Why You Can Trust EverQuote
EverQuote powers millions of shopper requests every month, teaming up with industry-leading insurance specialists to address real-world challenges faced by people every day. We partner with the largest insurance providers in the nation, and our content is carefully crafted by experts and reviewed by licensed insurance agents for accuracy and relevance.
Car insurance in Indiana hovers around $1,856 annually. However, if you're in Indianapolis, that number increases to around $2,001. This post covers average rates in the city, the key factors driving these costs, and some essential tips for saving money on your monthly premiums.
Current Car Insurance Rates in Indianapolis
Insurance premiums in Indianapolis vary depending on the driver and insurer. The cost of Indiana car insurance is associated with location, coverage levels, and driver history and age. For example, young drivers may pay more than the aggregate average, while older, more senior drivers pay less. The reason for the discrepancy: experience.
Typically, with age and experience comes safer driving habits. Also, with a longer driving record, it's easier for insurance companies to assess your driving profile, allowing them to determine risks more accurately.
Regardless of age, a record with numerous traffic violations, including tickets and accidents, can increase your premiums. The more violations you have, the greater your risk of accidents or claims. Insurers don't like to pay out claims, so they will charge higher premiums to deter riskier drivers.
With all that in mind, your personal quote can vary. Based on internal EverQuote data, most insurance premiums in Indianapolis are higher than the state average across various providers. However, there are several that offer lower annual premiums, including:
- Travelers: $1,219 annually
- USAA: $1,471 annually
- Progressive: $1,639 annually
Other insurance companies offering premiums under the aggregate average for Indianapolis include:
- Auto Owners: $1,887 annually
- Grange Insurance: $1,919 annually
The remaining insurers from our internal data (Safe Auto Insurance, Farm Bureau, Allstate, and Farmers) were $300 to $700 above the city average.
Factors Driving Indianapolis Premiums
Indianapolis is the largest city in Indiana. It has a population of over 2 million people, making up almost a third of the state's population. In such a densely populated area, insurance companies see a greater chance of accidents and claims. More people typically means more cars on the road, which historically leads to more accidents. To reduce the expense and risks of increased claims, insurers raise premiums in areas with greater urban density.
Another common issue in heavily trafficked and populated areas is an increase in theft, vandalism, and crime. Insurers raise rates for car insurance in Indianapolis to offset these risks.
Beyond city demographics, statistics, and personal driver profiles and histories, the biggest contributor to premium cost is coverage. State required minimums are usually the least expensive way to go, but they rarely provide adequate coverage. Most drivers will want a combination of coverage to ensure the most protection.
Liability Coverage
In Indiana, liability coverage is mandatory. Insurers often express the mandated coverage as 25/50/25. This three-part coverage refers to:
- $25,000 in bodily injury liability per person
- $50,000 in bodily injury liability per accident
- $25,000 in property damage liability per accident
These are mandatory limits, but you can (and often should) purchase higher liability coverage limits.
Collision Coverage
Collision coverage is an optional insurance coverage that pays for damages to your own vehicle following a crash, regardless of fault. It covers damages for various types of collisions, including:
- Colliding with another vehicle
- Hitting a stationary object
- Single-car accidents
- Hit-and-run accidents
This doesn't cover damage to another person's vehicle, theft or vandalism, weather-related incidents, damage from hitting an animal, or medical bills.
Comprehensive Coverage
Also optional, comprehensive car insurance covers damages to your vehicle from non-collision-related events, such as:
- Theft
- Vandalism
- Fire
- Weather damage
- Falling objects
- Animal accidents
Essentially, it covers events that collision coverage doesn't. That's why many vehicle owners combine several policies (liability, collision, and comprehensive) for full coverage. This combined approach provides the best protection and financial security.
Other Optional Add-Ons
Insurance professionals also recommend purchasing underinsured or uninsured motorist insurance. This type of coverage protects you when another driver, one without adequate coverage, hits you or causes an accident. It acts as a substitute for at-fault driver's liability insurance.
Another optional add-on is gap insurance, or Guaranteed Asset Protection coverage. This is useful for financed or leased vehicles because it pays the difference between the actual cash value (ACV) of a car and the amount still owed. If your vehicle is totaled in an accident or stolen, comprehensive and collision coverage only pays the ACV, which can be significantly less than what is owed. Gap coverage pays the difference.
Strategies to Lower Your Car Insurance Costs
There are several opportunities to find the best deals for cheap car insurance in Indiana. Whether you decide on minimum or full coverage car insurance in Indianapolis, a few ways to lower your monthly or annual premiums include:
- Bundling policies
- Enrolling in a safe driver program
- Maintaining a clean driving record
- Adjusting coverage levels
If you're moving to Indianapolis or to another city in the state, you may want to check how rates change across different zip codes. While Indianapolis is a bustling and exciting city, living just outside of it may save you hundreds on your annual premiums.
Comparing Insurers for the Best Rates
When shopping for auto insurance in Indianapolis, be sure to compare quotes from a variety of insurance companies. It's also important to review client testimonials and check the financial stability of auto insurance companies by consulting resources such as A.M. Best, Moody's, S&P, and Fitch Ratings.
Get a Personalized Indianapolis Car Insurance Quote
Car insurance in Indianapolis is higher than the state on average, but there are several companies offering fair and competitive rates. Check out the EverQuote comparison tool to compare personal quotes and policies, and get a better understanding of what insurers are offering for your budget and needs.
FAQs
What is the cheapest car insurance in Indiana?
+
How much is car insurance in Indianapolis?
+
Premiums are sourced from over 30,000 zip codes across 200 insurance companies. We estimate premiums based on public filings for policies seeking 50/100 in liability with $500 deductibles for collision and comprehensive coverage. Estimated rates are based on a 35-year-old single female with a good credit score and no history of accidents or violations driving a 2023 Toyota RAV4 LE. We partner with Quadrant Information Services to source our data and assume no unique benefits or discounts are applied for these rates (unless otherwise stated). Your own rates may be different.