The words "cheap" and "insurance" really shouldn't be used together, especially when you are looking for the best car insurance for 18 year olds. To save some money, let's open your eyes to some situations that have an effect on insurance rates, and figure out some ideas to take the bite out of the next policy you buy.
One of the many components that determine the price you pay for insurance is where you live in Indiana. More populated areas like Gary, Portage, and Indianapolis tend to have more expensive car insurance rates, whereas areas with lower crime rates and fewer weather claims get the luxury of paying less.
The following table lists the priciest cities in Indiana for 18 year olds in which to purchase auto insurance.
|Rank||City||Premium Per Year|
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Information shown are estimated as the specific geographic location can increase or decrease auto insurance rates substantially.
The vehicle you are trying to insure is probably the most important factor when consumers are trying to find low-priced auto insurance for 18 year olds. Vehicles with reasonable performance levels, an excellent safety record, or a positive history of liability claims will cost much less to insure than adrenaline junky models.
The next list presents auto insurance costs for the most economical automobiles to insure in Indiana.
|Insured Vehicle||Estimated Cost for Full Coverage|
|Ford Escape XLS 2WD||$2,070|
|Honda Accord EX 4-Dr Sedan||$2,077|
|Honda CR-V EX-L 4WD||$2,093|
|Chevrolet Silverado LS Regular Cab 4WD||$2,293|
|Ford F-150 XLT Super Cab 4WD||$2,340|
|Ford Edge SE AWD||$2,431|
|Honda Odyssey EX W/Rear Entertainment||$2,439|
|Jeep Grand Cherokee Laredo 2WD||$2,454|
|Toyota Tacoma Double Cab 4WD||$2,461|
|Chevrolet Impala LT||$2,454|
|Toyota RAV4 Limited 2WD||$2,461|
|Volkswagen Jetta LE 4-Dr Sedan||$2,454|
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Prices based on single male driver age 18, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Indiana minimum liability limits. Discounts applied include safe-driver, and claim-free. Price estimates do not factor in garaging location in Indiana which can raise or lower premiums significantly.
Based upon the table data, you can infer that cars like the Ford Escape, Honda Accord, Honda CR-V, and Toyota Prius are likely to be the cheapest vehicles to insure for teen drivers. The price of auto insurance will tend to be more expensive just because there is a higher risk for 18 year olds, but overall those vehicles will have the cheapest car insurance rates that you'll find.
Finding cheap car insurance is not always easy, and determining which companies have the cheapest car insurance rates for 18 year olds in Indiana will involve more quotes for comparison. Premiums should be much more than the state average attributed to the potential for more claims related to selling coverage for teen drivers, but affordable coverage should be achievable if you thoroughly shop around. Each insurer has a proprietary method for determining prices, so let's begin by taking a look at the overall cheapest car insurance companies in Indiana.
It's a good idea to know that Indiana car insurance rates are based on many factors that will increase or decrease the price you pay. Improving your credit score, buying a home, or having an accident may cause policy rate changes resulting in some companies being more affordable than competitors.
Compare Cheap Insurance Quotes for Teens
|Rank||Company||Cost Per Year|
|6||Indiana Farmers Mutual||$875|
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Travelers generally has some of the cheapest car insurance rates in Indiana at around $602 annually. This is $638 less than the average premium paid by Indiana drivers of $1,240. Cincinnati Insurance, USAA, Erie, and Western Reserve are also some of the lowest-priced Indiana insurance companies.
As illustrated above, if you are insured with USAA and switched to Travelers, you could earn an annual premium reduction of in the neighborhood of $85. Insureds with Erie might save as much as $110 a year, and Western Reserve customers might see rate reductions of $236 a year.
Be aware that those prices are averages for all ages of drivers and types of vehicles and do not factor in a rate increase for 18 year olds. So the company that has the lowest price for you may not even be in the top 36 companies shown above. That emphasizes why you need to get car insurance quotes using your own driver data and vehicle information.
