Having to pay for pricey insurance in Indianapolis can sap your bank account and put the squeeze on your family's finances. Doing a rate analysis is a great way to slash your bill and have more diposable income.
Surprisingly, a recent survey revealed that over 70% of consumers have stayed with the same insurance company for at least the last four years, and 38% of drivers have never taken the time to shop around. Most drivers in Indianapolis can save hundreds of dollars each year just by comparing rates, but they just don't understand the benefits if they changed companies.
Consumers have many insurers to insure vehicles with, and even though it's nice to have a selection, too many choices makes it more difficult to compare rates and cut insurance costs.
Why Your Insurance Premiums might be higher
Multiple criteria are considered when you quote your car insurance policy. Most are fairly basic like a motor vehicle report, although some other factors are more transparent like where you live or how financially stable you are. It's important that you understand the different types of things that aid in calculating the level of your policy premiums. If you understand what impacts premium levels, this enables informed choices that will entitle you to cheaper rates.
The factors shown below are most of the major factors used by companies to determine rates.
Men tend to take more risk - Over the last 30 years, statistics show women are more cautious behind the wheel. It does not mean women are BETTER drivers than men. Both genders cause at-fault accidents in similar percentages, but men tend to have more serious accidents. They also get higher numbers of serious violations such as driving while intoxicated (DWI) or driving recklessly.
Accidents are costly - Your driving citation history impacts premiums far more than you think. Getting just one driving citation can increase rates twenty percent or more. Careful drivers have lower premiums than their less careful counterparts. Drivers who have received multiple tickets like DUI or willful reckless driving may be required to file a SR-22 with their state's licensing department in order to keep their license.
Excellent credit saves on insurance - Having a good credit rating can be a huge factor in your rate calculation. If your credit rating could use some work, you could be paying less to insure your Toyota Prius if you clean up your credit. People with very high credit ratings tend to be more responsible as compared to drivers with poor credit scores.
Liability insurance limits are a factor - Your insurance policy's liability coverage is the protection if ever a jury decides you are liable for damages from an accident. Liability provides legal defense coverage which can cost thousands of dollars. Liability is cheap when compared with rates for comp and collision, so drivers should make sure they buy enough to cover all assets.
Loss probability for a Toyota Prius - Insurers study historical loss data to help calculate premium rates. Models that historically have higher loss trends will have a higher premium rate. The table below demonstrates the loss history for Toyota Prius vehicles.
For each insurance policy coverage type, the statistical loss for all vehicles, regardless of make or model, is considered to be 100. Values under 100 suggest a positive loss record, while values over 100 point to more losses or larger claims.
Toyota Prius Insurance Loss Statistics
|Vehicle Make and Model||Collision||Property Damage||Comp||Personal Injury||Medical Payment||Bodily Injury|
|Toyota Prius C Hybrid||113||100||87||120||121||113|
|Toyota Prius Hybrid||101||97||98||103||118||103|
|Toyota Prius Plug-in Hybrid||98||89||87||106||114||93|
|Toyota Prius V Hybrid||94||86||88||88||94||97|
Statistics from IIHS.org for 2013-2015 Model Years
How to buy Toyota Prius insurance in Indianapolis
When comparison shopping, making a lot of price comparisons increases your odds of finding the best offered rates. Some smaller insurers do not give price estimates online, so it's important to also get price quotes from them, too.
The auto insurance companies shown below are our best choices to provide free quotes in Indianapolis, IN. If multiple providers are shown, we suggest you visit as many as you can to find the most competitive auto insurance rates.
|Model||Comp||Collision||Liability||Medical||UM/UIM||Annual Premium||Monthly Premium|
|Get Your Own Custom Quote Go|
Data based on single female driver age 40, no speeding tickets, no at-fault accidents, $100 deductibles, and Indiana minimum liability limits. Discounts applied include multi-policy, multi-vehicle, homeowner, claim-free, and safe-driver. Price information does not factor in garaging location in Indianapolis which can increase or decrease premium rates considerably.
Can higher deductibles save money?
The diagram below shows how choosing a deductible and can influence Toyota Prius insurance premiums for each different age category. The rate quotes are based on a married male driver, full physical damage coverage, and no discounts are factored in.
Car insurance premiums based on gender
The illustration below shows the difference between Toyota Prius auto insurance costs for male and female drivers. The premiums assume no claims or driving violations, comprehensive and collision coverage, $250 deductibles, marital status is single, and no additional discounts are factored in.
Full coverage versus liability only rates
The diagram below illustrates the difference between Toyota Prius insurance costs when comparing full coverage to state minimum liability only. The rates are based on no violations or claims, $1,000 deductibles, single female driver, and no discounts are applied to the premium.
