Which Company Has the Lowest Cost of Car Insurance in Indianapolis?

Every driver in Indianapolis needs automobile insurance. Their rates will vary according to a number of factors including but not limited to credit score, driving record, auto theft rates, age, and length of commute. While other states have stiffer rates for those with poor credit, Indiana drivers should still try to maintain good credit if they hope to reduce their premiums. Since the median age for Indianapolis is over 35, some drivers should be able to find lower rates based on this factor.

Luckily for Indianapolis drivers, their average daily commute might be envied by drivers in many other metro areas. Indianapolis drivers average only 24.1 minutes driving to work every day. Since the population is just over two million citizens, this rate is quite good. By comparison, Honolulu has less than half the population and approximately 3 minutes more per commute.

However, the good news regarding commute times might be offset by the auto theft rates. In fact, Indianapolis ranked 50th in the nation for auto theft. That is, in 2018, Indianapolis recorded 7,635 total thefts for a population-adjusted theft rate of 372.67 per 100k residents. Drivers should heed this figure when assessing their auto insurance needs. Liability insurance will not cover theft-related damages, nor does it cover repairs that stem from things such as weather-related damage or hit-and-run collisions.

What is Required for Indianapolis Drivers?

Each state in the United States has its own particular insurance regulations and requirements. Indiana drivers thus fall under their own set of rules governing insurance premiums, minimum coverage amounts, and how credit applies. Nevertheless, Indianapolis drivers are not unlike drivers in, say, Chicago in that they must all carry at least a minimum of liability car insurance.

Liability policies are minimum insurance packages that are designed to cover the victims of an automobile accident. The at-fault driver should have a policy that can cover the damage to the other cars as well as medical bills of anyone who was injured. Though these policies might not cover the entire damage in a particular accident, the insurance regulators aim to set the minimum coverage at a level that should be sufficient for most accidents.

However, liability policies don’t cover things like damage done in a car-theft situation, when a tree branch crunches a roof, or injury or property damage for those who are at-fault in an accident. It is recommended that drivers carry collision or comprehensive coverage so that any damage to their automobile is covered in a timely fashion.

Most Expensive and Least Expensive Insurance Rates by Zip Code

Cheap Car Insurance in Indianapolis by Insurer

Just because Indianapolis automobile insurance is cheap does not mean that drivers’ claims will be denied. To the contrary, affordable insurance often comes with top-quality service. However, low-cost coverage might be from a company with limited scope. Drivers should research what’s included, or what is possible with higher-cost insurers.

Use our pro guide to find the best cheap car insurance quotes.

Low Cost Auto Insurance for Bad Credit in Indianapolis

Indianapolis drivers with bad credit face auto insurance rates that are almost 77% higher than drivers who have maintained spotless finances. However, they are still better off than drivers from neighboring Illinois and Kentucky. Drivers with bad credit can still work to offset these inflated rates by maintaining a good driving record, being considered a safer driver as you grow older, and being a good student. Drivers should consult with their insurance agent for ways to lower their rates.

Learn how a bankruptcy affects your credit and auto insurance rates.

Full Coverage Vs. Liability, Which is Best For You?

What is Liability-Only?

Liability-only coverage means coverage that only pays for the loss others incur if you are at fault in an automobile accident. These are for the medical expenses, other property damage or car repairs that you cause to another or their property in an accident.

One has the option of paying for more than the state minimum requirements outlined above for liability insurance. That is a good idea because you will be personally liable from your own finances and assets if you harm someone else or their property in an accident and your state minimum coverage levels do not fully reimburse the losses of the other party.

Why You May Want Full Coverage Car Insurance

Full coverage means that you not only have adequate insurance to cover the losses of others if you are at fault in an accident. Full coverage means you have all the liability coverage you need to care for the harm to others if you have an accident and are at fault, and you have coverage for your own losses as well. There are two main kinds of other coverages that drivers purchase in order to repair their vehicles in the event of an accident they cause:

What is Collision Coverage?

Collision insurance covers the cost of repairing your own car if you are in an accident that is your fault. A way to save money on collision insurance is to purchase it with a higher deductible. For example, it will likely be very expensive to have collision coverage on your vehicle with a $500 deductible, but a $1,500 deductible or a $2,000 deductible will save considerable money on your automobile full coverage policy.

What is Comprehensive Coverage?

Comprehensive insurance covers the cost of repairing your vehicle for those things that were not your fault, like extreme weather that damaged your vehicle, or a deer that walked in front of you, theft, or vandalism. Comprehensive insurance tends to be much cheaper than collision. Even those with older vehicles may benefit from carrying comprehensive insurance because it is relatively cheap and will cover things like windshield replacement.

Difference Between the Two Types of Coverage

Liability coverage kicks in when you back up and hit a kid on a skateboard you did not see. It will also pay for a gate you run into and damage.

Collision insurance pays out when you back into a large rock at a campground, denting your pickup’s tailgate. It will pay to get the tailgate repaired.

Comprehensive coverage will pay for the repair costs when something flies out of the back of a semi-truck and you end up with a cracked windshield.

Average Annual Car Insurance Rates in Indiana by City

Additional cities in Indiana you can check out.

Fort Wayne

South Bend

Utilize These Auto Insurance Discounts to Get a Lower Rate

The following auto insurance discounts can be used to help lower your premiums in Indianapolis:

  • Avoid Accidents:

    When your record is clear of at-fault accidents, insurers see you as a better financial risk. Thus, your premiums will be lower.

  • Don’t Speed:

    If you have one or more speeding tickets, your insurance rates will be higher. This is because high speeds are associated with accidents, and if you speed you are more likely to be deemed at-fault in an accident.

  • Shop Around:

    There are at least twenty auto insurance companies currently active in Indianapolis. Their premium rates are spread over a wide range, so be sure to compare prices and make sure you get the best, and most affordable, policy for you.

  • Comprehensive Insurance Packages:

    Insurance companies like when you use them for more than simple auto insurance. Thus, they frequently offer packages that include homeowner’s insurance, or other policies, on the same account. When you opt for one of these comprehensive policies, the company is often able to lower your automobile premium as part of the deal.

  • Multiple Vehicles:

    Similar to purchasing a comprehensive insurance package, combining multiple vehicles on the same policy results in lower premiums. Consider this a bulk purchase for your auto insurance.

  • Military and Student Discounts:

    Sometimes insurance companies have special discounts for certain demographics, like active military or students.

Use this guide to find discounts here.

Factors That Affect Your Car Insurance Premiums

Insurance companies factor in many variables when determining your automobile insurance rate. They look at your age, type of car, marital status, gender, and driving record, among other factors. Age is a factor because actuaries have found that older drivers tend to be safer drivers, whether due to experience or caution.

Your type of car is also important. For instance, cherry red convertible sports cars in particular might have the highest insurance rates. On this note, be aware that you might pay a lower premium for driving the sedan version of a sporty, high-horsepower vehicle. Still, what matters most is how you drive your hot-hatch or family wagon.

That’s because your driving record is perhaps the biggest single factor in your insurance rate. It is certainly the one that you have the most control over. That is, the longer you can maintain an incident-free driving record, the lower your rates are sure to be. Incidents can be anything from a minor speeding ticket to a reckless driving charge to being at-fault in a major automobile accident.

Use this guide to find low cost rates with accidents from the top insurance companies.

Helpful Indianapolis, Indiana Vehicle Resources:

Live Traffic Accidents by City

BMV (Find Locations, Vehicle Registration, Titles and Insurance Info)


Get a quote1.855.283.2631