Finding dependable, cost effective car insurance is not easy, and deciding which companies quote the most affordable insurance rates for good students requires even more shopping around. Each company uses their own calculation to set their prices, so let’s take a look at the most budget-friendly insurance companies in Indianapolis, IN.
It’s important to know that Indiana insurance rates are based on many factors which can substantially change the policy price. Improving your credit rating, buying a different home, or getting a reckless driving citation can cause premium changes that can make some companies more expensive than before.
Best Cheap Insurance Rates for Students
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| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | Travelers | $614 |
| 2 | Cincinnati Insurance | $664 |
| 3 | USAA | $667 |
| 4 | Erie | $733 |
| 5 | Western Reserve | $838 |
| 6 | Indiana Farmers Mutual | $875 |
| 7 | Auto-Owners | $879 |
| 8 | The Hartford | $889 |
| 9 | Nationwide | $940 |
| 10 | State Farm | $957 |
| 11 | Utica National | $995 |
| 12 | Motorists Mutual | $996 |
| 13 | Hastings Mutual | $1,003 |
| 14 | Safeco | $1,003 |
| 15 | Farmers | $1,064 |
| 16 | Westfield | $1,072 |
| 17 | Wolverine Mutual | $1,072 |
| 18 | State Auto | $1,098 |
| 19 | GEICO | $1,122 |
| 20 | Progressive | $1,139 |
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Travelers quotes some of the lowest car insurance rates in Indianapolis at around $614 per year. Cincinnati Insurance, USAA, Erie, and Western Reserve also are some of the most economical Indianapolis, IN auto insurance companies.
As shown in the table above, if you currently have coverage with Erie and switched to Cincinnati Insurance, you might realize an annual savings of about $69. Insureds with Western Reserve could save as much as $174 a year, and Indiana Farmers Mutual customers might reduce rates by $211 a year.
To find the cheapest coverage for you, click here to begin a quote or quote rates from the companies below.
Bear in mind that those prices are averaged for all drivers and vehicles in Indiana and do not take into consideration a specific zip code for good students. So the insurer that can offer you the best rate may not even be in the top 36 companies in the list above. That illustrates why you need to quote rates from as many companies as possible using your own individual information.
The vehicle model you are buying coverage for is a large consideration when comparing low-priced auto insurance for good students. Vehicles with reasonable performance levels, good safety features, or a low likelihood of having liability claims will cost significantly less to insure than adrenaline junky models. The table below outlines car insurance costs for some of the most cost-effective automobiles to insure.
| Vehicle | Estimated Cost for Full Coverage |
|---|---|
| Hyundai Elantra GLS Touring Station Wagon | $4,159 |
| Ford Escape XLS 2WD | $4,168 |
| Honda CR-V EX 4WD | $4,207 |
| Volkswagen Jetta S 2.5 Station Wagon | $4,485 |
| Toyota Prius | $4,533 |
| Toyota Tacoma 4WD | $4,659 |
| Ford F-150 STX Regular Cab 4WD | $4,667 |
| Chevrolet Impala LS | $4,890 |
| Ford Edge SEL AWD | $4,896 |
| Toyota RAV4 Limited 4WD | $4,938 |
| Chevrolet Malibu Hybrid | $4,948 |
| Chevrolet Equinox LT 2WD | $4,938 |
| Toyota Camry LE | $4,944 |
| Dodge Grand Caravan Hero | $4,938 |
| Ford Explorer Eddie Bauer 4WD | $4,986 |
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Above prices assume single male driver age 18, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Indiana minimum liability limits. Discounts applied include safe-driver, and claim-free. Rate quotes do not factor in vehicle garaging location which can raise or lower price quotes greatly.
Based on these rates, you can conclude that vehicles like the Hyundai Elantra, Ford Escape, Honda CR-V, and Volkswagen Jetta are most likely to be some of the cheapest vehicles to insure for student drivers.
Rate difference between full and liability-only coverage
Finding the cheapest insurance is the goal of most vehicle owners, and an effective way to buy cheaper insurance for good students is to only buy liability insurance. The chart below visualizes the comparison of insurance prices with full physical damage coverage and with liability coverage only. The rates are based on no violations or claims, $500 deductibles, drivers are single, and no discounts are applied to the premium.
As an overall average, physical damage insurance costs $1,328 per year more than insuring for liability only. That brings up the question if it’s worth it to buy full coverage. There is no set guideline for phasing out physical damage coverage on your policy, but there is a broad guideline. If the yearly cost of comp and collision coverage is more than about 10% of the settlement you would receive from your company, then it may be the right time to buy liability only.
Bad driving habits will cost you more
In a perfect world, the best way to receive affordable insurance rates in Indiana for student drivers is to drive cautiously and avoid accidents and traffic violations. The illustration below illustrates how violations and at-fault accidents influence car insurance rates for different ages of insureds. The data assumes a married female driver, comprehensive and collision coverage, $500 deductibles, and no discounts are taken into consideration.
In the example above, the average cost of a car insurance policy per year with no accidents and a clean driving record is $1,024. Receive one speeding ticket and the average cost increases to $1,192, an increase of $168 each year. Now get two accidents along with the one speeding ticket and the annual cost of insurance for good students increases to an average of $2,706. That’s an increase of $1,683, or $140 per month, just for being a careless driver!
Here’s why you should shop around
Indianapolis insurance rates are impacted by many factors that control the cost of coverage. Turning one year older, moving to a new city, or getting a few speeding tickets can cause premium changes resulting in some companies being cheaper than competitors.
Not only may things change on your end, but insurance companies change prices at least once a year in order to maintain liquidity for claims. Heavier than normal losses can cause high rates, while lower claim expenses can produce cheaper Indianapolis car insurance rates.
To help illustrate this point, the chart below shows the company with the cheapest car insurance in Indianapolis, IN for a 45-year-old male driver with a clear driving record, no claims, and excellent credit. If we estimate rates based on his personal risk profile, Travelers may have the best car insurance rates in Indianapolis at $739 per year. This is $501 less than the average price paid by Indiana drivers of $1,240. USAA, Cincinnati Insurance, Erie, and Western Reserve are the remaining cheapest Indianapolis, IN auto insurance companies.
Now we will pretend the driver from the first example a couple of claims, poor credit, and a speeding citation. Since each auto insurance company has a unique formula for determining prices, comparing prices could result in a completely different list of companies as shown below.
The Hartford now has the cheapest car insurance in Indianapolis with Auto-Owners, Cincinnati Insurance, Nationwide, and Utica National also having competitive pricing. This example shows why Indianapolis drivers need to spend some time comparing rates to find the most budget-friendly auto insurance rates for good students. Insurance rates can be determined by many factors and change dramatically, so the most economical option when you bought your policy may now be one of the more expensive options.
How to find budget-friendly auto insurance for good students
The list below shows some thrifty ideas that can help drivers buy cheap car insurance.
- Pay less by remaining claim-free
- Safer vehicles generally have cheaper insurance rates
- Higher comprehensive and collision coverage deductibles will save money
- Improve your credit rating
- On older vehicles, drop full coverage
- Bundle home and auto and save
- Compare rates and switch if you can find a better deal
That last tip is particularly important, as we pointed out in this piece. Rates in Indianapolis adjust often, so don’t hesitate to buy a policy from a new company if a better deal can be had.
We understand brand loyalty, but it isn’t a good idea if your bullheadedness ends up costing you a small fortune year after year. Now is a great time to shop around to find cheaper car insurance for good students.