The words “cheap” and “auto insurance” probably shouldn’t be used together, especially when comparison shopping for the best price on coverage for drivers with a bad driving record. To save some money, let’s open your eyes to a few of the factors that determine insurance rates, and find out if you can reduce the price of the next policy you buy.
For bad drivers, one of the largest components that are used to help calculate car insurance rates is where you normally keep your vehicle in Indianapolis. Areas with high crime rates or more dense population tend to have higher rates, whereas areas with lower crime rates and fewer weather claims have the enjoyment of a little cheaper coverage.
The next table rates the most expensive cities in Indiana for drivers with a bad driving record to buy car insurance in. Indianapolis is ranked at #9 with an annual premium of $1,060 for coverage, which is about $88 monthly.
| Rank | City | Annual Premium |
|---|---|---|
| 1 | Gary | $1,360 |
| 2 | Hammond | $1,275 |
| 3 | Portage | $1,137 |
| 4 | Merrillville | $1,106 |
| 5 | Evansville | $1,087 |
| 6 | Terre Haute | $1,077 |
| 7 | Jeffersonville | $1,070 |
| 8 | Lawrence | $1,066 |
| 9 | Indianapolis | $1,060 |
| 10 | New Albany | $1,039 |
| 11 | Anderson | $1,031 |
| 12 | Kokomo | $1,011 |
| 13 | South Bend | $985 |
| 14 | Bloomington | $968 |
| 15 | Mishawaka | $965 |
| 16 | Carmel | $957 |
| 17 | Elkhart | $956 |
| 18 | Fort Wayne | $956 |
| 19 | Muncie | $955 |
| 20 | Noblesville | $948 |
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Prices are estimated as the specific geographic location can decrease or increase price quotes significantly.
Trying to buy budget car insurance is difficult, and determining which company quotes the cheapest car insurance rates for drivers with a bad driving record may require even more shopping around.
Each insurance company uses a different method for setting prices, so we need to take a look at the car insurance companies with the overall cheapest rates in Indiana. It’s a good idea to be aware that Indiana car insurance rates are impacted by many things that can increase the policy price. Simply improving your credit, buying another vehicle, or getting caught speeding can cause premium changes that can make some companies higher-priced than before.
Find the Cheapest Auto Insurance for Imperfect Drivers
Travelers offers some of the best car insurance rates in Indianapolis at around $596 per year. Cincinnati Insurance, USAA, Erie, and Western Reserve also rank well as some of the best Indianapolis, IN auto insurance companies.
In this example, if you currently buy coverage from USAA and switched to Travelers, you might see yearly savings of around $71. Indiana drivers with Erie could save as much as $116 a year, and Western Reserve policyholders might reduce prices by as much as $242 a year.
To see if you’re overpaying, click here to start a quote or feel free to get quotes from the companies below.
It’s important to note that these policy prices are averages for all insureds and vehicles and and are not figured with a specific vehicle garaging location for drivers with a bad driving record. So the auto insurance company that fits your situation best may not even be in the top 36 companies shown above. That underscores the importance of why you need to quote rates from many companies using your own driver and vehicle profiles.
The vehicle model that is being insured is one of the primary factors when consumers are trying to find the best cheap coverage for drivers with a bad driving record. Vehicles with average performance, a great safety record, or a positive history of liability claims will cost much less to insure than higher performance models.
The list below illustrates auto insurance costs for some of the cheaper automobiles to insure in Indiana.
| Make and Model | Estimated Cost for Full Coverage |
|---|---|
| Ford Escape Limited 4WD | $4,134 |
| Honda CR-V EX 4WD | $4,221 |
| Chevrolet Silverado LS Regular Cab 4WD | $4,351 |
| Toyota Prius | $4,382 |
| Volkswagen Jetta 2.0T Station Wagon | $4,386 |
| Ford Edge SE 2WD | $4,552 |
| Toyota Camry LE | $4,599 |
| Chevrolet Impala LT | $4,606 |
| Chevrolet Equinox LT AWD | $4,599 |
| Dodge Grand Caravan SE | $4,707 |
| Ford F-150 STX Super Cab 4WD | $4,759 |
| Ford Focus SE 4-Dr Sedan | $4,882 |
| GMC Sierra SLE Regular Cab 2WD | $4,934 |
| Jeep Grand Cherokee Laredo 4WD | $4,941 |
| Chevrolet Malibu Hybrid | $4,934 |
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Above prices assume single female driver age 50, two speeding tickets, two at-fault accidents, $1,000 deductibles, and Indiana minimum liability limits. Discounts applied include multi-policy, homeowner, and multi-vehicle. Price estimates do not factor in zip code location which can decrease or increase premium rates substantially.
Based on these rates, you can assume that models like the Ford Escape, Honda CR-V, Chevrolet Silverado, and Toyota Prius are a few of the cheapest vehicles to insure for bad drivers. Car insurance rates will be more costly just due to the fact that there is more liability exposure for drivers with a bad driving record, but overall those particular vehicles will probably have the least expensive rates available.
How violations and accidents impact rates
The easiest way to earn the most affordable car insurance prices in Indiana for bad drivers is to drive safe and avoid traffic citations and accidents. The illustration below highlights how speeding tickets and at-fault claims can influence premium costs for different age groups of insureds. Data assumes a married male driver, comp and collision included, $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 and a clean driving record is $1,877. Add in two speeding tickets and the average cost rises to $2,598, an increase of $722 each year. Then add one accident along with the two speeding tickets and the 12-month cost of car insurance for drivers with a bad driving record goes up to an average of $3,327. That’s an increase of $1,451, or $121 per month, just for not driving attentively!
