Figuring out which companies have the best auto insurance rates for drivers under 25 in Indiana may require more work in order to find the best price.
Every insurance provider has their own process for setting prices, so we'll go over the auto insurance companies with the overall best prices in Indiana.
Find the Cheapest Auto Insurance for Young Drivers
|Rank||Company||Cost Per Year|
|7||Indiana Farmers Mutual||$875|
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Travelers offers some of the most affordable car insurance rates in Indiana at around $596 per year. Cincinnati Insurance, USAA, Erie, and Western Reserve also make the cut as some of the cheaper Indiana auto insurance companies.
In the above example, if you currently buy coverage from Erie and switched to Cincinnati Insurance, you might achieve savings of about $55. Policyholders with Western Reserve might save as much as $168 a year, and The Hartford insureds might cut rates by $185 a year.
To see if you're overpaying, click here to get a free quote or click through to the companies below.
Bear in mind that those rates are averages for all drivers and vehicles in Indiana and do not take into consideration a rate increase for drivers under 25. So the company that is most affordable for your situation may not even be in the list above. That helps illustrate why you need to quote rates from many companies using your own driver data and vehicle information.
The make and model of vehicle needing coverage is probably the largest consideration that determines whether or not you find the lowest-priced coverage for drivers under 25. Vehicles with lots of horsepower, poor passenger safety features, or a high likelihood of having liability claims will cost much more to insure than more economical and safe models.
The next list features coverage prices for the most cost-effective vehicles to buy insurance for.
|Vehicle Make and Model||Estimated Cost for Full Coverage|
|Hyundai Elantra GLS Touring Station Wagon||$1,440|
|Honda CR-V LX 2WD||$1,450|
|Ford Escape XLS 4WD||$1,440|
|Ford F-150 XL Regular Cab 2WD||$1,473|
|Jeep Wrangler Sport Islander Package 4WD 2-Dr||$1,581|
|Ford Explorer XLT 2WD||$1,603|
|Dodge Grand Caravan CV||$1,612|
|Chevrolet Impala LS||$1,687|
|Ford Edge Limited 2WD||$1,694|
|Chevrolet Equinox LT 2WD||$1,709|
|Toyota RAV4 Limited 4WD||$1,716|
|Chevrolet Malibu LT||$1,730|
|Toyota Tacoma Double Cab TRD Sport Package 4WD||$1,738|
|Honda Civic LX 4-Dr Sedan||$1,794|
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Data assumes single male driver age 20, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Indiana minimum liability limits. Discounts applied include safe-driver, and claim-free. Prices do not factor in the specific area where the vehicle is garaged which can raise or lower rates significantly.
Looking at the rates, we can assume that makes and models like the Hyundai Elantra, Honda CR-V, Ford Escape, and Ford F-150 will definitely be the cheapest vehicles to insure for drivers age 25 and younger. Rates will tend to be more expensive because of the fact that there is more liability risk for drivers under 25, but overall those vehicles will tend to have the best insurance prices compared to other types of vehicles.
One of the many considerations that determine insurance cost is where you live. Regions with more people or even just more weather-related claims like Gary, Portage, and Indianapolis will most likely have higher rates, whereas areas with lower crime rates and fewer weather claims have the gratification of cheaper auto insurance rates.
The information below sorts the most expensive areas in Indiana for drivers under 25 to purchase auto insurance in.
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Information shown are comparative as the specific geographic location can increase or decrease prices substantially.
Discount Indiana auto insurance rates
Car insurance companies that provide policies for drivers under 25 may also provide rate discounts that can reduce rates by 30% or more if you can meet the requirements. The best auto insurance companies and some of the discounts can be found below.
- American Family includes discounts for defensive driver, multi-vehicle, early bird, accident-free, and bundled insurance.
- Farm Bureau discounts include multi-vehicle, multi-policy, good student, 55 and retired, safe driver, and youthful driver.
- State Farm offers discounts including defensive driving training, good driver, anti-theft, safe vehicle, student away at school, and multiple policy.
- Travelers may include discounts for early quote, save driver, good student, payment discounts, and multi-policy.
