The words "economical" and "auto insurance" probably shouldn't be used in the same sentence, in particular when searching for the cheapest auto insurance for veterans. To help control this cost, let's learn about some situations that can significantly affect insurance premiums, and find some ways to slash the price of your next policy.
One of the many criteria that help determine the cost of insurance is where you keep your vehicle. Areas with increased crime or more people like Gary, Portage, and Indianapolis tend to have more expensive car insurance rates, whereas areas with fewer weather claims and lower vehicle theft rates have the luxury of lower rates.
The table below shows the highest-priced areas in Indiana for veterans to buy car insurance in.
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Rates are comparative as the specific area where the vehicle is garaged can affect coverage rates greatly.
The vehicle requiring insurance is probably the most important factor in finding cheaper car insurance for veterans. Vehicles with high performance, a lack of modern safety features, or an increased likelihood of liability claims will cost more to insure than more economical and safe models.
The next table showcases coverage rates for the most economical automobiles to buy coverage for.
|Vehicle Make and Model||Estimated Cost for Full Coverage|
|Ford Escape Limited 4WD||$603|
|Ford F-150 XLT Super Cab 2WD||$622|
|Honda CR-V LX 2WD||$627|
|Ford Focus S 4-Dr Sedan||$643|
|Honda Odyssey EX W/Rear Entertainment||$649|
|Jeep Grand Cherokee Laredo 4WD||$657|
|Toyota RAV4 Limited 4WD||$665|
|Volkswagen Jetta S 2.5 Station Wagon||$662|
|Jeep Wrangler Sport Islander Package 4WD 2-Dr||$667|
|Ford Explorer XLT AWD||$682|
|Hyundai Elantra GLS 4-Dr Sedan||$694|
|Nissan Rogue S 2WD||$706|
|Ford Edge SE AWD||$711|
|Dodge Grand Caravan CV||$706|
|GMC Sierra SL Extended Cab 2WD||$721|
|Chevrolet Impala LT||$741|
|Kia Optima SX||$754|
|Chevrolet Malibu LT||$758|
|Toyota Tacoma X-Runner 2WD||$761|
|Ford Fusion SE 4-Dr Sedan||$774|
|Toyota Corolla LE||$784|
|Chevrolet Silverado 2500HD LTZ Crew Cab 4WD||$774|
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Cost estimates assume single male driver age 50, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Indiana minimum liability limits. Discounts applied include multi-vehicle, multi-policy, safe-driver, homeowner, and claim-free. Price estimates do not factor in specific zip code location which can raise or lower price quotes noticeably.
Looking at the rates, we can expect vehicles like the Ford Escape, Ford F-150, and Honda CR-V are most likely going to be the most affordable vehicles to insure for veterans.
Full coverage versus liability-only in Indiana
Reducing the cost of insurance should be important to the majority of vehicle owners, and one great way to pay less for insurance for veterans in Indiana is to not insure for full coverage. The diagram below illustrates the difference between insurance rates with and without full coverage. The premium estimates are based on no driving violations, no at-fault accidents, $1,000 deductibles, drivers are not married, and no policy discounts are applied.
Averaged for all age groups, physical damage insurance costs an additional $1,184 per year more than just buying liability only. At some point, about every driver wonders if it's worth it to buy full coverage. There is no clear-cut formula to delete physical damage coverage, but there is a guideline you can consider. If the annual cost of comprehensive and collision coverage is about 10% or more of any settlement you would receive from your insurance company, then it could be time to drop full coverage.
There are some circumstances where dropping physical damage coverage is not advised. If you still have a loan on your vehicle, you are required to maintain full coverage in order to satisfy the requirements of the loan. Also, if you don't have enough money to buy a different vehicle if your current one is totaled, you should keep full coverage.
The example below shows how choosing a deductible can raise or lower premium costs when getting quotes for cheap insurance for veterans in Indiana. The premium estimates are based on a single male driver, comprehensive and collision coverage, and no discounts are applied to the premium.
In the chart above, a 50-year-old driver could save $230 a year by switching from a $100 deductible up to a $500 deductible, or save $348 by changing to a $1,000 deductible. Even younger drivers, like the age 20 example, could roll back prices $756 each year just by choosing higher deductibles when buying full coverage. If you do raise deductibles, it is necessary to have enough in a savings account to allow you to pay the extra out-of-pocket expense, which is the main inconvenience of larger deductibles.
What aren't you shopping around?
Indiana insurance rates are calculated based on many things which can substantially change the cost of coverage. Turning one year older, moving to a new city, or getting a DUI can trigger rate changes that can now make some companies more affordable than before.
In addition, auto insurance companies file new rates as often as every quarter in order to protect their financial rating. Higher than normal claim frequency or severity can result in rate increases, while profitable underwriting may cause cheaper Indiana car insurance rates.
To illustrate this point, the graph below shows which companies have the cheapest car insurance in Indiana for a 45-year-old male driver with no prior accidents, a clean driving record, and a good credit rating. When quoting prices based on his current risk factors, Travelers offers the best car insurance rates in Indiana at $620 annually. This is $620 less than the average price paid by Indiana drivers of $1,240. USAA, Cincinnati Insurance, Erie, and Western Reserve are the remaining cheapest Indiana auto insurance companies.
The next chart shows rates after we give the driver from the first set of rates a claim or two, a little lower credit rating, and an imperfect driving record. Because each company has a unique approach to determing premium rates, comparing prices could result in a different set of affordable companies as shown below.
Indiana Farmers Mutual now has the best car insurance rate in Indiana with Auto-Owners, Nationwide, Cincinnati Insurance, and Utica National also having competitive pricing. This example illustrates why Indiana drivers need to perform an extensive rate comparison when trying to get affordable insurance quotes for veterans. Car insurance prices are made up of many factors and change dramatically, so the best price two years ago may now not even be in the top five.