Finding dependable, low-cost car insurance is difficult, and determining which company offers the cheapest insurance rates for high school students in Indiana will require a little more work. Premiums could be much pricier than the average rate in Indiana due to the extra risk that comes with offering insurance for teenagers, but economical coverage should be attainable if you carefully shop around. Every auto insurer uses their own formula to determine rates, so first we will examine the insurance companies with the overall cheapest rates in Indiana.
Best Auto Insurance Prices for Students
|Rank||Company||Cost Per Year|
|6||Indiana Farmers Mutual||$867|
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Travelers generally has some of the cheapest car insurance rates in Indiana at around $596 a year. Cincinnati Insurance, USAA, Erie, and Western Reserve also make the cut as some of the more affordable Indiana car insurance companies.
As shown in the table above, if you are a customer of Erie and switched to Cincinnati Insurance, you could see annual savings of around $75. Insureds with Western Reserve might save as much as $206 a year, and Indiana Farmers Mutual insureds might cut rates by $209 a year.
If you would like to find cheaper car insurance rates, click here to start your free quote or quote rates from the companies below.
These prices are averages for all types of drivers and the different vehicles they drive and are not factoring in a rate surcharge for high school students. So the insurer that can offer you the best rate may not even be in the top 36 companies shown above. That's why you need to get quotes using your own driver and vehicle profiles.
For teenagers, one of the big factors that aid in calculating car insurance rates is where you choose to live in Indiana. Larger areas like Gary, Merrillville, and Indianapolis tend to have higher rates, whereas areas with lower crime rates and fewer weather claims tend to receive cheaper rates.
The illustration below rates the priciest cities in Indiana for high school students in which to purchase auto insurance.
|Rank||City||Premium Per Year|
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Premium costs are comparative as the specific garaging location can change auto insurance rates greatly.
Liability only or full coverage
Finding cheaper insurance is the goal of most vehicle owners, and a great way to buy cheaper insurance for high school students in Indiana is to only buy liability coverage. The diagram below shows the comparison of insurance costs when comparing full coverage to liability only. The rate quotes are based on no accidents, no driving violations, $100 deductibles, drivers are not married, and no other discounts are factored in.
Averaged for all age groups, physical damage coverage on your policy costs $1,613 per year over having just liability coverage. That touches on the question if buying full coverage is a good investment. There isn't a steadfast formula to exclude comprehensive and collision coverage on your policy, but there is a general school of thought. If the yearly cost for physical damage coverage is more than around 10% of any settlement you would receive from your insurance company, then you might consider buying liability only.
For example, let's say your vehicle's replacement value is $7,500 and you have $1,000 full coverage deductibles. If your vehicle is damaged in an accident, you would only receive $6,500 after paying your policy deductible. If premium cost is more than $650 a year for your policy with full coverage, then you might want to think about dropping full coverage.
There are a few situations where eliminating full coverage is not recommended. If you haven't paid off your loan, you must maintain physical damage coverage in order to prevent the bank from purchasing higher-priced coverage. Also, if you can't afford to buy a different vehicle in the event your current vehicle is totaled, you should keep full coverage on your policy.
The information below illustrates how choosing a deductible can raise or lower insurance costs when getting quotes for cheap insurance for high school students in Indiana. The information is based on a married male driver, comprehensive and collision coverage, and no discounts are applied.
As shown above, a 50-year-old driver could pocket $264 a year by changing from a $100 deductible up to a $500 deductible, or save $398 by switching to a $1,000 deductible. Young drivers, such as the 20-year-old example, could drop their prices as much as $890 or more by selecting a higher deductible.
When raising deductibles, it is important to have plenty of savings on hand to offset the extra out-of-pocket expense. That is the one disadvantage of using higher deductibles.
Why you are probably overpaying for car insurance
Indiana insurance rates are calculated based on many things that can increase your annual premium. Simply having a birthday, buying a home, or having an at-fault accident can trigger rate changes that can now make some companies more affordable than competitors.
In addition, auto insurance companies change premium rates every year in order to remain profitable. Larger than normal claims can cause rate increases, while a better loss history may result in lower-priced Indiana car insurance rates.
To illustrate this point, the data below compares the cheapest car insurance in Indiana for a 40-year-old female driver with no prior claims, no tickets, and a high credit rating. When quoting prices based on her current rating profile, Travelers might offer the cheapest car insurance rates in Indiana at $614 each year. This is $626 less than the average premium paid by Indiana drivers of $1,240. Cincinnati Insurance, USAA, Erie, and The Hartford are also included in the cheapest Indiana auto insurance companies.
In this example, we will give the driver from above a claim, bad credit, and a speeding ticket. Since each auto insurer has a different formula for establishing rates, comparing rates will most likely result in a substantially altered list of the cheapest companies as shown below.
Indiana Farmers Mutual now has the cheapest auto insurance in Indiana with Auto-Owners, Cincinnati Insurance, USAA, and Nationwide now rounding out the top five. This demonstrates why consumers need to take the time to perform a complete rate comparison to find the most economical auto insurance quotes for high school students.
Car insurance prices are made up of many different factors and change substantially, so the cheapest option when you bought your policy may now be one of the more expensive options.
Tips to find the cheapest car insurance for high school students in Indiana
It's not impossible to find cheaper rates, and here are some thrifty solutions that can help Indiana drivers locate low-cost coverage.
- Improve your credit
- Raise deductibles
- Maintain a safe distance and avoid accidents
- Avoid speeding and other traffic citations and pay less
- Buy a car with high safety ratings
- Drop full coverage on older vehicles
- Look for cheaper rates once a year by shopping around
That last idea is incredibly valuable, as we noted in the prior article. Coverage rates fluctuate constantly, so don't be unwilling to buy a different policy if a better deal can be had. Loyalty to a specific company is fine, but it's not a great idea if that dedication is costing a small fortune year after year. It only take a few minutes to compare prices and find cheaper insurance for high school students.