Best Cheap Indiana Car Insurance For 2020

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Shopping for Indiana car insurance can feel like wading through a minefield of high rates and hazy coverage options. Some companies aren’t very clear about what they offer, while others are upfront about what you get when you buy a policy from them. The good thing is that drivers in Indiana can take advantage of some of the lowest rates in the nation.

We’ve compared the top car insurance companies on things like price, availability, customer service, and financial strength. Our first choice for Indiana auto insurance is Geico, while our runner-up pick is Erie Insurance. Read on to learn more about coverage and minimum requirements in Indiana.

In this article:

Indiana Car Insurance Requirements

Indiana requires car insurance minimums that are similar to many other states. In Indiana, your policy has to cover liability insurance in the amounts of 25/50/25. Here's what that looks like:

• Bodily injury per person: $25,000
• Bodily injury per accident: $50,000
• Property damage: $25,000

Bodily injury liability covers medical bills, lost wages, and death benefits for other people in accidents that you cause. Property damage covers repairs to other people’s vehicles and property in accidents that you cause.

These coverages are required under Indiana’s financial responsibility laws. All states have some form of these laws to protect accident victims. These exact coverage minimums are shared by many other states, but remember that they are meant to be a safety net. State required insurance doesn’t usually protect drivers from catastrophic or multi-car accidents.

Indiana also requires insurance carriers to include underinsured and uninsured motorist coverage on new policies unless the coverage is rejected in writing. You do have an alternative to purchasing auto insurance in Indiana. Instead of insurance, you can post a bond or deposit cash with the Bureau of Motor Vehicles in the amount of $40,000. However, if you don’t have $40,000 lying around, we’d suggest you purchase an Indiana car insurance policy.

Best Indiana Car Insurance Company Comparison

*J.D. Power statistics are from the 2019 U.S. Insurance Shopping Study and the 2019 U.S. Auto Claims Satisfaction Study.

First Choice For Indiana Auto Insurance: Geico

We think Geico is the best choice overall for Indiana car insurance. With Geico, many people find rates that are below the state average, plus the company offers a good number of perks and car insurance discounts.

Geico stands for Government Employees Insurance Company. While Geico insures more than just government workers today, the company still gives a discount to federal employees. Geico has the highest financial rating from AM Best, which means the company can manage its assets and handle claims easily. Geico also has an A+ rating from the Better Business Bureau (BBB).

Speaking of claims, Erie and Geico tied with 879 out of a possible 1,000 points on J.D. Power’s Auto Claims Satisfaction Study. However, we think that Geico has one up on Erie in this area. That's because Geico has a robust app that lets you file claims, request roadside assistance, manage your account, and view your digital ID card.

If you’ve just purchased a new car, you can also take advantage of Geico’s mechanical breakdown insurance when you purchase auto insurance in Indiana. This program is similar to an extended car warranty, and it covers the failure of mechanical parts in your car. It doesn’t cover damage from wear and tear, and it doesn’t cover routine maintenance or tune-ups. You can renew this coverage annually until your car passes 7 years or 100,000 miles.

We do wish Geico offered more support for its DriveEasy app. The app offers discounts based on your driving habits, but it’s not available with Indiana car insurance just yet.

Cheapest Car Insurance In Indiana: Erie

Across different car insurance companies we researched, Erie Insurance had the cheapest auto insurance in Indiana. Of course, your situation is unique, but you can expect to find Indiana car insurance rates from Erie that are well below the state average.

Erie was founded in 1925, and it currently offers Insurance in the District of Columbia and 12 states:

Erie has a financial rating of A+ from AM Best and an A+ rating from the BBB. The company really shines in its shopping experience. According to survey participants in J.D. Power’s Insurance Shopping Study, it’s very easy to get a quote and choose a coverage plan from Erie. Erie outperformed all of its competitors in the study except for USAA. J.D. Power also found that it takes an industry average of 13 days for customers to get their cars back after submitting a claim, but Erie customers can expect shorter waiting periods.

