The words "low-cost" and "insurance" really should not be used together, in particular when trying to find the best insurance rates for a learners permit. To help control this cost, let's open your eyes to some situations the can have a considerable influence on car insurance prices, and see if you can reduce the cost of the next policy you buy.
For new drivers, one of the big factors that are used to help calculate the amount you pay for auto insurance is the neighborhood you call home in Indiana. Larger areas like Gary, Merrillville, and Indianapolis are more likely to have higher rates, whereas areas with less people or fewer weather incidents have the benefit of cheaper car insurance.
The next table ranks the highest-priced areas in Indiana for a learners permit in which to buy car insurance.
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Rate information is approximated as specific Indiana zip code can affect prices greatly.
Finding out which insurers offer the best car insurance rates for a learners permit in Indiana will require more work in order to find the best policy. Every auto insurer has a proprietary method to set premium rates, so we need to take a look at the most budget-friendly car insurance companies in Indiana.
We do need to point out that Indiana car insurance rates are impacted by many factors that control the price of your policy. Simply turning a year older, having a claim, or getting a reckless driving citation can cause premium changes that can make some companies cheaper than others.
Best Insurance Companies in Indiana
|Rank||Company||Cost Per Year|
|5||Indiana Farmers Mutual||$849|
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Travelers generally has some of the most affordable car insurance rates in Indiana at around $614 per year. This is $626 less than the average rate paid by Indiana drivers of $1,240. Cincinnati Insurance, USAA, Erie, and Indiana Farmers Mutual also rank well as some of the most economical Indiana auto insurance companies.
In the rate table above, if you have coverage with Erie and switched to Cincinnati Insurance, you may realize an annual savings of in the vicinity of $69. Indiana drivers with Indiana Farmers Mutual may save as much as $185 a year, and The Hartford insureds might reduce rates by $191 a year.
Remember that these policy rates are averaged for all drivers and vehicles in Indiana and are not factoring in a rate increase for a learners permit. So the auto insurance company that is most affordable for your situation may not even be in the list above. That emphasizes why you need to get quotes using your own driver data and vehicle information.
Price comparison of only insuring for liability
Saving money when shopping for car insurance is probably important to the majority of vehicle owners, and an effective way to find cheap insurance for a learners permit in Indiana is to only pay for liability coverage. The illustration below visualizes the comparison of car insurance rates when comparing full coverage to liability only. The rates are based on no driving violations, no at-fault accidents, $500 deductibles, drivers are not married, and no discounts are taken into consideration.
Averaged for all ages 20 through 70, physical damage insurance costs $1,328 per year over and above liability coverage. That raises the question if it's worth it to buy full coverage. There is no definitive formula for phasing out physical damage insurance, but there is a general guideline you can use. If the annual cost of your full coverage insurance is 10% or more of replacement cost minus your deductible, then you might want to think about dropping full coverage.
Get discount Indiana insurance rates
Insurers that provide policies for a learners permit may additionally offer price discounts that can lower rates by 25% or more if you are eligible to receive them. Larger car insurance companies and a selection of discounts are outlined below.
- State Farm has discounts for good student, Drive Safe & Save, safe vehicle, accident-free, and multiple policy.
- Progressive discounts include good student, online quote discount, online signing, continuous coverage, homeowner, and multi-vehicle.
- Progressive may have discounts that include good student, multi-policy, online signing, continuous coverage, and online quote discount.
- MetLife offers discounts including multi-policy, defensive driver, claim-free, good driver, good student, and accident-free.
- Farm Bureau may offer discounts for driver training, safe driver, renewal discount, multi-vehicle, youthful driver, and multi-policy.
- GEICO policyholders can earn discounts including membership and employees, seat belt use, emergency military deployment, anti-theft, and five-year accident-free.
- SAFECO includes discounts for accident prevention training, drive less, anti-lock brakes, bundle discounts, and multi-car.
The information below shows the comparison of car insurance costs with and without discounts applied to the rates. The premium estimates are based on a male driver, no claims or violations, Indiana state minimum liability limits, comp and collision included, and $1,000 deductibles. The first bar for each age group shows the average annual price with no discounts. The second shows the rates with passive restraint, continuous coverage, good student, paid-in-full, anti-theft, and paperless filing discounts applied. When taking advantage of discounts, the average savings per year on car insurance for a learners permit is 28% or $438.
The information below demonstrates how deductibles can influence insurance costs when researching cheap insurance for a learners permit in Indiana. The information is based on a single male driver, comprehensive and collision coverage, and no discounts are applied.
In the chart above, a 40-year-old driver could lower their car insurance rates by $322 a year by switching from a $100 deductible to a $500 deductible, or save $484 by selecting a $1,000 deductible. Youthful drivers, like the 20-year-old category, can cut as much as $1,066 annually just by choosing higher deductibles when buying full coverage. When insureds make the decision to increase the deductibles on their policy, it is essential to have enough spare savings to offset the extra out-of-pocket expense, which is the primary disadvantage of high deductibles.
Comparing rates can save you money
Indiana car insurance rates are based on many factors which can substantially decrease or increase the cost of your policy. Simply having a birthday, moving to a different location, or getting caught speeding can produce rate changes that may make certain companies much cheaper than others.
In addition, companies file new rates as often as every three months to reflect underwriting profits or losses. Heavy losses may cause a rate increase, while lower claim levels may cause cheaper Indiana car insurance rates.
The bar chart below demonstrates which company has the cheapest car insurance in Indiana for a 40-year-old male driver with no prior accidents, a clean driving record, and a decent credit rating. If we compare prices based on his personal profile, Travelers has the best car insurance rates in Indiana at $602 annually. This is $638 less than the average policy premium paid by Indiana drivers of $1,240. Cincinnati Insurance, USAA, Erie, and Indiana Farmers Mutual are also included in the top five cheapest Indiana auto insurance companies.
The chart below compares rates after we give the driver from the first example a couple of claims, poor credit, and a few blemishes on his driving record. Since each insurance company has their own formula for filing rates in each state, analyzing rate quotes may now show a substantially altered list of affordable companies as shown below.
Western Reserve now has the lowest price in Indiana with Auto-Owners, Utica National, Cincinnati Insurance, and Nationwide now being in the top five. This example shows why it is crucial to take the time to shop around when trying to find the cheapest auto insurance rates for a learners permit.
Prices are calculated by many risk factors and can increase or decrease at any time, so the best company six months ago may now be an over-priced policy.