Wouldn't it be awesome if we could just tell you the one perfect auto insurance company that has the most affordable coverage for teenagers? It's just not that simple, as there are many unknown aspects such as whether or not you are currently insured, whether you are married or single, and whether or not you own a home. Car insurance is kind of a dry topic, but this article will explain the best ways to avoid overpriced car insurance and should give you some help in finding cheaper rates.

The vehicle that needs insurance is a large consideration that determines whether or not you find low-priced insurance for teenagers. Vehicles with higher performance, a lack of modern safety features, or a history of substantial liability claims will cost much more to insure than more economical and safe models. The information below outlines coverage prices for a number of the most cost-effective automobiles to insure.

Cheapest Vehicles to Insure for Teenagers in Indiana
Vehicle Insured Estimated Cost for Full Coverage
Honda CR-V EX 2WD $2,177
Hyundai Elantra GLS Touring Station Wagon $2,187
Ford Escape XLT 2WD $2,177
Toyota Prius $2,349
Dodge Grand Caravan CV $2,451
Volkswagen Jetta SE 2.5 Station Wagon $2,481
Ford Focus S 4-Dr Sedan $2,562
Chevrolet Impala LS $2,567
Chevrolet Equinox LT AWD $2,582
Toyota RAV4 Sport 4WD $2,590
Chevrolet Malibu Hybrid $2,582
Ford Explorer Limited 4WD $2,602
Toyota Tacoma X-Runner 2WD $2,715
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Data based on single female driver age 16, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Indiana minimum liability limits. Discounts applied include safe-driver, and claim-free. Estimates do not factor in your specific Indiana location which can decrease or increase insurance rates considerably.

Based upon the table data, you can assume that makes and models like the Honda CR-V, Hyundai Elantra, and Ford Escape should be the most budget-friendly vehicles to insure for teen drivers. Auto insurance rates will tend to be more expensive because of the fact that there is more liability risk for teenagers, but generally speaking those vehicles will probably have the lowest prices compared to other types of vehicles.

Finding reliable, reasonably-priced insurance is not the easiest thing to accomplish, and determining which companies have the most affordable car insurance rates for teenagers in Indiana will involve a bit more work. Coverage rates will probably be quite a bit more than the state average because of the added risk that comes with offering coverage for teen drivers, but competitively-priced coverage may be achievable if you are thorough. Each auto insurance company has a proprietary formula for determining prices, so we'll go over the car insurance companies with the overall cheapest rates in Indiana.

It's important to know that Indiana car insurance rates are impacted by many things that will increase or decrease the policy price. Turning one year older, moving to a new city, or getting a speeding ticket may generate price changes resulting in some rates now being more expensive than others.

Lowest Insurance Price Quotes for Teens

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Cheapest Indiana auto insurance companies
Rank Company Cost Per Year
1 Travelers $620
2 USAA $661
3 Cincinnati Insurance $664
4 Erie $733
5 Indiana Farmers Mutual $849
6 Western Reserve $872
7 Auto-Owners $879
8 The Hartford $881
9 Nationwide $930
10 Motorists Mutual $956
11 Hastings Mutual $983
12 State Farm $987
13 Utica National $995
14 Safeco $1,003
15 Farmers $1,033
16 Wolverine Mutual $1,094
17 Westfield $1,105
18 State Auto $1,120
19 GEICO $1,133
20 Allied $1,138
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Travelers may have some of the lowest car insurance rates in Indiana at around $620 a year. This is $620 less than the average premium paid by Indiana drivers of $1,240. USAA, Cincinnati Insurance, Erie, and Indiana Farmers Mutual also are some of the cheapest Indiana insurance companies.

As the example above demonstrates, if you are currently insured with Erie and switched to USAA, you might realize yearly savings of in the neighborhood of $72. Drivers with Indiana Farmers Mutual may save as much as $188 a year, and Western Reserve insureds might realize rate reductions of up to $211 a year.

To see if your current coverage is too expensive, click here to start a quote or quote prices from the following companies.

Bear in mind that those policy prices are averaged across all drivers and vehicles and do not take into consideration a price increase for teenagers. So the car insurance company that has the lowest price for you may not even be in the top 36 companies shown above. That points out the importance of why you need to compare prices as often as possible using your own individual information.

One of the many criteria that aid in calculating car insurance rates is where you keep your car. Cities with more crime and/or more people like Gary, Merrillville, and Evansville will most likely have higher rates, whereas areas with less crime or weather claims receive better rates.

The following table ranks the highest-priced areas in Indiana for teenagers to buy auto insurance in.

