Wouldn't it be great if we could instantly tell you the single company that has the best auto insurance prices for first-time drivers? That is not the case, however, as there are a whole slew of unknown factors such as if you have ever let your coverage lapse, your marital status, your financial responsibility, and the area you live in, that all impact the price you pay. The information below will cover the best ways to find cheap car insurance and will hopefully give you a good start in finding the cheapest car insurance for inexperienced drivers.

One of the many criteria that are used to help calculate the price you pay for insurance is where you live. Cities with more crime and/or more people like Gary, Merrillville, and Lawrence are more likely to have higher rates, whereas more rural areas profit from lower rates.

The following table ranks the highest-priced places in Indiana for first-time drivers to purchase auto insurance in.

How much does auto insurance cost in Indiana?
Rank City Annual Rate
1 Gary $1,388
2 Hammond $1,327
3 Merrillville $1,106
4 Portage $1,104
5 Lawrence $1,088
6 Jeffersonville $1,070
7 New Albany $1,059
8 Indianapolis $1,050
9 Evansville $1,045
10 Terre Haute $1,045
11 Kokomo $1,031
12 Anderson $1,031
13 Bloomington $998
14 Columbus $984
15 Fort Wayne $976
16 Mishawaka $974
17 Elkhart $965
18 South Bend $956
19 Fishers $954
20 Carmel $947
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Rates are approximated as the vehicle garaging location can impact coverage prices greatly.

The vehicle model to be insured is probably the largest consideration when looking for the most affordable auto insurance for first-time drivers. Vehicles with economical engines, a plethora of safety features, or a low likelihood of having liability claims will cost much less to insure than adrenaline junky models.

The table below ranks coverage costs for a handful of the more affordable automobiles to insure in Indiana.

Cheapest Vehicles to Insure for First-time Drivers in Indiana
Make and Model Estimated Cost for Full Coverage
Ford Escape XLT 2WD $2,463
Hyundai Elantra GLS Touring Station Wagon $2,469
Honda CR-V EX-L 2WD $2,486
Honda Accord EX-L 4-Dr Sedan $2,636
Toyota Prius $2,659
Dodge Grand Caravan CV $2,770
Ford Explorer Eddie Bauer 2WD $2,780
Ford Focus S 4-Dr Sedan $2,896
Chevrolet Impala LT $2,920
Chevrolet Silverado LT Extended Cab 4WD $2,925
Toyota RAV4 4WD $2,920
Chevrolet Malibu LT $2,943
Toyota Tacoma Double Cab 4WD $2,952
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Data based on single male driver age 16, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Indiana minimum liability limits. Discounts applied include safe-driver, and claim-free. Prices do not factor in specific location which can lower or raise insurance rates significantly.

Looking at the numbers, you can conclude that cars like the Ford Escape, Hyundai Elantra, Honda CR-V, and Honda Accord are a few of the cheapest vehicles to insure for new drivers. The price for car insurance will trend higher because of the fact that there is more inherent risk for first-time drivers, but generally speaking those models will tend to have the cheapest auto insurance rates compared to other types of vehicles.

Should you buy full coverage?

Buying cheaper car insurance is important to most vehicle owners, and a great way to find cheap insurance for first-time drivers in Indiana is to not pay for full coverage. The chart below illustrates the difference between insurance costs with full physical damage coverage compared to only buying the minimum liability limits required in Indiana. The rate quotes are based on no tickets, no at-fault accidents, $100 deductibles, single status, and no policy discounts are applied.

As an average, physical damage coverage costs $1,613 per year over and above liability coverage. At some point, every insured wonders if buying full coverage is a waste of money. There is no written rule of when to drop physical damage coverage on your policy, but there is a guideline you can use. If the yearly cost of full coverage is more than 10% of the settlement you would receive from your company, then it's probably a good time to buy liability coverage only.

How careless driving impacts Indiana car insurance rates

The obvious way to obtain low car insurance premiums in Indiana for new drivers is to be a good driver and avoid getting tickets or having accidents. The information below shows how traffic citations and at-fault collisions increase car insurance costs for different categories of driver ages. The prices are based on a married female driver, comp and collision included, $500 deductibles, and no discounts are applied to the premium.

In the example above, the average cost of auto insurance per year with a clean driving record and no accidents is $1,121. Get written up for one speeding ticket and the average cost swells to $1,305, an increase of $184 each year. Now throw in two accidents along with the one speeding ticket and the annual cost of car insurance for first-time drivers in Indiana jumps again to an average of $2,903. That's an increase of $1,782, or $149 per month, just for not paying attention while driving!

The example below demonstrates how deductibles can impact insurance premiums when quoting cheap insurance for first-time drivers in Indiana. The data assumes a single female driver, comp and collision included, and no discounts are applied to the premium.

In the chart above, a 40-year-old driver could lower their policy premium by $222 a year by changing their physical damage coverage from a $100 deductible to a $500 deductible, or save $334 by using a $1,000 deductible. Young drivers, like the Age 20 chart data, could reduce their rates up to $566 or more just by choosing higher deductibles when buying full coverage. When raising deductibles, it is a good idea to have enough savings to enable you to pay the extra out-of-pocket expense, which is the primary disadvantage of high deductibles.

How to find budget-friendly car insurance for first-time drivers

The list below details a few money-saving solutions that can help Indiana drivers find cheap auto insurance.

That last tip is very important, as was emphasized in this piece. Prices charged by auto insurers can change considerably based on profitability, so don't be afraid to buy from a new company if a more affordable price is available. Many drivers prefer to stick with one company, but it's not recommended if that stubbornness costs you hundreds of dollars year after year. Spend a few minutes and compare prices to find cheaper auto insurance for first-time drivers.