You have most likely watched the captivating commercials from car insurance companies like The General and Liberty Mutual guaranteeing big savings. So you just need to choose the one with the best commercial, right?
Regrettably, it’s not quite that easy, as there are a whole bunch of unknown elements such as what deductibles to use for physical damage coverage, any tickets or violations, whether you are male or female, and your financial stability, that all impact the cost of your policy. The content below covers the things that cause high insurance rates and also should give you a good beginning to your quest for cheaper car insurance in Indiana.
The car, truck, or SUV that needs insurance is one of the main factors when comparison shopping for low-priced insurance for low income drivers. Vehicles with higher performance characteristics, poor safety ratings, or a track record of large liability claims will cost significantly more to insure than safer models.
The information below illustrates car insurance costs for some of the most cost-effective automobiles to buy insurance for.
| Vehicle Insured | Estimated Cost for Full Coverage |
|---|---|
| Ford Escape XLS 2WD | $1,078 |
| Honda Accord LX-P 4-Dr Sedan | $1,086 |
| Honda CR-V LX 4WD | $1,078 |
| Ford Edge Limited 2WD | $1,252 |
| Chevrolet Malibu LS | $1,278 |
| Toyota Camry LE | $1,284 |
| Hyundai Elantra SE Touring Station Wagon | $1,339 |
| Honda Odyssey EX-L W/Rear Entertainment | $1,344 |
| Ford Fusion Sport 4-Dr Sedan | $1,368 |
| Toyota Prius | $1,376 |
| GMC Sierra SLE Regular Cab 4WD | $1,368 |
| GMC Sierra 2500HD SLE Crew Cab 4WD | $1,377 |
| Nissan Rogue S 2WD | $1,370 |
| Jeep Wrangler Sport 4WD 2-Dr | $1,376 |
| Toyota Tacoma 2WD | $1,436 |
| Ford Focus SE 4-Dr Sedan | $1,446 |
| Kia Optima EX | $1,460 |
| Hyundai Sonata Limited 4-Dr Sedan | $1,465 |
| Toyota RAV4 Limited 4WD | $1,462 |
| Dodge Ram 3500 Mega Cab SLT 2WD | $1,486 |
| Dodge Ram 2500 Crew Cab SLT 4WD | $1,492 |
| GMC Sierra 3500HD SLT Crew Cab 2WD | $1,486 |
| Ford Explorer Eddie Bauer 4WD | $1,490 |
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Data rating is based on single female driver age 50, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Indiana minimum liability limits. Discounts applied include claim-free, multi-policy, homeowner, safe-driver, and multi-vehicle. Premium amounts do not factor in specific location which can lower or raise price quotes considerably.
Looking at the numbers, makes and models like the Ford Escape, Honda Accord, Honda CR-V, and Ford Edge will be the cheaper vehicles to insure for poor drivers.
For poor drivers, one of the big factors that determine car insurance rates is where you choose to live. Areas with more people or more claims tend to have more expensive auto insurance rates, whereas less populated areas tend to receive slightly lower rates.
The information below lists the most expensive cities in Indiana for low income drivers to purchase car insurance in. Indianapolis ranks #6 with an annual rate of $1,092 for the average insurance policy, which is approximately $91 monthly.
| Rank | City | Annual Rate |
|---|---|---|
| 1 | Gary | $1,388 |
| 2 | Hammond | $1,314 |
| 3 | Portage | $1,126 |
| 4 | Merrillville | $1,106 |
| 5 | Lawrence | $1,099 |
| 6 | Indianapolis | $1,092 |
| 7 | Evansville | $1,087 |
| 8 | New Albany | $1,070 |
| 9 | Jeffersonville | $1,070 |
| 10 | Terre Haute | $1,067 |
| 11 | Kokomo | $1,011 |
| 12 | Anderson | $1,011 |
| 13 | Elkhart | $985 |
| 14 | Fort Wayne | $985 |
| 15 | South Bend | $985 |
| 16 | Fishers | $983 |
| 17 | Bloomington | $968 |
| 18 | Noblesville | $958 |
| 19 | Muncie | $955 |
| 20 | Carmel | $947 |
| 21 | Columbus | $946 |
| 22 | Mishawaka | $945 |
| 23 | Richmond | $935 |
| 24 | Greenwood | $931 |
| 25 | Lafayette | $917 |
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Rate information is approximated as zip code location can modify prices substantially.
