INSURANCE - CAR INSURANCE

Average Cost of Car Insurance in Indiana for 2024

Updated Feb. 20, 2024
Fact checked
Pekin is generally the cheapest car insurance in Indiana for both full coverage and minimum liability policies.

Compare car insurance rates in your area!

See if you qualify for a lower rate in less than 2 minutes

By clicking the button below I understand and agree that this site uses site visit recording technology (provided by Trusted Form, Jornaya, and Microsoft Clarity) Privacy Policy

Check Rates

FAST, EASY & FREE

We receive compensation from the products and services mentioned in this story, but the opinions are the author's own. Compensation may impact where offers appear. We have not included all available products or offers. Learn more about how we make money and our editorial policies.

The Hoosier state has a relatively low cost of living — one of the country’s lowest — and the price of auto policies in the state corresponds with that trend. The average cost of full coverage car insurance in Indiana is $1,160, compared to the national average of $1,582.

How much you will pay depends on your location, age, credit, and driving history, but you can find inexpensive policies by shopping around and taking advantage of available discount programs.

In this article

Key takeaways

  • The average cost of car insurance in Indiana is $1,160 per year for full coverage policies.
  • State-minimum coverage averages just $412 per year.
  • Teen drivers pay an average of $2,830 per year.

How much does car insurance cost in Indiana?

Car insurance is generally less expensive in Indiana than in other states. Full coverage policies that include collision, comprehensive, and liability protection average $1,160 per year — in contrast to the national average of $1,582. And for policies that only meet the state-minimum requirements, the average cost is just $412 per year.

Avg. cost for full coverage Avg. cost for minimum coverage Cheapest insurance provider
$1,160/year $412/year Pekin
Avg. for young drivers Avg. cost for seniors Avg. for high-risk drivers
$2,830/year $1,293/year $1,590/year

Average cost of car insurance in Indiana by provider

In Indiana, you have several car insurance companies to choose from. National companies like State Farm and Allstate issue policies within the state, but getting quotes from smaller companies is also a good idea. Some smaller insurers, such as Auto-Owners, may offer lower rates than the other companies.

In Indiana, USAA had the lowest average premiums for both full coverage and minimum liability policies. If you aren't eligible for USAA, State Farm and GEICO both offer similar rates.

Provider Full coverage Minimum liability coverage
Allstate $1,549/year $675/year
GEICO $964/year $386/year
Nationwide $1,127/year $334/year
Progressive $995/year $409/year
State Farm $795/year $311/year
USAA $778/year $239/year
Auto-Owners $1,056/year $278/year

Get rates, offers & more from top rated insurance providers!

By clicking the button below I understand and agree that this site uses site visit recording technology (provided by Trusted Form, Jornaya, and Microsoft Clarity) Privacy Policy

Check Rates

How does credit score affect car insurance rates in Indiana?

Most states allow insurers to take drivers’ credit scores into consideration when setting car insurance premiums, and Indiana is no exception. Those with poor credit will typically pay significantly more for coverage. The average premium for scores below 650 was nearly double the state average.

Credit health Avg. annual premium
Poor (550-649) $2,058/year
Average (650-699) $1,456/year
Good (700-749) $1,312/year
Excellent (750+) $1,129/year

Average car insurance rates for high-risk drivers in Indiana

Speeding, driving under the influence, and driving recklessly are high-risk behaviors. If you have a driving record with these infractions, you can expect to pay much higher premiums for your car insurance.

In Indiana, a driving under the influence (DUI) conviction can increase annual premiums by an average of $895, and a speeding ticket can increase your premiums by $370 per year.

Violation Avg. annual premium before violation* Avg. annual premium after violation Avg. cost increase
At-fault accident $1,160/year $1,874/year $714
DUI $1,160/year $2,055/year $895
Speeding ticket $1,160/year $1,530/year $370

*Assumes clean driving record with good credit

How does age affect car insurance rates in Indiana?

Teens and young adults generally pay much higher rates than other age groups, even if they’ve never been in an accident. We found that the average premium for 18-year-olds is $3,156, nearly three times the state average.

Premiums typically decline as you age, with those in their 40s having the lowest average premiums.

Age Avg. annual premium
18 $3,156/year
25 $1,306/year
30 $1,207/year
40 $1,165/year
60 $1,194/year

Indiana car insurance rates by city

Where you live plays a significant role in how much you pay for auto coverage. For example, congested areas with high crime rates will have higher average premiums than suburban or rural areas.

In Indiana, the city with the highest average premium was Indianapolis. NeighborhoodScout gave Indianapolis a four on its crime rating index, which means that 96% of cities in the U.S. are safer. With such a poor rating, it’s understandable why car insurance is more expensive for residents of that city.

City Avg. annual full-coverage premium
Indianapolis$1,354/year
South Bend $1,307/year
Bloomington $1,295/year
Evansville $1,293/year
Fort Wayne $1,201/year
Carmel $1,165/year

IN’s minimum car insurance requirements

Like most states, Indiana requires all drivers to meet minimum liability insurance requirements. All drivers must have policies that fulfill these minimums:

  • $25,000 in bodily injury protection for one person
  • $50,000 in bodily injury protection for two or more people
  • $25,000 in property damage insurance

According to the Insurance Research Council, 15.8% of drivers are uninsured in Indiana, so the state also requires drivers to have uninsured motorist protection that meets the same liability minimums.

How to save money on car insurance in Indiana

To save money on Indiana auto insurance, use these tips:

  • Take advantage of discounts: Discounts vary by company, but you may reduce your premiums by 10% or more by contacting your agent and enrolling in discount programs. Available discounts may include good student, paperless billing, safe driving, and anti-theft device discounts.
  • Increase your deductible: Raising your deductible — for example, increasing it from $1,000 to $2,500 — will lower your premiums. When choosing a deductible, make sure you can comfortably cover that amount in case of an accident.
  • Sign up for usage-based insurance (UBI): UBI, also known as pay-per-mile insurance, bases your premiums on your driving habits and mileage. Depending on how you drive, you could substantially reduce your premiums.
  • Shop around: Rates and discounts vary by insurer. You can request quotes and compare options from the best car insurance companies to find the lowest rates.

Methodology

Our analysis was conducted using six different auto insurance marketplaces to determine the average cost of auto insurance in each state. The data we analyzed included coverage premiums from up to 10 different insurance providers. We looked at rates by city, driver profile, and credit score, as well as factored in the impact of driving violations. This data is for comparative purposes only. Your actual quote may be different.

FAQs about car insurance costs in IN

Is car insurance expensive in IN?

Compared to the national average, car insurance rates in Indiana are less expensive. Full coverage policies average $1,160 per year, compared to the national average of $1,582.

How much is car insurance per year in IN?

The average cost of car insurance in Indiana is $1,160 per year for state-minimum liability coverage. For full coverage policies, the average cost is $412 per year. 

  • You could save up to $500 with some companies
  • Compare dozens of providers in under 5 minutes
  • Fast, free and easy way to shop for insurance
  • Quickly find the perfect rate for you

Author Details

Kat Tretina Kat Tretina is a personal finance expert focusing on practical financial matters, including student loans, debt repayment, side hustles, insurance, and healthcare. Drawing from her personal experience, she aims to simplify complex financial topics and provide individuals with the information they need to make informed decisions.