Car Insurance in Indiana - 2021 Guide
Are you looking for the finest car insurance Indiana drivers can get? To help you navigate the insurance jargon and find a true bargain, we have ranked the best companies for the five most important driver demographics.
Additionally, we have prepared a list of the most affordable players in seven major cities in the state. Whatever your budget or needs are, rest assured we can help you find the perfect auto insurer.
The Best Car Insurance in Indiana
- Erie — The Overall Winner
- Progressive — The Cheapest Option
- GEICO — The Best for Financial Health
- Esurance — The Best for Online Tools
- Allstate — The Best for Optional Coverages and Discounts
The Overall Winner: Erie Insurance
Erie’s website claims it offers better protection against life’s uncertainties, but the all-important question is — how affordable is this protection?
Very much, indeed.
At $92 a month, Erie is among the most affordable car insurance Indiana companies. However, that’s not the only ace it has up its sleeve. Erie also boasts of a splendid record in the customer service department, as confirmed by its third-rank performance and full five stars in 2019’s J.D. Power study for the Indiana region.
No less impressive is its financial strength. A.M. Best, the US-rating agency, awarded it the second-highest possible rating of “A+”. In other words, you can count on Erie to not only deliver cheap car insurance in Indiana but also pay out claims with minimum fuss when the time comes.
On the downside, Erie’s selection of coverages is not as extensive as some others, like Allstate. That said, the insurer does provide all common optional coverages and a few relatively rare ones, such as pet insurance.
Another gripe we have with Erie is the lack of a mobile app, which is a little surprising because most other prominent auto insurance Indiana companies (if not all) have jumped on the technology bandwagon.
A missing smartphone app might not be a concern for most consumers, but it can come in handy when you want to access your insurance policy or call road assistance and are not near a computer. Nevertheless, Erie’s website is capable and easy to use. You can get an online auto quote, pay bills, find an agent, access your policy, and find a repair shop.
These flaws, however, are minor in nature. What’s most important is Erie delivers on factors that count the most — cost, customer service, and financial stability — hence why we have no doubts when deeming it the best car insurance company in Indiana. Ignore it at your own peril.
Choose Erie for affordable rates, superior customer service, and robust financial strength.
Look elsewhere if you want coverage that you can manage on-the-go.
The Cheapest Option — Progressive
If you want the most affordable car insurance that money can buy, look no further than Progressive. With an average monthly premium of $72, it easily offers the cheapest auto insurance in Indiana. In fact, Erie — the second cheapest car insurance option — costs as much as 16% more.
Progressive is every bit as good as Erie in the financial strength department. Just like the latter, it earned a splendid “A+” rating from A.M. Best. But when it comes to online tools, Progressive enjoys a definite edge (by a wide margin). Unlike our best car insurance Indiana provider, it offers a smartphone app and a sleek and smart one at that.
However, customer service — Erie’s strong point — proves to be Progressive’s Achilles heel. It could manage only three stars in the latest J.D. Power regional study.
Nevertheless, if you don’t mind trading dirt-cheap rates off for average customer service, Progressive might just be the one for you.
Choose Progressive if you want the cheapest car insurance in Indiana.
Look elsewhere if your priority is top-shelf customer service.
Best for Financial Health: GEICO
If you are someone who values financial strength in an insurer more than anything else, start your search with GEICO. Its performance in this department is as good as they come, as reflected by its “A++” rating by A.M. Best. This is the highest rating awarded by the US-based rating agency.
Priced at $107 a month, GEICO is also among the more affordable car insurance providers in Indiana.
Its online tools are pretty impressive, too, especially its smartphone app, which enjoys a 4.8 rating (out of 5) in both Google Play and the App Store. You can use it to access your policy, modify coverage, request road assistance, and even find the cheapest gas station near you.
However, GEICO’s customer service record is a bit disappointing. Three stars are all that it could get in J.D. Power regional study, much like Progressive, the cheapest car insurance Indiana provider.
But if you can learn to be patient with its customer service, GEICO is definitely worth a shot.
Choose GEICO for its outstanding financial health and pocket-friendly rates.
Look elsewhere if you want quality customer service.
