The best, cheapest car insurance in Indiana

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Best car insurance company in Indiana

Drivers in Indiana pay an average of $1,515 a year or $126 a month for car insurance coverage which makes it the 45^th most expensive state in the country.

Even though car insurance is pretty expensive in Indiana, it’s possible to find affordable coverage with top insurers such as GEICO, Auto-Owners, Travelers, and other insurers.

GEICO is our choice for the best car insurance in Indiana. It finished first in our rankings with 4.47 out of 5 stars and an average premium of $986 a year, or $82 a month, which is $529 less than the state average.

Nationwide was second with a score of 4.47 stars followed by Auto-Owners with 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

Auto insurance premiums vary significantly from city to city, so drivers need to be sure they’re getting the best deal. Insure.com has done the research for you. Get more information on auto insurance rates by city below.

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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 – I am going to recommend and quote at least 50/100/100. Depending on their age, income and profession, 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

Statistics show that young drivers, because they are inexperienced and tend to take more risks, have more accidents and claims, all of which lead to higher premiums for younger drivers.

“Data indicates that teenagers and seniors are riskier drivers, so they often pay more for auto insurance than other policyholders in different age groups,” says Chong Gao, director of product management R&D at Mercury Insurance. “For teenagers, the lack of driving experience is a significant factor that impacts their rates; younger drivers with little experience behind the wheel tend to pay higher insurance premiums.”

Auto-Owners is the cheapest insurer in Indiana for teens.

Age factors into a premium as the data clearly shows. Teens pay the highest rates by far with the lowest premium coming in at $3,395 which is 281% more expensive than the most affordable coverage for seniors at $892 and 127% more than young drivers’ best rate of $1,494.

Rates start to drop, assuming their driving record stays clean as teens move into their young adult years and tend to stay stable until a driver gets into their 70s when rates will go up a bit.

Cheapest car insurance for senior drivers in Indiana

Seniors in the state pay more for coverage than all other driver groups, except for teens. GEICO is the most affordable option for seniors with a yearly premium of $892 or $74 a month. Nationwide was the second cheapest at $1,194 and Auto-Owners rounded out the top three at $1,202.

Seniors tend to pay more for coverage due to age. Many seniors suffer from vision and hearing issues as well as slowing reflexes. In addition, medications they may take can impact their driving. All of these factors combined lead to more accidents and claims which will result in a higher premium.

The chart 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

In Indiana, the average premium is $1,515, which makes Indiana the 45^th most expensive state for coverage.

All states have large metropolitan areas, which will always push up the cost of insurance as more vehicles on the road lead to more accidents and claims. A high crime rate will also impact rates.

“If a state has a higher rate of car insurance claims associated with vandalism or car theft, prices are usually higher because car insurance companies view insuring these cars as a higher risk for them,” says Chong Gao, director of product management R&D at Mercury Insurance.

The chart below is 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?

Car insurance costs in Indiana can vary significantly based on your location, as insurers consider the ZIP code where your vehicle is primarily parked when determining your premium.

Our data shows that the Gary area came out as the most expensive with an average annual premium of $2,110. East Chicago was No. 2 and Lake Station was No. 3.

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?

The cheapest ZIP codes for car insurance in Indiana tend to be in rural areas where there are fewer people and cars which leads to lower accident and claim rates. Blue Creek has the most affordable ZIP code in Indiana with an annual premium of $1,349.

Least expensive ZIP codes in Indiana

Cheapest car insurance for high-risk drivers in Indiana

If you have an incident on your driving record, you may be considered a high-risk driver, and you will pay more for coverage. A speeding ticket, at-fault accident, or DUI can send your premium skyrocketing.

When we ran the numbers, we found that a speeding ticket in Indiana will push the average rate to $1,908 and an at-fault accident will push it to $2,238.

An accident will stay on your record for at least three years so you will be paying a higher premium for quite a while after an accident.

A DUI will usually result in a massive increase and could push your premium into unaffordable territory. If you are convicted of a DUI, your rate on average will climb to $2,651 a year. A DUI will be reported to insurers for three years, and if you are a commercial driver, it stays on your record for 55 years.

The table below shows the average increase for drivers with various incidents 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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