Locating low-priced car insurance is tough enough, and finding out which company quotes the lowest-priced car insurance rates for drivers under 21 in Indiana may require even more shopping around. Rates should be quite a bit higher than the average price in Indiana due to the potentially higher risk related to offering coverage for minors, but economical coverage should be obtainable if you find the right company. Each auto insurance company has their own guidelines for setting prices, so let's rank the most affordable car insurance companies in Indiana.
It's important that you understand Indiana car insurance rates are based on many factors which can substantially decrease or increase your annual premium. This price variation is why it is important to spend some time comparing rates when trying to get the most affordable auto insurance rates for drivers under 21. Prices consist of many risk factors and change dramatically, so the cheapest option when you bought your policy may now be priced much higher than other options.
Find the Best Cheap Insurance for Minors
|Rank||Company||Cost Per Year|
|5||Indiana Farmers Mutual||$849|
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Travelers generally has some of the best car insurance rates in Indiana at around $596 annually. Cincinnati Insurance, USAA, Erie, and Indiana Farmers Mutual also are some of the cheaper Indiana insurance companies.
As the example above demonstrates, if you have coverage with Indiana Farmers Mutual and switched to Cincinnati Insurance, you could earn a yearly price reduction of approximately $171. Drivers with Western Reserve might save as much as $194 a year, and The Hartford customers might see rate reductions of $203 a year.
It's important to note that these rates are averages across all drivers and vehicles in Indiana and and are not calculated with a price surcharge for drivers under 21. So the insurer that is best suited for you may not even be in the top 36 companies in the list above. That's why you need to compare rates from multiple companies using your own driver and vehicle profiles.
For minors, one of the big things that help determine the price you pay for insurance is where you keep your car. Areas with a lot of weather claims or more people like Gary, Merrillville, and Indianapolis tend to pay more, whereas more rural areas can boast about having cheaper rates.
The next table lists the priciest cities in Indiana for drivers under 21 to purchase car insurance in.
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Price information shown is comparative as zip code location can impact coverage rates substantially.
The vehicle model you are insuring is one of the biggest factors when comparing quotes for low-priced insurance for drivers under 21. Vehicles with higher performance characteristics, poor safety features, or high incidents of liability claims will cost much more to insure than safer, lower-performance models. The data below ranks coverage premiums for some of the most affordable vehicles to buy coverage for.
|Make and Model||Estimated Cost for Full Coverage|
|Honda CR-V EX 2WD||$1,831|
|Hyundai Elantra GLS Touring Station Wagon||$1,840|
|Honda Accord LX 4-Dr Sedan||$1,831|
|Ford Escape Limited 2WD||$1,855|
|Ford F-150 XL Regular Cab 2WD||$1,895|
|Chevrolet Silverado LS Regular Cab 4WD||$2,023|
|Ford Edge SE AWD||$2,149|
|Chevrolet Equinox LS 2WD||$2,172|
|Chevrolet Malibu LS||$2,177|
|Toyota RAV4 2WD||$2,172|
|Nissan Altima 2.5 4-Dr Sedan||$2,181|
|Toyota Tacoma Double Cab 4WD||$2,172|
|Ford Explorer Eddie Bauer AWD||$2,196|
|Dodge Grand Caravan SXT||$2,206|
|Jeep Wrangler Unlimited Sahara 2WD 4-Dr||$2,238|
|Honda Civic LX 4-Dr Sedan||$2,276|
|Chevrolet Impala LTZ||$2,300|
|Toyota Corolla LE||$2,309|
|Honda Odyssey EX-L W/Navigation||$2,300|
|Toyota Camry XLE||$2,305|
|Ford Fusion Sport 4-Dr Sedan||$2,323|
|Jeep Grand Cherokee Limited 4WD||$2,329|
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Prices based on single male driver age 19, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Indiana minimum liability limits. Discounts applied include claim-free, and safe-driver. Premium costs do not factor in the specific area where the vehicle is garaged which can raise or lower price quotes noticeably.
Based upon these rates, you can presume that makes and models like the Honda CR-V, Hyundai Elantra, Honda Accord, Ford Escape, and Ford F-150 are likely to be the most budget-friendly vehicles to insure for minors. The price for car insurance will trend higher just because there is more risk for drivers under 21, but in general those vehicles will have the lowest insurance prices possible.
How to get discounts on Indiana auto insurance
Insurance companies that offer coverage for drivers under 21 may additionally offer policy discounts that could potentially reduce rates by as much as 35% if you qualify. A list of car insurance companies and the discounts they provide can be read below.
