One of the more important factors that are looked at to determine the cost of insurance is where you keep your car. Larger areas likely pay more, whereas areas with lower vehicle theft rates and fewer weather claims have the benefit of cheaper auto insurance prices.

The illustration below rates the most expensive places in Indiana to purchase car insurance in. Hammond shows up at #2 with the yearly price of $1,275 for the average policy, which is approximately $106 per month.

How much is car insurance in Hammond?
Rank City Average Per Year
1 Gary $1,347
2 Hammond $1,275
3 Portage $1,137
4 Merrillville $1,095
5 Evansville $1,087
6 Indianapolis $1,082
7 Terre Haute $1,067
8 Lawrence $1,066
9 New Albany $1,039
10 Jeffersonville $1,038
11 Anderson $1,031
12 Kokomo $1,001
13 Bloomington $998
14 Columbus $984
15 Greenwood $969
16 Richmond $964
17 Fort Wayne $956
18 Elkhart $956
19 Muncie $955
20 South Bend $947
21 Mishawaka $945
22 Fishers $945
23 Carmel $929
24 Noblesville $920
25 Lafayette $917
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Rate information is approximated as specific Hammond zip code can increase or decrease coverage rates considerably.

Now that we know where Hammond ranks for price, trying to buy reasonably-priced car insurance is not the easiest thing to do, and finding out which insurers offer the cheapest car insurance rates in Hammond calls for more quotes for comparison. Each company uses a different method for determining prices, so to begin we'll rank the overall cheapest car insurance companies in Hammond.

It's important that readers know that Indiana car insurance rates are impacted by many things that may substantially change your annual premium. Things like having a birthday, buying another vehicle, or getting into an accident can trigger changes in premium that may make certain companies cheaper in comparison to the competition.

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Travelers quotes some of the cheapest car insurance rates in Hammond at around $596 per year. Cincinnati Insurance, USAA, Erie, and Indiana Farmers Mutual also are some of the cheaper Hammond, IN car insurance companies.

As shown in the table above, if you are currently insured with Cincinnati Insurance and switched to Travelers, you could realize annual savings of roughly $68. Insureds with USAA might save as much as $71 a year, and Erie customers might lower prices by up to $109 a year.

These premium estimates are averages for all ages of drivers and types of vehicles and are not factoring in a specific vehicle garaging location in Hammond. So the auto insurance company that is best suited for you may not even be in the top 36 companies shown above. That affirms the importance of why you need to quote rates from as many companies as possible using your own driver information and specific vehicle type.

The vehicle that is being insured is one of the main factors that determines whether or not you can buy the best auto insurance in Hammond. Vehicles with lower acceleration and performance, good crash test ratings, or a low likelihood of having liability claims will cost substantially less to insure than adrenaline junky models.

The table below features insurance rates for some of the most cost-effective automobiles to insure in Indiana.

Cheapest Vehicles to Insure in Hammond, IN
Make and Model Estimated Cost for Full Coverage
Honda CR-V LX 2WD $1,520
Jeep Wrangler Sport 4WD 2-Dr $1,579
Ford Escape XLT 4WD $1,781
Chevrolet Malibu Hybrid $1,800
Chevrolet Equinox LS AWD $1,805
Honda Odyssey EX-L $1,893
Hyundai Elantra GLS 4-Dr Sedan $1,903
Volkswagen Jetta 2.0T 4-Dr Sedan $1,926
Toyota Corolla XRS $1,935
Toyota Prius $1,929
Hyundai Sonata GLS 4-Dr Sedan $1,932
Honda Accord LX-S 2-Dr Coupe $2,024
Ford F-150 XLT Regular Cab 2WD $2,050
Ford Fusion SEL AWD 4-Dr Sedan $2,058
Dodge Grand Caravan Hero $2,064
Jeep Grand Cherokee Laredo 4WD $2,074
Dodge Ram Quad Cab TRX4 Off Road 4WD $2,094
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Price data assumes single female driver age 50, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Indiana minimum liability limits. Discounts applied include multi-policy, safe-driver, multi-vehicle, homeowner, and claim-free. Premium amounts do not factor in garaging location in Hammond, IN which can decrease or increase premium rates considerably.

Based on these rates, you can infer that vehicles like the Honda CR-V, Jeep Wrangler, Ford Escape, Chevrolet Malibu, and Chevrolet Equinox are going to be a few of the cheaper vehicles to insure for drivers in Hammond.

The example below shows how different deductible levels can impact insurance premiums when quoting cheap insurance in Hammond. The rates are based on a single female driver, full physical damage coverage, and no additional discounts are factored in.

In the chart above, a 50-year-old driver could reduce rates by $222 a year by increasing from a $100 deductible up to a $500 deductible, or save $334 by changing to a $1,000 deductible. Even younger drivers, such as the 20-year-old example, could potentially save up to $566 every year just by using higher deductibles. When using a larger deductible, it is important to have enough savings set aside to satisfy the extra out-of-pocket expense, which is the main inconvenience of larger deductibles.

Full coverage rates compared to liability-only

Paying a lower price for car insurance is important to the majority of vehicle owners, and a great way to find cheaper insurance in Hammond is to not insure for full coverage. The information below shows the difference between auto insurance rates with and without physical damage coverage, medical payments, and uninsured/under-insured motorist coverage. The prices are based on a clean driving record, no at-fault accidents, $1,000 deductibles, drivers are single, and no other discounts are factored in.

If we average the cost for all age groups, full coverage costs $1,598 per year over and above liability only. That is a big expense that brings up the question if buying full coverage is a good investment. There is no specific rule of when to exclude physical damage coverage, but there is a guideline you can consider. If the annual cost of your full coverage insurance is 10% or more of any settlement you would receive from your insurance company, the it may be a good time to stop paying for full coverage.

For example, let's pretend your vehicle's replacement value is $6,500 and you have $1,000 physical damage deductibles. If your vehicle is damaged in an accident, the most your company would pay you is $5,500 after paying your policy deductible. If premium cost is more than $550 annually to have full coverage, then it may be the right time to buy liability only.