Cheapest Car Insurance in Indiana: Your 2025 Guide
Find cheap car insurance in Indiana. Compare providers, uncover discounts, and save money with coverage tailored to your needs.
Every driver in Indiana could benefit from cheap auto insurance. That’s why learning about the factors affecting coverage rates and the best Indiana car insurance companies is so important.
This guide covers all elements of car insurance in Indiana, including the cheapest options for different drivers and tips on lowering your premiums.
Average Cost of Car Insurance in Indiana
The average cost of car insurance in Indiana is $1,700 to $1,900 per year for a full coverage policy. This is much lower than the national average, making it one of the most affordable states for car insurance.
Low statistics of weather-related claims and moderate traffic congestion are some of the reasons why Indiana has such affordable rates for auto insurance.
However, it's important to note that premiums vary among individual drivers due to factors such as marital status and age. That's why we compare car insurance quotes from multiple lenders.
Cheapest Car Insurance Companies in Indiana
Indiana drivers receive some of the most competitive premiums in the country. The state is one of the best for cheap car insurance, often ranking among the top 10-15. Based on current data, the cheapest car insurance companies in Indiana are:
1. USAA
USAA is a strong option for car insurance in Indiana. The company offers the cheapest rates, but only to current and former military personnel and their family members. As a provider known for low rates and high customer satisfaction, USAA is a top choice. They offer an average annual rate of $817.
2. Geico
Geico is another good choice for auto insurance in Indiana. The company is known for its easy online quote process and mobile app experience. Geico is therefore ideal for people who prefer to manage their car insurance digitally. They offer an average annual premium of $1,079. Geico also offers discounts for good students and vehicle safety features.
3. Progressive
Progressive is the third most affordable option for Indiana drivers. They offer competitive rates, especially to people with a history of incidents like a DUI. Progressive's average annual rate for car insurance is $1,128.
| Company | Average Annual Premium | Average Monthly Premium |
|---|---|---|
| USAA | $817 | $68 |
| Geico | $1,079 | $90 |
| Progressive | $1,128 | $94 |
| Grange Insurance | $1,184 | $99 |
| Travelers | $1,208 | $101 |
Source: Cheapest Car Insurance in Indiana for 2025 (US News)
Cheapest Car Insurance, Indiana: By Age
Car insurance costs vary by age. Younger drivers often pay more due to their limited driving experience and the likelihood of getting into car accidents. On the other hand, older drivers get more affordable rates because of their extensive driving experience and tendency to drive fewer miles.
Motorists in all age groups can find cheap car insurance from the right company. Here’s a breakdown of each group:
Teens (Age 17)
Teen drivers pay the highest premiums in Indiana due to inexperience. The statewide average for this group is $4,408 for 17-year-old females and $5,498 for males.
However, there are several companies that offer rates below this average. The cheapest premiums come from Indiana Farmers Insurance, with annual rates of $2,234 for females and $2,508 for males.
Young Adults (Age 25)
Rates drop once drivers leave their teen years. Young adults have longer driving experience and are less likely to be involved in collisions.
Drivers in this category will find the cheapest car insurance rates with USAA, starting at $970 for females and $1,029 for males. But if you don’t qualify for USSA, Geico is the next cheapest. Their average annual rates are $1,187 for females and $1,214 for males.
| Company | 17-Year-Old Female | 17-Year-Old Male | 25-Year-Old Female | 25-Year-Old Male |
|---|---|---|---|---|
| Indiana Farmers Insurance | $2,234 | $2,508 | $1,697 | $1,825 |
| USSA | $2,537 | $2,823 | $970 | $1,029 |
| Geico | $3,117 | $3,210 | $1,187 | $1,214 |
| Celina Insurance | $2,856 | $10,441 | $2,637 | $3,643 |
Source: Cheapest Car Insurance in Indiana for 2025 (US News)
Adults (Age 40)
40-year-old drivers enjoy lower average rates than young adults and teens. Therefore, drivers in this age group can find affordable premiums from various insurance providers. The most affordable is USAA, with average annual premiums of $756 for females and $736 for males. However, USAA is only available to the military community. The next cheapest options are Hastings Insurance and Geico.
Seniors (Age 60)
Senior drivers see lower rates from some insurance companies because they drive fewer miles and are less likely to be involved in accidents.
However, as seniors get older, companies increase their premiums, often beginning at 70. They do so because of age-related limitations (such as hearing loss) that are likely to cause car accidents.
