The Cheapest Auto Insurance in Indiana in 2023

Most states require car insurance, including Indiana. And if you’re on a budget or just want to save, you’re probably searching for the cheapest car insurance Indiana insurers have to offer. We analyzed and compared pricing for all the top insurance companies in the Hoosier State to find the most affordable Indiana auto insurance.

The guide below also provides some tips to help you save on insurance, as well as our top five picks for best providers in the state.

Key Takeaways:

• The average monthly cost for car insurance in Indiana is $198 for full coverage and $79 for minimum coverage.
• Pekin Insurance offers the cheapest average rates for several groups, including full coverage, drivers of all ages, and drivers with a speeding ticket.
• Indiana drivers with a DUI conviction see an average rate increase of 92% but might get cheaper rates from Indiana Farmers Insurance.

Indiana’s Cheapest Car Insurance Companies

Although the average rate for car insurance in Indiana is $138 per month, several companies offer cheaper rates. Below are the top five cheapest car insurance companies in Indiana by average monthly premium.

According to our analysis, Pekin Insurance is the cheapest Indiana car insurance company, but some drivers might find cheaper options elsewhere. Insurance companies use several factors to determine rates, like age, driving history, coverage level, and ZIP code. Using these demographics, we compared quotes from some of the best companies in Indiana to find the most affordable car insurance for Indiana drivers.

How we chose the cheapest companies in Indiana

Our team analyzed thousands of rates from dozens of the top insurance companies in Indiana. Using that data, we listed the five cheapest options for Indiana drivers based on several key factors, such as age, coverage level, driving history, and more. All the rates listed are based on someone who drives a 2016 Honda Accord and has the minimum limits for coverage in Indiana. The listed “full-coverage” rates include $500 deductibles for collision and comprehensive coverages in addition to state-minimum liability coverage.

The Average Cost for Indiana Car Insurance

Indiana drivers pay a monthly average of $79 for state minimum liability insurance. The average monthly cost for full coverage is $198. These rates are more than 30% cheaper than the national average and are cheaper than rates in the neighboring states of Illinois, Kentucky, and Michigan. Ohio is the only Indiana neighbor with cheaper average rates.

One reason Indiana rates may be lower is the high number of roundabouts (also known as traffic circles) across the state. An analysis in the Journal of Safety Research found these traffic patterns led to fewer crashes in single-lane roundabouts by 51%. In double-lane roundabouts — most common in Carmel, Indiana — there were 63% fewer crashes.

Cheapest Car Insurance Rates for State-Minimum Insurance: Indiana Farmers Insurance

The amount of coverage you choose will factor into your Indiana auto insurance premiums. You can find the five cheapest companies for Indiana’s state-minimum coverage limits ($25,000 in bodily injury coverage per person, $50,000 in bodily injury coverage per accident, and $25,000 in property damage coverage) in the table below:

State-minimum coverage protects others if you cause an accident, but it doesn’t cover physical damage to your own vehicle. We found Indiana Farmers offers the cheapest rates in Indiana for basic state-minimum coverage. Pekin Insurance’s rates are $2 per month more, while General Casualty and State Farm follow closely behind.

Cheapest Car Insurance Rates for Full-Coverage Insurance: Pekin Insurance

“Full coverage” usually includes comprehensive and collision coverage in addition to the standard liability coverage Indiana requires. It also typically provides uninsured and underinsured motorist coverage or medical payments (MedPay).

Full coverage protects against physical damage to your car, plus coverage for you and your passengers if you get injured in an accident. These extra coverages provide more protection than liability only, which is why full coverage costs more than state-minimum insurance.

Consider Pekin Insurance for cheap full-coverage car insurance in Indiana, but Indiana Farmers Insurance and State Farm might also have affordable rates. Although we found Travelers and GEICO to be more expensive, it may be worth comparing to see which company offers the best rate for your unique driving profile.

Cheapest Auto Insurance Rates by Age

Age is one of the most important auto insurance rating factors. The older you are, the more experience you have behind the wheel, which can help you make better driving decisions. The less likely you are to make risky driving maneuvers, the better your driving record and insurance rates could be.

