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Indiana has an estimated 6.7 million residents as of July 2018, according the U.S. Census Bureau, and there were 4.8 million vehicles insured in 2015. The average statewide auto insurance rates from the top ten car insurance companies are a bit higher in Indiana than some of its Midwestern neighbors. That’s because Indiana has several large cities, which tend to have higher car insurance rates than rural areas. For example, the average insurance rate is nearly $500 more in Indiana than in nearby Ohio, which has some of the lowest rates in the country.

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Cheapest Car Insurance in Indiana

Company

Average Rate

USAA

$1,630.86

Geico

$2,261.07

State Farm

$2,408.94

Nationwide

$2,711.81

Travelers

$3,393.75

Farmers

$3,437.55

American Family

$3,679.68

Progressive

$3,898.00

Allstate

$3,978.81

Liberty Mutual

$5,781.35

How We Found the Cheapest Car Insurance in Indiana

U.S. News worked with Quadrant Information Services to provide a report of average insurance rates in all 50 states from the 10 largest national car insurance companies. The rates are based on profiles for both male and female drivers aged 17, 25, 35, and 60 years. Vehicles used include the 2018 Honda Civic, 2018 Toyota RAV4, 2018 Ford F-150, 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford-F-150, with annual mileage of 6,000 and 12,000. Three car insurance coverage levels were used, as were credit tiers of good, fair, and poor. Clean driving records and records with one accident, one speeding violation and one DUI were also used in the calculations. The rates shown here are for comparative purposes only. Individual rates will differ.

How Much Does Car Insurance Cost in Indiana

Auto insurance rates in Indiana for teens are higher, which is typical for any state. Younger drivers with less experience are more likely to make a mistake that leads to an insurance claim. However, we found that those rates are less expensive in Indiana than in some other states. We saw an average rate of $6,500 for 17-year-old females and $8,300 for 17-year-old males. Those rates drop when drivers turn 25 years old, and they stay low – around $2,000 on average – for the rest of the driver’s life.

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Average Annual Car Insurance Rates in Indiana for a 17-Year-Old

Company

Single 17-year old female

Single 17-year old male

Allstate

$7,565.20

$9,540.55

American Family

$6,343.71

$9,190.20

Farmers

$8,370.49

$8,928.60

Geico

$4,534.87

$4,217.72

Liberty Mutual

$8,651.38

$13,062.91

Nationwide

$4,864.06

$6,321.73

Progressive

$9,753.98

$10,976.24

State Farm

$4,476.97

$5,737.52

Travelers

$7,586.79

$11,998.27

USAA

$2,896.12

$3,237.03

In some states, insurance companies charge significantly more for higher annual mileage or higher insurance coverage. But in Indiana, driving more or having more coverage doesn’t increase rates by a whole lot. The difference between average rates for 6,000 and 12,000 annual miles is less than $100. We found that the average rates from half of the top ten insurers – Allstate, Farmers, Nationwide, Progressive, and Travelers – are exactly the same with either mileage.

Average Annual Car Insurance Rates in Indiana Based on Miles Driven

Company

6000 miles annually

12,000 miles annually

Allstate

$3,978.81

$3,978.81

American Family

$3,635.30

$3,724.06

Farmers

$3,437.55

$3,437.55

Geico

$2,220.92

$2,301.22

Liberty Mutual

$5,627.70

$5,934.99

Nationwide

$2,711.81

$2,711.81

Progressive

$3,898.00

$3,898.00

State Farm

$2,340.60

$2,477.28

Travelers

$3,393.75

$3,393.75

USAA

$1,609.21

$1,652.50

If you choose high coverage rather than the most basic level, you’ll pay about $215 more on average. However, two of the top companies in our research actually have lower average rates for higher coverage. American Family’s high-coverage car insurance is about $50 less than its average low-coverage rate. With Nationwide, the average high-coverage car insurance is $60 less on average than the low coverage. Other insurers’ average rates were anywhere from $100 to $500 more for high coverage.

Average Annual Car Insurance Rates in Indiana Based on Coverage Level

Company

Low

Medium

High

Allstate

$3,788.37

$3,963.44

$4,184.61

American Family

$3,644.95

$3,801.44

$3,592.65

Farmers

$3,315.75

$3,430.81

$3,566.09

Geico

$2,120.54

$2,254.92

$2,407.75

Liberty Mutual

$5,592.86

$5,766.51

$5,984.67

Nationwide

$2,754.11

$2,690.19

$2,691.12

Progressive

$3,682.08

$3,837.18

$4,174.74

State Farm

$2,295.87

$2,408.11

$2,522.84

Travelers

$3,326.81

$3,425.41

$3,429.02

USAA

$1,572.60

$1,626.81

$1,693.16

Drivers with poor credit don’t fare so well in Indiana, according to our data. Those with good credit pay an average of about $2,800, while those with poor credit pay over $4,100 on average. That’s a difference of almost $1,400 a year.

