Cheap Car Insurance In Indiana
Securing cheap car insurance in Indiana starts with understanding that where you live, what you drive, and even your credit score can impact your premium.
Insurance companies use a standard list of factors when calculating rates for individual consumers, and the following information can help you use those factors to your advantage.
The first step to securing a budget-friendly rate is to research the insurance companies serving consumers in Indiana.
Once you understand how they determine risks and what discounts they offer, you can compare policies and rates between those companies.
Cheap Car Insurance in Indiana
Here are the 4 best providers of cheap car insurance in Indiana:
If you’re looking for a recognizable brand that you can trust to provide competitive premiums and innovative discount programs, Progressive is one insurance company to consider.
The company has a variety of bundling options including homeowners and vehicle insurance, renters and vehicle insurance, and multi-vehicle insurance.
Learn More: Progressive Car Insurance Review
Liberty Mutual is one of the largest insurance companies in the nation, and it offers a growing list of insurance products that cover everything from standard car insurance to antique car insurance and even pet insurance.
Its customers can save up to 30 percent on car insurance for simply driving safe, and the company offers a unique program that helps customers save on out-of-pocket expenses.
Learn More: Liberty Mutual Car Insurance Review
Esurance is an Allstate-backed car insurance company that operates online rather than through in-person agents.
Working with customers primarily through its mobile app and website allows the company to cut back on overhead expenses, which translates to lower premiums for more than 5 million vehicle owners across the country.
Esurance offers a growing list of discounts that may help you find affordable car insurance in Indiana.
Learn More: Esurance Auto Insurance Review
The American Family Insurance Company has been in operation for more than 90 years and is focused on delivering exceptional customer service.
This provider is a reliable, highly stable company that openly reveals its full annual financial report and boasts more than $24 million in total assets.
Learn More: American Family Car Insurance Review
Average Cost of Car Insurance in Indiana
With an average premium cost of approximately $670, Indiana is listed as one of the least expensive states for car insurance.
When compared to the national average, Indiana is more than $200 cheaper than average premiums.
|Average Cost of Car Insurance in Indiana||$666.24|
|National Average Cost of Car Insurance||$889.01|
When insurance companies determine insurance rates for Indiana residents, they use four factors that are specific to geographical location.
What Affects Rates for Car Insurance In Indiana
These factors include traffic conditions, vehicle theft rates, population density, and disposable income.
Traffic Conditions in Indiana
Insurance companies are primarily interested in the number of fatal accidents reported in Indiana each year and the concentration of vehicles on the road.
As the number of cars on the road increases, the risk of accidents goes up as well. Some states have more fatalities from crashes than others, which is likely to increase car insurance rates for drivers.
A review of data collected by the National Association of Insurance Commissioners (NAIC) tells us that there were 0.13 fatal accidents per 1,000 registered vehicles in Indiana for the year 2014.
This rate is the same as the national average for that year, and it reflects a slight decrease in Indiana fatalities from 2013.
This data also shows that each registered vehicle in Indiana traveled an average of 13,680 miles in 2014.
This mileage is a bit higher than the national average of 12,010 miles per registered vehicle for the same year, but it’s a slight difference that is perhaps offset by the state’s average fatality rate.
Vehicle Theft Rates in Indiana
The FBI’s 2016 Crime in the United States report lists a total of 14,731 vehicle thefts in Indiana.
This figure translates to approximately 222 robberies per 100,000 inhabitants, which is slightly lower than the national average of 227.6 thefts per 100,000 U.S. inhabitants.
This factor may help decrease car insurance premiums for Indiana residents.
Insurance companies also consider the theft risk for the make, model, and year of your vehicle.
If you add one of the following cars to your insurance policy, your insurer could increase your premium because these vehicles were ranked among the most stolen vehicles in Indiana, according to the National Insurance Crime Bureau’s 2018 Hot Wheels Report:
- 1999 Ford pickup
- 2000 Chevrolet Pickup
- 2008 Chevrolet Impala
- 2001 Dodge pickup
- 2009 Toyota Camry
- 2018 GMC Pickup
- 2002 Hone Accord
- 2004 Ford Taurus
- 1996 Jeep Cherokee/Grand Cherokee
Population Density in Indiana
Returning to the NAIC report, let’s look at the impact that overcrowding in urban areas has on car insurance rates.
This calculation measures the number of people living in each square mile of a state, which also tells the insurance companies how many vehicles might exist in each square mile.
The higher the number, the more crowded the state and the more likely the insurance company could receive a higher than average number of accident claims.
In 2014, there were 184 people per square mile in Indiana.