The cheapest car insurance for 60-year-olds is from USAA. The company offers an average annual rate of $703 for females and $706 for males. If you do not qualify for USAA, then consider Progressive, which has the second-cheapest car insurance.
| Company | 40-Year-Old Female | 40-Year-Old Male | 60-Year-Old Female | 60-Year-Old Male |
|---|---|---|---|---|
| USAA | $756 | $736 | $703 | $706 |
| Hastings Insurance | $1,016 | $1,016 | $950 | $950 |
| Geico | $1,016 | $1,138 | $890 | $1,028 |
| Progressive | $1,043 | $1,064 | $884 | $919 |
Source: Cheapest Car Insurance in Indiana for 2025 (US News)
Cheapest Auto Insurance, Indiana: By Driving Record
Your driving record is another factor that multiple companies examine to determine your premiums. A clean driving record often leads to lower rates. On the other hand, violations such as DUIs and speeding make you a high-risk driver and increase your average premiums.
The average annual cost of insurance in Indiana for drivers with violations is:
- With 1 Speeding Ticket: $2,065
- With 1 Accident: $2,241
- With 1 DUI: $3,127
However, it’s important to note that actual costs will differ depending on the insurance provider.
Cheapest Car Insurance With 1 Speeding Ticket
An insurer will increase your premiums after a speeding violation. However, drivers in this category can still get an affordable coverage policy from USAA. They offer the lowest average annual rates to drivers with a speeding ticket at $1,028.
The next cheapest option is Hastings at $1,484 per year, which is ideal for the non-military community.
Cheapest Car Insurance With 1 Accident
Indiana drivers with an at-fault accident on their record pay about 39% more for car insurance than those with a clean record. The best insurance rates for drivers in this category are from USAA. Their sample annual premium is $1,225. If you are not eligible for USAA, you may find the best rates with Hastings at $1,240.
Cheapest Auto Insurance With 1 DUI
A DUI, often called an OWI (Operating While Intoxicated) in Indiana, often results in the highest premium increase out of these three violations. It can lead to an average increase of 35% to 65%.
The most affordable insurance for drivers with a DUI in Indiana is Progressive. They offer an average annual rate of $1,341.
| Company | 1 Speeding Ticket | 1 Accident | 1 DUI |
|---|---|---|---|
| USAA | $1,028 | $1,225 | $1,572 |
| Hastings | $1,484 | $1,240 | $4,585 |
| Progressive | $1,517 | $1,651 | $1,341 |
| Geico | $1,759 | $2,022 | $2,396 |
| Grange Insurance | $1,779 | $1,585 | $2,094 |
Source: Cheapest Car Insurance in Indiana for 2025 (US News)
Cheapest Car Insurance in Indiana For Full Coverage
Full coverage car insurance includes comprehensive and collision coverage. On the other hand, minimum coverage is a legal requirement that only pays for the damage and injuries you cause to others in an at-fault accident.
In Indiana, Progressive and USAA provide some of the cheapest auto insurance for full coverage.
| Company | Average Monthly Premium | Average Annual Premium |
|---|---|---|
| Progressive | $95 | $1,145 |
| USAA | $97 | $1,161 |
| Hastings Mutual | $100 | $1,206 |
| Nationwide | $102 | $1,220 |
| Geico | $113 | $1,354 |
Source: Cheapest Car Insurance in Indiana for 2025 (Bankrate)
Cheap Auto Insurance, Indiana: Drivers with Poor Credit
Your credit history can influence premiums. Drivers with poor credit often face higher rates. However, people in this category can still find low-cost car insurance.
The cheapest company is USAA, which offers an average rate of $1,560. If you don’t qualify for USAA, then you can purchase car insurance from Grange, which offers $1,608 per year.
| Company | Average Annual Premium |
|---|---|
| USAA | $1,560 |
| Grange Insurance | $1,608 |
| Geico | $1,641 |
| Progressive | $1,817 |
| Travelers | $1,962 |
Source: Cheapest Car Insurance in Indiana for 2025 (US News)
Cheapest Indiana Car Insurance Rates by City
Car insurance costs can vary by location. Urban areas in Indiana with higher vehicle theft rates often receive more expensive premiums than rural and smaller cities. Therefore, drivers in Indianapolis or Fort Wayne may pay more for car insurance than those in Monroe and Wabash. The following cities are the cheapest for minimum coverage costs in Indiana:
| City | Average Annual Minimum Coverage Premium |
|---|---|
| Huntingburg | $365 |
| Saint Anthony | $364 |
| Celestine | $368 |
| Schnellville | $369 |
| Dubois | $365 |
Factors That Affect Car Insurance Rates in Indiana
- Driver Age: Young drivers face the highest rates because, statistically, they’re involved in more accidents due to inexperience and higher risk-taking behavior. On the other hand, adult and senior drivers (below 70) receive lower premiums.
