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Car insurance in Indianapolis costs $1,627 per year for full coverage – $136 monthly. In 2024, USAA offers the cheapest car insurance policy at $72 per month.

Indianapolis is a big city that offers an affordable lifestyle. In fact, the cost of living is 6.5% below the national average, according to the city’s official website. Home prices are especially reasonable compared to other metros. 

If you are moving to Indianapolis — or already live there — it is important to find the right car insurance policy. Fortunately, there are ways to get cheap car insurance in Indianapolis that will provide the coverage you need. 

Key Takeaways

  • Full-coverage car insurance in Indianapolis costs an average of $1,627 per year, lower than the nationwide average of $1,895.
  • The cheapest car insurance company for a full-coverage policy in Indianapolis is USAA, at $72 monthly.
  • Car insurance rates in Indianapolis are about $100 more expensive than the statewide average rate of $1,515 per year.

How to find the best car insurance in Indianapolis

With the right tools and a little work, you can find the best car insurance policy in Indianapolis that marries the coverage you need with a cost you can afford. 

Before shopping for car insurance, determine the type of policy you need, including the amount of coverage necessary to protect yourself. Make sure you get quotes from at least three companies comparing similar coverage limits and options and ask about any discounts you qualify for. It’s always best to buy as much coverage as you can afford.

Cheapest car insurance company in Indianapolis

USAA provides the cheapest car insurance in Indianapolis, according to the most recent data. It costs an average of $858 annually to purchase a full-coverage policy from the insurer.  The next cheapest car insurance companies are Geico and Auto-Owners.

See other cheap car insurance rates in Indianapolis in the table below.

Average annual rates from insurers in Indianapolis

Company Average annual rates for state minimum Average annual rates for full coverage
USAA$225 $858
State Farm$459$1,783
Indiana Farmers$434$1,788
Indiana Farm Bureau Grp$576$2,441

How much is car insurance in Indianapolis per month?

Indianapolis residents can expect to pay an average of $136 per month in full coverage car insurance costs, or $40 per month for the state minimum coverage.

Of course, some drivers pay less than this average, while others pay more. Factors determining how much you pay for car insurance include the insurance company you choose and the coverage you need. 

Other factors — including your age and gender, car type and history of accidents and violations — also influence car insurance costs.  

Monthly rates for car insurance in Indianapolis, Indiana

Company Average monthly rates for state minimum Average monthly rates for full coverage
Indiana Farmers$36$149
State Farm$38$149
Indiana Farm Bureau Grp$48$203

How do rates in Indianapolis compare to other large cities in the U.S.?

The cost of coverage in Indianapolis compares favorably to other major cities. Indianapolis drivers pay more than other Indiana drivers – the statewide rate is $1,515 annually, compared with Indianapolis’ $1,627.

See how much you can expect to pay for car insurance in several major U.S. cities in the table below.

Full-coverage car insurance costs in major U.S. metropolitan areas

CityFull-coverage cost
Los Angeles$3,149
New York$2,600
San Antonio$2,181
San Diego$2,324
San Jose$2,406
Las Vegas$2,594
El Paso$2,112
Fort Worth$2,030
Oklahoma City$2,373
San Francisco$2,777

Here’s what you need to know when driving in Indianapolis

As with any big city, Indianapolis has its share of traffic problems. 

In 2022, drivers in Indianapolis lost an average of 24 hours in traffic, according to INRIX, which looks at traffic patterns. That marks Indianapolis as the 39th most-congested city in the U.S.

If you are driving in the Indianapolis area during rush hour, you can expect to spend an extra 12.4 minutes in traffic, according to the website CoPilot. That places Indianapolis at No. 58 among all cities in the nation when it comes to losing time due to rush hour. 

Other things to remember when driving around Indianapolis:

  • Speed limits in Indianapolis are typically 30 mph in residential areas and 65 mph on urban freeways. Variations on these limits should be posted on roads where other speed limits apply.
  • Indianapolis does not have any toll roads. 
  • In 2023, Indiana began a pilot program to reduce speeding in active road construction work zones. Speed cameras both clock driver speeds and snap pictures of license plates. Those traveling at least 11 mph over the speed limit get a warning, with additional violations resulting in fines. 

How much car insurance do I need in Indianapolis?