We compared several age ranges to show how age impacts insurance costs and which Indiana insurance providers are the cheapest in each category.

Cheapest car insurance company for Indiana teens: Indiana Farmers Insurance

Teens are generally the riskiest drivers to insure, so they pay the most for car insurance.

“Teen drivers have the highest crash involvement rates per mile driven,” says Rikin Shah, co-founder and CEO of GetSure Insurance Agency. “Factors such as their lack of driving experience, higher likelihood of engaging in risky behaviors, and increased accident rates contribute to this. Insurance premiums for teenagers are higher to reflect the added risk.”

The rates in the table below are for 18-year-old drivers in Indiana.

The table is sorted by liability-only rates, with Indiana Farmers Insurance offering the cheapest car insurance rates for teens. While Allstate beats Pekin Insurance for liability only, Pekin has slightly more affordable rates for full coverage than Allstate.

Cheapest car insurance company for Indiana drivers in their 40s: Pekin Insurance

By the time a driver reaches their 40s, rates tend to stabilize — but they can still vary quite a bit by insurance company. The table below shows rates for 40-year-old drivers, sorted by the lowest price for liability only.

Our data shows Pekin Insurance and Indiana Farmers Insurance are the cheapest companies for Indiana drivers in their 40s. State Farm and Trustgard Auto Insurance tie for mid-range liability-only rates, but State Farm is cheaper for full coverage.

Cheapest car insurance company for retirement-age drivers in Indiana: Pekin Insurance

Once you retire, you can save even more if you drive less than you did while working. Drivers close to retirement typically get some of the cheapest rates of all age ranges. The rates in the table below are for 65-year-old drivers.

Pekin Insurance and Indiana Farmers Insurance offer the most affordable average rates for retirement-age drivers. While State Farm ties with Indiana Farmers for liability only, it has higher rates for full coverage. Trustgard Auto Insurance and American Family tie for the most expensive full coverage, but Trustgard is slightly cheaper for liability only.

Compare Indiana Auto Insurance Rates by Driving Record

Your driving record and claims history may be the most crucial factors affecting your auto insurance premium. Tickets, at-fault accidents, and DUIs can cause rates to skyrocket. To find out which company is cheapest in Indiana, we compared average rates for drivers with clean driving records to those with various driving infractions.

Cheapest car insurance company for good drivers in Indiana: Pekin Insurance

Drivers with no accidents, tickets, or DUIs, earn the best car insurance rates of any group. The table below shows average rates for drivers with no accidents, tickets, or other driving convictions.

Pekin Insurance is the most affordable option for both liability-only and full-coverage insurance. Though Encompass Insurance offers liability coverage for just $2 per month more, its full-coverage rates are slightly higher. General Casualty and Indiana Farmers Insurance tie for the next-cheapest liability-only rates. Still, Indiana Farmers is cheaper for full coverage than General Casualty.

Cheapest car insurance company for Indiana drivers after a ticket: Pekin Insurance

You should expect a rate increase if you get a speeding ticket or other similar moving violation. A speeding ticket raises rates by a national average of 23%. However, the actual rate increase can vary by company and other rating factors. The table below shows data for Indiana drivers with one speeding ticket on their records.

Pekin Insurance and Indiana Farmers Insurance are the cheapest companies for Indiana drivers with a recent ticket on their driving record. Encompass Insurance is the next cheapest. Buckeye Insurance Group ties with Encompass but is $5 more on average for full coverage.

Cheapest car insurance company for Indiana drivers after an accident: Hastings Mutual Insurance Company

Causing an accident is another way to make your insurance rates go up. The average increase nationally after an at-fault accident is 43%, which can vary by insurance company. The table below shows the most affordable car insurance for Indiana drivers based on one at-fault accident.

Although Hastings Mutual Insurance is the cheapest company for liability coverage after an at-fault accident, Pekin Insurance is the most affordable company for full coverage. Pekin is just $1 per month more for liability only than Hastings Mutual, but Hastings is $14 more for full coverage.

Cheapest car insurance company after a DUI in Indiana: Indiana Farmers Insurance

A DUI conviction is one of the most severe driving infractions you can get — our data shows national average rates increase by 92% after a DUI.

