The words “bargain” and “insurance” probably shouldn’t be used in the same sentence, specifically when searching for the cheapest car insurance for 18 year olds. To save some money, let’s go over a few of the things the can have a considerable influence on car insurance rates, and find some ways to slash the price of your next policy.
For teen drivers, one of the largest components that are used to help calculate the amount you pay for auto insurance is where you choose to live in Indianapolis. Areas with high crime rates or more dense population will most likely pay more, whereas areas with less crime or weather claims have the enjoyment of a little cheaper coverage.
The following table ranks the most expensive areas in Indiana for 18 year olds to purchase car insurance in. Indianapolis comes in at #8 with an annual premium of $1,050 for the average policy, which is about $88 monthly.
| Rank | City | Premium Per Year |
|---|---|---|
| 1 | Gary | $1,360 |
| 2 | Hammond | $1,314 |
| 3 | Merrillville | $1,128 |
| 4 | Portage | $1,093 |
| 5 | Evansville | $1,087 |
| 6 | New Albany | $1,070 |
| 7 | Lawrence | $1,055 |
| 8 | Indianapolis | $1,050 |
| 9 | Terre Haute | $1,045 |
| 10 | Kokomo | $1,041 |
| 11 | Jeffersonville | $1,038 |
| 12 | Anderson | $1,001 |
| 13 | Bloomington | $998 |
| 14 | Elkhart | $995 |
| 15 | South Bend | $985 |
| 16 | Fort Wayne | $976 |
| 17 | Columbus | $975 |
| 18 | Fishers | $974 |
| 19 | Mishawaka | $965 |
| 20 | Richmond | $964 |
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Premium amounts are approximated as zip code location can raise or lower premiums significantly.
The vehicle model on the policy is one of the largest factors when shopping around for affordable insurance for 18 year olds. Vehicles with reasonable performance levels, advanced safety features, or a track record of few liability claims will cost quite a bit less to insure than fast, unsafe models.
The next list showcases auto insurance costs for a selection of the more affordable vehicles to insure.
| Vehicle Insured | Estimated Cost for Full Coverage |
|---|---|
| Ford Escape XLS 2WD | $4,159 |
| Honda CR-V EX 2WD | $4,167 |
| Toyota Prius | $4,533 |
| Dodge Grand Caravan CV | $4,659 |
| Chevrolet Impala LS | $4,890 |
| Chevrolet Silverado LS Extended Cab 4WD | $4,938 |
| Chevrolet Equinox LS 2WD | $4,943 |
| Toyota RAV4 Sport 2WD | $4,938 |
| Ford Explorer Limited AWD | $4,986 |
| Jeep Wrangler Unlimited Sport 2WD 4-Dr | $5,088 |
| Honda Civic EX 4-Dr Sedan | $5,167 |
| Hyundai Elantra Blue 4-Dr Sedan | $5,177 |
| Ford Focus SEL 4-Dr Sedan | $5,167 |
| Ford Edge Sport 2WD | $5,214 |
| Honda Odyssey EX-L W/Navigation | $5,222 |
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Table data assumes 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. Price information does not factor in vehicle location which can increase or decrease rates significantly.
Based upon the table data, you can figure that models like the Ford Escape, Honda CR-V, Toyota Prius, and Dodge Grand Caravan should be some of the cheaper vehicles to insure for teen drivers. The price of auto insurance will be more costly just because there is more claim exposure for 18 year olds, but in general those vehicles will most likely have the best rates compared to all other vehicles.
Determining which companies have the most affordable auto insurance rates for 18 year olds requires a bit more effort than just comparing a company or two. Every insurance provider uses a different method to determine premium rates, so we’ll take a look at the auto insurance companies that tend to have lower prices in Indianapolis.
It’s important to know that Indianapolis auto insurance rates are influenced by many factors which can substantially change the cost of your policy. Getting older, increasing deductibles, or having an accident can cause premium changes resulting in some rates now being cheaper in comparison to the competition.
Cheap Insurance Rates for Teens
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| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | Travelers | $602 |
| 2 | Cincinnati Insurance | $684 |
| 3 | USAA | $687 |
| 4 | Erie | $726 |
| 5 | Indiana Farmers Mutual | $841 |
| 6 | The Hartford | $863 |
| 7 | Western Reserve | $864 |
| 8 | Auto-Owners | $906 |
| 9 | Motorists Mutual | $956 |
| 10 | Nationwide | $968 |
| 11 | Hastings Mutual | $973 |
| 12 | Safeco | $983 |
| 13 | Utica National | $985 |
| 14 | State Farm | $997 |
| 15 | Farmers | $1,022 |
| 16 | GEICO | $1,089 |
| 17 | Wolverine Mutual | $1,094 |
| 18 | Westfield | $1,105 |
| 19 | State Auto | $1,131 |
| 20 | Progressive | $1,139 |
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Travelers normally has some of the cheapest car insurance rates in Indianapolis at around $602 each year. Cincinnati Insurance, USAA, Erie, and Indiana Farmers Mutual also qualify as some of the most economical Indianapolis, IN auto insurance companies.
In this example, if you are a policyholder with Indiana Farmers Mutual and switched to Cincinnati Insurance, you may realize a yearly savings of about $157. Customers with The Hartford could save as much as $179 a year, and Western Reserve policyholders might see rate reductions of $180 a year.
These premiums are averages for all drivers and vehicles in Indiana and are not factoring in a specific vehicle garaging location for 18 year olds. So the insurer that has the cheapest rates for you may not even be in the top 36 companies shown above. That helps illustrate why you need to get rate quotes using your own personal information and vehicle type.
