Writing this article would sure be easy if we could simply tell you the single company that has the best car insurance rates in Indiana. It’s not that simple, unfortunately, as there are a lot of unknowns such as your credit rating, how much you actually drive in a year, and the safety features built into your vehicle, that all have an effect on the price. The content below covers the best ways to save money and will hopefully give you a good start in finding the cheapest car insurance in Indianapolis.
One of the many things that aid in calculating the cost of insurance is where you keep your vehicle in Indianapolis. Areas with high crime rates or more dense population will most likely pay more, whereas less populated areas benefit from lower coverage costs.
The information below ranks the most expensive places in Indiana for young drivers to buy an auto insurance policy in. Indianapolis is ranked #6 with an annual rate of $1,082 for the average insured, which is around $90 per month.
| Rank | City | Annual Rate |
|---|---|---|
| 1 | Gary | $1,388 |
| 2 | Hammond | $1,288 |
| 3 | Merrillville | $1,139 |
| 4 | Portage | $1,093 |
| 5 | Evansville | $1,087 |
| 6 | Indianapolis | $1,082 |
| 7 | Lawrence | $1,066 |
| 8 | Terre Haute | $1,045 |
| 9 | New Albany | $1,039 |
| 10 | Jeffersonville | $1,038 |
| 11 | Anderson | $1,011 |
| 12 | Kokomo | $1,011 |
| 13 | Bloomington | $988 |
| 14 | Fort Wayne | $985 |
| 15 | Columbus | $975 |
| 16 | Fishers | $974 |
| 17 | Elkhart | $965 |
| 18 | Carmel | $957 |
| 19 | South Bend | $956 |
| 20 | Mishawaka | $945 |
| 21 | Richmond | $944 |
| 22 | Greenwood | $931 |
| 23 | Muncie | $927 |
| 24 | Noblesville | $920 |
| 25 | Lafayette | $917 |
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Premium amounts are comparative as the garaging address in Indianapolis can influence premium rates considerably.
Deciphering which companies have the best car insurance rates for young drivers will take a little more effort in order to find the lowest price.
Each insurer uses different criteria for determining rates in each state, so let’s examine the car insurance companies with the overall cheapest rates in Indianapolis, IN. We do need to point out that Indianapolis, IN car insurance rates are influenced by many factors that will increase or decrease the price you pay. Simply having another birthday, having a claim, or having an at-fault accident can cause premium changes that can make some companies more affordable than before.
Best Cheap Insurance Rates for Teens
Travelers normally has some of the cheapest car insurance rates in Indianapolis at around $596 a year. This is $644 less than the average policy premium paid by Indiana drivers of $1,240. Cincinnati Insurance, USAA, Erie, and Western Reserve would also be considered some of the cheapest Indianapolis, IN insurance companies.
In this example, if you are a policyholder with USAA and switched to Travelers, you may realize a yearly savings of about $85. Policyholders with Erie may save as much as $116 a year, and Western Reserve policyholders might lower prices by $268 a year.
These premium estimates are averages across all ages of drivers and types of vehicles and and are not calculated with an exact vehicle garaging location for young drivers. So the car insurance company that can offer the best rates for your situation may not even be in the top 36 companies shown above. That helps illustrate why you need to get car insurance quotes using your own individual information.
Impact of speeding/accidents on Indianapolis car insurance rates
The common sense way to obtain the most affordable car insurance prices in Indiana for youthful drivers is to be a good driver and avoid accidents and traffic citations. The information below demonstrates how speeding tickets and accident claims can impact auto insurance rates for each age group. The prices are based on a married female driver, comprehensive and collision coverage, $500 deductibles, and no discounts are applied.
In the prior example, the average cost of auto insurance per year with no accidents and a clean driving record is $1,024. Receive one speeding ticket and the average cost swells to $1,192, an increase of $168 each year. Then include one accident along with the one speeding ticket and the 12-month cost of car insurance for young drivers increases to an average of $1,659. That’s an increase of $635, or $53 per month, just for being a careless driver!
Picking a high-quality car insurance company is hard considering how many companies provide coverage in Indianapolis. The rank data displayed below can help you select which insurers you want to consider comparing rate quotes with. The rankings below are only comprised of the companies with a significant amount of written premium nationwide, so companies that only write business in Indiana or surrounding areas will not be included in these rankings.
Top 10 Large Auto Insurance Providers in Indianapolis Ranked by Customer Satisfaction
- USAA – 92%
- Erie Insurance – 88%
- American Family – 88%
- State Farm – 88%
- Nationwide – 88%
- 21st Century – 88%
- AAA Insurance – 87%
- Liberty Mutual – 87%
- Farmers Insurance – 87%
- The Hartford – 87%
Top 10 Large Auto Insurance Providers in Indianapolis Ranked by Value
- USAA
- GEICO
- AAA Insurance
- Erie Insurance
- State Farm
- Liberty Mutual
- Safeco Insurance
- Allstate
- 21st Century
- Travelers
Comparison of full coverage and liability-only policies
Saving money when shopping for car insurance should be important to most people, and one of the best ways to save on the cost of insurance for young drivers is to only pay for liability coverage. The information below shows the difference between premium costs with and without physical damage coverage. The premiums are based on no accidents or driving violations, $500 deductibles, drivers are not married, and no discounts are applied to the premium.
If averaged out across all ages, comprehensive and collision coverage on your policy costs an additional $1,771 per year over and above liability coverage. At some point, every insured wonders if buying full coverage is worth the expense. There is no clear-cut rule to stop paying for comprehensive and collision coverage on your policy, but there is a broad guideline. If the yearly cost for physical damage coverage is more than around 10% of the replacement cost of your vehicle minus the policy deductible, then you might want to think about dropping full coverage.
There are some cases where buying only liability insurance is not a good idea. If you have an outstanding loan on your vehicle, you must maintain physical damage coverage in order to prevent your loan from defaulting. Also, if you don’t have enough money to buy a different vehicle if your current one is damaged, you should not remove full coverage.