What’s the Average Car Insurance Cost in Indiana?

Several factors control the insurance rates in a state, but the two key components are the number of uninsured drivers and population density. Almost 15% of drivers in The Hoosier State are uninsured, just above the national average of 12%. However, the state has a low population density compared to others in the nation. It’s unique for a state to have such a high population of uninsured drivers but below-average car insurance premiums. It’s safe to assume Indiana’s low population plays a part in its below-average car insurance premiums.

Typically when a state is densely populated, its roads are packed with drivers, which leads to a higher risk of car accidents, thus, a higher risk of car accidents with uninsured drivers. Insurers factor in this risk and translate it into higher premiums. Since Indiana has a lower-than-average population, its population of uninsured drivers doesn’t put the average Indiana car insurance above the national average. 

The average cost of car insurance in Indiana is about $1,210 annually for a full coverage policy. A full coverage policy in Indiana will include liability coverage and several optional coverages, such as a first-party medical benefit like medical payments coverage (MedPay), comprehensive coverage, collision coverage, and uninsured motorist coverage (UM).

All Hoosiers are required by state law to have at least $25,000 in bodily injury liability per person, $50,000 in bodily injury liability per accident, and $25,000 in property damage liability per accident, or 25/50/25 liability coverage. A full coverage policy typically includes liability coverage with a higher limit than legally required. Many Hoosiers opt for 100/300/100 liability on their full coverage policies. 

The average car insurance in Indiana is a policy that has at least all the legally required coverages in the state, if not exceeding those coverage limits. Indiana law requires all drivers to have 25/50/25 liability coverage and requires insurers to offer UM with the same limit, which policyholders can reject if they sign a waiver. Those who lease or finance a vehicle will likely need collision coverage, comprehensive coverage, or both on their policies. 

Many drivers opt for a full coverage policy because it offers more protection on Indiana’s roads. Those with a full coverage policy in Indiana probably have a liability limit near 100/300/300, UM coverage with the same or nearly the same limit, MedPay, and collision and comprehensive coverages. 

Since Indiana is a tort state, it doesn’t have a no-fault law, nor does it require drivers to carry a mandatory first-party medical benefit (FPMB) on their policies like personal injury protection (PIP) or MedPay, average car insurance premiums are comparatively low. States that require PIP or any FPMB generally have higher-than-average premiums because these coverages are expensive.

A full coverage car insurance policy in Indiana is, on average, about $1,210 annually. A minimum coverage policy will be roughly $600 or less, considering they have about 50% less coverage. A full coverage policy in Indiana is about 30% cheaper than the national average of about $1,670. While the state average is lower than the national average, it’s crucial to remember that every driver is different, and premiums vary from person to person.

Car insurance companies use several factors about you to determine your car insurance premiums, such as age, gender, ZIP code, and several other factors. These unique things about you help your insurer determine what type of risk they take when agreeing to insure you.

Some drivers, like teenage boys or older folks, are statistically more likely to cause car accidents than drivers of other ages. Thus, drivers in these groups typically pay higher premiums because an insurer takes a higher risk insuring them. It’s also important to note that premiums will fluctuate throughout your lifetime, so even if you pay higher than average for a few years, you may pay below average a few years later.

Policyholders who insure more than one driver on a policy, especially a new driver, typically have higher than average premiums, too. The cost of one person insurance in Indiana will generally stay on par with the state’s average if the policyholder has a few years of experience under their belt and doesn’t have violations on their driving record.

Another factor that largely affects car insurance premiums is your ZIP code. If you live in a bigger city, you’re more likely to pay higher premiums because with bigger cities come densely packed roads, and with densely packed roads comes a higher likelihood of accidents. Not only are you more likely to get into an accident in a city, but you’re also more likely to get into an accident with an uninsured driver, which makes you an even higher risk to insure. 

Your characteristics certainly play a part in determining your premiums, but they aren’t the only factor. Indiana car insurance laws also play a role in determining the average cost of premiums in the state. Since Indiana is a tort state, meaning a driver must be deemed at fault to file a claim with your insurance, car insurance premiums are generally low. 

No-fault states typically require drivers to carry an FPMB, which is an expensive coverage type to have on a policy. Mandatory PIP or FPMB is a significant reason why no-fault states typically have higher-than-average premiums. 

The average car insurance cost per month in Indiana is about $100 for a full coverage policy and about $50 for a minimum coverage one. Many drivers opt for a full coverage policy since it offers much more protection at an excellent price. Car insurance is highly subjective to the policyholder’s needs, so it’s always essential to do what’s best for you. 

To determine what type of policy is best for you, you must first decide what you value more: cost or coverage. If you value coverage over cost, the best policy for you is likely a full coverage policy from an insurer that offers a broad range of additional optional coverages. If you value cost over coverage, the best policy for you is likely a minimum coverage policy from an insurer that offers low base rates and plenty of opportunities for discounts. 

Here at Clovered, we recommend having a full coverage policy since we believe it’s better to be safe than sorry. The long-term protection of a full coverage policy often outweighs the short-term savings of a minimum coverage policy.

While the average car insurance rates in Indiana for a full coverage policy are lower than the national average, ensuring you’re getting the most bang for your buck never hurts. The best way to get the insurance rates you desire is to find a few insurers that match the criteria of what you value in a policy, then gather and compare quotes from your desired insurers. 

Whether you’re binding an auto insurance policy for the first time or embarking on the search for the insurer with the best policy in the state, the best way to do so is to get and compare quotes online. Luckily, here at Clovered, quotes are our specialty! 

We have a free quoting tool right here that will get you a quote from some of Indiana’s top insurers in minutes. If you still have questions about the average cost of insurance in The Hoosier State or prefer to chat with an agent about your quote, feel free to call us at 833-255-4117 or email us at [email protected].