Cheapest Car Insurance in Indiana (October 2024)

Westfield offers the cheapest minimum car insurance coverage in Indiana. Depending on your driver profile, American Family, Nationwide or USAA might provide the most affordable options.

MoneyGeek reviewed the best auto insurance providers in Indiana for drivers seeking a balance of cost and quality.

On average, the following companies offer the cheapest car insurance premiums in Indiana for state minimum requirements:

• Westfield: $256 per year
• American Family: $320 per year

Farmers is the most expensive provider in Indiana, at about $600 per year. Indiana’s minimum coverage policy includes only property damage liability and bodily injury liability.

With minimum coverage, you're covered against injuries and damage you cause to others. This insurance policy doesn't cover damage to your car. A full coverage policy, which includes comprehensive and collision insurance, covers vehicle repair costs.

On average, the following providers offer the cheapest full coverage car insurance rates in Indiana:

• American Family: $593 per year
• Travelers: $720 per year

Farmers has the most expensive full coverage rate in Indiana, at around $1,102 annually. A full coverage policy is often more costly, but it protects you from collisions, theft, vandalism, flooding and other incidents. For instance, the full coverage policy costs $273 more than the minimum coverage policy from American Family.

The amount of auto insurance you need impacts your premium. MoneyGeek’s sample full coverage policy includes:

• $100,000 bodily injury liability per person
• $300,000 bodily injury liability per accident
• $100,000 property damage liability per accident

Drivers in Indiana who want to save money can reduce their liability limits, drop comprehensive and collision coverage or raise their deductible. However, these cost-cutting measures might leave you with inadequate coverage and financially vulnerable to a major loss.

While many insurance companies offer the convenience of online quote tools, the process typically takes about 15 minutes to complete. In some instances, these websites may request personal information. Consequently, comparing estimates can consume a significant amount of time.

MoneyGeek's car insurance calculator does not need you to provide your personal information to different insurance companies. Enter your driving record, gender and age for a tailored estimate. Indiana drivers who want affordable auto insurance rates can use our tool as a starting point.

Nationwide and American Family have the cheapest rates on average for various age groups in Indiana.

These car insurance providers offer the cheapest policies in Indiana for teenagers on a family plan:

• Nationwide: $1,553 per year for female teens and $1,702 per year for male teens
• State Farm: $1,562 per year for female teens; GEICO: $1,750 per year for male teens

Auto-Owners has the highest rates for teenagers, costing $2,591 per year for female teens and $2,706 for male teens, both on a parent's policy.

Teen car insurance rates drop as drivers age, with the lowest rates available at 19. GEICO offers the most affordable rates for 19-year-old males in Indiana at $1,158 annually.

Adding a teen to a family policy is usually cheaper than a separate policy. Most teens under 18 need a parent or guardian to co-sign. A 16-year-old driver's own policy costs about $4,369 per year, compared to $2,057 when added to a parent's policy, a difference of around $2,312.

With certain discounts, young drivers may get a lower premium. GEICO and Nationwide offer good student discounts, whereas Allstate, Auto-Owners, Farmers, Progressive, State Farm and Travelers provide both good student and distant student discounts.

On average, the following insurance providers offer Indiana drivers in their 20s the cheapest premiums for full coverage:

• American Family: $638 per year
• Travelers: $860 per year

State Farm has the most expensive full coverage rate in Indiana, with a yearly premium of approximately $1,385. Drivers in their 20s often pay a higher premium than drivers of middle age. Young drivers may pay around $198 more for full coverage on average.

The following companies offer the cheapest car insurance in Indiana for full coverage to senior drivers:

• American Family: $577 per year
• Travelers: $718 per year

Farmers provides the most expensive insurance to an adult 60 and above, averaging $1,038 annually.

Senior drivers in Indiana may pay an average of $49 less for car insurance than middle-aged drivers. However, rates often rise as drivers reach their 70s and 80s.

Senior drivers in Indiana may be eligible for a discount from American Family, GEICO, Farmers and Allstate. Comparing the requirements of several insurers is a good strategy for picking the cheapest provider since age is just one factor that insurers consider when calculating rates.

American Family is the most affordable option for drivers with speeding tickets, at-fault accidents and operating while intoxicated (OWI) infractions. It's also the cheapest for drivers with poor credit and sports cars.

