The Cheapest Car Insurance in Indiana

From farmland to the cityscape of Indianapolis, Notre Dame to the sand dunes, there are plenty of places to go and things to see in the Hoosier State–but only if you have adequate car insurance at the best price. In Indiana, auto insurance isn’t too expensive, but it takes some work to get the cheapest rates. 

The average cost of a full coverage policy in the state is about $1,210 annually, about 30% less than the national average of $1,670 annually. While getting a policy with a premium lower than the national average might be easier than in most states, it’s not always a guarantee? Let’s find out how to get the cheapest auto insurance in Indiana without sacrificing coverage.

Cheap insurance in Indiana may be relatively easy to find, but there are a few ways to tack on additional savings to your policy. We’re here to help you narrow your search to find the best policy in the state for a price your wallet will love. The average full coverage policy in Indiana costs about $1,210 annually; the average minimum coverage comes in at almost half the cost.

Indiana car insurance laws and requirements state all drivers must carry at least $25,000 of bodily injury liability per person, $50,000 of bodily injury liability per accident, and $25,000 of property damage liability per accident, otherwise listed on your policy as 25/50/25 liability coverage. A policy with just liability coverage is considered a minimum coverage policy and is considered the most affordable car insurance in Indiana.

When binding a policy, your insurer must recommend you carry the same 25/50/25 limit for uninsured motorist coverage (UM), but you can reject this coverage by signing a waiver. If you lease or finance your vehicle, your lender or leaser will likely require you to have a full coverage policy with comprehensive and collision coverages.

Premiums vary extensively from driver to driver because insurers use unique facts about you to determine your rates. Things like age, gender, ZIP code, the type of car you drive, and several other factors help insurers assess your risk factor, which allows them to determine your premiums.

When an insurer feels the characteristics of a person statistically put them at a higher risk to insure, that increased risk is reflected in a higher premium. For example, young men are statistically more likely to cause car accidents than any other type of driver, so they typically pay higher premiums.

While finding cheap base rates and other ways to lower your premiums is possible for all drivers, it’s essential to know that some fixed details about you may cause your premiums to be higher than average. Let’s check out a few ways to find a cheap policy in the Hoosier State, regardless of your fixed characteristics or risk.

The first step to finding the lowest auto insurance rates in Indiana is figuring out what you value in a policy. When it comes to an auto insurance policy, there are two major things to look for: cost and coverage.

If you value coverage over cost, the best policy for you will likely be a full coverage policy from a top insurer in the state with plenty of options for additional coverage types. If you value cost over coverage, the best policy for you will likely be a minimum coverage policy from an insurer with low base rates and several discount options.

If you’re unsure what you value more or value both coverage and cost equally, the best policy for you will likely be a full coverage policy from an insurer that offers low-cost auto insurance for Indiana residents and several opportunities for discounts. There are plenty of ways you can maintain great coverage while still finding cheap auto insurance in Indiana. Let’s check out a couple of ways policyholders in the Hoosier state save on their policies.

The first step to getting a cheap policy is to lower your coverage to the legal minimum required in the state. In Indiana, that legal minimum is a policy with 25/50/25 liability coverage. If you lease or finance your vehicle, your legally binding contract may require you to have other coverages on your policy. Lowering your coverage is the easiest and most drastic way to save on your policy.

Base rates typically don’t deviate far from the state’s average, regardless of whether you have a minimum or full coverage policy. While the ratio will generally remain the same, reducing your coverage will always dramatically reduce your premiums. However, reducing your coverage to the legal minimum isn’t always the best idea.

While it’s always important to do what’s best for you and your financial status, sacrificing coverage for savings in the name of cheap insurance in Indiana may not be in your best interest. In many cases, it’s more cost-efficient to pay higher premiums for better coverage than to cash in on the short-term savings of a minimum coverage policy and get caught in a bind when your policy doesn’t cover the expenses you may incur because of an accident.

Significantly reducing your coverage means you’re far less protected on Indiana’s long, expansive roads. For example, say you cause an accident on your way to see the World’s Largest Ball of Paint, and you only have minimum coverage on your policy. In a situation like this, once you reach your deductible, your 25/50/25 liability coverage will help the other driver in the accident you caused pay for their medical expenses up to your policy limit. After you’ve exceeded your policy limit, you’re liable to pay the remainder of the other driver’s expenses out of your pocket, not to mention any costs you incur. 

While $25,000 is a decent liability limit, hospital stays often exceed this cost. In many cases, the short-term savings of lowering your coverage to lower your premiums aren’t equal to the long-term savings of carrying a full coverage policy with a higher liability limit and a more comprehensive range of coverages.

One of the best ways to save on a policy without sacrificing coverage is to search for insurers that offer low base rates and several opportunities for discounts. Many insurers offer a range of car insurance discounts in Indiana; some even allow you to stack them to save even more on your premiums.

