The make and model of vehicle that is being insured is a large factor when consumers are trying to find affordable car insurance for inexperienced drivers. Vehicles with high performance, a lack of advanced safety features, or a track record of large liability claims will cost substantially more to insure than safer models.
The next list estimates car insurance rates for some of the cheapest vehicles to buy insurance for.
| Insured Vehicle | Estimated Cost for Full Coverage |
|---|---|
| Honda CR-V EX-L 2WD | $1,151 |
| Toyota Prius | $1,242 |
| Dodge Grand Caravan SE | $1,261 |
| Ford Explorer XLT 4WD | $1,266 |
| Ford Escape XLT 2WD | $1,288 |
| Chevrolet Impala LS | $1,302 |
| Toyota RAV4 Limited 2WD | $1,329 |
| Honda Accord EX 4-Dr Sedan | $1,382 |
| Hyundai Elantra GLS Touring Station Wagon | $1,389 |
| Nissan Altima Hybrid 4-Dr Sedan | $1,423 |
| Jeep Wrangler Sport 4WD 2-Dr | $1,425 |
| Ford F-150 XL Regular Cab 2WD | $1,430 |
| Nissan Rogue SL 2WD | $1,427 |
| Kia Optima LX | $1,433 |
| GMC Sierra 3500HD SLE Extended Cab 2WD | $1,449 |
| Honda Odyssey EX W/Rear Entertainment | $1,492 |
| Ford Focus SE 4-Dr Sedan | $1,500 |
| Ford Fusion S 4-Dr Sedan | $1,521 |
| Dodge Ram Crew Cab TRX 4WD | $1,548 |
| GMC Sierra 2500HD SLE Crew Cab 2WD | $1,591 |
| Toyota Camry SE | $1,601 |
| Chevrolet Silverado LT Regular Cab | $1,632 |
| Hyundai Sonata GLS 4-Dr Sedan | $1,639 |
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Prices based on single female driver age 30, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Indiana minimum liability limits. Discounts applied include claim-free, homeowner, multi-vehicle, multi-policy, and safe-driver. Price information does not factor in specific garaging location which can affect insurance rates greatly.
Looking at the data, cars like the Honda CR-V, Toyota Prius, Dodge Grand Caravan, and Ford Explorer are a few of the most budget-friendly vehicles to insure for new drivers.
One of the more important components that aid in calculating the annual cost of car insurance is where your residence is in Indianapolis. Areas with a lot of weather claims or more people tend to have higher auto insurance costs, whereas areas that tend to be more rural receive better rates.
The information below sorts the most expensive places in Indiana for inexperienced drivers to purchase auto insurance in. Indianapolis is listed at #7 with a yearly cost of $1,050 for the average policyholder, which is around $88 monthly.
| Rank | City | Premium Per Year |
|---|---|---|
| 1 | Gary | $1,401 |
| 2 | Hammond | $1,288 |
| 3 | Merrillville | $1,139 |
| 4 | Portage | $1,104 |
| 5 | Lawrence | $1,088 |
| 6 | Evansville | $1,077 |
| 7 | Indianapolis | $1,050 |
| 8 | Kokomo | $1,041 |
| 9 | New Albany | $1,039 |
| 10 | Jeffersonville | $1,038 |
| 11 | Terre Haute | $1,035 |
| 12 | Anderson | $1,031 |
| 13 | Elkhart | $995 |
| 14 | South Bend | $985 |
| 15 | Columbus | $984 |
| 16 | Greenwood | $969 |
| 17 | Bloomington | $968 |
| 18 | Fort Wayne | $956 |
| 19 | Muncie | $955 |
| 20 | Fishers | $954 |
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Rate quotes are comparative as the specific Indianapolis residence address can impact price quotes noticeably.
Finding out which companies quote the best auto insurance rates for inexperienced drivers calls for a little more effort than just comparing a company or two. Each insurer uses different criteria to set their prices, so to begin we’ll rank the most competitive auto insurance companies in Indianapolis, IN.
Best Auto Insurance Prices for Newbies
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | Travelers | $602 |
| 2 | Cincinnati Insurance | $658 |
| 3 | USAA | $667 |
| 4 | Erie | $726 |
| 5 | Indiana Farmers Mutual | $849 |
| 6 | The Hartford | $863 |
| 7 | Western Reserve | $872 |
| 8 | Auto-Owners | $906 |
| 9 | Nationwide | $940 |
| 10 | Utica National | $956 |
| 11 | State Farm | $957 |
| 12 | Safeco | $973 |
| 13 | Hastings Mutual | $983 |
| 14 | Motorists Mutual | $986 |
| 15 | Wolverine Mutual | $1,061 |
| 16 | Farmers | $1,064 |
| 17 | State Auto | $1,098 |
| 18 | Westfield | $1,105 |
| 19 | Progressive | $1,106 |
| 20 | GEICO | $1,133 |
| Quote Your Rates Go | ||
Travelers normally has some of the cheapest car insurance rates in Indianapolis at around $602 annually. This is $638 less than the average premium paid by Indiana drivers of $1,240. Cincinnati Insurance, USAA, Erie, and Indiana Farmers Mutual also qualify as some of the best Indianapolis, IN car insurance companies.
