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How to Get Cheap Car Insurance in Indianapolis

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Did you know that the Indiana Bureau of Motor Vehicles (BMV) can ban you from driving for a year if you get caught without car insurance in this state?

Whenever someone in Indiana is involved in an accident, even if they are not at fault, their insurance company has to urgently send a Certificate of Compliance to the BMV, proving the driver’s financial responsibility. Failing to do so results in various penalties, which may include the driver losing their driver’s license for a year.

That alone should give you enough motivation to get a good auto insurance company behind you.

Aside from learning what type of auto insurance you can get, we will also show you how you can save money and strike a good deal.

Quick Look: Indianapolis Auto Insurance

Indianapolis Auto Insurance Overview

  • Number of vehicles: Average 1.63 vehicles per household
  • Minimum state insurance requirements:
    • $25,000 per person
    • $50,000 per accident in bodily injury coverage
    • $10,000 per accident in property damage coverage
  • Average insurance premium: $1236

Indianapolis Auto Insurance Rates Per Vehicle

Insurance rates are a product of careful calculations which include many different factors. One of the most important factors is, obviously, the vehicle itself.

Your insurance company will want to know your vehicle’s model, production year, make, and safety features in order to calculate your premium. Aside from that, the insurer might use additional information such as the purchase price, theft rate, cost of repairs, accident rate, safety tests, etc.

Let’s say that your vehicle has extra safety features, such as collision-warning systems.You would think these feature would cause your insurance to be less when actually you can expect to pay more for your auto insurance, as the cost to repair or replace these additional safety features is quite high. The price will be even greater if your vehicle can cause serious damage in a crash.

Insurers usually also want to know how often you drive and what your usual routes are. For instance, a crash is less likely to occur if you only get behind the wheel once a week, and that may lower your rate.

Indianapolis Insurance Rates by Credit Score

There are several factors besides the vehicle itself that determine your auto insurance rate. The second important factor is your credit score.

When you apply for insurance, insurance companies look into your credit-based insurance score and use it to set your premiums.

Your credit score provides insurers with a detailed look into your financial stability and responsibility. This information is valuable to auto insurance companies, as they have to have a clear idea of what they can expect from their clients.

Although the way credit score affects insurance rates depends on the unique algorithms each insurer uses to calculate rates, there are some common rules.

For example, if you have a low credit score, you will be charged with a higher premium, as you are deemed to be a higher insurance risk. A high credit score naturally means lower premium charges.

The best case scenario is to have a high credit score, no recent claims, and an excellent driving record. The difference in price can be quite drastic as drivers with poor credit scores could pay 91% more.

Credit ScoreCheapest ProviderRate For State Minimum Coverage
Poor 300-579Progressive$1,452
Fair 580-669Progressive $2,197
Good 670-739Erie$1,244
Excellent 740+Erie$1,198

Car Insurance for Drivers With a Clean Record

In case you have a completely clean driving record, your auto insurance rate will be significantly lower. A clean driving record means that you don’t have a history of speeding tickets, driving under the influence, or at-fault accidents.

In the state of Indiana, drivers typically save around 17% on their insurance if they previously haven’t been charged with speeding tickets. Aside from that, some companies offer a safe-driving bonus if you have a spotless driving record.

These discounts vary between different insurance companies, but they are usually somewhere between 5% and 10%.

All of the benefits of having a clean driving record apply to all insurance categories – including liability coverage, collision insurance, etc.

If you cause a crash and the person you’ve crashed into is hurt, your liability insurance will pay for the damages. However, this type of auto insurance won’t pay for repairing your vehicle or for your sustained injuries.

Full coverage auto insurance is a combination of other insurance coverages such as collision, liability, and comprehensive insurance. It covers both you and the other party involved in the car accident if the crash was your fault.

The table below lists some of your best offers in Indianapolis, assuming your record is impeccable.

Insurance AgencyState Minimum InsuranceStandard CoverageFull Coverage
Indiana Farm Bureau$2,296$2,408$2,523

Car Insurance Rates with Driving Infractions

Driving infractions can lead to much higher insurance rates, and the penalties that you incur directly depend on the type of tickets that you receive. Generally speaking, there are three main classifications for tickets: major, minor, and serious convictions (including criminal acts).

Major tickets can be charged for speeding in a construction zone, operating a motor vehicle without insurance, not reporting an accident, improper passing by a school bus, etc.

Minor tickets can be charged for failing to signal, driving without an up-to-date inspection sticker, defective brakes, improper passing, overloading, not using seatbelts, speeding, etc.

When it comes to serious and criminal tickets, drivers can be charged for driving under suspension, racing, refusing a breathalyzer test, not obeying police officers, etc.

The table below shows how much more drivers with spotty records have to pay for insurance.

Insurance Agency At Fault Accident Speed Violation DUI
American Family$4,043$3,022$5,118

Best Auto Insurance Providers in Indianapolis

Several auto insurance companies have distinguished themselves as insurance leaders in Indianapolis, and the best options include USAA, State Farm, GEICO, and Nationwide. You can get a quote for special discounts and offers for each of these insurers.

Although you won’t make a mistake by selecting any one of those companies, you should still be familiar with what your best overall options are.

Best Overall: GEICO

GEICO is the overall winner because of its client-centric approach. This includes special programs that their clients can benefit from, such as:

  • Accident forgiveness: Clients can earn or purchase this program which they can use to avoid losing premiums because of their first at-fault accident.
  • Roadside assistance: Clients are able to get help if they encounter vehicle problems such as flat tires, etc.
  • Mobile app: Clients can carry their proof of insurance, bill pay, and much more through GEICO’s mobile app.
  • Car buying service: Clients will be able to compare car prices by using GEICO’s online tool.
  • 24-hour service: Clients can talk to a GEICO representative 24/7, etc.

Aside from that, GEICO offers many discount types, including the following:

  • Car insurance discounts
  • Senior driver discounts
  • Military discounts
  • Student driver discounts
  • Federal employee discounts
  • Good driver discounts – after five years without car accidents or penalties

Read Benzinga’s full GEICO Auto Insurance review

Best for Discounts: USAA

Although USAA offers the best auto insurance rates in Indianapolis, this company is only an option for drivers who served in the US military and their family members. There are some other, less popular insurance companies that offer cheaper rates, but they don’t follow up with quality services.

If USAA isn’t an option for you, the cheapest high-quality auto insurance company in Indianapolis is GEICO.

Best for Multiple Policies: Indiana Farm Bureau

Available to all of Indiana, this insurance company founded in 1919 can handle your auto insurance, life insurance, business, and even farmland. Ranked highly by J.D Power year after year in overall customer satisfaction the policies from this local insurer are hard to beat.

Obtaining a policy with IN Farm Bureau not only gives you high-quality service on multiple policies but you will also receive discounts on purchases outside of your policy such as travel.

Find Additional Providers in Indianapolis
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Don’t Risk it – Insure It

Hopefully, you now know why getting your vehicle insured is an excellent decision to make. But it’s recommended to learn more about car insurance before you make a decision, as policies can change and so can your best insurance options.

Want to learn more about insurance? Check out Benzinga’s guides to the best homeowners insurance in Indiana, the best affordable car insurance and the best health insurance companies.