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Cheap Car Insurance in Indiana

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The Cheapest Car Insurance in Indiana for All Cars and Drivers

Indiana is known for quite a few things. It’s love of basketball (generating more pro NBA players per capita than 45 other states), its massive automotive industry, and corn.

One thing this great state isn’t known for though, is cheap car insurance. This makes finding the right policy a challenge for those on a budget. And with the economy looking a bit dismal lately, there’s never been a better time to buckle down and find a cheaper car insurance policy to help give your wallet some much-needed relief.

Car insurance policies in Indiana tend to trend lower than the national average costs in many instances…if you know where to look for affordable rates that is.

In this guide, we give you the run-down on everything you need to know when shopping around for a cheap car insurance policy in Indiana.

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Car Insurance Requirements in Indiana

Here’s What you need to know when driving in Indiana

Car insurance is like taxes, if you’re in the United States, there’s no way to legally get around it. Indiana, like all states, requires by law that drivers on its state roadways carry (at a minimum) a certain level of coverage.

Proof of coverage is also mandatory, meaning you had better have that policy handy in case you’re pulled over. Failure to do so can result in significant penalties.

Sounds expensive? Not necessarily. Opting for minimum coverage policies is cheaper than full coverage, but it’s not without its risks. That said, on average most drivers end up shelling out around $414 yearly for minimum coverage in order to comply with state laws.

What are the Minimum Amounts of Car Insurance That Every Driver in Indiana Must Carry?

  • Bodily injury liability: $25,000 per person
  • Bodily injury liability: $50,000 per accident
  • Property damage liability: $25,000 per accident

Optional Car Insurance Coverage

Even if you’re on a budget, it might make sense to find a cheap full or comprehensive car insurance policy. Although more expensive than ‘liability only’ policies, this coverage could end up saving you BIG in the long run. In other cases, such as when paying off a car loan, you may be required to maintain a comprehensive policy until your car is paid off.

Optional Types of Coverage Vary By Carrier and May Include:

  • Full or comprehensive coverage
  • Collision coverage
  • Gap policies
  • Medical coverage
  • Roadside assistance service packages
  • Rental car reimbursement
  • Uninsured / underinsured motorist coverage
  • And more…
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What Are the Penalties for Driving Without Car Insurance In Indiana?

Think car insurance is expensive? Try driving without it and risk learning the hard way…

Drivers in Indiana are required by law to not only be insured, but to carry PROOF of insurance with them at all times when operating a vehicle on public roadways within the state. Those who are caught driving without insurance face serious penalties including but not limited to suspension of driver’s license, steep fines, and a ‘reinstatement fee’ for driving as an ‘uninsured motorist’.

Penalties for Driving Without Insurance In Indiana:

The state of Indiana has taken a hard and fast stance on those to violate its laws regarding auto insurance coverage.

  • First-time offenders face a 90-day suspension of driving privileges and the mandatory carrying of an SR-22 certificate for 3-years
  • Second-time offenders face a 1-year suspension of their driver’s license and a $500 fine, in addition to carrying an SR-22 for 3-years
  • Third, and any subsequent offenses, result in a 1-year suspension of their driver’s license, a $1000 reinstatement fee, and carrying an SR-22 for 5-years

Cheap Auto Insurance in Indiana for Minimum Coverage

Shopping for car insurance isn’t exactly the most exciting thing (we know), but if there’s one thing we think everyone can agree on, it’s that finding a deal is never a bad thing.

When it comes to cheap auto insurance, liability-only options are the cheapest and most affordable way to satisfy your legal requirement of state minimum coverages without breaking the bank.

How Much Does Auto Insurance Cost in Indiana?

This one is a bit more complicated to answer. There are a multitude of factors that play a role in an auto insurance company giving you a custom quote on rates.

That said, data shows that on average, drivers in Indiana who opt for full coverage pay around $1358/year or around $113/month for full coverage, while drivers who opt for minimum coverage pay around $414/year or around $35/month.

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Enter your ZIP code below to view quotes for the cheapest Auto Insurance Rates.

What Determines Your Auto Insurance Premiums?

  • Your vehicle’s make and model
  • Your driving habits
  • Age
  • Zip code
  • Marital status
  • Driving record
  • And more…

Although insurance companies are prohibited from discriminating based on gender, ethnicity, and credit score, there is notable bias in data when evaluating insurance premiums with regard to these elements.

How Age Affects your Auto Insurance Premiums

Although there isn’t a hard and fast rule here, the general consensus among auto insurers is that the older you are (within reason), the less likely you are to have an accident.

For example, logically, a 30-year-old with a family is likely to be a more responsible driver than an 18-year-old in high school. Similarly, young drivers in Indiana have not had a chance to build up a good driving record and have less experience behind the wheel.

Because of this, typically we see a lower premium the older you get. Typically, around age 26 is when we start to see premiums slowly decrease in cost, up until around age 60, when they tend to begin increasing again.

Cheap Auto Insurance for Young Drivers in Indiana

Data shows that young drivers (teens) pay about twice as much in premiums than does a 30-year-old in Indiana. This data also reveals that many teens pay upwards of $1778 MORE than the national average for car insurance (yikes).