Best for Online Tools: Esurance
Are you looking for auto insurance that’s easy to manage on the go? If yes, Esurance might be a good fit for you. An offshoot of Allstate, Esurance was among the first few direct-to-customer online auto insurance players in the US. Given this, it’s no surprise that out of all car insurance options Indiana customers can buy, it dominates the online tools department. To start with its mobile app, it offers all standard features plus some unique ones. For instance, did you know that you can video chat with an appraiser if you have filed a claim to speed up approval on payment? Another interesting feature is RepariView, which shows you the status of your car when it is being repaired. In addition to these novel features, Esurance app — much like the website — has an intuitive interface and is easy to use. However, these technical perks come at a cost. Esurance, at $152 a month, is not exactly what you would call a cheap Indiana car insurance company. But then, neither is it the most expensive one. Its performance in the customer service department is also a bit of a curate’s egg, as indicated by its three-star rank in J.D. Power regional study. However, On the financial stability front, Esurance does considerably better, earning the second-best rating of “A+” from A.M. Best. All in all, even though Esurance doesn’t offer the cheapest auto insurance in Indiana, it is an appealing option, especially for all tech-savvy consumers. Choose Esurance for top-notch online tools. Look elsewhere if you want affordable rates or quality customer service.
Best for Its Variety of Coverages and Discounts: Allstate
Allstate — the country’s fourth-largest auto insurer — is one of the more expensive options in Indiana, but for certain customers, it may be worth the extra cost. For starters, the insurer offers a wide variety of optional coverages, including classic car insurance, rental car insurance, and sound system insurance.
It also boasts of a wide selection of discounts, which can help bring your Indiana car insurance quotes down considerably. Allstate is also in pretty good shape financially. It earned the second-highest possible rating of “A+” from A.M. Best.
Continuing with the positives, Allstate’s mobile app is second to none. It can do just about everything that you can do from a computer. Want to put in a claim? No problem, just upload your documents and photos. Need a tow, a locksmith, or a jumpstart? Well, help is just a few taps away.
However, Allstate’s customer service record is not a whole lot better than some other car insurance companies in Indiana included in our list. It earned three stars and 15th overall rank among 24 players in 2019’s J.D. Power regional study.
To sum up, Allstate has several things going for it in Indiana. However, its premiums are on the expensive side and customer service unimpressive. Nevertheless, as said before, it can be a good option for specific users. Therefore, do consider getting a quote from it. Consider Allstate for its wide selection of coverage and discount options.
Look elsewhere if you are a budget buyer.
Cheap Car Insurance in Indiana (By City)
We grabbed quotes from multiple auto insurers, national and regional, with full coverage limits in seven major Indiana cities. Our referenced driver was a 40-year-old single male with a clean record driving a 2018 Honda Accord.
Indianapolis is the capital and the most populous city of the state of Indiana. It is famous for sports (from car racing to football and basketball), arts (think Museum of Art), and a vibrant downtown. When it comes to cost-effective car insurance in Indianapolis, Indiana, Progressive stands out. At $87 a month, it is almost 35% cheaper than the next name on the list — Erie. However, the latter has a significantly better record than Progressive in customer service. On the other hand, Allstate, thanks to its wide variety of coverage options, might prove to be a good option for certain buyers. Budget buyers can also add GEICO to their list since it provides cheap car insurance in Indianapolis and is also extremely strong financially.
Located in northeastern Indiana, Fort Wayne is named in honor of Anthony Wayne, a distinguished United States Army officer and statesman. Fort Wayne is the second-largest city in Indiana and a major metropolitan area with a thriving economy. Its top five employers are Parkview Health System, Lutheran Health Network, Fort Wayne Community Schools, General Motors, and Lincoln Financial Group.
When it comes to car insurance in Fort Wayne, Indiana, Erie is clearly the best option. It offers low-cost insurance backed by top-notch customer service. Besides Erie, Progressive, Nationwide, and GEICO are other worthy options for budget buyers.
Located on the Ohio River, Evansville is the third-largest city in Indiana. It is the cultural, medical, and commercial hub of Southwestern Indiana. Evansville is home to the sports tourism industry, Tropicana Evansville, a multi-million dollar entertainment complex, and Mesker Park Zoo, one of the oldest zoos in Indiana. Progressive offers the cheapest car insurance in Evansville, Indiana. Despite that, you might want to place Erie, which is roughly 18% costlier, ahead of it on the count of its splendid customer service record. Other worthy options include GEICO and COUNTRY Financial.
South Bend, Indiana’s fourth-largest city, is located on the St. Joseph River. It serves as the cultural and economic hub of Northern Indiana and is known for the University of Notre Dame and the Studebaker National Museum.