- Driving Record: Drivers with no at-fault accidents or moving violations get the lowest premiums. Insurers see drivers with traffic violations on their records as high risk, and increase their rates.
- Credit History: A good credit score often means lower rates, while a bad one results in higher premiums.
- Location: Drivers in densely populated urban areas like Hammond and Indianapolis pay more than those in suburban or rural areas. It's because urban areas have higher rates of traffic, accidents, theft, and vandalism.
- Marital Status: Married drivers often get lower rates than single or widowed drivers, as they are statistically viewed as more stable and less prone to filing claims.
Minimum Car Insurance Requirements in Indiana
You must carry the minimum required coverage to legally drive in Indiana. The requirements are as follows:
- $25,000 bodily injury per person
- $50,000 bodily injury per accident
- $25,000 property damage liability
Bodily injury liability insurance pays for others' medical bills in an at-fault accident, up to your insurance policy's limits. Property damage liability insurance helps to cover the cost of repairing or replacing property you damage in an accident. For example, a vehicle or a fence.
Also note that in Indiana, all insurance policies must have uninsured/underinsured motorist coverage at $25,000 per person and $50,000 per accident. The driver may reject this coverage, but must do so in writing.
In Indiana, uninsured/underinsured pays for your medical expenses and property damage from an accident with an uninsured driver. It also covers hit-and-run incidents.
Risk of Minimum Liability Coverage
While these coverage limits abide by Indiana law, they may not be enough to cover costs in accidents. For example, if you get into an at-fault collision with a luxury vehicle, the damages may exceed the $25,000 limit. Therefore, you could be liable for paying the rest. In addition, you would have to pay for damage to your own car. Many drivers get higher limits for better financial protection.
Additional Coverages in Indiana
Drivers can get other coverages in the state for better protection in accidents. They include:
Comprehensive Coverage
This helps to replace or repair your car if it's damaged in a non-collision incident. For example, if a tree falls on your vehicle, comprehensive will help pay for the repairs or replacement. If you have a lease or loan on your car, lenders in Indiana will require you to have this.
Collision Coverage
This insurance helps to pay for or replace your car if it's damaged in an accident. Similar to comprehensive, lenders or lessors will require you to have it if you have a loan or lease on your car.
Medical Payments Coverage (MedPay)
Instead of mandatory Personal Injury Protection (PIP), Indiana insurers offer MedPay as an optional feature. This insurance can help pay for your or your passenger’s medical expenses in an accident, no matter who was at fault.
How To Get the Cheapest Car Insurance Rates in Indiana
Here's how you can save money on your insurance costs:
- Compare Quotes: Rates vary between companies and depending on individual factors. Compare car insurance quotes from multiple providers to make sure you don’t overpay.
- Bundle Policies: Some insurers offer discounts on bundling policies. Consider combining auto insurance with renters/homeowners insurance for discounts.
- Maintain a Clean Record: Good drivers with a clean record often get lower rates. Avoid traffic violations to pay less insurance.
- Improve Your Credit: In most states, including Indiana, providers use your credit score to determine your premiums. Higher credit scores often lead to lower premiums, so work on improving your score.
- Choose Higher Deductibles: You reduce the insurer's risk by agreeing to pay more out-of-pocket if you have a claim. As a result, they lower your monthly premium.
- Ask for Discounts: Many discounts are not automatically applied. You need to ask about them. For example, teens who maintain good grades can ask about good student discounts.
Indiana Car Insurance FAQs
What is the Best Car Insurance Company in Indiana?
The best auto insurance company in Indiana depends on factors such as driving history and coverage types. For example, USAA is the best option for military families. On the other hand, Progressive is the most affordable for drivers with a DUI on their record.
How Much Does Car Insurance in Indiana Cost?
The average driver pays about $1,700 to $1,900 per year for full coverage car insurance in Indiana.
Is Indiana Car Insurance High?
No. Indiana ranks among the states with the cheapest car insurance in the U.S.
Can I Drive a Car Without Insurance if I Just Bought it in Indiana?
No. Indiana requires proof of insurance before you can legally drive your car. There is no grace period for new vehicles.
How Long is Your License Suspended for No Insurance in Indiana?
Your driver's license may be suspended for 90 days to one year for driving without car insurance in the state.
How Do I Get the Cheapest Car Insurance in Indiana?
Shop around for personalized rates and maintain a clean driving record. You can also improve your credit score and choose minimum coverage if appropriate.
Do I Have to Buy Uninsured Motorists Coverage in Indiana?
No. All providers in Indiana must offer uninsured motorist coverage. You, as the policy buyer, may opt out of it but must do so in writing.