The most typical type of discount requires a policyholder to meet a set of criteria. For example, insurers may offer discounts for those who drive new vehicles, vehicles with anti-theft or other safety features on their cars, or even for those who drive a hybrid or electric vehicle. Many insurers also offer discounts to policyholders who bundle multiple policies or insure multiple vehicles on one policy.

Insurers may also offer a good student discount for young drivers who earn good grades, occupational discounts (like teachers or factory workers), or veteran discounts. While these discounts don’t typically exceed 10% off your premium, something is always better than nothing.

Nowadays, many insurers offer enrollment-based discount programs where policyholders can participate to receive discounts on their policies. For example, many insurers offer good driving programs where policyholders can enroll in a road-safety course to receive a discount upon completion.

Some insurers offer telematics-based programs, too, which ask policyholders to track their driving data to receive a discount for practicing safe habits on the road. Drivers who use telematics devices may also be eligible for a low-mileage discount if they drive less than the number of miles set by their insurer, typically around 12,000 and 15,000 annually.

While telematics programs boast savings of up to 25% off your premiums, insurers may also use the data collected by telematics devices to raise your premium if you make risky decisions on the road. Before signing up for a telematics program, be honest with yourself about your driving habits. Before enrolling, read the fine print and review the terms and conditions of such a program with your insurance agent.

Finding low-cost auto insurance in Indiana is a matter of finding the insurer with the lowest base rate for your desired policy, with several opportunities for discounts to further reduce your premiums. Average rates tend not to stray too far from the state’s average premium, but it never hurts to go hunting for a deal.

Minimum coverage policies certainly have the draw of short-term savings on premiums, but they don’t have many other benefits. Here at Clovered, we recommend getting a full coverage policy from an insurer with a low base rate and several opportunities for discounts instead of sacrificing coverage for savings. While having a minimum coverage policy is legal, it may not always be the safest option. 

Let’s check out how to get some Indiana cheap auto insurance that meets your coverage needs.

Finding cheap liability car insurance in Indiana shouldn’t be too tricky since the state’s average premium is well under the national average. Many of the nation’s top insurers, like State Farm, Progressive, and Geico, offer cheap, liability-only policies in the state. While a liability-only policy is often the most affordable option, it’s essential to know that it may not always be the best.

Ensuring your policy meets your needs and values is always in your best interest. If you value cost over everything else, then a liability-only policy from a top insurer will be the best and cheapest policy for you. If you’re searching for a deal but desire more than just liability coverage, your best bet may be to get a full coverage policy with lower-than-average premiums. 

Cheap full coverage auto insurance in Indiana isn’t tough to find, but finding the best deal for you can take a bit of hunting. When it comes to cheap full coverage auto insurance, Indiana drivers will be pleased to know they live in the cheapest state for coverage, so finding a policy within budget won’t take too much effort.

Many of the nation’s top insurers offer low base rates for full coverage policies in Indiana, like Travelers, USAA and State Farm. The best way to find the cheapest policy that meets all your coverage needs is to search for an insurer with plenty of stackable discounts you can use to lower your premiums.

A full coverage policy in the Hoosier State typically includes a liability limit higher than 25/50/25 and several additional optional coverages, like uninsured motorist coverage (UM), medical payments coverage (MedPay), collision coverage, or comprehensive coverage.

The most affordable car insurance policy in the Hoosier State will be a minimum coverage policy. If you feel comfortable driving with minimal coverage, it’s ultimately the best way to save on your premiums. If you prefer a policy with more than minimum coverage but need the premiums to be as low as possible, it may be best to get a full coverage policy through an insurer with a pay-per-mile program. 

Many insurers offer pay-per-mile or usage-based insurance programs for those who drive infrequently. If you drive less than 12,000 miles annually, opting into a pay-per-mile program may be the most affordable way to keep full coverage while paying cheaper premiums. Policyholders can often stack additional discounts onto their pay-per-mile policies for maximum savings. 

Many of the nation’s top insurers, like State Farm, Progressive, Travelers, and Geico, offer lower-than-average premiums for full coverage policies in the Hoosier State. Binding a policy with a top insurer offering low base rates will help you lower your premiums and give you access to excellent nationwide service. Many of these insurers provide excellent additional coverages and a wide range of stackable discounts.

The best way to get the cheapest auto insurance policy in the state that meets all your coverage needs is to get and compare quotes from several insurers. Luckily, you’ve come to the right place for just that!

Here at Clovered, we have a free quoting tool you can use to get and compare quotes in minutes. If you prefer to chat with an agent about your quote or any remaining questions about cheap car insurance in the Hoosier State, feel free to call us at 833-255-4117 or email us at [email protected].