Looking for the cheapest car insurance in South Bend, Indiana? Then start your search with Progressive and Erie. Both offer low-cost auto insurance in a fiercely competitive market, but Erie also shines in the customer service department. Other names worth considering are GEICO, Liberty Mutual, and Travelers.
Located north of Indianapolis and home to fewer than 100,000 residents, Carmel has an average median income of $109, 201. Money magazine named it as one of the best places to live in 2018 and 2012. It has also been cited as one of the best cities to raise a family and launch a career.
Progressive, which has the lowest Indiana car insurance rates, emerges as the most wallet-friendly option in Carmel as well. Nevertheless, you might want to keep Erie on the top of your list, since it offers the best of both worlds — affordable rates and quality service. Another viable option for price-conscious buyers is GEICO.
Located 21 northeast of Indianapolis, Fishers was officially upgraded from a town to a city in 2015. The city boasts of a bustling downtown area, which is home to plenty of retail stores, an outdoor amphitheater, luxury apartments, and a brewery. In 2017, Money magazine named it the best place to live.
As to the question who provides the most cost-effective auto insurance in Fishers, Indiana, the answer is — surprise, surprise — American Family. Of course, Progressive is not far behind it. All the same, you might want to start your search with Erie, and not these two, because of its excellent record in customer service.
Situated 63 miles northwest of Indianapolis, Lafayette has a population of over 67,000. The city was founded way back in 1825 and named after a French military officer Marquis de Lafayette. The city is known for Purdue University, which, along with its associates, is the largest employer there.
Just like elsewhere, Progressive offers the most budget-friendly auto insurance in Lafayette, Indiana, followed by Erie. While Progressive should definitely be on your list, you might want to consider Erie first, owing to its top-shelf customer service record. GEICO is another suitable option for consumers on a tight budget. On the other hand, if you want dependable insurance coverage that is fairly easy to manage on the go and comes with awesome online tools, Esurance might be perfect for you.
Indiana Car Insurance Laws
Indiana Automobile Insurance Plan (IN AIP)
Car insurance is mandatory in Indiana, but not every driver is able to get coverage from the voluntary market. Auto insurers often turn down drivers classified as high risk. With this in mind, the state of Indiana created a plan in 1948 that makes sure every eligible driver has access to auto insurance.
To qualify for Indiana Automobile Insurance Plan (IN AIP), you must prove that you have been rejected by three Indiana auto insurance companies in the last 60 days. Additionally, you should possess a valid driver’s license, and your car must be registered in Indiana.
Useful as IN AIP is for drivers who are denied coverage in the voluntary market, coverage obtained through it comes at a cost and a steep one at that. Therefore, you should use it only as a last resort.
All Indiana car insurance companies must participate in IN AIP and share the responsibility of providing coverage to drivers coming through it in proportion to their market share. For instance, if GEICO has a 15% market share in the state’s car insurance market, IN AIP will assign up to 15% of eligible drivers.
Drivers who enroll in IN AIP don’t get to pick and choose their provider. Instead, the plan will randomly assign you an insurer.
Indiana State Minimum Car Insurance
An Indiana driver must carry the following bare minimum coverage.
- Bodily Injury Liability ($25,000/$50,000) — The maximum amount your policy will pay for injury or death per one person/ in total for a single accident.
- Property Damage Liability per Accident ($25,000) — The maximum payout for property damage caused by you in an accident.
Additionally, these uninsured/underinsured limits are mandatory, but you can reject this coverage in writing.
- Underinsured motorist bodily injury — $50,000.
- Uninsured motorist property damage — $10,000.
- Uninsured motorists bodily injury — 25,000/$50,000.
SR22 Insurance in Indiana
Actually, SR22 is not any special type of insurance coverage. Instead, it is a form that your auto insurer must file with the local DMV to maintain or restore your driving privileges. An SR22 demonstrates that you have the minimum coverage mandated by the state of Indiana.
You may need an SR22 after a DUI or DWI conviction, a citation for driving without insurance or license, an at-fault accident while driving without car insurance, or a series of minor offenses.
Your Indiana insurance company will file an SR22 for a fee, typically $15 to $25. However, if you need car insurance along with the certificate, you will have to fork out considerably much more than you would for regular coverage. This is not because of the SR22 itself but rather due to the driving offense that necessitated the SR22 filing in the first place.
Once you obtain the SR22 certificate, you will have to maintain it for several years before you can become eligible for standard car insurance.
