The words "cheap" and "insurance" really shouldn't be used together, specifically when you are trying to find the lowest insurance rates for safe drivers. Let's start off by going over a few of the factors that have an impact on auto insurance prices, and find out if we can help you slash the price of the next policy you buy.
For good drivers, one of the largest things that are looked at to determine the price you pay for insurance is where you keep your vehicle in Indiana. Larger areas like Gary, Merrillville, and Indianapolis tend to have higher rates, whereas areas with lower crime rates and fewer weather claims have the benefit of cheaper car insurance.
The illustration below sorts the most expensive places in Indiana for safe drivers to buy car insurance in.
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Price information shown is comparative as specific Indiana garaging address can modify auto insurance rates considerably.
Establishing which companies offer the lowest-priced auto insurance rates for safe drivers in Indiana involves more work in order to find the lowest price.
Every insurance provider has a unique formula to determine rates, so let's take a look at the most affordable auto insurance companies in Indiana.
Lowest Insurance Price Quotes for Safe Drivers
|Rank||Company||Cost Per Year|
|7||Indiana Farmers Mutual||$875|
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Travelers may offer some of the best car insurance rates in Indiana at around $614 a year. Cincinnati Insurance, USAA, Erie, and Western Reserve also are some of the more affordable Indiana auto insurance companies.
As illustrated above, if you are a customer of USAA and switched to Travelers, you may see yearly savings of about $67. Indiana drivers with Erie may save as much as $112 a year, and Western Reserve customers might reduce prices by as much as $224 a year.
Bear in mind that those policy prices are averages across all drivers and vehicles and do not take into consideration a rate discount for safe drivers. So the company that is most affordable for your situation may not even be in the top 36 companies in the list above. That underscores the importance of why you need to compare rates from multiple companies using your own driver and vehicle profiles.
Types of discounts on Indiana car insurance
Insurance providers that offer quotes for safe drivers may also provide price discounts that may potentially lower prices by 40% or more if you meet eligibility requirements. The best auto insurance companies and a partial list of their discounts include:
- State Farm includes discounts for defensive driving training, driver's education, passive restraint, Steer Clear safe driver discount, good driver, safe vehicle, and good student.
- Farmers Insurance policyholders can earn discounts including distant student, business and professional, teen driver, switch companies, and bundle discounts.
- Progressive discounts include multi-vehicle, good student, online quote discount, continuous coverage, homeowner, and online signing.
- GEICO offers discounts including seat belt use, multi-policy, membership and employees, military active duty, and defensive driver.
- Auto-Owners Insurance offers discounts for anti-lock brakes, safe vehicle, company car, multiple vehicles, and multi-policy.
- The Hartford has discounts for good student, air bag, bundle, driver training, anti-theft, defensive driver, and vehicle fuel type.
- Farm Bureau may have discounts that include safe driver, youthful driver, multi-policy, driver training, multi-vehicle, renewal discount, and good student.
- USAA may include discounts for vehicle storage, military installation, family discount, multi-vehicle, driver training, and multi-policy.
The illustration below shows the comparison of insurance costs with and without discounts applied to the policy rates. The price estimates are based on a female driver, no claims or driving citations, Indiana state minimum liability limits, comp and collision included, and $1,000 deductibles.
The first bar for each age group shows the average rate with no discounts. The second bar shows the rates with passive restraint, defensive driving course, homeowner, vehicle safety, anti-theft, and multiple policy discounts applied. When these discounts are applied, the average amount saved each year on auto insurance for safe drivers is 28% or $312.
The example below demonstrates how deductible levels can influence premium costs when researching cheap insurance for safe drivers in Indiana. The premium estimates are based on a single female driver, full physical damage coverage, and no policy discounts are applied.
In the chart above, a 30-year-old driver could save $254 a year by switching the physical damage coverage from a $100 deductible up to a $500 deductible, or save $384 by switching to a $1,000 deductible. Youthful drivers, like the 20-year-old category, could potentially save $566 or more by choosing a larger deductible amount. When insureds make the decision to increase the deductibles on their policy, it's a good idea to have enough in a savings account to be able to cover the extra out-of-pocket expense. That is the one disadvantage of using higher deductibles.
Price comparison of only insuring for liability
Buying cheaper auto insurance should be important to the majority of drivers, and one of the best ways to lower the cost of insurance for safe drivers in Indiana is to only buy liability coverage. The diagram below illustrates the comparison of insurance premiums with and without full coverage. The prices are based on no accidents or driving violations, $1,000 deductibles, marital status is single, and no additional discounts are factored in.
If we average all the age groups together, physical damage coverage on your policy costs $1,577 per year more than just insuring for liability. Many people question if buying full coverage is a good investment. There is no exact formula for excluding physical damage insurance, but there is a general guideline you can use. If the annual cost of your full coverage insurance is 10% or more of any settlement you would receive from your insurance company, then you may want to consider only buying liability coverage.
For example, let's say your vehicle's replacement cost is $5,000 and you have $1,000 physical damage deductibles. If your vehicle is totaled, the most you would get paid by your company is $4,000 after you pay the deductible. If it's costing you more than $400 a year for full coverage, then you may want to consider only buying liability coverage.
Don't stick with an overpriced policy
Indiana auto insurance rates are based on many factors which can substantially change the price you pay for coverage. Turning one year older, getting divorced, or getting a couple of tickets can trigger changes in premium that can now make some companies cheaper than others. And not only may your rating factors change, but auto insurance companies amend premium rates without warning in order to remain profitable. A period of increased losses can cause rate increases, while a better loss history can produce lower-cost Indiana car insurance rates.
To illustrate this point, the chart below shows the cheapest car insurance in Indiana for a 35-year-old male driver with no prior accidents, a clean driving record, and a high credit rating. When quoting prices based on his current rating profile, Travelers might offer the most affordable car insurance rates in Indiana at $614 a year. This is $626 less than the average policy premium paid by Indiana drivers of $1,240. Cincinnati Insurance, USAA, Erie, and Indiana Farmers Mutual are the remaining top five cheapest Indiana auto insurance companies.
The example below compares rates after we give the driver in the first chart some claims, slightly worse credit, and a traffic citation. Since each auto insurance company uses a different method for determining prices, analyzing rates could now result in a different set of affordable companies as shown below.
Western Reserve now has the cheapest price in Indiana with Cincinnati Insurance, USAA, Auto-Owners, and Nationwide also being competitive. This example shows why consumers need to compare as many rates as possible to get the most budget-friendly insurance quotes for safe drivers.
Rates are made up of many different factors and change dramatically, so the cheapest rate three years ago may now be quite expensive.