Because auto insurance rates fluctuate from one company to the next, shopping around is crucial if you want cheap car insurance in Indiana. Prices also depend on personal circumstances such as your age, accident history and credit score.
To pinpoint the best deals in Indiana, NerdWallet collected rates from the eight largest insurers in the state and found the three cheapest options for these driver profiles:
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Cheapest for good drivers
For drivers with no at-fault crashes, DUIs or moving violations.
The average Indiana car insurance cost for good drivers among the three cheapest companies was roughly $734 per year. Erie notched the lowest rate by a decent margin — $557 a year, about $15 a month cheaper than the next most affordable option, Indiana Farmers Mutual Insurance.
If you have a clean record, look into safe-driver discounts companies offer, such as those for avoiding accident and claims. These perks could impact which insurer is cheapest for you.
Cheapest for young drivers
For drivers in their early 20s..
Motorists in their early 20s typically don’t have major assets or savings to protect from crash-related lawsuits. For this reason, they can often select lower coverage at more affordable prices than older drivers.
We collected rates for young drivers carrying the minimum state-required coverage limits. Erie scored the cheapest estimate at $329 per year. This was more than $200 less than the best deal available for our 30-year-old good drivers, who carried higher coverage amounts.
Cheapest for drivers with one at-fault crash
If you’re found responsible for a crash, you’ll generally see a rate increase the next time you renew your policy or shop around.
Erie fetched the most affordable quote in our results, $739 per year. This was roughly $15 a month higher than the cheapest rate we found for drivers of the same age with no crashes. The most expensive sample quote we found was over $2,000 a year, however, proving just how important it is for drivers with imperfect records to compare several estimates.
Cheapest for drivers with poor credit
For drivers placed in the “Poor Credit” tier.
Most states, including Indiana, allow insurers to use a credit-based insurance score as a factor in determining rates. Poor credit can pack a wallop for car insurance: Rates from Erie, for example, tripled for having bad credit.
The lowest quote we found for this group was $1,431 per year from Indiana Farmers Mutual Insurance. That’s $874 higher than the cheapest estimate for drivers with no credit issues, and $692 more than the best deal we found for drivers with an at-fault crash.
Cheapest for retired drivers
For drivers in their mid- to late 60s who no longer use their car for commuting.
Retirees, given their reduced time behind the wheel, can score relatively cheap car insurance in Indiana.
We gathered quotes for drivers in their 60s who travel half as many miles as other groups. Erie led the pack with an average rate of $440 per year — more than $100 cheaper than the lowest estimate for our 30-year-old good drivers, who have a daily commute.
Minimum car insurance requirements in Indiana
Indiana requires residents to carry liability insurance to drive legally. This coverage pays for others’ injury and property damage costs if you cause a crash.
The minimum liability limits you must select are:
- $25,000 bodily injury liability per person
- $50,000 bodily injury liability per accident
- $10,000 property damage liability per accident
While these limits will satisfy legal requirements, they may not always be enough to pay off a legal settlement against you. A single crash could easily result in more than $10,000 in damage to another driver’s vehicle, for example. Any repairs that exceed that amount would be your responsibility.
Check out our guide to car insurance requirements by state for more details on choosing your liability limits, plus optional coverages you might want such as collision, comprehensive and uninsured motorist insurance.
Alternative Indiana car insurance
If you’re denied car insurance on the voluntary market due to credit problems, a checkered driving record or other circumstances, you can seek coverage through the Indiana Automobile Insurance Plan.
For more help finding competitive car insurance rates, try NerdWallet’s auto insurance comparison tool.
Here’s a summary of where you’ll find the cheapest insurance, by category:
Cheapest car insurance in Indiana
|Drivers with one at-fault accident||Erie|
|Drivers with poor credit||Indiana Farmers|
Alex Glenn is a staff writer for NerdWallet, a personal finance website. Email: [email protected].
For most categories, NerdWallet averaged rates from the largest insurers, for 30-year-old men and women in 10 ZIP codes and with the following coverage limits:
- $100,000 bodily injury liability coverage per person
- $300,000 bodily injury liability coverage per crash
- $50,000 property damage liability coverage per crash
- $100,000 uninsured motorist bodily injury coverage per person
- $300,000 uninsured motorist bodily injury coverage per crash
- Collision coverage with $1,000 deductible
- Comprehensive coverage with $1,000 deductible
We used a 2013 Toyota Camry in all cases. Our sample retired driver was age 67 and drove 50% fewer annual miles than other groups. Our sample young driver was age 22 and carried the minimum required coverage. These are sample rates generated through Quadrant Information Services. Your own rates will be different.