Personal Finance Tips & Money Management

Car Insurance in Indiana

At a state-wide average of $1,327 per year, car insurance premiums in Indiana aren’t overly high compared to the rest of the nation. But really, who wants to settle for average? In my research, I found over a $400 price difference between five different insurers for the same exact coverage.

I found that the cost of basic coverage premiums for the state required insurance is moderately far removed from the state average premium for the affordable companies. In the quotes I received, I found that State Farm was the most affordable, offering a $418 plan for the state’s minimum required coverage. On the other end of the spectrum was Nationwide, offering a $874 plan.

With anything as personalized as insurance quotes, it’s important to keep in mind that you and I will absolutely not have the same quote. Every citizen of Indiana may find themselves offered a different quote based on a litany of variables, including your age, zip code, and credit score. Basically, the only surefire way to compare rates accurately is to personally check quotes from the competition yourself; a less exciting, but useful way to spend an evening.

Get Quotes Now

Enter your zip code to compare rates from some of my top recommendations.

Our Top 5 Picks for the Best Car Insurance in Indiana

In my research, I found that you can save yourself hundreds of dollars in just a few minutes. For my quotes, I used an address in Indianapolis, Indiana’s capital and most populated city.

Insurer My quote
State Farm $418
Country Financial $460
Indiana Farm Bureau $498
Auto Owners $543
Nationwide $874

These companies stood out because of their customer support, financial rating, and financial stability. Each of them have an “average” (or higher) JD Power rating in the North Central region, as well as a good standing with A.M. Best. JD Power sorts through customer service satisfaction surveys while A.M. Best takes a look at insurance companies’ financial viability to help you find the company that will have your back if the unthinkable should happen. As someone with experience dealing with an insurance company in the fallout of an accident, caring customer service and a strong financial backing are all that really matters in those situations.

While searching for quotes, I discovered a $456 difference for identical coverage. I was able to garner every final quote except for Auto Owners via online tools, so on average, each one took around 5 minutes to complete — and only caused mild headaches at the worst. As for Auto Owners, I struggled to get a quote out of them, adding about 20 minutes to my research time. However, 20 minutes is comparatively nothing if you’re serious about finding the best savings.

Surprisingly, I found that citizens of the Hoosier State can insure themselves well below the state average for premiums. State Farm offered a strong offer at $418, with Country Financial not trailing far behind. If my quotes are any indication, the only company I would leave out is Nationwide. Simply put, you’re much better off finding an affordable insurance company and putting that saved cash towards more comprehensive coverage. However, if you want to stick with Nationwide because of Peyton Manning, that’s totally understandable.

Even If You’re Happy, It’s Best to Shop for a New Policy Every Couple of Years

Company loyalty may not necessarily be the name of the game with your auto insurance. Many companies calculate your premiums on factors well beyond your risk level to gauge how much cash you’re comfortably spending. According to a study by Earnix, 45 percent of large insurance companies analyze a range of your personal data (like credit scores, web shopping habits, and social media activity) with an algorithm that decides how likely you are to look for better deals. And as you might have expected, it’s a pretty controversial practice across the nation.

So how can you put a stop to it? Simple: Shop around. By doing so, you know the rate you’re getting is a fair one, based on you as a person, not predictive analytics. What’s more, insurance companies know when you shop around, and the more you do, the riskier it will be for them to gouge you with higher fees. That means you’ll be less likely to suffer from price optimization in the future.

Fortunately for citizens of the Hoosier State, Indiana became the seventh of 15 states to outright ban the practice of price optimization on July 20, 2015. Still, as a smart customer, it’s never a bad move to get acquainted with all the aces up the insurance companies’ sleeves.

Indiana’s Minimum Coverage

The Bare Minimum

The state required basic level of coverage required in Indiana is $25,000 for bodily injury per person, $50,000 for total bodily injury for all involved, and $10,000 for property damage, or a 25/50/10 plan.

In my research, I got quotes for slightly above basic coverage, adding $1,000 for medical payments coverage. To my surprise, the statewide average was much higher than the quotes I received, likely because of urban versus rural competition.

