It's hard to avoid all the captivating commercials from insurers like Nationwide, State Farm, and The General that say if you switch you'll get big savings. So you just need to pick the company with the best ad, right?

Unfortunately, it's just not that easy, as there are many unknown elements like your gender, if you currently have coverage, if you are married or single, and how well you maintain your credit, that all impact the price you pay. This article will detail the best ways to maintain low rates and also should give you a good start in finding the cheapest insurance for teens.

Comparing quotes for low-priced car insurance is confusing at best, and finding out which companies have the best insurance rates for young drivers in Indiana will involve even more rate comparisons. Coverage rates will most likely be significantly more than the state average attributed to the added risk that goes along with offering insurance for youthful drivers, but economical insurance may be attainable if you do a thorough comparison.

Each auto insurance company has a unique approach to determine premium rates, so we need to take a look at the most budget-friendly insurance companies in Indiana. It's a good idea to be aware that Indiana insurance rates are impacted by many factors that control the cost of coverage. This price fluctuation is why it is so important to take the time to shop around to find cheap car insurance rates for young drivers. Insurance rates consist of many things and change frequently, so the most economical company three years ago may now be one of the higher cost companies.

Find the Cheapest Auto Insurance for Teens

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Indiana car insurance ranked by cost per year
Rank Company Cost Per Year
1 Travelers $602
2 USAA $667
3 Cincinnati Insurance $684
4 Erie $705
5 Western Reserve $838
6 Indiana Farmers Mutual $867
7 Auto-Owners $888
8 The Hartford $889
9 Nationwide $940
10 Utica National $956
11 Hastings Mutual $983
12 Motorists Mutual $986
13 State Farm $987
14 Safeco $1,003
15 Farmers $1,064
16 Westfield $1,072
17 Wolverine Mutual $1,072
18 State Auto $1,098
19 Progressive $1,106
20 GEICO $1,133
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Travelers normally has some of the cheapest car insurance rates in Indiana at around $602 per year. This is $638 less than the average premium paid by Indiana drivers of $1,240. USAA, Cincinnati Insurance, Erie, and Western Reserve also qualify as some of the cheaper Indiana auto insurance companies.

As shown above, if you currently buy coverage from Erie and switched to USAA, you might achieve yearly savings of approximately $38. Policyholders with Western Reserve could save as much as $171 a year, and Indiana Farmers Mutual policyholders might cut rates by $200 a year.

It's important to note that these premium estimates are averages for all ages of drivers and types of vehicles and and are not figured with a rate increase for young drivers. So the auto insurance company that is best for you may not even be in the list above. That helps illustrate why you need to compare as many prices as possible using your own specific driver and vehicle information.

For youthful drivers, one of the big components that help determine car insurance rates is your address. Regions with larger populations or more claims like Gary, Merrillville, and Evansville are more likely to have higher rates, whereas areas that tend to be more rural tend to receive slightly lower rates.

The next table lists the most expensive cities in Indiana for young drivers to purchase car insurance in.

How much does car insurance cost in Indiana?
Rank City Average Per Year
1 Gary $1,360
2 Hammond $1,275
3 Merrillville $1,139
4 Portage $1,137
5 Evansville $1,087
6 Lawrence $1,066
7 Indianapolis $1,060
8 Jeffersonville $1,048
9 Terre Haute $1,045
10 New Albany $1,039
11 Anderson $1,001
12 Kokomo $1,001
13 Bloomington $998
14 Columbus $984
15 Fort Wayne $976
16 Elkhart $965
17 Noblesville $958
18 South Bend $956
19 Carmel $947
20 Fishers $945
21 Richmond $944
22 Greenwood $941
23 Muncie $937
24 Mishawaka $936
25 Lafayette $890
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Premium amounts are approximated as specific location information can impact insurance rates considerably.

The vehicle model you are seeking coverage for is one of the primary factors when looking for the lowest-priced coverage for young drivers. Vehicles with reasonable performance levels, good crash test ratings, or a positive history of liability claims will cost substantially less to insure than higher performance models.

The next table estimates insurance premiums for the most economical automobiles to buy coverage for.

