In an ideal world, we could simply give you the name of the company that has the best car insurance rates in Indiana. It’s just not that simple, as there are a whole bunch of unknown elements like whether you are married or single, the area you live in, and if you own or rent your home, that help determine the price you have to pay. In this article, we will cover the causes of high insurance rates and will give you a good start to your coverage search.
The vehicle on the policy is probably the most important factor when trying to find economical coverage for drivers under 25. Vehicles with lower performance, an excellent safety record, or low incidents of liability claims will cost substantially less to insure than high performance models.
The data below illustrates insurance rates for a selection of the most cost-effective automobiles to buy coverage for.
| Make, Model, and Trim Level | Estimated Cost for Full Coverage |
|---|---|
| Honda CR-V LX 2WD | $2,524 |
| Ford Escape Limited 2WD | $2,561 |
| Hyundai Elantra SE Touring Station Wagon | $2,721 |
| Toyota Prius | $2,757 |
| Ford Explorer XLT 4WD | $2,828 |
| Dodge Grand Caravan CV | $2,838 |
| Chevrolet Malibu Hybrid | $2,988 |
| Chevrolet Silverado LS Extended Cab 4WD | $2,997 |
| Toyota RAV4 Sport 2WD | $2,988 |
| Chevrolet Impala LT | $2,998 |
| Ford F-150 Lariat Crew Cab 4WD | $3,025 |
| Toyota Tacoma Double Cab TRD Off-Road Package 4WD | $3,035 |
| Jeep Wrangler Unlimited Sport 4WD 4-Dr | $3,112 |
| Honda Civic LX 4-Dr Sedan | $3,114 |
| Toyota Corolla S | $3,151 |
| Ford Edge Sport AWD | $3,158 |
| Honda Odyssey EX-L W/Navigation | $3,151 |
| Start a Quote Go | |
Prices based on single female driver age 20, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Indiana minimum liability limits. Discounts applied include claim-free, and safe-driver. Information does not factor in zip code location which can decrease or increase prices significantly.
By looking at the data, vehicles like the Honda CR-V, Ford Escape, Hyundai Elantra, and Toyota Prius will be some of the more affordable vehicles to insure for drivers age 25 and younger. Car insurance rates will be more costly just due to the fact that there is more risk for drivers under 25, but overall those particular vehicles will most likely have the best rates compared to all other vehicles.
For drivers age 25 and younger, one of the big criteria that are looked at to help calculate the annual cost of car insurance is the neighborhood you call home in Indianapolis. Cities with larger populations or higher claim trends tend to pay slightly more, whereas areas with fewer weather claims and lower vehicle theft rates have the gratification of cheaper auto insurance rates.
The following table rates the most expensive areas in Indiana for drivers under 25 to buy auto insurance in. Indianapolis is ranked at #5 with the yearly price of $1,082 for car insurance, which is about $90 monthly.
| Rank | City | Average Per Year |
|---|---|---|
| 1 | Gary | $1,347 |
| 2 | Hammond | $1,275 |
| 3 | Portage | $1,126 |
| 4 | Merrillville | $1,106 |
| 5 | Indianapolis | $1,082 |
| 6 | Evansville | $1,077 |
| 7 | New Albany | $1,070 |
| 8 | Jeffersonville | $1,070 |
| 9 | Terre Haute | $1,067 |
| 10 | Lawrence | $1,066 |
| 11 | Anderson | $1,011 |
| 12 | Kokomo | $1,001 |
| 13 | Bloomington | $988 |
| 14 | Elkhart | $985 |
| 15 | Columbus | $984 |
| 16 | Fishers | $983 |
| 17 | Richmond | $973 |
| 18 | Muncie | $965 |
| 19 | Noblesville | $958 |
| 20 | South Bend | $956 |
| Quote Best Rates Go | ||
Annual rates are estimated as the specific area where the vehicle is garaged can lower or raise premiums substantially.
Trying to find budget car insurance is tough enough, and determining which company has the cheapest auto insurance rates for drivers under 25 will involve even more work. Each insurer has a unique formula to set their prices, so we’ll take a look at the most affordable auto insurance companies in Indianapolis.
Cheapest Insurance Rates for Young Drivers
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | Travelers | $596 |
| 2 | Cincinnati Insurance | $678 |
| 3 | USAA | $687 |
| 4 | Erie | $733 |
| 5 | The Hartford | $855 |
| 6 | Indiana Farmers Mutual | $867 |
| 7 | Western Reserve | $872 |
| 8 | Auto-Owners | $915 |
| 9 | Nationwide | $968 |
| 10 | Safeco | $973 |
| 11 | Utica National | $995 |
| 12 | Motorists Mutual | $996 |
| 13 | State Farm | $997 |
| 14 | Hastings Mutual | $1,013 |
| 15 | Farmers | $1,053 |
| 16 | Westfield | $1,072 |
| 17 | GEICO | $1,089 |
| 18 | Wolverine Mutual | $1,105 |
| 19 | State Auto | $1,131 |
| 20 | Progressive | $1,139 |
| View More Rates Go | ||
Travelers normally has some of the most affordable car insurance rates in Indianapolis at around $596 a year. Cincinnati Insurance, USAA, Erie, and The Hartford also rank well as some of the most economical Indianapolis, IN auto insurance companies.