Indiana drivers convicted of a DUI can also have their license suspended or may need to file an SR-22. Their insurance company may even cancel their policy.

The table below shows average rates for Indiana drivers with one DUI conviction, sorted by cheapest for liability-only coverage

Indiana Farmers Insurance is the cheapest option on average for drivers with a DUI in Indiana. Though Progressive is slightly cheaper than Pekin Insurance for liability only, Pekin is almost $30 less than Progressive for full coverage.

The Cheapest Cities for Car Insurance in Indiana

Car insurance prices can differ within the same state, city, or even ZIP code. Several factors can cause rate differences in the same area, including population density, crime rates, weather events, and vehicle repair and medical costs.

The data in the table above shows average monthly liability-only rates for cities across the Hoosier State.

As you can see, rates don’t vary much by city in Indiana, according to our analysis. Still, you can expect rate variances if you move to a different Indiana ZIP code. The cities of Mishawaka, Muncie, South Bend, and West Lafayette have the cheapest average rates in Indiana. Columbus, Elkhart, Goshen, and Kokomo all tie for fifth place, at $49 per month.

Factors That Determine the Cost of Car Insurance in Indiana

Insurance companies use different algorithms and rating structures to determine the cost of your car insurance. This is why your rate can vary by company for the same coverage options, levels, and deductibles. When buying car insurance in Indiana, several factors can significantly affect your premium.

Here are some of the factors with the most significant impact on your auto insurance costs:

• Age: The younger you are, the more you’ll have to pay for car insurance since you’re more likely to get a ticket or be involved in a car accident.
• Gender: Statistically, males make more risky driving decisions, resulting in more tickets and at-fault accidents, so they pay more for insurance.
• ZIP code: Densely populated areas are more likely to have higher rates of theft, vandalism, and car accidents, driving up insurance rates for the entire ZIP code.
• Driving record: Having a clean driving record can get you the best insurance premiums, and having a ticket, at-fault accident, or DUI conviction can lead to higher rates.
• Insurance history: Gaps in insurance coverage can increase your rate and cause other penalties, like fines or license suspension.

5 Tips to Get Cheaper Car Insurance in Indiana

GetSure Insurance Agency’s Rikin Shah recommends these five tips to get cheap car insurance in Indiana:

• Maintain a good driving record: “Avoid accidents and traffic violations, as they can increase your insurance premiums,” Shah says. “Drive safely and responsibly.”
• Check for available discounts: Take advantage of discounts such as safe driver, multi-vehicle, good student, and bundling discounts to reduce your insurance costs.
• Opt for higher deductibles: “Choosing a higher deductible can lower your premium,” Shah says, “but make sure you can afford to pay the deductible in case of an accident.”
• Consider usage-based insurance: Insurance companies offering usage-based insurance calculate premiums by your driving habits, miles driven, or both. You could save on your premiums if you practice safe driving habits and are a low-mileage driver.
• Shop often and compare quotes: Ensure you’re getting the cheapest rate by shopping regularly and comparing quotes from at least three Indiana auto insurance companies.

The Best Car Insurance Discounts in Indiana

Discounts are one of the best ways to save money on car insurance. Many drivers miss out on all the discounts they’re eligible for because there are so many to choose from, and insurers don’t always advertise them.

Here are some of the best car insurance discounts to consider in Indiana:

• Bundling discount: The single largest discount is usually the home and auto bundle, which means you insure your auto and home, renters, or condo insurance with the same company.
• Multi-car discount: You can save by insuring more than one car with the same insurance company.
• Good driver: Drivers with a clean driving record can save even more by being a safe driver.
• Vehicle safety: Cars with safety features, like antilock brakes, daytime running lights, and airbags, may be cheaper to insure than cars without.
• Anti-theft device: Having an anti-theft device, such as a vehicle recovery system, VIN etching, or GPS locator, could lower your cost of car insurance.

