Cheap Car Insurance in Indiana 2022
Indiana drivers pay an average $605 a year for minimum-coverage auto insurance, or $50 a month. Of the auto insurance companies operating in Indiana that we looked at, USAA has the lowest average rate, $29 a month for minimum coverage. USAA only provides insurance coverage for current and retired military members and their families, so if you're a civilian, Erie is the cheapest auto insurance company, at an average $32 a month.
While finding the cheapest premium for your car insurance policy is a definite priority, you also want to make sure you're getting the best value for the price. We looked at the biggest auto insurance providers in Indiana, along with their policy offerings and customer care trends. This should help you find the best, cheapest car insurance you can.
We'll cover:
How much is car insurance in Indiana?
On average, Indiana drivers pay $50 a month for minimum car insurance coverage. For full-coverage auto insurance, the average monthly cost is $114. Indiana's minimum-coverage average cost is 43% less than the average national rate of $87 a month, and 36% less than the national full-coverage average of $178 a month.
| Minimum coverage | Full coverage | |
|---|---|---|
| U.S. | $87 | $178 |
| Indiana | $50 | $114 |
Indiana auto insurance is cheaper than the national average in part due to fewer accidents on the road. According to our research, Indiana has the 19th worst drivers in the country. While not great, they are well enough in the middle of the ranking to not see high rates.
Best, cheapest car insurance companies in Indiana
In looking at the nine most popular auto insurance companies in Indiana, USAA, Erie, State Farm and Progressive are in the top four for both cheapest minimum-coverage and full-coverage rates. The graphs below show how their rates pan out in both categories:
We analyzed these car insurance companies further and found that the top four stood out for reasons beyond price. That could affect your decision towards which one works best for your needs. Here's what we found:
USAA: cheapest rates and best for military
USAA has the lowest average rates for both minimum and full-coverage auto insurance. Its average minimum-coverage auto insurance is $29 a month, and its full-coverage average is $66 a month. The table below shows how the company's rates compare to state and national averages:
| Minimum coverage | Full coverage | |
|---|---|---|
| USAA | $29 | $66 |
| Indiana | $50 | $114 |
| National | $87 | $178 |
USAA has a decades-long reputation built on providing car insurance for currently serving and veteran military members. On top of providing excellent standard insurance coverage, it also provides benefits tailor-made for Armed Forces personnel. These perks include:
- Auto insurance coverage while stationed overseas.
- Car insurance discounts if you're living on-base.
- Discounts for car storage.
USAA also stands out in the customer satisfaction category. In J.D. Power's 2021 U.S. Auto Insurance Study, USAA had the highest rating of 895 out of 1,000 in the North Central region, which includes Indiana..
Erie: second-cheapest rates and best long-term savings
Erie has the second-lowest average rates in Indiana, at $32 a month for minimum coverage and $73 for full coverage. Here's how its rates compare to the average national and Indiana auto insurance rates:
| Minimum coverage | Full coverage | |
|---|---|---|
| Erie | $32 | $73 |
| Indiana | $50 | $114 |
| National | $87 | $178 |
On top of low premiums, Erie also offers great ways to save money on your auto insurance rates over time. With Erie's Rate Lock program, your current rate will not change unless you make specific changes to your car insurance policy, including adding or removing a driver or car from your policy, or moving. Also, your premium will only shift to reflect the changes you do make.
Erie also has great claims service. According to National Association of Insurance Commissioners (NAIC) research, the company has a 0.1 Complaint Index. The Complaint Index measures satisfaction in claim-oriented factors such as resolution and payout amounts. As the national average ranking for the Complaint Index is 1.0, Erie comes in strong.
State Farm: third-cheapest rates and most popular
State Farm's average monthly car insurance rates in Indiana are $36 for minimum coverage and $75 for full coverage. The table below shows its rates compared to state and national averages.
| Minimum coverage | Full coverage | |
|---|---|---|
| State Farm | $36 | $75 |
| Indiana | $50 | $114 |
| National | $87 | $178 |
While State Farm doesn't have the cheapest car insurance rates in Indiana, it has the most car insurance policies written in the state. State Farm owns 20.8% of the auto insurance market share, with Progressive next, at 13.1%.
A large reason for State Farm's popularity is its reputation for customer service. The company has a rating of 854 out of 1,000 in J.D. Power's 2021 Auto Insurance Customer Satisfaction survey. That's higher than the average rating of 839 in the region. Furthermore, State Farm has a strong 0.57 rating in NAIC's Complaint Index.
Progessive: fourth-cheapest rates and best online experience
Progressive has an average minimum auto insurance rate of $42 a month, and an average full-coverage rate of $89 a month. The table below shows how it compares to Indiana and national auto insurance rates:
| Minimum coverage | Full coverage | |
|---|---|---|
| Progressive | $42 | $89 |
| Indiana | $50 | $114 |
| National | $87 | $178 |
Progressive stands out for its online tools, which is great if you live in a remote part of Indiana. In addition to a website where you can pay your bill and check a claim's status, online tools available to policyholders include:
- The Name Your Price Tool lets you state the price you'd like to pay for auto insurance, and it will show you the coverage you can get.
- The mobile app lets you get policy quotes, make claims, access your policy and even get roadside assistance.
- Virtual tools include a digital voice assistant that works with Google Home to help answer car insurance questions. You can also access Progressive through Facebook Messenger to get a quote or ask questions about your policy.
Indiana car insurance requirements
Indiana law requires drivers to carry the following minimum liability insurance:
- Bodily injury liability per person: $25,000
- Bodily injury liability per accident: $50,000
- Property damage liability per accident: $25,000
On top of these liability limits, Indiana requires drivers to carry the following limits of uninsured/underinsured motorist insurance, unless rejected in writing:
- Uninsured motorist bodily injury per person: $25,000
- Uninsured motorist bodily injury per accident: $50,000
- Uninsured motorist property damage: $25,000
- Underinsured motorist bodily injury per person: $50,000
- Underinsured motorist bodily injury per accident: $50,000
Keep in mind that the Indiana minimum car insurance limits are the required, not the recommended, limits. While the required limits may seem considerable, they can quickly be exhausted if your insurance provider has to pay for a long hospital stay or court hearing. Any expenses over your coverage limits will come out of your pocket, which could prove costly.
In order to keep this from happening, we recommend raising your car insurance liability limits to the following:
- Bodily injury per person: $100,000
- Bodily injury per accident: $300,000
- Property damage liability per accident: $100,000
Methodology
We used Quadrant Information Services to generate thousands of car insurance quotes from every ZIP code in Indiana from the following providers:
- Allstate
- American Family
- Auto-Owners
- Erie
- Geico
- Progressive
- State Farm
- United Farm Family
- USAA
Our sample car used to generate quotes was a 2012 Honda Accord LX with an annual mileage of 13,500 miles and a 35-year-old driver with a clean driving record.
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