Establishing which company offers the most affordable insurance rates for low income drivers may require a bit more work in order to find the lowest price.
Each insurance company uses a slightly different approach for setting rates, so we’ll go over the insurance companies with the overall cheapest rates in Indianapolis.
Best Cheap Insurance Rates in Indiana
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | Travelers | $596 |
| 2 | Cincinnati Insurance | $658 |
| 3 | USAA | $681 |
| 4 | Erie | $705 |
| 5 | Western Reserve | $846 |
| 6 | Indiana Farmers Mutual | $875 |
| 7 | The Hartford | $881 |
| 8 | Auto-Owners | $888 |
| 9 | Nationwide | $930 |
| 10 | Motorists Mutual | $956 |
| 11 | Utica National | $995 |
| 12 | State Farm | $997 |
| 13 | Hastings Mutual | $1,003 |
| 14 | Safeco | $1,003 |
| 15 | Farmers | $1,053 |
| 16 | Westfield | $1,072 |
| 17 | Wolverine Mutual | $1,105 |
| 18 | GEICO | $1,122 |
| 19 | State Auto | $1,131 |
| 20 | Celina Insurance | $1,135 |
| Find Your Rate Go | ||
Travelers may have some of the lowest car insurance rates in Indianapolis at around $596 a year. Cincinnati Insurance, USAA, Erie, and Western Reserve would also make the list of some of the more affordable Indianapolis, IN insurance companies.
In the above example, if you have coverage with Erie and switched to Cincinnati Insurance, you might achieve annual savings of in the neighborhood of $47. Indiana drivers with Western Reserve could save as much as $188 a year, and Indiana Farmers Mutual policyholders might see rate reductions of $217 a year.
To find out how much you can save, click here to get a free quote or visit any of the companies below.
It’s important to note that these prices are averages for all insureds and vehicles and do not factor in a specific location for low income drivers. So the insurer that has the cheapest rates for you may not even be in the top 36 companies in the list above. That is why you need to get quotes using your own driver data and vehicle information.
Full coverage rates compared to liability-only
Finding cheaper insurance is probably important to the majority of vehicle owners, and a good way to buy cheaper insurance for low income drivers is to buy only liability coverage. The information below illustrates the comparison of insurance costs when comparing full coverage to liability only. The premiums are based on no violations or claims, $1,000 deductibles, single status, and no discounts are taken into consideration.
If averaged out across all ages, full coverage costs an extra $1,598 per year over and above liability only. Lot’s of drivers question if physical damage coverage is worth the money. There is no set guideline to stop buying full coverage on your policy, 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 you may want to consider only buying liability coverage.
For example, let’s pretend your vehicle’s replacement cost is $8,500 and you have $1,000 full coverage deductibles. If your vehicle is totaled, you would only receive $7,500 after paying your policy deductible. If it’s costing you more than $750 annually for full coverage, then it’s probably a good time to buy liability coverage only.
The diagram below demonstrates how deductibles can increase or decrease insurance rates when quoting cheap insurance for low income drivers. The data is based on a married male driver, full physical damage coverage, and no discounts are taken into consideration.
In the chart above, a 40-year-old driver could reduce rates by $198 a year by changing their physical damage coverage from a $100 deductible to a $500 deductible, or save $296 by changing to a $1,000 deductible. Even younger insureds, like the 20-year-old category, could save $652 or even more by choosing a larger deductible amount. If you do raise deductibles, it’s a good idea to have additional savings on hand to be able to cover the extra out-of-pocket expense, which is the main drawback of higher deductibles.
How to find cheaper car insurance for low income drivers
The list below details some of the better thrifty ideas that can help you quote cheap car insurance.
- Avoid preventable accidents
- Do not pay for full coverage on older vehicles
- Frequent claims will increase rates
- Raise deductibles to save money
- Serious violations like DUI or careless driving can make car insurance unaffordable
- Compare price quotes at least once a year
That last tip is very vital, as we emphasized in this piece. Auto insurance prices in Indianapolis go up and down frequently, so don’t be unwilling to switch to a new company if you find a cheaper price. Brand loyalty is not necessarily bad, but we do not recommend it if that loyalty results in overpaying a considerable chunk of change every month. Now is a great time to compare rates and find cheaper car insurance for low income drivers.