Indiana law requires you to purchase a minimum amount of liability car insurance coverage. These amounts are: 

  • $25,000/$50,000 uninsured motorists: bodily injury
  • $25,000 of coverage for property damage
  • $50,000 underinsured motorists: bodily injury

However, these minimum levels of coverage will not be adequate for most drivers. 

Many drivers will prefer to carry much higher levels of liability coverage so they are better protected financially. In addition, liability insurance does not cover you or your car. 

That means drivers also might be interested in going beyond the minimums and protecting their own vehicles by purchasing insurance beyond the minimum, such as comprehensive and collision coverage. 

If you are unsure how much coverage you need, consult an insurance agent who can help. 

Average cost of car insurance in Indianapolis

The average cost of full-coverage car insurance in Indianapolis is $1,627 annually. That compares to a statewide average of $1,515 and a nationwide average of $1,895. 

Annual average rates in Indianapolis for state minimum coverage and full coverage

State minimum coverage in IndianapolisAnnual full coverage rates in Indianapolis

How much does car insurance in Indianapolis cost with violations?

Moving violations on your driving record will likely increase your car insurance rates. Violations like speeding tickets often cause a significant but manageable rise in rates. 

Other types of violations can make rates climb much higher. This is particularly true if you are convicted of a DUI. 

“Some severe violations — or an accumulation of multiple less-severe violations — could make you ineligible for coverage,” says Rick Kautzer, director of personal lines product management for Dairyland Insurance

See rate increases in Indianapolis in the table below by violation.

Violation typeRate increase percentage
At-fault accident76%
Bad credit66%

Cheapest car insurance in Indianapolis by age

Your age will impact how much you pay for car insurance. The youngest drivers tend to pay the highest rates. Older drivers also are likely to pay more. See how much you can expect to pay by age in the table below.

Annual rates for state minimum and full coverage car insurance in Indianapolis, by age

AgeState minimum coverageFull coverage

Compare auto insurance rates in Indianapolis by ZIP code 

Where you live also plays a role in how much you pay for car insurance. Here are the Indianapolis area ZIP codes with the cheapest and most expensive car insurance rates. 

See the tables below for the cheapest and most expensive ZIP codes for car insurance in Indianapolis. 

Cheapest annual car insurance rates in Indianapolis, by ZIP code

ZIP codeAverage annual rate

Most expensive annual car insurance rates in Indianapolis, by ZIP code

ZIP codeAverage annual rate

Our recommendations: Car insurance for drivers in Indianapolis

If low prices are your top focus when shopping for car insurance, USAA might be your best choice. It has the lowest average rates in our survey. 

However, it’s often a mistake to shop by price alone. It is crucial to make sure you have exactly the coverage you need, even if you have to pay a little more for it. 

Shopping around and gathering quotes from several insurance companies is the best way to get the coverage you need at the best price. 

A full coverage insurance policy with liability limits of 100/300/100 is the best option for most drivers. Consider increasing your liability limits as you accumulate wealth and your net worth increases. Purchasing as much car insurance as you can afford will give you peace of mind as you navigate the roads of Indianapolis.

Resources & Methodology


In 2024, commissioned Quadrant Information Services to pull rates for a 40-year-old who has a 12-mile commute and drives a 2023 Honda Accord LX 10k miles annually. The hypothetical driver has full coverage, carrying policy limits of 100/300/100 with $500 deductibles for comprehensive and collision coverages. We analyzed 51,088,003 insurance quotes from 167 companies across 34,588 ZIP codes in every state and Washington, D.C.


CoPilot. “Cities That Lose the Most Time in Rush Hour Traffic.” Accessed February 2024.

Fox 59. “New laws going into effect in Indiana in 2023.” Accessed February 2024.

Hertz. “Indiana Driving Guide.” Accessed February 2024.

Indiana Department of Insurance. “Auto Insurance.” Accessed February 2024. “Moving to Indianapolis.” Accessed February 2024.

INRIX. “Indianapolis IN.” Accessed February 2024.

Inrix. “Inrix 2022 Global Traffic Scorecard.” Accessed February 2024.

Sixt. “Indiana Toll Roads.” Accessed February 2024.

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Chris Kissell
Contributing Researcher


Chris Kissell is a Denver-based writer and editor with work featured on U.S. News & World Report, MSN Money, Fox Business, Forbes, Yahoo Finance, Money Talks News and more.