Cheap Car Insurance Companies In Indiana

The average semiannual cost of car insurance in the state of Indiana is $706.67. An insured premiums are influenced by more variables than purely their place of residence. Car insurance underwriters calculate auto insurance rates after assessing a range of criteria such as the policyholder’s age, driving record, marital status, and credit rating. We examined typical car insurance costs in Indiana across each of the predominant rating factors. We aim to provide consumers insight to identify a car insurance policy that meets their needs and budget.

*Data Methodology – Updated 3/2/2024

The Indiana car insurance rates are based on a 35-year-old male with the most popular car (Honda Accord) living in IN. The Quote is for full coverage with comprehensive at $500 deductible and collision at $500 deductible.

Indiana Minimum Liability Coverage

Indiana requires all drivers to carry minimum car insurance coverage for liability. This minimum liability insurance protects you financially in the event of an accident for which you are at fault. Indiana’s minimum liability coverage amounts are:

• $25,000 for bodily injury per person
  This covers injuries or death of one person in an accident.
•  $50,000 for bodily injury per accident
  This covers injuries or death of all people in the accident, up to $50,000 total.
• $10,000 for property damage per accident
  This covers damage to another vehicle or other property.

If you are financing your vehicle, most lenders will require you to carry comprehensive and collision coverage as well. Comprehensive covers damage not caused by a collision, like vandalism, theft or weather-related events. Collision covers damage to your own vehicle from a collision with another vehicle or object.

Penalties for Driving Without Insurance in Indiana

Indiana law requires all drivers to carry minimum liability insurance coverage on any vehicle they operate on public roads. Drivers who fail to maintain the required insurance coverage face significant penalties if caught driving without insurance.

If a law enforcement officer catches you driving without insurance, you will receive a ticket with a fine of up to $500. Your vehicle may also be impounded until you provide proof of valid insurance.

In addition to the initial fine, your driving privileges can be suspended. For a first offense, your license will be suspended for 90 days. For a second offense within five years, the suspension is one year. A third offense within five years results in a two-year suspension.

The Bureau of Motor Vehicles (BMV) will also notify your insurance company of the violation, which can lead to higher insurance premiums or cancelation of your policy altogether. The violation will remain on your driving record for at least three years and can impact your ability to obtain insurance in the future.

The only way to remove penalties for driving without insurance in Indiana is to provide proof of valid insurance coverage to the BMV and pay any outstanding fines. Drivers are encouraged to maintain insurance at all times to avoid these hefty penalties and ensure they are following Indiana laws.

Auto Insurance Rates in Indiana

Auto insurance rates in Indiana vary based on several factors. The cost of auto insurance depends on characteristics of the driver and vehicle, as well as the coverage selected.

Some of the main factors affecting Indiana auto insurance premiums include:

• Driving record: A history of traffic violations, at-fault accidents, and driving under the influence will increase rates. Insurance companies consider the severity and recency of violations when setting premiums.
• Credit history: Insurers often use credit-based insurance scores to help determine risk and set premiums. Those with lower credit scores tend to pay higher auto insurance rates.
• Vehicle type: Sports cars, luxury vehicles, and large SUVs typically cost more to insure due to higher repair costs and frequency of claims.
• Age: Younger drivers under the age of 25 generally pay higher rates due to a higher risk of accidents and claims.
• Location: Where you live and garage your vehicle affects rates. Urban areas with more traffic and claims tend to have higher premiums.
• Coverage selected: The more coverage you purchase, such as higher liability limits, collision, and comprehensive coverage, the higher your premiums will be.
• Deductibles: Choosing higher deductibles for collision and comprehensive coverage can help lower your premium.

Low Cost Car Insurance Programs and Discounts in Indiana

Indiana drivers can find affordable car insurance coverage through a variety of low cost insurance programs and discounts. The key is to identify which options might apply to your situation and make sure to discuss them when shopping for a new policy or reviewing your current coverage.