The chart below highlights how deductible choice can influence insurance rates when trying to find cheap insurance for 18 year olds in Indiana. The information is based on a single female driver, full coverage, and no additional discounts are factored in.
In the chart above, a 30-year-old driver could lower their car insurance rates by $254 a year by increasing from a $100 deductible to a $500 deductible, or save $384 by switching to a $1,000 deductible. Even younger drivers, such as the Age 20 example, can cut up to $566 every year by using a higher deductible. When insureds make the decision to increase the deductibles on their policy, it will be required to have spare funds to cover the extra out-of-pocket expense associated with higher deductibles.
Discounts on Indiana car insurance rates
Insurance providers that sell policies for 18 year olds could also offer rate discounts that can reduce rates by as much as 25% or more if you meet specific eligibility requirements. Popular car insurance companies and the discounts they provide can be read below.
- GEICO offers premium reductions for anti-theft, multi-policy, daytime running lights, military active duty, and good student.
- MetLife has savings for claim-free, accident-free, multi-policy, defensive driver, and good student.
- State Farm may have discounts that include multiple autos, safe vehicle, Steer Clear safe driver discount, accident-free, defensive driving training, anti-theft, and good student.
- Progressive offers discounts including multi-policy, continuous coverage, homeowner, multi-vehicle, online quote discount, and online signing.
- Mercury Insurance offers discounts for accident-free, multi-policy, age of vehicle, low natural disaster claims, anti-theft, and good student.
- 21st Century has discounts for homeowners, 55 and older, student driver, automatic seat belts, driver training, and theft prevention.
- Allstate includes discounts for passive restraint, teenSMART discount, EZ pay plan discount, eSmart discount, farm vehicle, premier plus, and safe driver.
The information below illustrates the comparison of car insurance costs with and without discounts applied. The premium estimates are based on a female driver, no claims, a clean driving record, Indiana state minimum liability limits, full coverage, and $100 deductibles. The first bar for each age group shows the average annual price with no discounts. The second bar shows the rates with continuous coverage, good student, passive restraint, anti-theft, paid-in-full, and paperless filing discounts applied. When these discounts are applied, the average amount saved each year on car insurance for 18 year olds is 28% or $509.
Indiana car insurance companies ranked
Insuring your vehicle with a high-quality car insurance company can be difficult considering how many different insurance companies sell coverage in Indiana. The information in the next section may help you pick which auto insurance companies to look at when looking for cheaper rates. These rankings include the largest companies in the United States, so companies that may only write in Indiana are not factored into 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
Don't make the mistake of not shopping around
Indiana car insurance rates are influenced by many factors which can substantially change the cost of a policy. Turning one year older, moving to a new city, or getting a ticket for careless driving can trigger changes in premium that can make some companies cheaper in comparison to the competition. Not only may your situation change, but insurers file new Indiana auto insurance rates as needed in order to maintain liquidity for claims. Significantly higher claims may cause increased policy costs, while long-term profits may produce lower-priced Indiana car insurance rates.
As an example, the graph below compares the cheapest car insurance in Indiana for a 35-year-old male driver with a clean driving record, no accidents, and good financial standing. If we compare prices based on his current risk factors, Travelers has the lowest car insurance rates in Indiana at $602 each year. This is $638 less than the average rate paid by Indiana drivers of $1,240. Cincinnati Insurance, USAA, Erie, and Indiana Farmers Mutual are the remaining cheapest Indiana auto insurance companies.
Now let's give the driver in the first chart a chargeable accident, a lower credit rating, and an imperfect driving record. Since each auto insurer has their own unique process to determining premium rates, comparing quotes may now result in a new list of the cheapest car insurance companies in Indiana as shown below.
The Hartford now has the lowest price on auto insurance in Indiana with Auto-Owners, Cincinnati Insurance, Nationwide, and State Farm also having competitive pricing. This example shows why it is important to spend some time comparing rates when trying to find the cheapest auto insurance rates for 18 year olds. Auto insurance prices are determined by many things and can decrease or increase without notice, so the most economical option six months ago may now not even be in the top five.