As shown above, if you currently have coverage with Erie and switched to Cincinnati Insurance, you could earn annual savings of roughly $68. Insureds with Indiana Farmers Mutual might save as much as $191 a year, and The Hartford customers might cut rates by $205 a year.
To find the cheapest rates for your vehicle, click here to start a quote or click through to the companies below.
Bear in mind that those premiums are averages across all ages of drivers and types of vehicles and do not factor in an exact zip code location for inexperienced drivers. So the car insurance company that can offer you the best price may not even be in the list above. That underscores the importance of why you need to quote rates from as many companies as possible using your own driver information and specific vehicle type.
How much more does full coverage cost?
Finding the cheapest auto insurance is the goal of the majority of drivers, and one way to pay less for insurance for inexperienced drivers is to buy liability only. The information below visualizes the comparison of car insurance rates with liability coverage only compared to full coverage. The premiums are based on no violations or accidents, $1,000 deductibles, drivers are not married, and no discounts are applied to the premium.
If all age groups are averaged, physical damage coverage costs $1,598 per year more than just buying liability only. At some point, every insured wonders if paying for full coverage is a waste of money. There is no clear-cut formula to delete comprehensive and collision coverage on your policy, but there is a broad guideline. If the annual cost of comprehensive and collision coverage is more than about 10% of the replacement cost minus the deductible, then you might want to consider buying only liability coverage.
Irresponsible driving raises your rates
The ideal way to snag the cheapest auto insurance rates in Indianapolis for new drivers is to be an attentive driver and avoid tickets and accidents. The information below demonstrates how speeding tickets and fender-benders raise premium costs for different insured age categories. The information is based on a single male driver, full physical damage coverage, $100 deductibles, and no discounts are applied to the premium.
In the previous example, the average cost of auto insurance in Indianapolis per year with no accidents or violations is $1,613. Get two speeding tickets and the average cost rises to $2,140, an increase of $527 each year. Then add in two accidents along with the two speeding tickets and the 12-month cost of auto insurance for inexperienced drivers increases to an average of $4,006. That’s an increase of $2,393, or $199 per month, just for not being attentive to the road!
The example below illustrates how your deductible choice can affect annual premium costs when trying to find cheap insurance for inexperienced drivers. The rates are based on a single male driver, full physical damage coverage, and no policy discounts are applied.
The chart above illustrates that a 50-year-old driver could cut expenses by $230 a year by switching from a $100 deductible to a $500 deductible, or save $348 by changing to a $1,000 deductible. Even younger insureds, like the 20-year-old category, could save as much as $756 annually by using a higher deductible.
When insureds make the decision to increase the deductibles on their policy, it is important to have plenty of discretionary funds to enable you to pay the extra out-of-pocket expense, which is the one disadvantage of using larger deductibles.
Why you are probably overpaying for car insurance
Indianapolis auto insurance rates are influenced by many factors which can substantially change the price you have to pay for coverage. Simply having another birthday, buying a home, or getting a couple of tickets may generate price changes that can now make some companies cheaper in comparison to the competition.
Also, car insurance companies modify pricing at least once a year in order to remain profitable. A period of higher than normal claims may result in high rates, while a better loss history may produce cheaper Indianapolis car insurance rates.
For example, the graph below analyzes the cheapest car insurance in Indianapolis, IN for a 30-year-old female driver with no prior accidents, a clean driving record, and solid credit. If we compare prices based on her current risk factors, Travelers offers the cheapest car insurance rates in Indianapolis at $724 each year. This is $516 less than the average rate paid by Indiana drivers of $1,240. Cincinnati Insurance, USAA, Erie, and Indiana Farmers Mutual are the remainder of the most affordable Indianapolis, IN auto insurance companies.
Let’s now give the driver from above an accident claim, bad credit, and a blemish on her driving record. Since each auto insurance company uses their own formula to set their prices, comparing insurance quotes could now result in a different ranking of the cheapest Indianapolis car insurance companies as shown below.
The Hartford now has the cheapest insurance rate in Indianapolis, IN with Cincinnati Insurance, USAA, Auto-Owners, and Motorists Mutual also being competitive. This example illustrates why it is so important to spend some time comparing rates when trying to find the most affordable car insurance quotes for inexperienced drivers. Insurance rates can be determined by many risk factors and change frequently, so the best company three years ago may now be one of the more expensive options.