The words “economical” and “insurance” really shouldn’t be used together, in particular when shopping around for the best price on coverage for teenagers. Because it’s so expensive, let’s teach you some situations that determine car insurance prices, and see if you can take the bite out of the next policy you buy.
For teen drivers, one of the big factors that aid in calculating the annual cost of car insurance is where you keep your car in Indianapolis. More densely populated places will most likely pay more, whereas areas with less people or fewer weather incidents have the luxury of lower rates.
The illustration below sorts the most expensive places in Indiana for teenagers to purchase car insurance in. Indianapolis makes the list at #5 with an annual cost of $1,092 on average, which is around $91 per month.
| Rank | City | Average Per Year |
|---|---|---|
| 1 | Gary | $1,360 |
| 2 | Hammond | $1,314 |
| 3 | Merrillville | $1,128 |
| 4 | Portage | $1,093 |
| 5 | Indianapolis | $1,092 |
| 6 | Lawrence | $1,088 |
| 7 | Evansville | $1,087 |
| 8 | Terre Haute | $1,067 |
| 9 | New Albany | $1,059 |
| 10 | Jeffersonville | $1,048 |
| 11 | Kokomo | $1,031 |
| 12 | Anderson | $1,011 |
| 13 | Bloomington | $998 |
| 14 | Elkhart | $995 |
| 15 | South Bend | $985 |
| 16 | Fort Wayne | $985 |
| 17 | Mishawaka | $974 |
| 18 | Fishers | $974 |
| 19 | Greenwood | $969 |
| 20 | Columbus | $955 |
| 21 | Richmond | $944 |
| 22 | Muncie | $937 |
| 23 | Noblesville | $930 |
| 24 | Carmel | $929 |
| 25 | Lafayette | $899 |
| Quote Best Rates Go | ||
Premium amounts are approximated as zip code location can lower or raise auto insurance rates substantially.
Determining which companies quote the best insurance rates for teenagers calls for more time in order to find the lowest price quote.
Every car insurance company uses a little different formula for setting prices, so to begin we’ll rank the insurance companies that tend to have lower prices in Indiana. It’s a good idea to know that Indianapolis insurance rates are impacted by many things which can substantially decrease or increase the price of your policy. Improving your credit score, buying a different home, or getting a DUI may prompt premium changes that may make certain companies cheaper than before.
Find the Cheapest Car Insurance for Teens
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | Travelers | $614 |
| 2 | USAA | $661 |
| 3 | Cincinnati Insurance | $664 |
| 4 | Erie | $712 |
| 5 | The Hartford | $855 |
| 6 | Western Reserve | $864 |
| 7 | Indiana Farmers Mutual | $875 |
| 8 | Auto-Owners | $915 |
| 9 | Nationwide | $968 |
| 10 | Safeco | $983 |
| 11 | Utica National | $985 |
| 12 | Motorists Mutual | $986 |
| 13 | State Farm | $987 |
| 14 | Hastings Mutual | $1,003 |
| 15 | Farmers | $1,033 |
| 16 | Wolverine Mutual | $1,061 |
| 17 | Westfield | $1,072 |
| 18 | State Auto | $1,087 |
| 19 | GEICO | $1,089 |
| 20 | Progressive | $1,106 |
| Quote Your Rates Go | ||
Travelers may offer some of the best car insurance rates in Indianapolis at around $614 a year. USAA, Cincinnati Insurance, Erie, and The Hartford are also some of the cheaper Indianapolis, IN car insurance companies.
In the above rates, if you are insured with Erie and switched to USAA, you may see savings of in the neighborhood of $51. Drivers with The Hartford could save as much as $194 a year, and Western Reserve customers might realize rate reductions of up to $203 a year.
These policy prices are averaged for all drivers and vehicles in Indiana and and are not calculated with a vehicle location for teenagers. So the car insurance company that can offer you the best price may not even be in the top 36 companies shown above. That emphasizes why you need to get rate quotes using your own personalized driver profile and vehicle information.
Full coverage rates compared to liability-only
Finding the cheapest insurance should be important to most drivers, and an easy way to find cheaper insurance for teenagers is to only pay for liability coverage. The example below shows the difference between auto insurance costs with and without physical damage coverage, medical payments, and uninsured/under-insured motorist coverage. The rate quotes are based on no claims, a clean driving record, $1,000 deductibles, single status, and no policy discounts are applied.
Averaged for all age groups, full coverage costs an additional $1,598 per year more than just buying liability only. Many people question if physical damage coverage is worth the money. There is no set guideline for eliminating physical damage insurance, but there is a guideline you can consider. If the annual cost of your full coverage insurance is about 10% or more of any settlement you would receive from your insurance company, then you might consider buying liability only.
For example, let’s assume your vehicle’s replacement cost is $7,000 and you have $1,000 deductibles. If your vehicle is damaged in an accident, you would only receive $6,000 after the policy deductible has been paid. If it’s costing you more than $600 annually for physical damage coverage, then you may need to consider dropping full coverage.
There are some cases where buying only liability insurance is not financially feasible. If you still owe money on your vehicle, you have to carry full coverage as part of the loan conditions. Also, if your savings is not enough to buy a different vehicle if your current one is damaged, you should keep full coverage in place.
Reckless driving habits raise Indianapolis insurance rates
A great way to snag the most affordable insurance rates in Indiana for teen drivers is to drive attentively and avoid tickets and accidents. The example below highlights how speeding tickets and at-fault fender-benders impact auto insurance rates for different age groups. The information is based on a married male driver, comp and collision included, $500 deductibles, and no additional discounts are factored in.
In the previous example, the average cost of auto insurance in Indiana per year with no accidents and a clean driving record is $1,133. Get written up for one speeding ticket and the average cost surges to $1,302, an increase of $168 each year. Then add in one accident along with the one speeding ticket and the annual cost of insurance for teenagers goes up to an average of $1,769. That’s an increase of $635, or $53 per month, just for being a careless driver!
How to find a good Indiana insurance company
Selecting a high-quality car insurance provider can be challenging considering how many choices you have in Indianapolis. The rank data shown below can help you select which car insurance companies to look at comparing rates from. These ratings are only comprised of companies that insure vehicles across America, so companies without a large exposure are not factored into these rankings.
Top 10 Major Auto Insurance Companies in Indianapolis Ranked by Customer Service
- Nationwide
- State Farm
- Safeco Insurance
- American Family
- Titan Insurance
- Travelers
- Liberty Mutual
- GEICO
- Erie Insurance
- Allstate
Top 10 Major Auto Insurance Companies in Indianapolis Ranked by A.M. Best Rating
- USAA – A++
- GEICO – A++
- Travelers – A++
- State Farm – A++
- Allstate – A+
- Progressive – A+
- Erie Insurance – A+
- The Hartford – A+
- Nationwide – A+
- Esurance – A+