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.

Cheapest Vehicles to Insure for 16 Year Olds 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
Toyota Prius $2,659
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.

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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.

How much is auto insurance in Indiana?
Rank City Premium Per Year
1 Gary $1,347
2 Hammond $1,314
3 Merrillville $1,128
4 Portage $1,126
5 Indianapolis $1,082
6 Terre Haute $1,077
7 Lawrence $1,055
8 Evansville $1,045
9 Anderson $1,041
10 New Albany $1,039
11 Jeffersonville $1,038
12 Kokomo $1,031
13 Bloomington $988
14 Columbus $975
15 Fishers $974
16 Elkhart $965
17 Fort Wayne $956
18 Muncie $955
19 Noblesville $948
20 Carmel $947
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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.

Best Auto Insurance Companies for 16 Year Olds in Indiana
Company Value Customer Service Claims Customer Satisfaction A.M Best Rating Overall Score
USAA 99 100 90 92% A++ 97.4
21st Century 89 86 100 88% A 92.7
GEICO 97 91 88 85% A++ 92.5
Nationwide 88 94 91 88% A+ 91.3
AAA Insurance 93 87 88 87% A 90.8
Liberty Mutual 91 91 92 87% A 90.7
Safeco Insurance 90 93 88 86% A 90.2
State Farm 91 94 80 88% A++ 90.2
Travelers 89 91 94 79% A++ 90.1
American Family 88 92 83 88% A 89.4
Titan Insurance 89 91 83 86% A+ 89.3
Allstate 90 90 84 85% A+ 89.1
Progressive 83 85 99 87% A+ 88.7
Erie Insurance 92 90 82 88% A+ 88.5
The Hartford 87 89 84 87% A+ 88
Esurance 84 88 85 83% A+ 86
Farmers Insurance 79 88 84 87% A 84.7
The General 88 80 85 80% A- 84.5
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Data Source: 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.

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.