How Much Is Car Insurance In Indiana?

Car insurance in Indiana is affordable compared to many other states. The average annual cost for full coverage is $1,745, which is significantly lower than the national average of $2,629. For minimum coverage, the average cost is $403 per year, much less than the national average of $742.

In this article, we’ll explore the different types of car insurance available in Indiana, their costs, and the factors that influence your rates. With over 12 years of experience as a licensed insurance agent, I’m here to help you make an informed choice.

Indiana’s lower-than-average insurance rates stem from moderate traffic congestion, lower accident rates, and a competitive insurance market. However, individual costs vary based on several factors:

Key Factors That Influence Indiana Car Insurance Rates:

• Age & Experience: Teen drivers pay the highest rates (around $4,800/year), while experienced drivers enjoy lower premiums.
• Driving Record: A speeding ticket can increase rates by 20%, while a DUI could raise premiums by 50% or more.
• Credit Score: Insurers in Indiana use credit history—drivers with poor credit may pay up to 60% more.
• Coverage Level: Full coverage includes liability, collision, and comprehensive insurance, costing about 4x more than minimum coverage.
• Location: Urban areas like Indianapolis ($1,900/year) tend to have higher rates than smaller towns like Fort Wayne ($1,550/year).
• Insurance Provider: Rates can vary significantly—State Farm might charge $1,400/year, while Progressive could be $2,000/year for the same driver.

Cost Of Car Insurance In Indiana By Age

Age is one of the biggest factors affecting car insurance rates in Indiana. Teen and young adult drivers (16-25) pay the highest premiums due to their lack of experience and statistically higher accident rates.

On average, a 16-year-old driver in Indiana pays over $4,800 per year, while a 25-year-old pays around $2,000 per year.

As drivers gain more experience, rates decrease. The cheapest rates are typically for drivers aged 30-60, with average premiums around $1,400 – $1,700 per year for full coverage.

However, once drivers reach their mid-60s and beyond, rates begin to increase again due to higher accident risk related to slower reflexes and potential health concerns. A 75-year-old driver might pay $1,900 or more per year for full coverage.

Below is a table showing the average car insurance costs by age:

Average Indiana Auto Insurance Rates By Insurance Company

Each car insurance company determines its rates based on many factors like your driving history, where you live, the type of car you drive, and personal details. In Indiana, companies like Geico, USAA, Auto-Owners, and Progressive are known for offering great car insurance.

To find the most affordable insurance, it’s important to compare quotes from different providers and choose a policy that gives you good coverage without paying too much.

Below is a table showing the average auto insurance rates from six major providers in Indiana:

Average Indiana Car Insurance Premiums By Credit Score

Your credit score is one of the key factors that insurance companies use to determine your car insurance premium in Indiana. Generally, the higher your credit score, the less you pay for insurance, while a lower credit score could lead to significantly higher rates.

Below is a table showing the average car insurance premiums based on different credit score categories in Indiana.

Insurance companies view lower credit scores as riskier, meaning they charge higher premiums to offset the perceived risk. According to studies, drivers with poor credit scores tend to file more claims compared to those with good credit, leading insurers to increase rates accordingly.

Average Car Insurance Costs In Indiana By Gender

In Indiana, gender does have an impact on car insurance rates, but not as much as other factors like age or driving history. Generally, young men tend to pay higher insurance rates than young women because statistically, men are more likely to be involved in accidents.

Here’s a table showing the average car insurance costs by gender in Indiana:

Cost Of Indiana Car Insurance By Driver Record

Your driving record plays a major role in determining your car insurance premiums in Indiana. Safe drivers with no violations get the lowest rates, while drivers with speeding tickets, at-fault accidents, or DUIs will see significant premium increases.

Here is a table displaying average car insurance costs based on different driving records in Indiana:

Insurance companies assess risk based on past violations. If you have a history of reckless driving, insurers assume you’re more likely to file claims, which leads to higher premiums. Major violations, such as a DUI, can nearly double your rates and may stay on your record for up to 10 years in Indiana.

Average Indiana Auto Insurance Costs By Marital Status

In Indiana, your marital status can influence your car insurance rates. Married drivers typically pay a bit less for insurance compared to single drivers. Insurance companies see married individuals as more stable and less likely to engage in risky driving, which lowers the chances of making a claim.

Here is a table displaying average car insurance costs by marital status in Indiana:

Cost Of Car Insurance In Indiana By Coverage Type

The type of coverage you choose can have a big impact on your car insurance rates in Indiana. Full coverage costs more than just liability insurance because it provides more protection. On average, full coverage insurance in Indiana costs about $1,745 annually, while a basic liability policy is cheaper at around $403 annually.

The more coverage you add, such as collision or comprehensive, the higher your premiums will be. Here is a table displaying average car insurance costs by coverage type in Indiana:

Average Indiana Car Insurance Rates By City

Where you live plays a major role in your car insurance rates because it influences the risk of accidents, theft, and vandalism. Insurance companies look at data to see which areas are more likely to have claims, helping them decide how much to charge for coverage.

In the following table, we explore the average car insurance costs in eight different Indiana cities to illustrate these differences.

• Urban Areas (e.g., Indianapolis, South Bend): Higher rates due to more traffic, higher accident rates, and increased theft/vandalism.
• Suburban & Rural Areas (e.g., Arcadia, Carmel): Lower rates because of fewer accidents, less crime, and less traffic congestion.
• Weather Risks: Cities that experience severe storms, flooding, or icy roads may see higher rates due to increased claims.

Average Indiana Car Insurance Rates By ZIP Code

Your ZIP code plays a major role in your car insurance rates. Insurance companies assess accident trends, crime rates, and population density within each ZIP code to estimate risk levels.

Areas with high traffic, theft, and frequent accidents will have higher premiums, while safer neighborhoods typically enjoy lower rates.

The table below shows the average car insurance rates in various Indiana zip codes, highlighting how rates vary depending on the location.

Why Do ZIP Codes Affect Car Insurance Rates?

• High-Traffic Areas (e.g., Indianapolis – 46218) → More accidents, leading to higher claims.
• High-Crime Areas (e.g., South Bend – 46601) → More car thefts and vandalism, increasing premiums.
• Weather Risks (e.g., Evansville – 47713) → Areas prone to storms or flooding may see higher insurance costs.
• Suburban & Rural Areas (e.g., Arcadia – 46030) → Lower traffic and fewer crime risks result in cheaper insurance rates.

Indiana Car Insurance Prices Compared To Other U.S. States

Car insurance rates vary widely across the U.S. due to state laws, accident rates, population density, and weather risks. Indiana has some of the most affordable car insurance rates compared to other states, primarily due to lower population density and fewer extreme weather events.

In the following table, we provide you with a comprehensive comparison of average car insurance rates across all U.S. states, providing a clearer picture of how Indiana fares on the national level.

Why Is Indiana’s Car Insurance Cheaper Than Many States?

• Lower Population Density → Fewer accidents and claims than congested states like California or Florida.
• Less Extreme Weather → Fewer hurricanes and natural disasters compared to Texas or Florida.
• Lower Minimum Coverage Requirements → Indiana’s minimum liability requirements are less strict than Michigan or Florida, keeping costs lower.
• Competitive Insurance Market → More insurers operating in Indiana keeps rates more affordable.