Types of discounts on Indianapolis auto insurance
Insurance companies that provide coverage for 18 year olds may also give you policy discounts that could lower prices by 25% or more if you meet specific criteria. Large auto insurance companies and the discounts they provide can be found below.
- GEICO has discounts for good student, military active duty, federal employee, multi-policy, and daytime running lights.
- MetLife offers discounts including accident-free, good driver, claim-free, defensive driver, good student, multi-policy
- State Farm may include discounts for safe vehicle, passive restraint, defensive driving training, multiple policy, and driver’s education.
- Progressive offers discounts for homeowner, continuous coverage, online signing, multi-policy, good student, and online quote discount.
- Mercury Insurance policyholders can earn discounts including good student, ease of repair, good driver, low natural disaster claims, anti-theft, and professional/association.
- 21st Century may have discounts that include defensive driver, teen driver, good student, theft prevention, homeowners, early bird, and air bags.
- Allstate offers premium reductions for senior citizen, good student, defensive driver, anti-lock brakes, premier discount, premier plus, and utility vehicle.
The illustration below illustrates the difference between insurance costs with and without discounts applied to the rates. The data is based on a male driver, no tickets, no at-fault accidents, Indiana state minimum liability limits, comp and collision included, and $500 deductibles.
The first bar for each age group shows the average rate with no discounts. The second shows the rates with anti-theft, passive restraint, continuous coverage, paid-in-full, good student, and vehicle safety discounts applied. When discounts are applied, theaverage amount saved on auto insurance for 18 year olds is 28% or $624.
Selecting the best auto insurance company can be difficult considering how many different companies insure vehicles in Indiana. The ranking data shown next can help you select which auto insurers to look at comparing rates from. The rankings below include companies that insure vehicles nationwide, so smaller regional companies are not taken into consideration for these rankings.
Top 10 Large Car Insurance Companies in Indianapolis Ranked by Claims Service
- Progressive
- Travelers
- Liberty Mutual
- Nationwide
- USAA
- GEICO
- AAA Insurance
- Safeco Insurance
- Esurance
- The General
Top 10 Large Car Insurance Companies in Indianapolis Ranked by Customer Service
- Nationwide
- State Farm
- Safeco Insurance
- American Family
- Titan Insurance
- Travelers
- Liberty Mutual
- GEICO
- Erie Insurance
- Allstate
Here’s why price comparisons are so important
Indiana auto insurance rates are determined by lots of factors that can increase the price you have to pay. Simply improving your credit, increasing liability limits, or getting a ticket for running a stop sign can trigger price changes resulting in some companies being affordable when they were higher priced. Not only that, but car insurance companies amend premium rates without warning to adjust for gains or losses. Higher than normal claims can result in increased rates, while lower claim expenses can cause more affordable Indianapolis car insurance rates.
The bar chart below shows the company with the cheapest car insurance in Indianapolis, IN for a 35-year-old female driver with no accidents, a clean driving record, and a good credit rating. When comparing rates based on her current rating profile, Travelers has the lowest car insurance rates in Indianapolis at $710 a year. This is $530 less than the average rate paid by Indiana drivers of $1,240. USAA, Cincinnati Insurance, Erie, and Western Reserve are also on the list of the cheapest Indianapolis, IN auto insurance companies.
In the next rate comparison, we’ll give the driver from the first set of rates an accident surcharge, poor credit, and a traffic ticket or two. Because each insurer uses their own calculation to determining premium rates, analyzing rates most likely will result in a significantly different list of cheap Indianapolis auto insurance companies as shown below.
Indiana Farmers Mutual now has the best insurance rate in Indianapolis, IN with USAA, Auto-Owners, Cincinnati Insurance, and Nationwide also having competitive pricing. This shows why drivers need to compare rates when trying to find cheap insurance rates for 18 year olds. Insurance rates can be altered by many different factors and change frequently, so the best company when you last compared rates may now not even be in the top five.
How to find more affordable car insurance for 18 year olds
The list below shows a few thrifty suggestions that can help you quote low-cost car insurance.
- Buy vehicles with five-star safety ratings
- Tickets and violations raise rates
- If your vehicles are older, consider dropping full coverage
- Increase your policy deductibles
- Clean up your credit rating
- Do not get into accidents
- Keep rates low by comparing prices once a year
The last tip is highly vital, as we stressed in this article. Auto insurance prices vary considerably, so don’t be unwilling to buy a policy from a new company if you find a better deal.
Many drivers have brand loyalty and that’s fine, but it’s not recommended if that stubbornness costs you a fortune every year. It takes less than five minutes to compare prices and find cheaper insurance for 18 year olds in Indianapolis.
The agents listed below can provide answers to your questions and help you determine which insurance coverage will be best for you, as many people would rather get help from a professional when comparing insurance rates for teen drivers. It’s not always simple to find the cheapest rate yourself, so getting professional guidance from a licensed agent can bring satisfaction knowing your policy gives you suitable coverage if you have an accident. To locate an agency closest to you, click the button link following the list.
- Skaggs Insurance Agencies Inc
5519 E 82nd St e – Indianapolis, IN 46250 – (317) 841-6000 - Elizabeth Marshall – State Farm Insurance Agent
6124 N College Ave – Indianapolis, IN 46220 – (317) 255-2700 - Leland Brown Sr. – State Farm Insurance Agent
5936 N Keystone Ave #201 – Indianapolis, IN 46220 – (317) 251-1400