The following insurers provide the cheapest average car insurance in Indiana to drivers with a speeding ticket:

• American Family: $756 per year
• Westfield: $986 per year

Farmers offers the most expensive premium at approximately $1,463 per year. Insurance rates in Indiana after a ticket might cost up to $276 more than drivers with a clean record.

These car insurance providers in Indiana offer the cheapest average rates for drivers after an at-fault accident:

• American Family: $788 per year
• Travelers: $1,048 per year

Westfield is the most expensive insurer, with a full coverage policy averaging $1,775 annually. The cost of auto insurance in Indiana can increase by up to $527 a year for drivers who are at fault in an accident, and it may impact their insurance rates for a minimum of three years.

In Indiana, the most affordable full coverage policies for drivers with an OWI are:

• American Family: $756 per year
• Progressive: $983 per year

Auto-Owners Insurance Co has the highest rates for drivers with an OWI, averaging $2,179 annually.

Drivers with an OWI pay more for car insurance than those with a clean record. On average, an OWI increases premiums by $676 per year. This record can affect insurance rates for at least three years.

On average, the cheapest auto insurance providers in Indiana for drivers with poor credit are:

• American Family: $934 per year
• Nationwide: $1,092 per year

The most expensive option in the state for drivers with poor credit is State Farm, with an average annual premium of $2,679.

Your credit score has a substantial impact on the rates you pay. For individuals with good credit (750 and above), the average cost of full coverage insurance in Indiana is $663 less than that for people with poor credit (below 580).

Drivers with poor credit frequently pay higher rates since they are more likely to file a claim based on actuarial data. Credit history is not allowed as a rating factor in every state, but Indiana providers are permitted to use it.

Improving your credit score is an effective strategy for a lower premium. Additionally, you can compare rates and utilize common discounts to save money.

The cheapest auto insurance providers for sports car drivers in Indiana are, on average:

• American Family: $552 per year
• Travelers: $713 per year

State Farm's rates are the priciest at approximately $1,353 per year. Rates for drivers with sports cars might be more expensive due to these vehicles' higher replacement and repair costs. In Indiana, a sports car is $98 more expensive to insure than a Toyota Camry LE.

MoneyGeek used a Ford Mustang for the quotes in this study, but car insurance rates can vary widely depending on the model. Luxury, electric and sports cars are typically more expensive to insure than other vehicle types.

USAA provides Indiana's most affordable auto insurance for active duty military personnel and veterans, with an average annual premium of $524. It's known for its strong financial stability, high client satisfaction, affordability and low customer complaints.

In South Bend, Indiana, Westfield offers the cheapest car insurance with an average annual premium of $781. Evansville is the second-cheapest city, with Progressive's rate of $812.

For Indianapolis residents, Progressive provides the most affordable option, though, at $874 per year, it's the highest rate in the state.

In Indiana, as with most other states, all drivers are required to purchase car insurance that fulfills the state's minimum criteria. This includes protection for bodily injury and property damage. Understanding how much coverage you require ensures that you are adequately protected.

You must purchase the minimum insurance required by Indiana law to drive in the state. This includes bodily injury and property damage liability. While selecting basic coverage is more cost-effective, accident-related costs can quickly add up.

In Indiana, drivers convicted of high-risk violations must obtain SR-22 insurance. If you need to file an SR-22 certificate, your coverage needs and prices may rise.

To optimize your protection, MoneyGeek recommends obtaining as much insurance coverage as you can afford.

MoneyGeek suggests that drivers purchase bodily injury liability insurance limits of $100,000 per person, $300,000 per accident and $100,000 per accident for property damage.

Full coverage includes collision and comprehensive insurance, which provides you with greater protection and might be required if you finance or lease your car. Drivers are financially covered by collision insurance for vehicle damage in collisions with other cars, trees, walls, fences and other objects. Comprehensive insurance covers non-collision events, such as natural disasters, fire, theft and vandalism.

Even if it's unnecessary, we recommend obtaining full coverage if you own a valuable vehicle.

Drivers in Indiana who are concerned about their insurance coverage can file a surety bond or deposit $40,000 in cash, securities or trust funds with the state treasurer and then present their receipt to the Indiana Bureau of Motor Vehicles.

A surety bond guarantees that a driver will meet their financial obligations in the event that they cause an accident and are required to pay liability charges.

In the case of an accident, drivers will still need to provide proof of financial responsibility.

Car insurance buyers often have questions about cost and quality. MoneyGeek answers the top questions about auto insurance in Indiana.