Best car insurance companies in Indiana
Fact-checked with HomeInsurance.com
Nearly 4,500,000 licensed drivers fill the roads in the state of Indiana. Every driver is required to carry a minimum amount of car insurance in order to be compliant with state laws.
For drivers looking for the best car insurance in Indiana, we have provided an overview of the top providers by market share. Our report includes a look at what the average rates are for Indiana and how these rates are affected by your driving record. You can also compare rates by provider and major cities in Indiana.
The best car insurance companies in Indiana 2021
- USAA: Best for military members
- Erie: Best for cheap rates
- American Family: Best for comprehensive coverage
- Auto-owners: Best for discounts
- State Farm: Best for safe drivers
|Company||J.D. Power Score||AM Best||Discounts offered||Average rate|
|USAA||5/5||A++ (Superior)||Vehicle storage, annual mileage||$887|
|American Family||3/5||A (Excellent)||KnowYourDrive program, switch providers||$1,041|
|Auto-Owners||3/5||A++ (Superior)||Life multi-policy, favorable loss||$1,067|
|State Farm||3/5||A++ (Superior)||Drive Safe & Save program, Steer Clear program||$1,067|
|Erie||3/5||A+ (Superior)||Reduced usage, young driver||$880|
USAA : Best for military members
USAA only sells car insurance coverage to military members, veterans and their immediate family members. If you meet the criteria, you won’t find a better insurance provider than USAA. The company offers robust coverage options, good discounts, affordable policies and exceptional customer service. There are also specific coverages and savings opportunities for active-duty servicemembers.
Erie: Best for cheap rates
Indiana drivers that want the cheapest car insurance rate should consider Erie. In Indiana, the average driver pays just $880 a year for a full coverage policy from Erie, making it the most affordable provider on our list. Erie also offers good coverage options, including some unique policies, like pet insurance, locksmith services and a glass repair deductible waiver.
American Family: Best for total coverage
American Family is our top recommendation for Indiana drivers who want total coverage to protect their vehicle and their liabilities as a driver. With American Family, policyholders get access to a diverse array of coverage options, including gap insurance, roadside assistance, accident forgiveness, rideshare insurance, OEM coverage, travel coverage and more.
Auto-owners: Best for discounts
The average Indiana driver pays $1,067 for a full coverage car insurance policy from Auto-owners, which is pretty affordable. However, drivers can save even more money by taking advantage of Auto-owners’ discounts. The company offers discounts for bundling insurance policies, insuring multiple vehicles, paying in full, getting a quote in advance and being a good student, to name a few.
State Farm: Best for safe drivers
State Farm is a household name in insurance, and it’s one of the biggest car insurance providers in Indiana. We recommend State Farm to drivers who are confident in their safe driving skills. The company offers two safe driver reward programs, Drive Safe & Save for adults and Steer Clear for young drivers, which can help drivers save significantly on their policy.
Average cost of car insurance in Indiana
The average Indiana driver pays $1,205 per year for insurance, which breaks down to about $100 each month for 12 months of coverage. In comparison, the national average car insurance rate in the United States is $1,555 per year for a 12 month, full coverage policy. The average minimum coverage rate across the U.S. is $545 for a 12 month premium.
While these rates may be useful in your comparison-shopping, please keep in mind that the following rates represent averages for Indiana and may not reflect your actual premium quote.
In Indiana, drivers with one speeding ticket or one accident on their record will pay more for insurance than drivers with a clean record, on average. Here’s a look at how driving record affects car insurance premiums in Indiana:
|Clean record||1 speeding ticket||1 accident|
Quadrant Information Services, 2020
Car insurance rates in Indiana by city
Car insurance rates in Indiana vary by city and even specific ZIP code. The table below includes the average car insurance premiums for full coverage and minimum coverage insurance in major Indiana cities:
|City||Full coverage annual rate||Minimum coverage annual rate|
Quadrant information services, 2020
In Indianapolis, the average full coverage car insurance policy costs $1,294 per year. Indianapolis is the most populated city in Indiana, with roughly 876,862 residents. Usually, the largest cities have the highest car insurance rates because there are more drivers on the road at a given time.
