For infrequent drivers, one of the largest components that aid in calculating the amount you pay each year for auto insurance is where you call home. Larger areas tend to have higher auto insurance costs, whereas less populated areas benefit from lower rates.
The table below rates the priciest cities in Indiana for low mileage drivers to purchase car insurance in. Indianapolis comes in at #8 with the yearly price of $1,050 for the average policyholder, which is approximately $88 monthly.
| Rank | City | Annual Premium |
|---|---|---|
| 1 | Gary | $1,347 |
| 2 | Hammond | $1,314 |
| 3 | Merrillville | $1,139 |
| 4 | Portage | $1,104 |
| 5 | Lawrence | $1,088 |
| 6 | Evansville | $1,077 |
| 7 | New Albany | $1,070 |
| 8 | Indianapolis | $1,050 |
| 9 | Jeffersonville | $1,038 |
| 10 | Terre Haute | $1,035 |
| 11 | Anderson | $1,031 |
| 12 | Kokomo | $1,001 |
| 13 | Bloomington | $998 |
| 14 | Columbus | $984 |
| 15 | Fishers | $983 |
| 16 | Fort Wayne | $976 |
| 17 | South Bend | $976 |
| 18 | Elkhart | $965 |
| 19 | Muncie | $955 |
| 20 | Mishawaka | $945 |
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Price information shown is estimated as the specific garaging location can impact price quotes considerably.
Establishing which company quotes the most affordable auto insurance rates for low mileage drivers will take a bit more effort in order to find the lowest price. Every car insurance company uses their own formula to determine rates, so we’ll go over the most budget-friendly auto insurance companies in Indiana.
It’s a good idea to be aware that Indianapolis auto insurance rates are impacted by many things that will increase or decrease the price of coverage. Simply having another birthday, buying a new vehicle, or getting a couple of tickets can trigger rate changes that can cause some rates to be more affordable than competitors.
Best Car Insurance Prices in Indiana
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | Travelers | $602 |
| 2 | Cincinnati Insurance | $664 |
| 3 | USAA | $687 |
| 4 | Erie | $726 |
| 5 | Indiana Farmers Mutual | $849 |
| 6 | The Hartford | $863 |
| 7 | Western Reserve | $872 |
| 8 | Auto-Owners | $879 |
| 9 | Nationwide | $930 |
| 10 | Motorists Mutual | $956 |
| 11 | Utica National | $956 |
| 12 | Hastings Mutual | $973 |
| 13 | State Farm | $997 |
| 14 | Safeco | $1,003 |
| 15 | Farmers | $1,064 |
| 16 | Wolverine Mutual | $1,072 |
| 17 | State Auto | $1,098 |
| 18 | Westfield | $1,105 |
| 19 | Progressive | $1,106 |
| 20 | GEICO | $1,133 |
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Travelers generally has some of the most affordable car insurance rates in Indianapolis at around $602 annually. Cincinnati Insurance, USAA, Erie, and Indiana Farmers Mutual are also some of the lowest-priced Indianapolis, IN insurance companies.
As depicted above, if you are a customer of Erie and switched to Cincinnati Insurance, you may realize annual savings of in the neighborhood of $62. Drivers with Indiana Farmers Mutual could save as much as $185 a year, and The Hartford insureds might lower prices by $199 a year.
Be aware that those prices are averages for all types of drivers and the different vehicles they drive and do not take into consideration a specific location for low mileage drivers. So the car insurance company that has the cheapest price for you may not even be in the list above. That helps illustrate why you need to quote rates from as many companies as possible using your own specific driver information and vehicle.
The type of vehicle driven is a significant factor that determines whether or not you can buy the cheapest coverage for low mileage drivers. Vehicles with average performance, a great safety record, or a low likelihood of having liability claims will cost less to insure than adrenaline junky models. The information below features coverage rates for a number of the cheapest automobiles to insure.
| Insured Vehicle | Estimated Cost for Full Coverage |
|---|---|
| Honda CR-V LX 4WD | $1,011 |
| Ford Escape XLT 2WD | $1,017 |
| Hyundai Elantra SE Touring Station Wagon | $1,100 |
| Ford F-150 XL Regular Cab 2WD | $1,143 |
| Toyota Prius | $1,231 |
| Ford Focus SEL 4-Dr Sedan | $1,240 |
| Toyota Corolla S | $1,263 |
| Chevrolet Impala LTZ | $1,270 |
| Honda Odyssey EX | $1,286 |
| Nissan Altima Hybrid 4-Dr Sedan | $1,294 |
| Ford Fusion Sport 4-Dr Sedan | $1,286 |
| Dodge Grand Caravan SE | $1,288 |
| Jeep Wrangler Sahara 4WD 2-Dr | $1,297 |
| Volkswagen Jetta 2.0T Station Wagon | $1,304 |
| Chevrolet Malibu LS | $1,313 |
| Toyota RAV4 Sport 4WD | $1,321 |
| Toyota Tacoma Double Cab TRD Off-Road Package 4WD | $1,338 |
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Data assumes single male driver age 50, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Indiana minimum liability limits. Discounts applied include claim-free, multi-vehicle, safe-driver, multi-policy, and homeowner. Estimates do not factor in Indianapolis, IN location which can impact rates greatly.
