How Much Is Car Insurance In Indiana?

In Indiana, the average annual cost of full-coverage car insurance is $1,745, while minimum coverage costs an average $403.

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Written by Bob Phillips
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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.

Key Takeaways

  • Drivers with a poor driving history or lower credit scores will most likely pay higher insurance rates than the average.

  • Indiana doesn’t require no-fault coverage.

  • The state has lower car theft rates compared to other places, which could be a reason why insurance premiums in Indiana are relatively low.

  • If you’re looking to save money on insurance, it’s a good idea to shop around, sometimes switching to a new provider can help you find a better deal.

How Much Is Car Insurance In Indiana?

ndiana’s car insurance rates are lower than the national average, making it one of the more affordable states for drivers. On average, full coverage costs about $1,745 per year ($145 per month), while minimum coverage is around $403 per year ($34 per month). However, individual rates vary based on factors like age, credit score, driving history, and location.

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.

Expert Tip: Indiana’s insurance rates are about 30% lower than the national average of $2,014 per year for full coverage. Shopping around can help you save even more.

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:

Age Group Average Annual Premium
16-19 $5,139
20-24 $4,243
25-29 $2,546
30-34 $1,927
35-39 $1,844
40-44 $1,736
45-49 $1,715
50-54 $1,675
55-59 $1,601
60-64 $1,579
65+ $1,811

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:

Insurance Company Average Annual Premium
State Farm $1,350
Allstate $1,295
Progressive $1,144
Nationwide $924
Travelers $856
Geico $1,050

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.

Credit Score Category Average Annual Premium
Excellent (800-850) $1,427
Very Good (740-799) $1,566
Good (670-739) $1,745
Fair (580-669) $1,978
Poor (300-579) $3,868

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.

Tip: If your credit score is below 700, improving it can save you up to 40% on car insurance. Paying off debts, making payments on time, and checking your credit report for errors can help reduce your premiums over time.

 

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:

Gender Average Annual Premium
Male $1,745
Female $1,736

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:

Driving Record Average Annual Premium
Clean Record $1,745
One Minor Violation $2,645
Multiple Violations $3,365
One At-Fault Accident $2,393
Multiple Accidents $4,115

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:

Marital Status Average Annual Premium
Single $1,745
Married $1,711
Divorced $1,745
Widowed $1,723

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:

Coverage Type Average Annual Premium
Liability Only $403
Comprehensive Only $1,745
Collision Only $6,72
Comprehensive & Collision $2,287

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.

City Average Annual Premium
Danville $1,656
Centerpoint $1,835
Stanford $1,732
Cynthiana $1,791
Westfield $1,562
Arcadia $1,622
Charlottesville $1,643
Indianapolis $1,934
  • 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.

ZIP Code Average Annual Premium
46122 $1,656
47840 $1,835
47877 $1,732
47612 $1,791
46074 $1,562
46030 $1,622
46117 $1,643
46201 $1,934

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.

How To Save On Car Insurance In Indiana

Although car insurance in Indiana is more affordable as compared to other states, there are several ways you can save on car insurance in Indiana. Here are some tips to help you get more affordable car insurance in Indiana:

Boost your credit score

Car insurance companies in Indiana may check your credit-based insurance score when setting your premium. By improving your credit, you could lower your insurance costs.

1

Get multiple quotes

To find the best rate, it’s a good idea to compare quotes from different insurance providers. Reaching out to several companies, especially after a major life change, can help you ensure you’re getting the best deal possible.

2

Choose higher deductibles

If you can afford to pay more out of pocket in case of an accident, increasing your deductible can lower your monthly premium. This might be a good option if you’re looking for ways to save money on your car insurance.

3

Consider usage-based insurance

Some insurance companies offer plans that track your driving habits. If you’re a safe driver, this could result in lower premiums, as your insurance costs are based on how you drive.

4

Look for discounts

Many car insurance providers in Indiana offer discounts for things like being a safe driver, bundling policies, or even having certain safety features in your car. Be sure to ask your insurer about any discounts you may qualify for, as they can help lower your premium.

5

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.

State Average Annual Premium
Alabama $2,054
Alaska $2,401
Arizona $2,753
Arkansas $2,497
California $3,065
Colorado $3,216
Connecticut $2,714
Delaware $2,783
Florida $4,145
Georgia $2,944
Hawaii $1,715
Idaho $1,474
Illinois $2,362
Indiana $1,745
Iowa $1,866
Kansas $2,545
Kentucky $2,814
Louisiana $4,007
Maine $1,645
Maryland $2,826
Massachusetts $2,085
Michigan $3,164
Minnesota $2,553
Mississippi $2,175
Missouri $2,576
Montana $2,405
Nebraska $2,377
Nevada $3,614
New Hampshire $1,835
New Jersey $2,866
New Mexico $2,205
New York $3,966
North Carolina $2,005
North Dakota $1,247
Ohio $1,605
Oklahoma $2,757
Oregon $2,035
Pennsylvania $2,434
Rhode Island $2,966
South Carolina $2,035
South Dakota $2,353
Tennessee $2,096
Texas $2,575
Utah $2,143
Vermont $1,495
Virginia $2,144
Washington $1,867
West Virginia $2,206
Wisconsin $1,935
Wyoming $1,756

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.

FAQs

How Much Is Car Insurance In Indiana Per Month?

On average, car insurance in Indiana costs around $100 to $150 per month, but it can vary depending on factors like driving history, the city you live in, your credit score and coverage type. It’s important to shop around to get the suitable coverage you require.

Why Is Car Insurance In Indiana So expensive?

Car insurance in Indiana is generally affordable compared to other states. However, rates can still be influenced by factors like your driving history, location, and the type of coverage you choose.

What are the minimum car insurance requirements in Indiana?

The minimum car insurance requirements in Indiana are: $25,000 for bodily injury per person, $50,000 for bodily injury per accident, and $25,000 for property damage per accident. These minimums ensure that drivers have basic coverage for accidents they may cause.

Sources

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