State-sponsored programs:

Indiana Auto Insurance Plan – This program provides affordable coverage for high-risk drivers who have difficulty finding insurance on the private market. Eligibility is based on having multiple violations, accidents, or lapses in coverage. Rates are higher than average but still lower than most options for high-risk drivers.

Indiana Assigned Risk Plan – This program is for drivers who have been denied coverage by at least two private insurers. Coverage is provided by an assigned insurer and rates are higher than the private market. The program is intended as a last resort option.

Potential discounts:

Multi-policy – Bundling policies for your home and auto through the same insurer can qualify for a discount of 5% to 10% on your auto coverage.

Good student – Students under 25 with at least a B average can often get a 10% to 20% discount on auto insurance.

Defensive driving course – Completing an approved driving safety course may qualify for a 5% to 10% discount.

Anti-theft devices – Having an alarm, immobilizer or other anti-theft device can reduce rates by 5% to 10%.

Loyalty – Some insurers reward customers who have maintained coverage for multiple years with loyalty discounts.

Indiana Car Insurance Statistics

Indiana car insurance statistics show that the average annual insurance premium in the state is $1,042. This is slightly higher than the national average of $935. Indiana requires all drivers to carry at least the state minimum amount of liability insurance, which is $25,000 per person for bodily injury, $50,000 per accident for bodily injury, and $10,000 for property damage.

Indiana’s car insurance statistics also reveal that uninsured motorists represent about 11% of all drivers in the state. This is higher than the national average of 8.6% of uninsured drivers. Having uninsured motorists on the road poses risks to those with proper insurance coverage.

Indiana has a few car insurance requirements that impact premium costs. The state requires drivers under 18 to maintain insurance for at least two years after being licensed. This helps to lower risks for teenage drivers, which typically leads to higher premiums. Indiana also has a “no-fault” auto insurance law, meaning that drivers can collect benefits from their own insurance company regardless of fault in an accident. This means higher premium costs to account for the likelihood of claims.

However, Indiana does allow for some discounts that can lower premiums. Common discounts include good student discounts for teenagers, multi-vehicle discounts, multi-policy discounts, and discounts for drivers with continuous coverage and a clean driving record. Senior citizens aged 55 and older may also qualify for discounts based on lower risks of claims.

The 10 Largest Indiana Car Insurance Companies

Indiana drivers have many options when shopping for car insurance, but some companies insure more Hoosier vehicles than others. The top 10 largest car insurance companies in Indiana by market share are:

1. State Farm – With over 19% of the Indiana auto insurance market, State Farm is the clear leader. It offers some of the most competitive rates and a wide range of coverage options.
2. Progressive – Progressive is the second largest auto insurer in Indiana, covering about 11% of insured vehicles. It is known for its simple policies and wide range of discounts.
3. Farmers Insurance – Farmers covers around 9% of Indiana drivers. In addition to standard coverage, Farmers offers rideshare insurance and other specialty policies.
4. Allstate – Allstate insures about 8% of Indiana motorists. It has a wide network of local agents and offers many discounts, bundling options, and usage-based policies.
5. Nationwide – Nationwide covers 7% of Indiana auto insurance customers. It is known for offering many coverage options, including usage-based and rideshare insurance.
6. Travelers – Travelers has a 6% market share in Indiana. It focuses on commercial auto insurance but also insures private passenger vehicles.
7. Erie Insurance – Erie has a 5% market share in Indiana. In addition to standard auto policies, Erie also offers motorcycle and antique car insurance.
8. Auto-Owners Insurance – With a 4% market share, Auto-Owners is one of the smaller companies on this list. However, it offers competitive rates and specialized coverage options.
9. Liberty Mutual – Liberty Mutual covers around 3% of Indiana drivers. It is known for offering personalized coverage and a wide range of discounts.
10. Auto-Owners Insurance – Rounding out the top 10 is Auto-Owners with a 2% market share. Like other regional insurers, Auto-Owners offers specialized coverage and personalized service.