Average Annual Car Insurance Rates in Indiana Based on Credit Score

Company

Good

Fair

Poor

Allstate

$3,333.41

$3,669.23

$4,933.78

American Family

$2,736.68

$3,268.76

$5,033.60

Farmers

$3,030.46

$3,270.95

$4,011.24

Geico

$1,801.79

$2,261.08

$2,720.35

Liberty Mutual

$4,634.67

$5,011.34

$7,698.03

Nationwide

$2,439.15

$2,608.29

$3,087.99

Progressive

$3,588.63

$3,806.34

$4,299.03

State Farm

$1,623.54

$2,093.87

$3,509.42

Travelers

$3,199.97

$3,202.25

$3,779.03

USAA

$1,244.14

$1,451.50

$2,196.92

Indiana drivers also see bigger jumps in their rates after a making a mistake than some other states. The study looks at four groups: drivers with a clean driving record, with a single speeding violation, with a single accident, and with a DUI, from the 10 major insurance companies in Indiana. With one speeding violation, average rates jump from $2,650 for a clean record to over $3,000. A single accident can lead to higher premiums by about $1,000 on average, and a DUI conviction brings the average rate up to almost $4,000 – about $1,300 more than what a driver with a clean record pays on average.

Average Annual Car Insurance Rates in Indiana Based on Driving Record

Company

Clean record

With 1 speeding violation

With 1 accident

With 1 DUI

Allstate

$3,174.79

$3,776.13

$4,664.15

$4,300.16

American Family

$2,536.48

$3,021.53

$4,042.61

$5,118.11

Farmers

$3,075.78

$3,395.36

$3,585.80

$3,693.27

Geico

$1,484.10

$2,060.76

$2,335.92

$3,163.50

Liberty Mutual

$4,508.66

$4,968.62

$5,316.60

$8,331.50

Nationwide

$2,331.76

$2,626.47

$3,006.36

$2,882.65

Progressive

$2,920.38

$4,063.94

$5,122.01

$3,485.66

State Farm

$2,352.35

$2,352.35

$2,578.70

$2,352.35

Travelers

$2,882.78

$3,092.74

$3,562.60

$4,036.88

USAA

$1,231.70

$1,526.86

$1,753.24

$2,011.63

Indiana Auto Insurance Minimum Coverage Requirements

Indiana’s minimum car insurance requirements are similar to what many states require:

  • $25,000 of bodily injury liability coverage per person
  • $50,000 of bodily injury liability coverage per accident
  • $25,000 of property damage liability coverage per accident

Indiana is an “at-fault” state, which means that whoever caused the accident is the one whose insurance must pay for the repairs and medical costs.

The state also requires insurers to offer underinsured motorist (UIM) coverage, which covers you in the event an at-fault driver does not have the required insurance. In that case, you can recover the costs to repair your car or pay for medical bills from your own insurance company. While Indiana requires insurers to offer UIM insurance, drivers can waive this coverage in writing when getting a new policy.

Cheapest Car Insurance in Indiana

The study shows that drivers who are middle-aged or older have the cheapest auto insurance rates in Indiana. That’s typical in most states, but Indiana’s rates are a bit lower than other states. Average rates for 35-year-olds are about $1,900, and they drop another $150 to $200 at age 60.

A good credit score counts for a lot in Indiana. Drivers with good credit scores see average rates of $2,763, which is about $250 less than those with medium credit scores. And it should come as no surprise that drivers with a clean record paid the lowest rates too, with an average of $2,650.

Smaller cities also have lower average car insurance rates. With a population of 67,000, Lafayette has the lowest average rate in our study, at just under $3,000. This city is a one-hour drive from Indianapolis and two hours from Chicago, so most drivers are unlikely to visit these high-traffic cities on a daily basis.

Likewise, with a population of 70,000, Muncie has the second-lowest average rate in Indiana of just over $3,000. Although its population is a little larger than Lafayette’s, Indianapolis is only a one-hour drive away, and it takes four hours to get to Chicago.

Average Annual Car Insurance Rates in Indiana by City

City

Average Rate

Lafayette

$2,950.12

Muncie

$3,018.33

Carmel

$3,070.68

Noblesville

$3,072.11

Richmond

$3,114.09

Columbus

$3,128.17

Greenwood

$3,135.15

Elkhart

$3,151.18

Bloomington

$3,167.84

Fishers

$3,170.62

South Bend

$3,261.45

Anderson

$3,300.39

Fort Wayne

$3,304.84

Kokomo

$3,312.74

Terre Haute

$3,436.15

Jeffersonville

$3,559.55

Indianapolis

$3,604.96

Evansville

$3,611.04

Hammond

$4,419.94

Gary

$4,653.64

Why Car Insurance Rates Vary in Indiana

Cities in Indiana that are suburbs of Chicago see much higher average rates. Gary and Hammond are among the most expensive for the Indiana, with average rates of $4,653 and $4,420. As always, cities with larger populations have more vehicles, and that means there are more chances to get into accidents that lead to claims.