Indiana Auto Insurance Requirements

Indiana requires drivers to carry several auto insurance coverages to operate a vehicle legally. Below are the coverages you have to carry and the minimum coverage levels you’re required to have, according to the Bureau of Motor Vehicles (BMV):

• Bodily injury liability: $25,000 per person, $50,000 per accident
• Property damage liability: $25,000 per accident

Indiana also requires the same minimum liability limits coverage levels for uninsured motorist coverage. For underinsured motorists, it’s a good idea to carry at least $50,000 in coverage. These coverages will allow you to collect damages if someone hits you without insurance, not enough coverage, or as a hit-and-run.

Penalties for Driving Without Auto Insurance in Indiana

Indiana drivers can face multiple penalties for being convicted of driving without auto insurance, which increase with each subsequent offense.

Drivers can avoid the reinstatement fee by having their insurance company provide an SR-22 proof of insurance form to the Indiana BMV for 180 days, running consecutively. If coverage isn’t continuous, fees will reinstate, or the SR-22 clock will start over.

Other Common Types of Indiana Car Insurance

Drivers may want other common types of car insurance in Indiana to meet their personal needs aside from what the state requires. Consider new car replacement coverage if you have a newer car. It might also be worth checking out gap insurance if you’re leasing or buying a vehicle with a loan.

Roadside assistance and rental reimbursement are other optional coverages that may be worth the cost.

SR-22 auto insurance in Indiana

An SR-22 insurance form is a proof of insurance document some states, including Indiana, require for certain driving infractions. This certificate of financial responsibility (CFR) must come from your insurance company directly to the BMV as proof you carry at least the minimum state-required coverages and limits. Indiana requires you to show proof of coverage for 180 consecutive days if you have an insurance violation or conviction that suspends your driving privileges.

Uninsured and underinsured motorist coverage in Indiana

Uninsured motorist coverage may pay if someone who doesn’t have insurance or who leaves the scene of the accident as a hit-and-run hits you. Underinsured motorist coverage can pay if someone who doesn’t have enough liability coverage to pay for your injuries or property damage hits you.

Indiana requires both coverages, with uninsured motorists matching the minimum liability requirements of $25,000 per person and $50,000 per accident. The underinsured motorist coverage minimum requirement is $50,000.

Indiana Auto Insurance FAQs

Want to learn more? Here are some of the most commonly asked questions by Indiana drivers like you.

Who is the cheapest auto insurance company in Indiana?

Indiana’s cheapest auto insurance company depends on your driving record, age, coverage level, and other factors. We’ve found Pekin Insurance, Indiana Farmers Insurance, and Hasting Mutual Insurance Company offer some of the cheapest car insurance rates in Indiana.

How much is car insurance in Indiana monthly?

According to our data analysis, Indiana car insurance averages $79 monthly for minimum coverage and $198 monthly for full coverage. Your rate can differ, as it’s based on multiple factors, like your age, driving record, claims history, ZIP code, coverages, and insurance company.

Which city has the cheapest car insurance in Indiana?

Mishawaka is the cheapest city for car insurance in Indiana, according to our data. We found Muncie’s, South Bend’s, and West Lafayette’s average rates are closest to Mishawaka’s average cost of auto insurance.

How much car insurance is required in Indiana?

Indiana drivers must carry at least $25,000 per person and $50,000 per accident in bodily injury liability insurance. The minimum coverage requirement for property damage liability is $25,000 per accident. Drivers should carry at least the same for uninsured motorist coverage and $50,000 for underinsured motorist insurance.

What happens if you get caught driving without insurance in Indiana?

Your license could be suspended if you get caught driving without insurance in Indiana. To reinstate it after the first offense, you must pay $250 or provide an SR-22 showing 180 days of continuous coverage. The same SR-22 requirement stands for the second offense, or you can pay a $500 reinstatement fee.

Sources:

Indiana Bureau of Motor Vehicles. “Insurance Requirements.” Accessed June 2, 2023.

Indiana Department of Insurance. “Driver’s Manual, CHAPTER 5 | Points, Suspension, and Insurance Requirements.” Accessed June 2, 2023.

Journal of Safety Research. “Safety effects of roundabout conversions in Carmel, Indiana, the Roundabout City.” Accessed June 2, 2023.

NOLO. “Indiana Drunk Driving Laws, Penalties, and Consequences.” Accessed June 2, 2023.