The vehicle model you are insuring is probably the biggest factor in finding the best cheap auto insurance for 16 year olds. Vehicles with lots of horsepower, a lack of modern safety features, or an increased likelihood of liability claims will cost quite a bit more to insure than safer, lower-performance models. The list below features car insurance prices for a handful of the cheaper vehicles to insure in Indiana.
|Make and Model||Estimated Cost for Full Coverage|
|Ford Escape XLS 2WD||$2,463|
|Honda Accord LX 4-Dr Sedan||$2,472|
|Honda CR-V EX-L 4WD||$2,486|
|Honda Odyssey LX||$2,747|
|Ford Explorer XLT 4WD||$2,770|
|Dodge Grand Caravan SE||$2,776|
|Ford Focus S 4-Dr Sedan||$2,896|
|Nissan Altima 2.5 4-Dr Sedan||$2,920|
|Chevrolet Impala LT||$2,927|
|Chevrolet Malibu Hybrid||$2,920|
|Chevrolet Silverado LS Extended Cab 4WD||$2,925|
|Chevrolet Equinox LT 2WD||$2,920|
|Toyota Camry LE||$2,927|
|Toyota RAV4 2WD||$2,920|
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Table data assumes single male driver age 16, 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 Indiana garaging location which can lower or raise premiums greatly.
Looking at the rates, you can infer that makes and models like the Ford Escape, Honda Accord, Honda CR-V, Toyota Prius, and Honda Odyssey are likely to be the most economical vehicles to insure for new drivers. The price for an auto insurance policy will be more costly just because there is more liability risk for 16 year olds, but overall those makes and models will probably have the lowest insurance prices that you'll find.
Establishing which companies quote the cheapest auto insurance rates for 16 year olds in Indiana will require a tad more effort in order to find a policy that fits your budget.
Each insurer used slightly different criteria for determining rates in each state, so let's look at the rankings for the overall cheapest auto insurance companies in Indiana. It's a good idea to be aware that Indiana auto insurance rates are determined by lots of factors that will increase or decrease the policy premium. Simply having another birthday, buying higher coverage limits, or having an at-fault accident can trigger rate changes that can make some companies more affordable than the competition.
Find the Cheapest Auto Insurance for Teens
Travelers generally has some of the best car insurance rates in Indiana at around $614 a year. USAA, Cincinnati Insurance, Erie, and Western Reserve also rank well as some of the best Indiana auto insurance companies.
As the example above demonstrates, if you are a policyholder with Erie and switched to USAA, you might realize savings of about $24. Insureds with Western Reserve may save as much as $165 a year, and The Hartford policyholders might reduce rates by $174 a year.
To compare your rates to other Indiana insurance companies, click here to start your custom quote or visit any of the low-priced companies below.
Remember that these policy prices are averages for all drivers and vehicles in Indiana and do not take into consideration a price surcharge for 16 year olds. So the auto insurance company that is best suited for you may not even be in the top 36 companies shown above. That point stresses why you need to compare as many prices as possible using your own driver information and specific vehicle type.
For new drivers, one of the big components that are looked at to determine the price you pay for insurance is your address. Areas with increased crime or more people like Gary, Merrillville, and Indianapolis will most likely pay more, whereas areas with lower crime rates and fewer weather claims have the luxury of lower rates.
The next table lists the most costly cities in Indiana for 16 year olds to purchase auto insurance in.
|Rank||City||Premium Per Year|
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Table data uses estimated as the specific area where the vehicle is garaged can affect rates substantially.
Picking a highly-rated car insurance company can be difficult considering how many choices you have in Indiana. The information in the next section can help you pick which companies to look at when comparing rate quotes. These ratings are for companies who write in the majority of U.S. states, so companies that have a smaller presence are not taken into consideration for these rankings.
|Company||Value||Customer Service||Claims||Customer Satisfaction||A.M Best Rating||Overall Score|
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Data Source: Insure.com Best Car Insurance Companies
Full coverage rates compared to liability only
Saving money when shopping for auto insurance is important to most people, and one way to lower the cost of insurance for 16 year olds in Indiana is to buy liability only. The chart below illustrates the comparison of insurance premiums with full physical damage coverage and with liability coverage only. The premiums are based on no accidents, no driving violations, $1,000 deductibles, drivers are not married, and no additional discounts are factored in.
Averaged for all ages 20 through 70, full coverage costs an extra $1,598 per year over and above liability coverage. A very common question is if full coverage is worth the money. There is no exact formula to eliminate physical damage coverage, but there is a guideline you can use. If the annual cost of having full coverage is more than about 10% of the replacement cost of your vehicle minus the policy deductible, then it might be time to buy liability only.
Here's why price comparisons are so important
Indiana auto insurance rates are calculated based on many things which can substantially change the price you pay. Improving your credit score, buying another vehicle, or getting caught speeding can trigger changes in premium resulting in some rates now being cheaper than before.
Not only may things change on your end, but insurers modify pricing multiple times each year in order to be able to pay unexpected claims. An extended period of higher than normal claims can cause higher priced premiums, while lower claims may result in lower-priced Indiana car insurance rates.
For instance, the bar chart below shows rates for the cheapest car insurance in Indiana for a 30-year-old male driver with no prior accidents, a clean driving record, and a decent credit rating. When comparing rates based on his personal risk profile, Travelers quotes the best car insurance rates in Indiana at $614 annually. This is $626 less than the average premium paid by Indiana drivers of $1,240. USAA, Cincinnati Insurance, Erie, and Western Reserve are the remainder of the cheapest Indiana auto insurance companies.
In this next rate comparison, we will give the driver from above a couple of claims, poor credit, and a speeding ticket. Since every car insurance company has their own process for setting rates, comparing quotes could now result in a slightly different list of affordable Indiana car insurance companies as shown below.
Auto-Owners now has the best car insurance rate in Indiana with The Hartford, USAA, Cincinnati Insurance, and Nationwide completing the list. This demonstrates why it is critical to shop around when trying to get the most economical car insurance quotes for 16 year olds. Car insurance prices are impacted by many things and can change substantially, so the cheapest rate six months ago may now not even be in the top five.
Ideas for finding economical insurance for 16 year olds in Indiana
Lowering your rates is not difficult, and here are some penny-pinching suggestions that can help Indiana drivers quote low-cost coverage.
- Vehicles with good safety ratings are usually cheaper to insure
- Pay less by remaining claim-free
- Clean up your credit
- Increase your physical damage deductibles
- Assess whether full coverage is needed
- Bundle home and auto and earn a discount
- Compare rates and switch if you can find a better deal
That final tip is incredibly critical, as was emphasized in this write-up. Rates vary considerably, so don't be hesitant to buy a different policy if you can save money.
Many drivers tend to have loyalty to a certain company, but it's not a good idea if that faithfulness ends up costing you a small fortune year after year. In just a couple of minutes you could shop around and find cheaper auto insurance for 16 year olds.