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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.
- Key takeaways
- How much does car insurance cost in Indiana?
- Average cost of car insurance in Indiana by provider
- How does credit score affect car insurance rates in Indiana?
- Average car insurance rates for high-risk drivers in Indiana
- How does age affect car insurance rates in Indiana?
- Indiana car insurance rates by city
- IN's minimum car insurance requirements
- How to save money on car insurance in Indiana
- Methodology
- FAQs about car insurance costs in IN
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 |
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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
Average rate:
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.
Average rate:
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