- Farm Bureau has savings for renewal discount, driver training, 55 and retired, youthful driver, safe driver, and good student.
- MetLife includes discounts for multi-policy, claim-free, good student, good driver, accident-free, defensive driver
- Progressive may have discounts that include multi-policy, continuous coverage, multi-vehicle, good student, and online signing.
- AAA has discounts for anti-theft, good driver, AAA membership discount, multi-car, good student, and multi-policy.
- American Family policyholders can earn discounts including good student, multi-vehicle, Steer into Savings, defensive driver, and accident-free.
- GEICO may include discounts for anti-theft, emergency military deployment, daytime running lights, military active duty, good student, five-year accident-free, and driver training.
- State Farm offers discounts including defensive driving training, passive restraint, driver's education, multiple autos, multiple policy, safe vehicle, and Steer Clear safe driver discount.
The illustration below shows the difference between annual premium costs with and without discounts applied. The premium estimates are based on a female driver, no accidents or driving violations, Indiana state minimum liability limits, comp and collision included, and $250 deductibles. The first bar for each age group shows the average rate with no discounts. The second bar shows the rates with claim-free, multiple vehicle, accident-free, passive restraint, anti-theft, and safe-driver discounts applied. When drivers qualify for the discounts, theaverage yearly reduction on car insurance for drivers under 21 is 28% or $617.
Cost difference between full coverage and liability
Finding cheaper car insurance is the goal of most vehicle owners, and one of the easiest ways to save on the cost of insurance for drivers under 21 in Indiana is to only buy liability insurance. The illustration below illustrates the comparison of premium costs with and without physical damage coverage. The price estimates are based on no claims or driving citations, $250 deductibles, single status, and no discounts are applied.
Averaged out for all age groups, physical damage insurance costs $2,009 per year more than insuring for liability only. That amount may make you wonder if paying for full coverage is a waste of money. There is no specific rule to exclude comprehensive and collision coverage on your policy, but there is a broad guideline. If the annual cost of coverage is about 10% or more of replacement cost minus your deductible, the it may be a good time to stop paying for full coverage.
For example, let's say your vehicle's replacement value is $5,000 and you have $1,000 full coverage deductibles. If your vehicle is totaled, the most your company will settle for is $4,000 after the policy deductible has been paid. If it's costing you more than $400 annually for your policy with full coverage, the it may be a good time to stop paying for full coverage.
There are a few cases where removing full coverage is not recommended. If you still have a lienholder on your title, you have to carry full coverage in order to keep the loan. Also, if you can't afford to buy a different vehicle if your current one is in an accident, you should not remove full coverage.
Why you should be comparing rates
Indiana car insurance rates are calculated based on many things which can significantly increase or decrease the price you pay for coverage. Simply having a birthday, becoming a homeowner, or having an at-fault accident can cause premium changes that may make certain companies cheaper than before. Not only may things change on your end, but insurance companies amend premium rates without warning to help ensure profitability. Heavier than normal losses may result in increased rates, while better underwriting can result in cheaper Indiana car insurance rates.
To illustrate this point, the data below analyzes the cheapest car insurance in Indiana for a 45-year-old female driver with no violations or accidents, and good credit. When quoting prices based on her personal profile, Travelers has the best car insurance rates in Indiana at $614 annually. This is $626 less than the average policy premium paid by Indiana drivers of $1,240. Cincinnati Insurance, USAA, Erie, and Indiana Farmers Mutual are also on the list of the cheapest Indiana auto insurance companies.
In this example, we will give the driver from the above example a couple of claims, poor credit, and an imperfect driving record. Due to the fact that every auto insurer has a different process to determine rates, comparing insurance quotes may result in a different set 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 State Farm now being in the top five. This demonstrates why it is important to take the time to shop around when trying to find cheap auto insurance rates for drivers under 21. Car insurance prices can be determined by many risk factors and change dramatically, so the cheapest rate the last time you shopped your coverage around may now not even be in the top five.
Ideas for buying cheaper auto insurance for drivers under 21 in Indiana
The list below details many thrifty solutions that can help Indiana drivers buy lower-cost coverage.
- Just one traffic violation will increase your rates
- Safe vehicles generally have lower rates
- Insure your home and auto with the same company
- Drop full coverage on older vehicles
- At-fault accidents can raise rates significantly
- Save money by staying claim-free
- Compare rates regularly and switch companies to save money
The last tip in the list is highly valuable, as we hit on in the article above. Insurance rates can be modified anytime, so drivers shouldn't hesitate 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 devotion results in you overpaying thousands of dollars over several years. It only take a few minutes to shop around to find cheaper auto insurance for drivers under 21.