Get discounts on Indianapolis insurance
Insurance providers that offer coverage for drivers with a bad driving record may provide rate discounts that could reduce prices by as much as 40% or more if you are eligible to receive them. A list of companies and their possible discounts are outlined below.
- Farmers Insurance has savings for business and professional, switch companies, mature driver, homeowner, alternative fuel, and bundle discounts.
- State Farm has discounts for safe vehicle, student away at school, Drive Safe & Save, driver’s education, and anti-theft.
- Liberty Mutual includes discounts for multi-policy, new graduate, new move discount, teen driver discount, hybrid vehicle, and multi-car.
- MetLife offers discounts for claim-free, defensive driver, good student, good driver, accident-free, and multi-policy.
- Progressive offers discounts including good student, multi-policy, online quote discount, online signing, continuous coverage, homeowner, and multi-vehicle.
The chart below compares insurance costs with and without discounts applied. The information is based on a female driver, three speeding tickets and two accidents, Indiana state minimum liability limits, full coverage, and $100 deductibles.
The first bar for each age group shows the average annual price with no discounts. The second bar shows the rates with marriage, multiple vehicle, continuous coverage, paid-in-full, vehicle safety, and paperless filing discounts applied. When drivers qualify for the discounts, the average savings per year on car insurance for drivers with a bad driving record is 28% or $1,441.
Should you buy full coverage?
Reducing premiums for car insurance should be important to the majority of drivers, and one easy way to buy cheap insurance for drivers with a bad driving record is to only buy liability coverage. The chart below illustrates the comparison of auto insurance costs with liability coverage only compared to full coverage. The data is based on no claims, a clean driving record, $250 deductibles, drivers are single, and no discounts are applied.
If averaged out across all ages, comp and collision coverage costs an extra $1,480 per year over and above liability coverage. That raises the question when is the right time to remove full coverage. There is no clear-cut rule of when to eliminate physical damage coverage, but there is a general guideline. If the yearly cost of full coverage is more than around 10% of the replacement cost of your vehicle minus the policy deductible, then you might consider buying liability only.
For example, let’s say your vehicle’s book value is $11,500 and you have $1,000 policy deductibles. If your vehicle is severely damaged, you would only receive $10,500 after paying the physical damage deductible. If premiums are more than $1,050 annually for full coverage, then you might want to think about dropping full coverage.
There are a few situations where dropping physical damage coverage is not a good plan. If you still have a loan on your vehicle, you have to keep full coverage to satisfy the loan requirements. Also, if your finances do not allow you to purchase a different vehicle in case of an accident, you should not drop full coverage.
Chances are good that you’re overpaying for Indianapolis car insurance
Indiana car insurance rates are impacted by many factors which can significantly increase or decrease the cost of a policy. Improving your credit rating, buying a home instead of renting, or getting a ticket for careless driving can trigger price changes resulting in some rates now being more affordable than the competition. Not only may your risk profile change, but insurance companies file new Indiana auto insurance rates every year or even multiple times each year to reflect underwriting profits or losses. Heavy losses may result in additional premium costs, while profitable underwriting can produce lower-cost Indianapolis car insurance rates.
To illustrate this point, the graph below shows the cheapest car insurance in Indianapolis, IN for a 30-year-old male driver with no accidents, a clean driving record, and solid credit. If we estimate prices based on his current risk factors, Travelers might offer the most affordable car insurance rates in Indianapolis at $724 a year. This is $516 less than the average policy premium paid by Indiana drivers of $1,240. Cincinnati Insurance, USAA, Erie, and The Hartford are the remainder of the best Indianapolis, IN auto insurance companies.
In this example, we will give the driver from the first example a claim surcharge, bad credit, and a stop sign violation. Due to the fact that every auto insurer uses their own formula to determine rates, comparing prices may now result in a different set of affordable Indianapolis car insurance companies as shown below.
Western Reserve now has the cheapest insurance rate in Indianapolis, IN with Auto-Owners, Cincinnati Insurance, Nationwide, and State Farm also having competitive pricing. This shows why it is critical to compare lots of rates to find the most affordable insurance quotes for drivers with a bad driving record. Insurance prices are influenced by many factors and can increase or decrease at any time, so the best company six months ago may now be one of the more expensive options.
If you aren’t clear which coverage you need and would like to have some advice when comparing insurance rates for drivers with a bad driving record, the professional agents shown below are a good start to help you decide which coverages are best. To find an agent in your neighborhood, click the button link following the list or click here to compare price quotes.
- GEICO Insurance Agent
3837 N High School Rd Suite 10 – Indianapolis, IN 46254 – (317) 216-0932 - Steffey Hatoway Insurance
8365 Keystone Crossing #202 – Indianapolis, IN 46240 – (317) 334-3743 - A. I. King Insurance Agency, Inc.
8604 Allisonville Rd #210 – Indianapolis, IN 46250 – (317) 841-6004 - Allstate Insurance: Sarah Franke
916 Shadeland Ave – Indianapolis, IN 46219 – (317) 359-8271 - Scott Nichols – State Farm Insurance Agent
7022 W 10th St b – Indianapolis, IN 46214 – (317) 243-3509