There are a few more perks to Indiana car insurance with Erie:

• Pet insurance: Covers up to $500 per pet ($1,000 total for multiple pets) when an insured driver’s pet is injured in an accident
• Auto glass repair: Waives the deductible for glass repair or replacement and includes wiper blades
• Personal item coverage: Covers up to $350 of personal items damaged from an accident
• Erie Auto Plus: Boosts coverage to include things like a diminishing deductible, $10,000 death benefit, extra transportation expense coverage, and increased limits for locksmith costs

Erie doesn't have a usage-based option for auto insurance in Indiana, so it toes the line with Geico in this respect. The company also doesn’t have an app for customers to manage their accounts or file a claim. Indiana allows drivers to display a digital ID card when asked to show proof of insurance, but if you have Erie, you'll have to download an image or PDF of your card instead of relying on an app.

Erie does have an app called YourTurn, which rewards drivers for being safe on the road. However, it gives rewards in the form of gift cards, Visa prepaid cards, and charity donations. Anyone with a smartphone can use the app to track and improve their driving habits – it’s not exclusive to Erie customers.

Indiana Driver Statistics

As you can see, drivers in Indiana drive a few more miles per year than the national average. On the other hand, the state’s car accident fatality rate is slightly less than the national average,  which is 1.13 deaths per 100 million miles. The state’s fatality rate decreased in 2018, but it had been on the rise from 2009 all the way through 2017.

Average Cost Of Car Insurance In Indiana

Even with a high number of miles per driver, auto insurance in Indiana is still affordable when compared to other states. The national average auto insurance expenditure was $935.80 per year in 2016, but drivers in Indiana only paid an average of $692.29. That's a significant amount of savings.

For liability coverage, drivers spent an average of $399.15 per year. Collision insurance came in at an average of $264.22, while comprehensive was $126.48. Keep in mind that not all drivers purchased the same types of Indiana car insurance, and some purchased more than the state minimum.

What Affects Indiana Auto Insurance Rates

So what makes you a prime insurance candidate? Well, car insurance quotes are tailored to you. If you have the following qualities, you should find the best rates on Indiana car insurance:

Some of these things are easier to control than others, and some are impossible to control. You can work on your credit, but you can’t pick your age. To find the best Indiana car insurance rates, you should get quotes from at least three different providers. You should also reassess your situation every policy period and shop around at those times as well.

Even if you've been with the same company for a long time, don’t assume that you have the best rates. You can always shop around for car insurance without letting your agent know about it. Also, telling your agent might prompt them to see if they can get you a lower quote.

Can You Drive Without Auto Insurance In Indiana?

Almost one in five drivers in Indiana goes without car insurance. That means if you get hit by another driver, there's a good chance that you will have to cover the damages with your own insurance. That’s why many drivers purchase uninsured motorist coverage.

Some people choose to drive without insurance in spite of the penalties. Indiana law can require uninsured drivers to pay hefty fines if they are caught. Uninsured drivers can also have their licenses suspended for three to twelve months, so we recommend purchasing an Indiana auto insurance policy.

How Much Is SR-22 Insurance In Indiana?

SR-22 insurance rates are more expensive than regular rates. The exact amount varies depending on why you need an SR-22, but you can expect to pay around $300 to $600 more per year for Indiana car insurance if you’ve filed an SR-22.

It's not the SR-22 that is expensive – it's the violation that necessitated the SR-22. In Indiana, you can be required to file an SR-22 form if your license is suspended for convictions like reckless driving, a DUI, or a hit and run. Filing the form costs around $25, but the violation will make your rates go up.

The Indiana Auto Insurance Plan

Sometimes, it can be hard to find auto insurance coverage. This might be the case if you’ve had a recent DUI, or if you've had a number of recent claims. Insurance companies are allowed to deny coverage to people who don’t meet their criteria. These denied drivers then become part of an assigned risk pool.

Under the Indiana Auto Insurance Plan, insurance companies are required to cover a number of drivers in the assigned risk pool proportionate to their size. Looking at our two recommended companies, Geico would cover more drivers in the assigned risk pool than Erie because it has more customers in Indiana.

Even though each state has its own assigned risk insurance plan, eligibility requirements can vary between states. In Indiana, you have to certify that at least three insurance companies have turned you down in the last 60 days. The easiest way to apply for the Indiana auto insurance plan is to go through an insurance agent. Any agent in the state can help you fill out an application for the program.

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