- The Hartford has savings for vehicle fuel type, driver training, bundle, defensive driver, anti-theft, and air bag.
- GEICO policyholders can earn discounts including anti-lock brakes, military active duty, daytime running lights, defensive driver, multi-policy, anti-theft, and multi-vehicle.
- Progressive offers discounts for online quote discount, homeowner, good student, continuous coverage, online signing, and multi-policy.
The information below shows the comparison of annual premium costs with and without discounts applied to the premium. The information is based on a female driver, no accidents, no driving violations, Indiana state minimum liability limits, comprehensive and collision coverage, and $1,000 deductibles.
The first bar for each age group shows insurance cost with no discounts. The second shows the rates with passive restraint, paid-in-full, anti-theft, paperless filing, good student, and vehicle safety discounts applied. When discounts are factored in, the the amount saved on auto insurance for drivers under 25 is 21% or $322.
Indiana auto insurance company ratings
Picking the right car insurance provider can be a challenge considering how many different insurance companies sell coverage in Indiana. The ranking data listed below can help you select which coverage providers you want to consider purchasing a policy from.
The ratings below are only comprised of the largest auto insurers in America, so companies that may only write in Indiana are not taken into consideration for this list. To view rates from these top-rated insurers and more, just click here.
Top 10 Large Car Insurance Companies in Indiana Ranked by Customer Service
- State Farm
- Safeco Insurance
- American Family
- Titan Insurance
- Liberty Mutual
- Erie Insurance
Top 10 Large Car Insurance Companies in Indiana Ranked by Claims Service
- Liberty Mutual
- AAA Insurance
- Safeco Insurance
- The General
Full coverage versus liability only rates
Paying a lower price for auto insurance is important to most people, and one good way to save on the cost of insurance for drivers under 25 in Indiana is to not insure for full coverage. The diagram below compares auto insurance costs with full physical damage coverage compared to only buying liability only. The prices are based on no claims or driving violations, $500 deductibles, marital status is single, and no discounts are taken into consideration.
If the expense is averaged for all age categories, physical damage insurance costs $1,798 per year more than buying just liability insurance. That brings up the question when is the right time to remove full coverage. There is no definitive rule to stop buying physical damage coverage, but there is a general convention. If the yearly cost of comp and collision coverage is more than around 10% of the vehicle's replacement cost less your deductible, then it might be time to consider dropping full coverage.
There are some conditions where removing full coverage is not financially feasible. If you still have a loan on your vehicle, you have to keep full coverage as part of the loan conditions. Also, if your savings is not enough to buy a different vehicle in case of an accident, you should keep full coverage.
What aren't you shopping around?
Indiana auto insurance rates are determined by lots of factors that will increase or decrease the cost of your policy. Simply getting older, buying a home, or getting a speeding ticket may generate price changes resulting in some companies being more affordable than others. In addition, insurance companies change the rates they charge in Indiana as often as every quarter to adjust for gains or losses. A period of increased losses may cause additional price hikes, while profitable underwriting may cause more affordable Indiana car insurance rates.
For instance, the chart below analyzes the cheapest car insurance in Indiana for a 45-year-old female driver with no violations or accidents, and a high credit rating. If we look at prices based on her current situation, Travelers might offer the lowest car insurance rates in Indiana at $620 a year. This is $620 less than the average policy premium paid by Indiana drivers of $1,240. Cincinnati Insurance, USAA, Erie, and The Hartford are the rest of the cheapest Indiana auto insurance companies.
In this example, we will give the driver from the first example a couple of claims, poor credit, and a couple of points charged on her driving record. Due to the fact that each insurance company has their own formula to set premium rates, comparing prices could now result in a slightly different list of affordable companies as shown below.
Indiana Farmers Mutual now has the lowest car insurance rate in Indiana with Cincinnati Insurance, Auto-Owners, Motorists Mutual, and Nationwide now rounding out the top five. This illustrates why Indiana drivers need to shop around with many companies to find the cheapest car insurance rates for drivers under 25. Auto insurance prices can be determined by many factors and can change substantially, so the best price when you bought your policy may now be quite expensive.