We believe every driver should have a fair chance at cheap auto insurance. That’s why we work with a broad range of insurance providers to compare prices and find you the most affordable options.

How Location Affects Your Car Insurance Premiums

Both the state you live in, as well as your zip code, affect the rates you’ll pay for cheap car insurance.

Insurance providers lump together groups of drivers based on location, using data including crime rates and accidents per capita in order to approximate your level of risk.

For example, the cost of auto insurance tends to be higher in highly populated cities (such as Indianapolis) than in rural areas of the state.

Cheap Auto Insurance in Indiana with an At-Fault Accident On Your Record?

Do you have a less than stellar driving history? Have you been found ‘at fault’ in one or more accidents? If so, you may feel like cheap car insurance is beyond your reach. While it’s true that having an accident history can and often does increase your premiums, that doesn’t mean that you still can’t shop around for the lowest of the bunch.

On average, our data shows that many insurance providers increase rates by as much as $620 annually for those with an ‘at fault’ accident on their record.

Cheap Auto Insurance in Indiana for Those with Bad Credit – how will this affect your rates?

Millions of Americans and tens of thousands of individuals in Indiana have bad credit. With inflation on the rise and costs of living through the roof, it’s no wonder so many individuals are having trouble paying the bills. But how does this affect your ability to get cheap auto insurance?

Turns out, there is a correlation between bad credit and filing auto insurance claims, leading many insurance companies to factor in aspects such as income and credit ratings for various zip codes when giving out price insurance quotes. It might not be fair, but we don’t make the rules, we just work tirelessly to help connect you with the best rates.

As an example, industry data shows that drivers in Indiana with poor credit often pay up to $1228 more per year than those with excellent credit.

How Does Marital Status Affect Your Auto Insurance Premiums?

It probably didn’t cross your mind, but marital status (single or married) actually can result in paying more or less for cheap auto insurance.

Insurance companies have found out that statistically speaking, married individuals are less likely to get in an accident, and therefore pay lower rates, making their policies cheaper than a single individual (all other things being equal).

How The Type of Car You Drive Can Affect Your Auto Insurance Premiums

The vehicle you drive is one of the biggest factors car insurance companies use when determining the rate of your policy.

For example, a new vehicle or a luxury model is worth more than an older basic model, requiring a larger payout for repairs or replacement in the event of an accident.

On the flip side, a sports car will have a higher premium due not just to the vehicle’s price tag, but also the increased risk of accidents associated with sports cars.

By contrast, a family sedan will be considered safer and less likely to be involved in accidents, with a much more affordable policy.

How Much You Drive Your Vehicle Plays a Role Too

Did you know that the amount of miles you put on your vehicle, as well as what your vehicle is used for can impact the cost of your auto insurance?

Drivers who put on more than 20,000 miles per year on the odometer pay on average 5% more on their policy than do drivers who put on 7,500 miles or less.

Similarly, drivers who only use their vehicle for short in-town errands, vs those who use their car to commute to work daily, also tend to pay less.

Less miles and less time on the road, on fewer ‘high risk’ roadways, equates to a lower chance of accidents…something insurance companies prefer and reward with a lower insurance premium.

How Does Your Driving Record Play a Role in Your Chances of Getting a Cheap Car Insurance Premium?

It shouldn’t come as much of a surprise that having citations on your record increases your risk profile, resulting in higher premiums. But how much on average do these valuations increase your premiums?

Indiana Auto Insurance Rate Increases Violation (averages):

  • NOT at-fault accident – 6%
  • 1 Comp claim – 8%
  • 2 Comp claims – 14%
  • Failure to show documents to law enforcement – 18%
  • Failure to wear a seatbelt – 18%
  • Child safety restraint violation – 20%
  • Driving without lights – 20%
  • Driving on expired registration – 21%
  • Cell phone use violation – 25%
  • Speeding 6-10mph over the limit – 25%
  • Illegal turn – 26%
  • Failure to yield – 27%
  • Speeding 16-20mph over the limit – 27%
  • Improper passing – 27%
  • Racing or Reckless driving – 89%
  • Leaving the scene of a crime – 97%
  • Driving on a suspended license – 94%

*Examples are averages and vary widely depending on the particular carrier. The list is not exhaustive and is meant to give a representative sample of common traffic violations.

What’s the Cheapest Car Insurance After a DUI In Indiana?

The state of Indiana has taken a hard stance against driving under the influence, and so have its auto insurance providers. In addition to facing steep legal penalties and fines, you can expect to pay more for car insurance.

Those with a DUI on their record are typically considered ‘high-risk drivers’, meaning cheap policies are pretty much out of the question. That said, shopping around will be the best route for finding a policy that won’t hurt your wallet too bad.

At Insurance Navy we work with a wide range of insurance companies, fighting to get you the best rate among them all.

Even so, don’t be surprised if some insurance companies charge 90% higher for those with a DUI than a driver with a clean record.

