Average Cost of Car Insurance in Indiana for 2023

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 car insurance in Indiana is about 24% cheaper than the national average.

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.

Key takeaways:

• The average cost of car insurance in Indiana is $1,160 per year for full coverage policies.
• State-minimum coverage averages just $34.33 per month.
• 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 — about $369 less than the national average of $1,529. 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 offered 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

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	$1,312/year	$1,874/year	$714
DUI	$1,312/year	$2,055/year	$895
Speeding ticket	$1,312/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
Fort Wayne	$1,201/year
Evansville	$1,293/year
South Bend	$1,307/year
Bloomington	$1,295/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.

FAQs about car insurance costs in IN