The Best Car Insurance Isn’t Just Cheap Car Insurance

Consider the following statistics:

If I only have the minimum coverage and I injure someone in an accident. If the damages only cost $5,000, I’m fine. If it’s more serious — say $50,000 — I’m in huge trouble (and that’s pretty optimistic). A cheap car Insurance policy will only pay half of it and I’m likely to find myself in court being sued for the rest.

It’s definitely more tempting to stick the bare minimum insurance, though I would advise you to explore quotes on more comprehensive coverage. Saving a few extra bucks a month is awesome, not having to pay out of pocket after an accident is even better. For example, the cost of paying $502 annually with State Farm rather than $418 is nothing compared to paying anywhere from $50,000 to $80,000 in the event of an accident. The old adage of “better safe than sorry” has never been more true.

Get Quotes Now

Enter your zip code to compare rates from some of my top recommendations.

Beat the Average Premium: 9 Ways to Snag Cheap Car Insurance Rates

Many of the factors that affect your insurance premium, like your age and accident history, are out of your control. Others, like where you live and your annual mileage, are things you can work on. Check out more ways you can save below:

Complete a safe driver course. The DMV offers Defensive Driving and Driver Training courses that will most often lead to a break on your premium.

Ask about discounts. Discounts vary depending upon your provider, but you can usually get a discount if you carry multiple policies with the same company, like renters or homeowners insurance, or if you’ve been with the company for a while.

Let your insurer know when you get married or finish college. You’ll commonly get lower rates for being married and having a college degree, so call them and let them know, then ask how it impacts your rate.

Move to a less expensive ZIP code. I wouldn’t recommend moving just to get lower auto insurance rates, but it’s definitely worth calling to get a new quote if you do move. Rates can vary greatly for the same driver, using the same provider, from ZIP code to ZIP code. In some cases, I found monthly payments differed by as much as $50 within just 10-miles.

Improve your credit score. It can take years to lift your score, but it’ll impact your financial health across the board.

When you buy your next car, pick one that has high safety ratings. Larger vehicles often score higher in safety tests, which means you might get a slight price break for owning one. With some providers, hybrid and alternative-fuel vehicles also have lower premiums.

Allow your insurance company to monitor your driving. Agencies like Progressive and State Farm offer devices that track your driving habits. If the devices show that you’re a less risky driver, you might be eligible for lower rates.

Drive less. The lower your annual mileage, the less time your insurance company calculates you’re on the road and at risk for getting into an accident. If you start working from home, move closer to town, or can decrease your mileage another way, call your insurance company and let them know.

Wait it out. Younger drivers are generally considered to be high risk, so many people notice their rates drop a bit once they turn 25. It’ll take some time, but we all get older, eventually.


Why are Indiana’s rates so high?

What to Expect
Average Monthly Premiums
United States $139
Indiana $100
Gary $137
Hammond $137
Indianapolis $114
Terre Haute $112
Evansville $111
Anderson $108
Bloomington $104
South Bend $104
Elkhart $104
Fort Wayne $102
Muncie $99
Lafayette $95
Source Quadrant, NAIC

There are several reasons that contribute to Indiana’s higher-than-average car insurance premiums. First off, the state has a relatively high population density of 181 residents per square mile. Indiana’s urban communities have been growing faster than its rural populations since 2009, and the less spread out residents are, the better the chance for car crashes. And you can best believe that insurers take this into account when calculating your rates.

Another factor keeping prices slightly high is the state’s average car repair costs. According to CarMD, fixing a regular ole’ check engine light-repair costs around $400. That’s not too bad compared to the rest of the nation, but it’s not great either. And the more it costs to fix your car, the more you have to pay to insure it.

What if I’m not a full-time resident?

The purchase insurance in the state of Indiana, you must either be a resident of the state or prove that your vehicle is principally parked there. The only other exemption to the rule is anyone with active military status.

The Bottom Line

Indiana is a great state with many wonderful attributes. If you find yourself lucky enough to be a citizen of the Hoosier State, you owe it to yourself to shop around for the best insurance in your area. Should the unthinkable happen, nothing can replace the feeling of security that a sturdy insurer brings to the table.

Get Quotes Now

Enter your zip code to compare rates from some of my top recommendations.


Exit mobile version