The best, cheapest car insurance in Indiana

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Best car insurance company in Indiana

In Indiana, the average premium for car insurance is $1,515 a year or $126 a month, which is the 45^th highest in the country – Louisiana was number one.

For drivers looking for cheap car insurance in Indiana, GEICO, Auto-Owners, Travelers, Nationwide and others on our list are great options, offering plenty of coverage options at affordable rates.

Our research found GEICO offers low rates when compared to its competitors and received high marks when we look at other factors including J.D Power customer satisfaction scores, financial strength rankings and complaint data. GEICO was our top scorer and was awarded 4.47 out of 5 stars.

Nationwide finished second in our rankings with a score of 4.47 stars and Auto-Owners was third at 4.4 stars.

The best car insurance companies in Indiana

How we picked the top auto insurance companies

When choosing the top car insurance companies in the state, we not only looked at the average cost of coverage but also J.D. Power customer satisfaction scores, AM Best financial strength ratings and National Association of Insurance Commissioners (NAIC) complaint rankings. National averages were used where state and regional data was not available.

For each of the four metrics, we gave companies in each state from 1 to 5 (5 being the best) based on how they performed in each category. Those components were then given the following weights, to arrive at an overall star rating.

• Premiums: 25%
• JD Power: 30%
• AM Best: 25%
• NAIC: 20%

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Cheapest car insurance in Indiana

GEICO has the lowest average rate in Indiana at $986 a year or $82 a month.

Auto-Owners is the next most affordable at $1,188 annually and Travelers at $1,264. While these insurers had the cheapest average premiums, there are plenty of other options for coverage in the state.

Insurers consider a wide variety of factors when setting a rate and use proprietary algorithms which can result in dramatic differences in premium quotes. Where you live also affects rates.

“States that have a higher rate of severe weather that damages cars or helps cause accidents will typically have higher rates,” says Chong Gao, director of product management R&D at Mercury Insurance. “Indiana, for example, is prone to extreme weather like hurricanes and its car insurance costs are consequently much higher.”

The data shows how shopping around for coverage can result in savings. While GEICO had the lowest average rate at $986, Allstate was the most expensive at $2,324.

Below are the cheapest car insurance rates by state. To calculate these rates, we used data for a 40-year-old driver of a 2023 Honda Accord LX – one of the most commonly insured vehicles – to provide a consistent and realistic comparison across states.

Cheapest full-coverage insurance in Indiana

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Full coverage car insurance in Indiana

As noted, the rates above are for full coverage car insurance. Full coverage car insurance simply means you are carrying liability and any other state requirements as well as collision and comprehensive.

Full coverage insurance includes collision and comprehensive, which protects your own vehicle. Collision insurance will pay to repair your vehicle when it is damaged after colliding with another vehicle or object. Comprehensive covers damage that is done by perils such as fire, theft, flooding, vandalism, and more.

Shopping for car insurance in Indiana

Shopping around for coverage is a great way to make sure you are getting the best rates on your auto insurance. Experts often tell consumers to shop for insurance yearly. But that doesn’t necessarily mean you should be looking to switch.

“I recommend that people stay with the same insurance company, as they tend to get a better rate when they have been with the same carrier for more than 12 months. The more tenure you have with a carrier, the more potential there is to earn benefits,” says Tim Bottini, a Country Financial insurance agent based in St. Louis. “The carrier can also review your claims history and provide information about applicable discounts.”

But make sure you are comparing like coverage levels and deductibles.

“It is extremely important to make sure you start off with an apples-to-apples comparison,” Bottini says. However, if a person has low limits, say 25/50/25 – limit per person/per occurrence/limit for property damage – he will recommend higher coverage.

“Depending on their age/income and profession,” he says, “I would quote higher limits to protect their net worth and earnings potential.”

Bottini also says people can save money on their car insurance by keeping their credit score up, following the speed limit and placing both home and auto insurance with the same carrier.

Cheapest car insurance in Indiana by age

Insurance companies consider your age when setting a premium and teens and young adults pay more for coverage as statistics show that young drivers, because they are inexperienced, have more accidents and claims.

Regardless of your age, in Indiana, GEICO is the most affordable coverage with an average rate of $986 a year.

As teens transition into young adults and get more experience under their belt rates start to drop. By their mid to late-20s – assuming they keep their record clean – driver rates should stabilize and then stay stable until the driver moves into their 70s when rates will start climbing again.