Evansville has the third highest average rate in the state, at $3,611. That’s likely because it borders Kentucky and is within driving distance of St. Louis, MO; Louisville, KY; and Nashville, TN.  

Aside from location, a driver’s demographics can affect insurance rates as well. As we mentioned earlier, younger drivers with less experience are far more likely to get into accidents, so their rates are far higher. As drivers become more experienced behind the wheel, insurance rates drop. For example, in Indiana, our study found that a 17-year-old single male pays $8,300 on average. But a 60-year-old married male would pay under $1,800. That’s a huge difference of about $6,500.

In Indiana, how you drive matters more to insurance companies than the distance you drive. The average rates for 6,000 miles a year and 12,000 miles a year are very close. But as we noted earlier, the rates jump by hundreds of dollars for an accident, a speeding ticket, or a DUI. Some insurance companies, such as American Family, will nearly double a driver’s average rate after a DUI conviction. American Family’s average rate for a clean record is just over $2,500, but that average goes up to $5,100 with a DUI.

How to Get Cheapest Car Insurance in Indiana

You don’t have to be a middle-aged driver with a clean record to get a reasonable rate. There are some other ways to lower your auto insurance rates. Most of the top car insurers offer discounts for having multiple types of insurance with the same company. That could be homeowner’s or renter’s insurance along with your auto policy, or it could be insuring multiple vehicles all with the same company.

You can often find car insurance discounts for being a good student or being a member of the U.S. military. Some large businesses or organizations negotiate for discounts from major insurers as well. Check with your employer or any groups you may belong to for discounts on car insurance.

Wutthichai Luemuang / EyeEm / Getty Images

The best way to lower your auto insurance rate is to be a good driver, even if it’s not always the easiest way. That means avoiding common ways to raise your rates, such as speeding, getting into an accident, and driving while drunk. If you remain accident free for a period of time, usually starting around six months, insurance companies will often reward you with a discount on your car insurance. The longer you remain without a claim, the deeper the discount can be.

Some insurance companies, such as Allstate, offer discounts to drivers who agree to have their driving monitored. Your phone or another plug-in tracking device records your speed, the time of day you drive, and the number of hard braking incidents. These all indicate the likelihood of getting into an accident – and filing a dreaded claim.

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Important Laws Around Auto Insurance in Indiana

Indiana is an at-fault state, meaning that the person who caused the accident is responsible for paying for repairs and medical bills through their insurance. Not having the required insurance can result in your license being suspended.

Reinstating your license after a suspension for any reason, whether it’s for being an uninsured motorist or for a DUI conviction, means that you’ll have to pay for high-risk SR22 nonowner car insurance.

Indiana allows drivers to use digital insurance cards on their devices rather than carrying a paper or plastic card.

Indiana Driving Laws and Punishments

Texting while driving has been illegal in Indiana since 2011. It’s a primary offense, meaning drivers can be pulled over for this violation alone, and it can result in a $500 fine.

As in many other states, Indiana drivers with a .08 blood alcohol level will be convicted of a DUI. The limit is .02 if the driver is under 21. Violators will have their car towed and license suspended for 90 days.

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For your first offense, you could also face up to a year in jail, court fees of $300 or more, and fines up to $5,000. And don’t forget, your insurance rate will jump an average of more than $1,300 a year, according to our study.

Indiana Car Insurance FAQs

Is car insurance required in Indiana?

Yes, car insurance is required in Indiana. Here are the minimum car insurance requirements in Indiana:

  • $25,000 of bodily injury liability coverage per person
  • $50,000 of bodily injury liability coverage per accident
  • $25,000 of property damage liability coverage per accident

Which cars are required to be insured in Indiana?

All cars are required to be insured in Indiana. If you plan on putting your car in storage for at least 90 days, you need to fill out an Affidavit of Nonuse rather than registering it traditionally with the Indiana Bureau of Motor Vehicles. You don’t need to insure that car for driving, but you might want to get comprehensive car insurance to cover it against damages that might occur while it’s in storage.

When should I get car insurance in Indiana?

You should insure your vehicle as soon as you buy a car or move to Indiana

What happens if my car is not properly insured in Indiana?

If you do not have car insurance in Indiana, your license will be suspended.

Is Indiana a no-fault state?

No, Indiana is an at-fault state. That means the driver who caused the accident pays for the damages through their insurance.

Do I need uninsured motorist coverage in Indiana?

Yes, uninsured motorist coverage is required to be included in every new auto insurance policy in Indiana, though you can waive this coverage in writing at the time of purchase.

Is liability insurance required in Indiana?

Yes, drivers are required to carry liability insurance for bodily injury and property damage.

Does Indiana accept digital insurance cards?

Yes, Indiana accepts digital insurance cards.

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