Fort Wayne is the second-largest city in Indiana, with a population of about 267,633 people. Insurance in the city is mostly affordable, with an average premium of $1,149 per year for full coverage, which is below both state and national averages. Car insurance in Fort Wayne is cheap, likely in part because of a low crime rate.
The average driver pays $1,232 per year for car insurance in Evansville. Car insurance in Evansville is slightly more expensive, partly because the city has a large population and a high crime rate. In 2019, there were 511 car thefts in Evansville, according to Neighborhood Scout.
South Bend is one of the cheapest cities for car insurance in Indiana, where the average driver pays $1,163 for full coverage insurance and $360 for minimum coverage insurance. Despite having a high crime rate, insurance in South Bend is cheaper, thanks to some degree to its lower population density.
Carmel has a population of under 100,000 and a relatively low population density. As a result, insurance in this Indiana city is cheaper than average. Drivers in Carmel pay an average of $1,105 a year for full coverage car insurance, making it the cheapest major city in Indiana for auto insurance.
Indiana car insurance considerations
When purchasing car insurance in Indiana, drivers should consider weather risks. Each year, Indiana gets hit with tornadoes, heavy flooding and wind storms, which can damage and destroy vehicles. Drivers should also consider the fact that 16.7% of drivers in Indiana are uninsured, even though insurance is legally required in the state.
Indiana minimum liability requirements
Indiana drivers are required to carry minimum coverage car insurance. The legal requirements are 25/50/25, which includes:
- $25,000 in bodily Injury liability coverage per person
- $50,000 in bodily Injury liability coverage per accident
- $25,000 in property damage liability coverage per accident
Drivers in Indiana must also carry uninsured/underinsured motorist coverage for bodily injury liability per person and per accident for the amounts listed above.
How we chose the best car insurance providers in Indiana
To select the best car insurance providers in Indiana, we looked at the biggest providers in the state by market share and evaluated each one based on third-party ratings, financial strength, average premiums, discounts, coverage options and customer service reviews.
Other car insurance providers in Indiana to consider
In addition to the five best car insurance providers on our list, there are several other car insurance companies we recommend to Indiana drivers.
|Company||J.D. Power Score||AM Best||Discounts offered||Average rate|
|Allstate||3/5||A+ (Superior)||Responsible payer, safe driving club||$1,264|
|Progressive||3/5||A+ (Superior)||Snapshot program, distance student||$1,312|
|Nationwide||3/5||A+ (Superior)||Safe driver, affinity member||$1,254|
|Indiana Farmers Mutual||N/A||A (Excellent)||Multi-policy, claims-free||$1,288|
|Indiana Farm Bureau||N/A||A (Excellent)||DriveTrend program, accident-free||$1,249|
Allstate is one of the most popular car insurance companies on the market. The company has excellent claims satisfaction ratings from J.D. Power, and good financial strength. Allstate also offers a variety of discounts for drivers in Indiana.
Nationwide is a great insurance provider for Indiana drivers who want customizable coverage and a variety of discounts. The average full coverage premium is $1,254, but drivers can save money by being a good student, being accident-free and much more.
Progressive’s car insurance policies are on the more expensive side, compared to averages from other providers in the state. The average Progressive policyholder pays $1,312 per year in Indiana for full coverage. However, Progressive offers tons of discounts that can help drivers save on their premium, including the Snapshot program for safe drivers.
Indiana Farmers Mutual
Indiana Farmers Mutual is a small, local insurance company. It’s a great option for drivers who care about personalized customer service, and people who prefer to work with an agent for their insurance needs.
Indiana Farm Bureau
Indiana Farm Bureau is another local insurance company that offers highly-rated customer service and good coverage options. The company also offers a long list of impressive discounts, which can help drivers get a cheaper premium.
Coverage utilizes Quadrant Information Services to analyze quoted rates from thousands of ZIP codes across all 50 states and Washington, D.C, using the top 15 carriers by premiums written by state. Quoted rates are based around the profiles of a 30-year-old man and woman with clean driving records, good credit and the following full coverage details:
- $100k bodily injury liability per person
- $300k bodily injury liability coverage per crash
- $100k property damage liability coverage per crash
- $500 collision coverage deductible
- $500 comprehensive coverage deductible
Minimum coverages were applied to match state requirements. Both drivers used a new, financed 2018 Toyota Camry, commuting 5 days a week and driving 12,000 miles per year.