Cheapest car insurance for senior drivers in Indiana

Seniors pay more for car insurance than other drivers, excluding teens. GEICO is the best choice for seniors in Indiana, according to our data, with an average premium of $892 annually, which translates to $74 a month.

Nationwide was the second most affordable at $1,194 and Auto-Owners was next with a premium of $1,202.

“Seniors tend to have slower reaction times and may suffer from vision or hearing impairments, which can impair their driving ability. This makes them more prone to accidents and thus considered high-risk by insurance companies,” says Tariro Goronga, CEO of DriveSafe driving schools in Colorado.

The table below shows the average premium for senior drivers.

Average rates for seniors in Indiana

Car insurance for young drivers in Indiana

While young adults pay less than teen drivers, they still pay more than older more experienced drivers. The best choice for young adults (early 20s) in Indiana is GEICO with an annual rate of $1,494 or $125 a month.

Auto-Owners had the second cheapest premium at $1,986 a year followed by Travelers was third at $2,036.

If young drivers keep their driving record clean, their rates will drop down as they move out of their 20s.

The table below shows the best insurers for young drivers in Indiana:

Average rates for young drivers in Indiana

Car insurance for teen drivers in Indiana

Insuring a teen is always expensive; statistics show that inexperienced teen drivers get into more accidents and file more claims than more experienced drivers. In Indiana, the best insurer for teen drivers is Auto-Owners with an annual premium of $3,395 or $283 a month. GEICO was second most affordable at $3,715 a year or $310 monthly while Travelers was number three at $4,251.

While teens are expensive to insure, there are a few ways to save some money. Most insurers offer a good student discount so if your teen is carrying a B average or above you should ask for a discount. Putting them in an older vehicle will also lower your insurance costs.

The chart below shows average premiums for teens.

Average rates for teens in Indiana

Average cost of car insurance in Indiana

Indiana is the 45^th most expensive state (Louisiana is number one) when it comes to car insurance with an average premium of $1,515.

The table below shows the average rate in each state for a 40-year-old driver of a 2023 Honda Accord LX.

Average rates for a 40-year-old in Idaho

Which Indiana ZIP codes are most expensive for car insurance?

Where your vehicle spends its days and nights will impact your rate. Frequent severe weather or a high crime rate will raise the cost of insurance for everyone in the area.

Our data shows that Gary is the most expensive area for coverage with an average premium of $2,110 a year.

Here are the most expensive ZIP codes in Indiana for car insurance:

Most expensive ZIP codes in Indiana

Which Indiana ZIP codes are the cheapest for car insurance?

When it comes to cheap car insurance in Indiana, these ZIP codes have the most affordable coverage. The area around Blue Creek has the lowest premiums in Indiana with an average premium of $1,349.

Least expensive ZIP codes in Indiana

Cheapest car insurance for high-risk drivers in Indiana

If you have an at-fault accident, DUI or speeding ticket on your driving record, your insurer may consider you a high-risk driver and will push up the cost of your coverage.

A speeding ticket increases the average premium to $1,908 and will stay on your record and impact your premium for three years.

If you are responsible for an accident, your rates will push the average cost of coverage to $2,238.

A DUI is considered a major violation and will raise the average premium to $2,651.

The table below shows the average increase for drivers with an incident on their record:

How much rates increase in Indiana after a traffic incident

Minimum car insurance requirements in Indiana

Most states require all drivers to carry a minimum amount of liability coverage to drive legally. Indiana requires drivers to carry 25/50/25 in liability coverage, which translates into:

• $25k for bodily injury and $50,000 for death for a person involved in an accident
• $50k for bodily injury and $100,000 for death for two or more people in an accident
• $25k for property damage for a single accident

These required minimums are fairly average when compared to other states. However, these minimums are rarely enough coverage if you are involved in a serious accident. Once your coverage levels are exceeded, you will be on the hook for any remaining damage.

Experts typically recommend carrying 100/300/50 as a minimum liability coverage level.

What our expert says

Q: How does a state’s population affect car insurance rates?

Chong GaoDirector of product management R&D at Mercury Insurance.

“States with a higher population density have more cars on the road and thus more accidents and claims, increasing insurance rates. A more rural state like Iowa will have significantly lower average yearly car insurance costs compared to a highly metropolitan state like Indiana.”

Mark Vallet

Contributing Researcher

 

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Mark Vallet is a Denver-based insurance expert and journalist with 18 years of experience covering the car insurance industry. He specializes in breaking down complex insurance topics into clear, expert-backed insights that help drivers make smarter insurance coverage decisions.

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