Indiana cities ranked by car insurance cost
Rank City Annual Rate
1 Gary $1,401
2 Hammond $1,288
3 Merrillville $1,139
4 Portage $1,126
5 Evansville $1,087
6 Indianapolis $1,082
7 Jeffersonville $1,070
8 Lawrence $1,066
9 New Albany $1,059
10 Terre Haute $1,045
11 Anderson $1,041
12 Kokomo $1,011
13 Bloomington $998
14 Elkhart $995
15 Columbus $984
16 Fort Wayne $976
17 Richmond $964
18 Greenwood $960
19 Carmel $957
20 Muncie $955
21 Fishers $954
22 South Bend $947
23 Mishawaka $936
24 Noblesville $920
25 Lafayette $899
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Table data uses approximated as zip code location can affect prices substantially.

Choosing the best auto insurance company can be a challenge considering how many different companies insure vehicles in Indiana. The company information shown below may help you choose which car insurance providers to look at putting your business with.

The rankings below are for companies with a nationwide focus, so companies with more of a regional focus will not be included in the list. If you wish to compare prices and find cheaper insurance for teenagers, follow this link.

Top 10 Major Auto Insurance Providers in Indiana Ranked by Customer Satisfaction

  1. USAA - 92%
  2. Erie Insurance - 88%
  3. American Family - 88%
  4. State Farm - 88%
  5. Nationwide - 88%
  6. 21st Century - 88%
  7. AAA Insurance - 87%
  8. Liberty Mutual - 87%
  9. Farmers Insurance - 87%
  10. The Hartford - 87%

Top 10 Major Auto Insurance Providers in Indiana Ranked by Value

  1. USAA
  2. GEICO
  3. AAA Insurance
  4. Erie Insurance
  5. State Farm
  6. Liberty Mutual
  7. Safeco Insurance
  8. Allstate
  9. 21st Century
  10. Travelers

Cautious Indiana drivers save money

The best way to obtain the cheapest car insurance prices for teen drivers is to be a cautious driver and not receive tickets or have accidents. The chart below highlights how traffic violations and at-fault collisions raise premium costs for different categories of driver ages. Data assumes a single male driver, full physical damage coverage, $500 deductibles, and no discounts are applied to the premium.

In the chart above, the average cost of an auto insurance policy in Indiana per year with no violations or accidents is $1,328. Receive two speeding tickets and the average cost surges to $1,752, an increase of $424 each year. Then throw in one accident along with the two speeding tickets and the 12-month cost of car insurance for teenagers in Indiana jumps again to an average of $2,178. That's an increase of $850, or $71 per month, just for not driving attentively!

Do you need full coverage?

Finding cheaper car insurance should be important to most vehicle owners, and a great way to buy cheap insurance for teenagers in Indiana is to buy only liability coverage. The chart below shows the difference between insurance premiums with and without physical damage coverage. The costs are based on no claims or driving citations, $250 deductibles, single marital status, and no policy discounts are applied.

If averaged out across all ages, full coverage on your policy costs an extra $1,480 per year over and above liability coverage. That is a large expense which might make you wonder when is the right time to remove full coverage. There is no clear-cut formula to stop paying for full coverage on your policy, but there is a general convention. If the annual cost of coverage is 10% or more of the vehicle's replacement cost less your deductible, the it may be a good time to stop paying for full coverage.

Compare rates to save

Indiana car insurance rates are influenced by many factors that can increase the cost of having a policy. Getting older, increasing liability limits, or getting a reckless driving citation can trigger price changes resulting in some rates now being more affordable than competitors. In addition, insurance companies change the rates they charge in Indiana as often as every three months to adjust for unexpected claims or profits. A period of increased losses can result in additional price hikes, while less frequent claims can result in cheaper Indiana car insurance rates.

To illustrate this example, the data below shows the company with the cheapest car insurance in Indiana for a 40-year-old female driver with a good driving record, no prior claims, and a decent credit rating. When quoting prices based on her personal risk profile, Travelers has the most affordable car insurance rates in Indiana at $602 annually. This is $638 less than the average premium paid by Indiana drivers of $1,240. Cincinnati Insurance, USAA, Erie, and Indiana Farmers Mutual are the rest of the cheapest Indiana auto insurance companies.

Now let's give the driver from the first rate comparison a couple of claims, slightly worse credit, and a traffic ticket or two. Due to the fact that each insurance company uses their own formula for determing rates in each state, analyzing rate quotes could now result in a significantly different list of the cheapest Indiana car insurance companies as shown below.

The Hartford now has the best auto insurance rate in Indiana with Cincinnati Insurance, Auto-Owners, USAA, and Nationwide also being competitive. This example demonstrates why drivers need to shop around to get the most affordable car insurance quotes for teenagers. Auto insurance prices are influenced by many things and change substantially, so the best option when you last compared rates may now cost much more than other companies.