How to Find the Most Affordable Car Insurance in Indiana

Fran
Lucy Lazarony
July 7, 2020

The average car insurance premium in Indiana costs an average of $1,133, almost 21 percent lower than the national average. So people in the Hoosier State are used to paying a little less for their car insurance. And there are ways for that car insurance to drop even lower. We’ll discuss those money saving tips and strategies later on. First, we will take a closer look at auto insurance in Indiana.

State Minimum Liability Requirements

If you ever cause a car crash, liability insurance pays for other people’s injuries and property damage, up to your liability limit. Each state has its own minimum liability requirements for drivers in their state.

In Indiana, the state minimum liability requirements are $25,000 bodily injury liability coverage per person, $50,000 bodily injury liability coverage per accident and $25,000 property damage liability per accident.

This minimum liability coverage in Indiana costs an average of $485 per year.

A Full Policy Costs More

A more comprehensive policy that includes collision coverage and comprehensive coverage and minimum liability coverage with $1,000 deductibles would cost an average of $910 annually.

Collision auto insurance is coverage that helps to repair or replace your car if it’s damaged in an accident with another vehicle or object such as a fence or a tree. Comprehensive auto insurance covers events not covered by collision coverage. These events include fire, theft, vandalism and damages from weather such as a hailstorm, a windstorm, a hurricane and a tornado.

If you are financing your car, your lender may require that you have both collision insurance and comprehensive insurance coverages.

A deductible is the amount you need to pay before your auto insurance company begins to pay for damages to your car or losses. Choosing a high deductible is one way to lower an auto premium.

Uninsured and Underinsured Motorist Coverage

Every newly written auto liability policy must include uninsured and underinsured motorists coverage unless an Indiana driver rejects this in writing, according to the Indiana Department of Insurance.

Uninsured motorist liability coverage in Indiana is $25,000 bodily injury liability coverage per person, $50,000 bodily injury liability coverage per accident and $10,000 property damage liability coverage per accident. Underinsured motorist liability coverage is $50,000 bodily injury liability coverage per accident.

Indiana Is an At-fault State

When it comes to auto insurance, Indiana is an at-fault state. This means Indiana drivers are responsible for any damage they cause to another vehicle. Who is at fault in an accident is determined by an insurance adjuster.

Cheapest and Most Expensive Cities

The cheapest city in Indiana for car insurance is Lafayette with an average yearly premium of $1,060. The most expensive city in Indiana for car insurance is Gary with an average yearly premium of $1,592.

How to Save Money on Car Insurance

There are numerous tips and strategies for saving money on car insurance. Here is a roundup. Use as many as you can.

Be a safe driver. Being a good driver and following the rules of the road will save you money on your car insurance. Indiana drivers without recent speeding tickets save 17 percent on their car insurance. Drivers with DUIs, at-fault accidents and speeding tickets will see their car insurance premiums increase in a big way. In Indiana, car insurance premiums increase by 33 percent after a DUI, 31 percent after an at-fault accident and 17 percent after a speeding ticket. So obey the laws of the road and be a safe driver. If you’ve been a good driver be sure to ask your auto insurance company for a good driver discount. You’ve earned it.

Have good credit. If you have good or excellent credit, you will save money on your auto insurance. And if you have poor or no credit, you will pay much more for your auto insurance. Insurance companies have been using consumer credit data to assign risk pools and set insurance rates since the mid-1990s. And there is a big range of auto rates depending on a consumer’s credit rating. In Indiana, a driver with excellent credit can save around $878 per year compared with a driver who has a poor credit rating. If you have bad credit, there are steps you can take. Get current on all past due accounts and work on paying down debt. Both things will help your credit score to rise.

Bundle your policy. Bundle your auto insurance policy with another insurance policy such as a homeowners policy and save money.

Insure more than one car. Insure more than one car with the same insurance company. Doing so will save you money on your premiums.

Pay once or twice a year. Rather than paying monthly auto insurance bills, pay the annual amount or six-months amount. Your premium is lower when you pay just once or twice a year.

Have anti-theft and safety features. Having certain anti-theft or safety features on your car will lower your car insurance. Be sure to check with your car insurance company about the anti-theft and safety features on your car. You may be eligible for a discount.

Check memberships. Members of particular professional organizations and affiliations get discounts on car insurance. So check the memberships in your wallet and contact your auto insurance company. You may be due some discounts.

Insure less for older cars. The maximum payout for collision coverage and comprehensive coverage is the value of the car. So if your older car has a low market value, it may not make financial sense to carry collision and comprehensive coverages any longer.

Maintain your insurance coverage. You’ll pay higher insurance rates if you don’t maintain continuous coverage of your auto insurance. So stick with your insurance coverage and save money.

Choose a high deductible. As mentioned earlier, choosing a high deductible can help to lower your auto insurance premium. Just be sure to place the deductible amount in a small emergency fund. That way the money will be there if you should need to make a claim on your insurance.

Be older than 25 and younger than 65. Older and younger drivers have more serious accidents and pay higher auto insurance rates. Drivers of the in-between ages pay less for car insurance.

Be a woman. Women make fewer accident claims than men and are rewarded with lower auto insurance rates. Men make more accident claims and pay more.

Get married. If you are married, you will pay less for car insurance. There is a correlation between being married and exhibiting safe driving behavior. Because of this, married drivers pay less for auto insurance than singles.

Be a low-mileage driver. If you have a heavy commute to work and rack up the miles, you will pay more in auto insurance. If you are a low-mileage driver, you will pay less for your auto insurance. So drive less and pay less for auto insurance.

Choose a safe neighborhood. If you live in a neighborhood with high accident claims and auto theft, you will pay more for auto insurance. But if you live in a safe neighborhood with low accidents and low crime, you will pay less for your car insurance. So live in a safe neighborhood and save money on your car insurance.

Shop around. The best way to save money on auto insurance is to shop around. You’ll want to get quotes from several different insurance companies. SmartFinancial makes it easy to do.

Just enter the type of insurance you are looking for and a zip code to get started. Answer a few, quick questions and you’ll be comparing auto insurance quotes in Indiana in no time.

SmartFinancial has access to more than 200 insurance companies so you are bound to find the insurance coverage and price that you want.

So shop smart and drive safely on the roadways of the Hoosier State.

Get a Free Auto Insurance Quote Online Now.

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