SR-22 Insurance

Obtaining and holding an SR-22 policy is a common legal requirement as part of the penalties imposed as a result of a DUI conviction, at-fault collisions, driving with a suspended license, driving without insurance, or having too many ‘points’ on your license.

Although sometimes referred to as ‘insurance’, an SR-22 is more like a certificate or bond offered by the insurance company to provide assurance to the state that you have a certain amount of coverage in the event of an accident.

What is the Cheapest Auto Insurance for Indiana Drivers with Speeding Tickets?

Speeding, as mentioned, is a common driving offense that can have a considerable negative impact on insurance affordability, often raising rates as much as 10-20%. That said, there is some hope…with time.

Generally speaking, you might need to suck it up right now, but know that in most cases, within 3-5 years your rates should begin to go back down (presuming you don’t have any other driving infractions during that time).

Getting multiple car insurance quotes is your best bet, and Insurance Navy can help.

The Best Auto Insurance Rates for Safe Drivers in Indiana

Just like how bad drivers are punished, insurance companies tend to reward those with good driving records. Being a good driver varies in definition from one company to the next, but it typically involves not having any (or few) blemishes on your driving record.

Not only will a good driving record result in lower premiums, but you may also qualify for ‘safe driving’ discounts, lower deductibles, and other perks too!

Cheap Car Insurance Rates by City In Indiana

As mentioned earlier, the zip code you live in has a big impact on how much you can expect to pay. While we don’t have all of this data handy, we can help give you some numbers that should provide you with some insight on the matter.

To date, the cheapest car insurance rates have been found for those who live in Shadeland, IN, with the most expensive policies in Gary, IN.

Average Auto Insurance Premium by City In Indiana:

  • Carmel, IN = $1177/yr
  • Fort Wayne, IN = $1231/yr
  • South Bend, IN = $1248/yr
  • Evansville, IN = $1332/yr
  • Indianapolis, IN = $1398/yr

Curious what everyone else is paying and how prices may have increased or decreased over time? You’re not alone. In Indiana, the average auto insurance premium runs about $1261 per year, and has increased by a whopping $73 or 5.8% since last year.

In other words, year over year, Indiana residents are paying about 5.8% more than they did the year prior. Although no one is happy about rate increases (especially in this economy), it turns out that 2016-2017 was the year prices increased the most, while 2011-2012 insurance premiums actually dropped significantly.

That’s the bad news. The good news is that OVERALL, auto insurance premiums in Indiana, on average, are still cheaper than the nationally reported average costs.

Best Cities for Cheap Car Insurance in Indiana

While no one is likely changing zip codes just to get a better rate on car insurance, knowing that you live in an area with lower rates may give you the peace of mind and kick in the pants you need to switch services or connect with a broker like Insurance Navy to make sure you’re getting the best rates.

Remember, rural areas will almost always be cheaper, but if you get to choose where you rent/buy your next home or apartment, these cities will save you big on car insurance.

The Following Cities in Indiana are the BEST for Cheap Car Insurance:

RichmondAnderson
ColumbusGreenwood
GoshenFishers
LafayetteNoblesville
ElkhartKokomo
West LafayetteMichigan City
BloomingtonTerre Haute
MishawakaValparaiso
South BendIndianapolis
CarmelEvansville
MarionCrown Point
Fort WayneNew Albany
La PortePortage
HammondJeffersonville
MuncieGary

*The cheapest annual rates for car insurance in Indiana’s largest cities and towns.

Tips for How to Get Cheap Car Insurance in Indiana

Quote Comparison – one and one at Insurance Navy

One of the most effective ways to find the cheapest car insurance in Indiana is to shop around. Sounds time-consuming? It doesn’t have to be. At Insurance Navy we work with a selection of the industry’s best insurance providers, able to get you the best price and value across several companies without you having to lift a finger. With one submission for a price quote, we can connect you with the best policies for your budget as well as your needs.

Understand How Various Factors Can Impact Your Rates

In this guide, we explored a selection of the biggest life choices and circumstances that can affect how much you pay for auto insurance. While some of these can’t be easily changed (like getting married), others you can use to your advantage.

Choosing the Right Type of Coverage

At Insurance Navy we take a lot of pride in helping educate individuals such as yourself about the various types of insurance policies available, and work with you to find the RIGHT policy that fits your needs. That way you pay for exactly what you require, and nothing else.

Don’t Let Your Policy Lapse

A common mistake, especially for those who may not be driving for a period of time (due to medical illness, car breakdown, etc.) is letting their policy lapse. At worst, policy lapses can be a red flag to insurance providers, and at best, it breaks up the long history you’ve built up of good driving habits.

Consider Uninsured Motorist Protection

Research shows that around 17% of all Indiana drivers are operating on roadways without insurance. Although this additional protection won’t decrease your premiums, it can end up saving you big down the road.

Find Cheap Auto Insurance you Can Afford at Insurance Navy!

Insurance Navy is committed to helping Indiana residents get the car insurance coverage they deserve, at a fair and affordable price. Working as a car insurance broker, we give Indiana drivers access to a host of top insurance carriers all under one roof, making car insurance quote comparisons and shopping around a breeze.

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