The state’s population density remained consistent from 2012 to 2014, but it was twice the national average of 90 people per square mile.
These high population demographics could serve as a negative factor for car insurance consumers in Indiana.
Disposable Income in Indiana
We can look at one more collection of data in the NAIC report to determine whether living in Indiana gives you an advantage or disadvantage when trying to secure the cheapest car insurance premium.
The more disposable income available to a given population, the more likely they are to invest in luxury cars that are more expensive to repair or replace after an accident.
This issue may not affect Indiana residents since the state’s average disposable income was a bit over $36,000 in 2014.
That reflects a slight increase over the rate for 2013, but it is still about $4,000 lower than the national average for the same year.
What Is Mandatory for Car Insurance in Indiana?
Indiana, like most states, has mandatory minimums for insurance coverage, so it’s important to know how much car insurance you’re legally required to carry.
The Indiana Department of Insurance requires every state resident to maintain at least the following minimum liability insurance coverage:
- $25,000 property damage
- $25,000/$50,000 uninsured motorists, bodily injury
- $50,000 under-insured, bodily injury
These provisions are a bit different from the minimum liability insurance required by most other states because it includes mandatory coverage for accidents involving uninsured or under-insured drivers.
If you’re in a collision with someone who cannot cover their expenses, you can collect damages from your own insurance company even if you weren’t at fault for the accident.
If you have difficulty securing car insurance, ask any insurance company operating in Indiana about the Indiana Auto Insurance Plan.
Although this program may not qualify for the cheapest car insurance in Indiana, you can at least be assured of receiving the mandatory minimum liability coverage from a reputable insurance company licensed to sell policies in the state.
How to Reduce the Cost of Coverage in Indiana
Due to minimum liability laws, there is no way to avoid paying for car insurance in Indiana.
However, this doesn’t mean that you must settle for unreasonable premiums, because there are many ways to secure cheap car insurance in Indiana. Some of the most commonly used strategies are listed below.
Increase Your Deductible
Most people try to decrease their deductible because they don’t want to face a hefty bill if they’re ever in an accident, but higher deductibles come with higher premiums.
Raise the deductible to the highest amount that you can afford to pay out without financial hardship, and you’re likely to see your premium drop as a result.
Select Your Vehicle with Care
One great way to make sure that you get the cheapest car insurance in Indiana is by driving a vehicle that costs less to insure.
Some cars can increase your premium while others may lower it, and by checking policy rates in advance, you can then purchase a car that will reduce your premium as much as possible.
Show Your Loyalty
Many insurance companies extend discounts to low-risk drivers who remain with the company for an extended period.
These price reductions apply to basic loyalty reward programs and safe-driver programs that enhance your money-saving benefits for each year that you remain accident-free or don’t file a claim.
When it’s time to contact an insurance agent or company to secure a new policy, make sure that you have everything on hand to apply for the policy.
You will need to correctly identify every vehicle that you want to add to the policy as well as all listed drivers.
Information regarding your driving history and qualifications for discount programs can help you secure the lowest premium possible the first time around.
What Can Increase the Cost of Your Car Insurance?
You now have a few useful tips on how to secure the cheapest car insurance in Indiana, but what about any ongoing factors that might increase your premium?
It’s easy to ignore these factors since you can’t do much about them, but it’s important to recognize all relevant variables so that you can negotiate with insurance agents confidently.
- Driver Age: If you have a minor under the age of 18 listed as a driver on your policy, you can expect that to increase your premium. Some insurance companies may also raise premiums for drivers under 21 because statistics show that young drivers are more likely to have accidents or drive recklessly. Drivers over the age of 60 may also find that their premiums increase—however, it may be possible to offset this somewhat through safe driving courses.
- Vehicle Size & Age: Insurance companies look closely into vehicle specifics because they can impact the safety of the vehicle. If your car is more than five years old or you have a compact car, you could very well have a higher premium than someone driving a newer vehicle that is larger.
- Credit Score: Most car insurance companies now check credit scores, and they may look at your overall credit report. They consider your financial stability just as you should question that of the company before accepting a policy.
Shopping For Car Insurance in Indiana
Do you feel more confident about securing an affordable car insurance policy in Indiana?
You’re more likely to secure the cheapest car insurance in Indiana if you have at least three quotes from competitive insurance companies when you start to set up your policy.
Take the time to learn about the various insurance carriers licensed to issue policies in Indiana before you begin collecting quotes.
Most insurance companies use the same factors when determining what to charge each customer for different levels of coverage, but they assign a different level of priority to each of those factors.