anytime you have the app on

Bad for

  • Below-average rating for auto insurance customer satisfaction 

Erie Auto Insurance

Erie is the best car insurance in Indiana that provides standard insurance plus optional add-ons. It encompasses auto glass repair, personal item coverage, rental bundles, locksmith services, and even pet coverage. It’s a medium-sized company with excellent financial footing and customer services.

Good for

  • Several coverage options and perks
  • Low customer complaints
  • Auto insurance rate locking option

Bad for

  • Not available in most states
  • No mobile app for managing policy

 

Conclusion

In this blog, we listed everything you need to know about cheap car insurance in Indiana. Keep all these factors in mind before you choose an insurance provider that best fits your needs.

Pros & Cons

The Pros

The Cons

Final Verdict

FAQs

Why is auto insurance in Indiana so expensive?

Auto insurance in Indiana is expensive due to the state’s high population density and overpriced repair costs. In the Hawkeye State, you can expect to pay around $1,113 yearly for full coverage auto insurance or $409 yearly for minimum coverage.

Is Indiana a no-fault state?

No, Indiana is not a no-fault state. Instead, it is an at-fault or “tort” state. This means the driver who causes the accident uses their coverage to pay for the damages of the other parties involved in the accident.

How to reduce car insurance costs in Indiana?

The best way to reduce Indiana car insurance rates is to avail discounts offered by numerous car insurance providers such as multiple car discounts, coverage bundles, etc.

What is the best auto insurance in Indiana?

In the next section of the review, we’ve listed some of the best auto insurance companies in Indiana.