The vehicle to be insured is one of the largest considerations when trying to find low-cost auto insurance in Indiana. Vehicles with high performance engines, poor safety ratings, or an increased likelihood of liability claims will cost much more to insure than safer, lower-performance models. The data below estimates auto insurance premiums for a selection of the most economical vehicles to insure in Indiana.
|Vehicle||Estimated Cost for Full Coverage|
|Ford Escape Limited 4WD||$603|
|Ford F-150 STX Regular Cab 2WD||$608|
|Honda CR-V LX 2WD||$613|
|Honda Accord EX 4-Dr Sedan||$608|
|Ford Edge SE AWD||$643|
|Volkswagen Jetta SE 2.5 Station Wagon||$652|
|Chevrolet Equinox LS AWD||$657|
|Ford Explorer Eddie Bauer 2WD||$682|
|Toyota Camry XLE||$702|
|Honda Odyssey EX||$706|
|Hyundai Sonata GLS 4-Dr Sedan||$713|
|Ford Fusion Sport 4-Dr Sedan||$706|
|GMC Sierra SLE Crew Cab 2WD||$713|
|Ford Focus SE 4-Dr Sedan||$706|
|Dodge Ram Quad Cab TRX4 Off Road 2WD||$717|
|Chevrolet Impala LT||$721|
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Premium data assumes single male driver age 30, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Indiana minimum liability limits. Discounts applied include multi-policy, claim-free, homeowner, multi-vehicle, and safe-driver. Price information does not factor in the specific area where the vehicle is garaged which can impact premiums greatly.
Looking at the rates, vehicles like the Ford Escape, Ford F-150, and Honda CR-V are likely to be the most affordable vehicles to insure for drivers in Indiana.
For drivers in Indiana, one of the more important components that aid in calculating the annual cost of car insurance is your address. Areas with a lot of weather claims or more people like Gary, Merrillville, and Lawrence tend to have more expensive auto insurance rates, whereas more rural areas benefit from lower prices.
The illustration below rates the highest-priced areas in Indiana in which to purchase auto insurance.
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Rates are approximated as the specific area where the vehicle is garaged can modify premiums significantly.
Figuring out which companies have the most affordable auto insurance rates in Indiana takes a tad more effort than just comparing a company or two.
Each auto insurance company has their own process for establishing rates, so let's examine the lowest cost auto insurance companies in Indiana.
Find the Best Cheap Insurance in Indiana
|Rank||Company||Cost Per Year|
|5||Indiana Farmers Mutual||$841|
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Travelers normally has some of the lowest car insurance rates in Indiana at around $602 annually. USAA, Cincinnati Insurance, Erie, and Indiana Farmers Mutual also make the cut as some of the cheapest Indiana insurance companies.
As the example above demonstrates, if you currently buy coverage from Erie and switched to Travelers, you might realize savings of about $131. Policyholders with Indiana Farmers Mutual could save as much as $239 a year, and Western Reserve policyholders might realize rate reductions of up to $262 a year.
Be aware that those premiums are averaged across all ages of drivers and types of vehicles and do not take into consideration a rate discount in Indiana. So the company that has the lowest price for you may not even be in the top 36 companies shown above. That illustrates why you need to get rate quotes from many companies using your own specific driver and vehicle information.
Full coverage or liability only
Saving money when shopping for auto insurance is probably important to the majority of drivers, and one good way to reduce the cost of insurance in Indiana is to only buy liability coverage. The information below illustrates the comparison of insurance rates with full physical damage coverage compared to only buying the minimum liability limits required in Indiana. The rate quotes are based on no driving violations, no at-fault accidents, $500 deductibles, drivers are single, and no discounts are applied.
If all age groups are averaged, full coverage costs $1,328 per year over and above liability coverage. Many of you may wonder if full coverage is worth the money. There isn't a steadfast formula of when to drop physical damage coverage on your policy, but there is a guideline you can use. If the yearly cost of full coverage is about 10% or more of the settlement you would receive from your company, then it may be the right time to buy liability only.
For example, let's say your vehicle's claim settlement value is $7,500 and you have $1,000 full coverage deductibles. If your vehicle is damaged in an accident, the most you would receive is $6,500 after paying your deductible. If you are paying over $650 a year for full coverage, then it might be time to consider dropping full coverage.
There are a few cases where dropping full coverage is not financially feasible. If you still owe a portion of the original loan, you have to keep full coverage to protect the lienholder's interest in the vehicle. Also, if your emergency fund is not enough to purchase a different vehicle in the event your current vehicle is totaled, you should not opt for liability only.
Reckless driving habits raise auto insurance rates
In a perfect world, the best way to find good auto insurance premiums for drivers in Indiana is to be a safe driver and not have accidents or get tickets. The example below illustrates how violations and fender-benders can drive up car insurance rates for different age groups. The premiums are based on a married male driver, full physical damage coverage, $100 deductibles, and no discounts are applied.
In the chart above, the average cost of a car insurance policy per year with no violations or accidents is $1,380. Get two speeding tickets and the average cost surges to $1,907, an increase of $526 each year. Now get one accident along with the two speeding tickets and the annual cost of auto insurance in Indiana goes up to an average of $2,434. That's an increase of $1,053, or $88 per month, just for not being attentive to the road!
How to get discounts on Indiana insurance rates
Insurance providers that provide policies in Indiana may provide special discounts that can reduce rates by as much as 35% or more if you are eligible. Companies and some of the premium reductions they offer can be found below.
- State Farm has savings for multiple autos, safe vehicle, passive restraint, driver's education, student away at school, accident-free, and good student.
- Progressive offers discounts for multi-vehicle, good student, multi-policy, homeowner, online signing, and online quote discount.
- Travelers may have discounts that include good student, driver training, continuous insurance, home ownership, new car, and save driver.
- American Family may include discounts for multi-vehicle, good student, good driver, air bags, defensive driver, and early bird.
- Liberty Mutual may offer discounts for new vehicle discount, newly retired, hybrid vehicle, new move discount, safety features, newly married, and multi-policy.
The illustration below illustrates the difference between premium costs with and without discounts applied to the policy rates. Data assumes a male driver, no claims, a clean driving record, Indiana state minimum liability limits, comprehensive and collision coverage, and $250 deductibles.
The first bar for each age group shows insurance cost with no discounts. The lower bar shows the rates with multiple policy, defensive driving course, multiple vehicle, claim-free, accident-free, and safe-driver discounts applied. When discounts are factored in, the the average yearly reduction on auto insurance in Indiana is 27% or $449.