In the above rates, if you have coverage with Erie and switched to Travelers, you might see a yearly savings of approximately $137. Drivers with The Hartford may save as much as $259 a year, and Indiana Farmers Mutual policyholders might cut rates by $271 a year.
Bear in mind that those policy prices are averaged for all types of insureds and vehicles and and are not figured with an exact vehicle garaging location for drivers under 25. So the car insurance company that can offer the best rates for your situation may not even be in the list above. That underscores the importance of why you need to get quotes using your own driver information and specific vehicle type.
Choosing a high-quality insurer is hard considering how many choices there are in Indiana. The information shown next can help you decide which coverage providers to look at to insure your vehicles. These rankings only include large insurance companies, so companies with more of a regional focus are not included in the list.
| Company | Value | Customer Service | Claims | Customer Satisfaction | A.M Best Rating | Overall Score |
|---|---|---|---|---|---|---|
| USAA | 99 | 100 | 90 | 92% | A++ | 97.4 |
| 21st Century | 89 | 86 | 100 | 88% | A | 92.7 |
| GEICO | 97 | 91 | 88 | 85% | A++ | 92.5 |
| Nationwide | 88 | 94 | 91 | 88% | A+ | 91.3 |
| AAA Insurance | 93 | 87 | 88 | 87% | A | 90.8 |
| Liberty Mutual | 91 | 91 | 92 | 87% | A | 90.7 |
| Safeco Insurance | 90 | 93 | 88 | 86% | A | 90.2 |
| State Farm | 91 | 94 | 80 | 88% | A++ | 90.2 |
| Travelers | 89 | 91 | 94 | 79% | A++ | 90.1 |
| American Family | 88 | 92 | 83 | 88% | A | 89.4 |
| Titan Insurance | 89 | 91 | 83 | 86% | A+ | 89.3 |
| Allstate | 90 | 90 | 84 | 85% | A+ | 89.1 |
| Progressive | 83 | 85 | 99 | 87% | A+ | 88.7 |
| Erie Insurance | 92 | 90 | 82 | 88% | A+ | 88.5 |
| The Hartford | 87 | 89 | 84 | 87% | A+ | 88 |
| Compare Rates Now Go | ||||||
Data Source: Insure.com Best Car Insurance Companies
The diagram below demonstrates how deductible levels can influence annual premium costs when searching for cheap insurance for drivers under 25. The data is based on a married female driver, full coverage, and no discounts are applied.
In the chart above, a 40-year-old driver could reduce rates by $192 a year by changing their physical damage coverage from a $100 deductible up to a $500 deductible, or save $290 by changing to a $1,000 deductible. Even younger drivers, such as the Age 20 example, could save as much as $476 every year by using higher deductibles when buying full coverage.
When insureds make the decision to increase the deductibles on their policy, it will be required to have plenty of savings on hand to satisfy the extra out-of-pocket expense, which is the primary disadvantage of high deductibles.
Here’s why you should compare rates often
Indianapolis, IN auto insurance rates are calculated based on many things that control the cost of coverage. Turning one year older, buying another vehicle, or having a fender bender can cause premium changes resulting in some companies being more affordable than before.
Not only that, but companies amend pricing at least once a year in order to remain profitable. Heavier than normal losses may cause price increases, while less frequent claims may result in cheaper Indianapolis car insurance rates.
To illustrate this example, the data below shows rates for the cheapest car insurance in Indianapolis, IN for a 35-year-old female driver with no accidents, a clean driving record, and good credit. If we estimate rates based on her current risk profile, Travelers may offer the best car insurance rates in Indianapolis at $731 each year. This is $509 less than the average price paid by Indiana drivers of $1,240. Cincinnati Insurance, USAA, Erie, and Indiana Farmers Mutual are also on the list of the cheapest Indianapolis, IN auto insurance companies.
Now we will give the driver from the first set of rates a claim, a lower credit rating, and a blemish on her driving record. Since each auto insurer has a different process to set premium rates, analyzing rates may now result in a completely different list of the cheapest car insurance companies in Indianapolis as shown below.
The Hartford now has the best auto insurance rate in Indianapolis, IN with Auto-Owners, Nationwide, Utica National, and Cincinnati Insurance also being competitive. This example shows why it is critical to take the time to shop around when trying to find the most budget-friendly insurance quotes for drivers under 25. Rates are made up of many different factors and change frequently, so the most economical option the last time you shopped around may now be one of the more expensive options.