Looking at the data, we can tell that models like the Honda CR-V, Ford Escape, and Hyundai Elantra are most likely to be a few of the most budget-friendly vehicles to insure for infrequent drivers.
How accidents and tickets impact rates in Indianapolis
In a perfect world, the ideal way to find the cheapest auto insurance premiums in Indiana for infrequent drivers is to be a cautious driver and avoid tickets and accidents. The chart below shows how traffic citations and at-fault claims drive up car insurance costs for each different age category. The premiums are based on a single female driver, full coverage, $1,000 deductibles, and no discounts are taken into consideration.
In the chart above, the average cost of auto insurance in Indianapolis per year with a clean driving record and no accidents is $1,525. Get one speeding ticket and the average cost surges to $1,731, an increase of $205 each year. Next add two accidents along with the one speeding ticket and the annual cost of auto insurance for low mileage drivers jumps again to an average of $3,652. That’s an increase of $2,127, or $177 per month, just for not being more responsible behind the wheel!
The example below shows how different deductible levels can influence insurance rates when researching cheap insurance for low mileage drivers. The premiums are based on a married male driver, full coverage, and no policy discounts are applied.
In the chart above, a 50-year-old driver could pocket $272 a year by switching their comprehensive and collision coverages from a $100 deductible up to a $500 deductible, or save $412 by selecting a $1,000 deductible. Younger drivers, like the 20-year-old, could shave up to $912 or even more just by choosing higher deductibles. When using a larger deductible, it will be necessary to have spare funds to satisfy the extra out-of-pocket expense that is associated with using high deductibles.
Difference between full coverage and liability only rates
Lowering the price of auto insurance should be important to most vehicle owners, and one of the quickest ways to find cheaper insurance for low mileage drivers is to not insure for full coverage. The chart below illustrates the difference between yearly insurance costs with and without physical damage coverage, medical payments, and uninsured/under-insured motorist coverage. The premiums are based on no claims or driving violations, $100 deductibles, single marital status, and no discounts are applied to the premium.
If we average the cost for ages 20 through 70, full coverage costs an extra $2,198 per year more than insuring for liability only. That may make you wonder if it’s a good idea to buy full coverage. There is no exact rule to exclude full coverage, but there is a guideline you can use. If the yearly cost for physical damage coverage is 10% or more of any settlement you would receive from your insurance company, then you might want to consider buying only liability coverage.
There are some conditions where dropping full coverage is not recommended. If you have an outstanding loan on your vehicle, you have to carry full coverage in order to keep the loan. Also, if your finances do not allow you to purchase a different vehicle in the event your current vehicle is totaled, you should keep full coverage on your policy.
Don’t stick with an overpriced policy
Indianapolis, IN auto insurance rates are impacted by many things that will increase or decrease the price you have to pay. Getting older, increasing deductibles, or getting a speeding ticket can produce rate changes that may make certain companies much cheaper than others. Not only may your situation change, but companies amend pricing as often as every quarter as an adjustment for underwriting gains or losses. Higher than normal claim frequency or severity may cause more expensive prices, while profitable underwriting can cause more affordable Indianapolis car insurance rates.
For instance, the graph below shows a variety of companies that have the cheapest car insurance in Indianapolis, IN for a 40-year-old male driver with a clear driving record, no claims, and good financial standing. If we compare prices based on his personal profile, Travelers offers the best car insurance rates in Indianapolis at $703 a year. This is $537 less than the average policy premium paid by Indiana drivers of $1,240. Cincinnati Insurance, USAA, Erie, and Western Reserve are the rest of the best Indianapolis, IN auto insurance companies.
The example below compares rates after we give the driver from the first rate comparison a claim or two, a little lower credit rating, and an imperfect driving record. Due to the fact that each insurance company has their own process to determining premium rates, comparing prices will most likely result in a different ranking of the cheapest Indianapolis car insurance companies as shown below.
The Hartford now has the best car insurance rate in Indianapolis, IN with Cincinnati Insurance, Auto-Owners, USAA, and Utica National also being competitive. This example illustrates why consumers need to perform a complete rate comparison to get the most economical car insurance rates for low mileage drivers.
Insurance prices are influenced by many different factors and can change without notice, so the most economical option six months ago may now be priced much higher than other options.