Indiana Car Insurance for New Residents
According to AAA’s guideline on Indiana driving laws, non-residents need to register their car within 60 days of establishing residency.
Non-resident military personnel who are on active duty in the state of Indiana are free to retain vehicle registration in their home state. Indiana military personnel serving elsewhere can request for Indiana vehicle registration.
Price Optimization in Indiana
Price optimization refers to the practice of using non-risk related information to set premium rates. This controversial practice is legal in many states but not Indiana. Car insurance companies in Indiana will be subject to disciplinary action if they use price optimization to rate policies.
The state banned price optimization in July 2015. The state’s insurance commissioner issued a bulletin in this regard, which states:
“When a rating factor or rating methodology adjustments result in classification rates outside of a reasonable range of cost-based estimates or lead to unfairly discriminatory rates, rates are not in compliance with the law.”
This means if you live in the Hoosier State, you can rest assured knowing your Indiana auto insurance company will not bump up your rate based on considerations other than risk.
Indiana No-Fault Laws
Indiana is an “at-fault” state. Meaning, each driver’s auto insurance provider must compensate for damages their driver causes to others.
If you have car damages or you get injured in a car accident caused by another driver, you can seek compensation from the negligent driver’s auto insurance Indiana policy first. If your damages exceed the limits of the at-fault driver’s policy, you can sue them or seek the remaining compensation from your own auto insurance policy if it includes uninsured motorist/underinsured motorist coverage.
In Indiana, you can recover compensation from the other driver for the percentage of fault assigned to them, as long as you were not mostly at fault. For instance, if the other party was 65% at fault, you will receive 65% of your damages. However, if the jury finds you were 50% or more at fault, no compensation will be paid to you.
How to Get Cheap Auto Insurance in Indiana?
Check Auto Insurance Reviews
When shortlisting names, don’t just look at their overall ratings, but also consider their performance on individual parameters important to you. If you are worried this would take up a lot of your time, relax. We have done all the legwork for you.
All you have to do is check our auto insurance reviews. We covered every relevant category, from customer service and financial stability to cost and optional coverages, before listing our top picks.
Compare Car Insurance Quotes in Indiana
Even though price optimization is illegal in Indiana, we advise you to get quotes from different players when the time to renew coverage comes. That’s because insurers often tweak their rates depending on a number of factors, including their market performance. In other words, just because your auto insurer’s rates were the cheapest last year, doesn’t mean that others can’t offer a better bargain now or in the near future.
Determine Who Provides the Best Selection of Discounts
Take full advantage of various discounts offered by auto insurance companies in Indiana if you don’t want to pay a cent extra for auto coverage. This is quite easy when you are collecting quotes online. During each step, the system automatically tacks on discounts that apply to you. In case you are talking with an agent over the phone, remind her to share information about available discounts.
Frequently Asked Questions
1. Who has the cheapest car insurance in Indiana?
Those looking for cheap auto insurance in Indiana should start their search with Progressive since it offers the best bang for the buck. We gathered quotes from multiple players in seven major Indiana cities and found Progressive to be the most budget-friendly option in all cities but one. Erie came second while GEICO emerged as the third most affordable insurer in the Hoosier State.
2. How much is car insurance in Indiana per month?
If you are wondering how much is car insurance in Indiana, the answer is $118 a month. This average rate is for a 40-year-old male driver with a clean driving record. Of course, if you are a new driver or a student, you will have to cough up significantly more.
3. Does Indiana require car insurance?
Yes, it does. Every driver in Indiana must carry the state minimum car insurance coverage. This includes:
- Bodily Injury Liability ($50,000).
- Bodily Injury Liability ($25,000).
- Property Damage Liability ($25,000).
Additional uninsured/underinsured limits are required, but you can reject them in writing.
4. Is Indiana a no-fault auto insurance state?
No, it isn’t. Indiana uses the fault system, in which each driver’s auto insurance provider pays for damages that the driver causes to others. Typically, rates are lower in at-fault states, compared to no-fault ones. This is one of the reasons why the average car insurance Indiana premium is significantly cheaper than no-fault states such as Michigan.
5. What happens if you get in a wreck without insurance in Indiana?
If you get into an auto accident in Indiana without insurance, you can still file a claim with the other driver’s insurer as long as you were not at fault. If you were at fault, you likely can’t make a claim. However, in both scenarios, you will have to face the legal consequences of driving without insurance.