Cheapest Vehicles to Insure for Young Drivers in Indiana
Make, Model, and Trim Level Estimated Cost for Full Coverage
Hyundai Elantra GLS Touring Station Wagon $2,243
Honda CR-V LX 2WD $2,252
Ford Escape XLT 4WD $2,266
Toyota Prius $2,436
Jeep Wrangler Sport Islander Package 4WD 2-Dr $2,490
Ford Explorer Eddie Bauer 2WD $2,513
Ford F-150 XLT Regular Cab 4WD $2,519
Volkswagen Jetta SE 2.5 Station Wagon $2,582
Honda Odyssey EX $2,636
Chevrolet Impala LS $2,641
Ford Edge SEL AWD $2,636
Jeep Grand Cherokee Laredo 4WD $2,659
Chevrolet Malibu Hybrid $2,669
Dodge Grand Caravan Hero $2,659
Toyota RAV4 Limited 4WD $2,665
Toyota Tacoma Double Cab 4WD $2,683
Toyota Camry SE $2,806
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Cost estimates assume single male driver age 17, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Indiana minimum liability limits. Discounts applied include claim-free, and safe-driver. Information does not factor in specific location which can affect premium rates substantially.

By looking at the data, makes and models like the Hyundai Elantra, Honda CR-V, Ford Escape, and Toyota Prius will be some of the most budget-friendly vehicles to insure for youthful drivers. The price of auto insurance will be higher anyway because there is more inherent risk for young drivers, but overall those makes and models will tend to have the cheapest car insurance rates compared to all other vehicles.

How violations and accidents impact rates

The best way to get good insurance prices in Indiana for youthful drivers is to drive attentively and avoid accidents and traffic violations. The chart below highlights how speeding tickets and at-fault accidents can impact premium costs for different age groups. Data assumes a single female driver, full physical damage coverage, $500 deductibles, and no discounts are taken into consideration.

The data in the chart shows the average cost of auto insurance per year with no accidents or violations is $1,712. Add in two speeding tickets and the average cost increases to $2,289, an increase of $578 each year. Now add one accident along with the two speeding tickets and the 12-month cost of insurance for young drivers in Indiana increases to an average of $2,875. That's an increase of $1,163, or $97 per month, just for a couple of infractions!

How to get discounts on Indiana insurance rates

Insurance providers that sell policies for young drivers may also give you discounts that could lower prices by as much as 30% if you qualify for them. A list of companies and some of the discounts are outlined below.

The illustration below shows the difference between insurance rates with and without discounts. The price estimates are based on a male driver, no claims or driving citations, Indiana state minimum liability limits, full physical damage coverage, and $100 deductibles.

The first bar for each age group shows the average annual price with no discounts. The lower bar shows the rates with continuous coverage, paperless filing, anti-theft, good student, vehicle safety, and paid-in-full discounts applied. When these discounts are applied, theaverage amount saved on insurance for young drivers is 28% or $769.

The importance of comparing Indiana car insurance rates

Indiana insurance rates are based on many factors that control the price you pay for coverage. Improving your credit rating, marrying your spouse, or getting into an accident can cause premium changes that can now make some companies much cheaper than others.

Additionally, insurers change prices without warning in order to protect their financial rating. A period of higher than normal claims can result in rate increases, while a profitable period may produce cheaper Indiana car insurance rates.

For example, the bar chart below analyzes the cheapest car insurance in Indiana for a 30-year-old female driver with no violations or accidents, and good financial standing. If we compare prices based on her current risk factors, Travelers may offer the lowest car insurance rates in Indiana at $620 each year. This is $620 less than the average rate paid by Indiana drivers of $1,240. USAA, Cincinnati Insurance, Erie, and Indiana Farmers Mutual are the remaining most affordable Indiana auto insurance companies.

Now let's give the driver in the first chart a claim surcharge, bad credit, and an imperfect driving record. Because each company uses their own method for determining rates, comparing rates may now present a completely different list of affordable Indiana car insurance companies as shown below.

The Hartford now has the cheapest auto insurance in Indiana with Auto-Owners, Nationwide, Motorists Mutual, and Utica National now being in the top five. This shows why drivers need to perform a complete rate comparison when trying to find the lowest car insurance rates for young drivers. Auto insurance prices can be altered by many risk factors and can decrease or increase without notice, so the cheapest rate when you last compared rates may now be priced much higher than other options.