When to stop paying for full coverage
There is no exact rule to eliminate full coverage on your policy, but there is a general school of thought. If the annual cost of coverage is about 10% or more of any settlement you would receive from your insurance company, then you might want to think about dropping full coverage.
For example, let's say your Toyota Prius replacement value is $4,000 and you have $1,000 full coverage deductibles. If your vehicle is damaged in an accident, the most your company will settle for is $3,000 after paying the physical damage deductible. If it's costing in excess of $300 a year for comprehensive and collision coverage, then it's probably a good time to buy liability coverage only.
There are some situations where buying only liability insurance is not a good plan. If you still have a lienholder on your title, you have to maintain full coverage in order to keep the loan. Also, if you cannot afford to purchase a different vehicle if your current one is damaged, you should keep full coverage in place.
Be skeptical of auto insurance ads
Popular auto insurance providers such as Allstate and Progressive consistently run ads on TV and radio. They all seem to say the same thing of big savings if you move to them. That's great but how can every company cost less than your current company? This is how they do it.
All the different companies are able to cherry pick for the type of driver that will generate a profit. One example of a desirable insured could possibly be a married female, carries high limits, and drives newer vehicles. A driver that matches those criteria will get a cheap rate quote in Indianapolis and will probably pay quite a bit less when switching companies.
People who do not match those criteria may be forced to pay higher rates which results in the customer not purchasing. If you pay close attention to the ads, they say "people who switch" but not "all drivers who get quotes" save money. That's why insurance companies can make it sound like they have such great premium rates.
Each company has different criteria, so you should get Indianapolis car insurance quotes as often as possible. Because without a comparison, you cannot know the company that will have the best car insurance rates at this point in time.
Auto insurance is not optional but you don't have to overpay
Despite the high cost, maintaining insurance may be required for several reasons.
- The majority of states have mandatory liability insurance requirements which means state laws require specific limits of liability coverage if you don't want to risk a ticket. In Indiana these limits are 25/50/10 which means you must have $25,000 of bodily injury coverage per person, $50,000 of bodily injury coverage per accident, and $10,000 of property damage coverage.
- If your Prius has a lienholder, it's guaranteed your bank will require you to buy full coverage to guarantee loan repayment. If you cancel or allow the policy to lapse, the lender may have to buy a policy to insure your Toyota at a more expensive rate and make you pay for it.
- Auto insurance protects not only your vehicle but also your financial assets. Insurance will pay for medical expenses for you, your passengers, and anyone else injured in an accident. Liability insurance, one of your policy coverages, also pays expenses related to your legal defense in the event you are sued. If damage is caused by hail or an accident, collision and comprehensive coverages will pay all costs to repair after the deductible has been paid.
The benefits of having auto insurance are definitely more than the cost, especially if you ever need it. Today the average American driver overpays more than $865 each year so it's very important to do a rate comparison at least once a year to make sure the price is not too high.
Cheap Indianapolis insurance rates with discounts
Some insurance providers don't necessarily list every disount available in a way that's easy to find, so here is a list a few of the more well known as well as the least known credits available to bring down your rates.
- Discount for Life Insurance - Select companies reward you with a lower price if you buy auto and life insurance together.
- Buy New and Save - Adding a new car to your policy is cheaper due to better safety requirements for new vehicles.
- Driver's Education for Students - It's a good idea to have your young drivers participate in a local driver's education class as it can save substantially.
- Telematics Discount - Insureds who allow driving data collection to look at driving manner by using a telematics device such as In-Drive from State Farm or Allstate's Drivewise system could possibly reduce rates if they show good driving skills.
- Distant College Student Discount - College-age children who live away from home at college and do not take a car to college can receive lower rates.
- Low Mileage Discounts - Keeping the miles down on your Toyota could qualify for cheaper insurance rates.
- Accident Waiver - This one is not really a discount per se, but companies like Liberty Mutual, Allstate and State Farm permit an accident without raising rates so long as you haven't had any claims prior to being involved in the accident.
It's important to note that most discounts do not apply to the whole policy. Most only reduce the cost of specific coverages such as physical damage coverage or medical payments. Just because it seems like all those discounts means the company will pay you, that's just not realistic.
A few popular companies and a selection of discounts can be read below.
- State Farm offers discounts including safe vehicle, multiple policy, defensive driving training, student away at school, driver's education, Drive Safe & Save, and good driver.
- American Family includes discounts for mySafetyValet, accident-free, bundled insurance, air bags, multi-vehicle, defensive driver, and early bird.
- GEICO policyholders can earn discounts including multi-vehicle, air bags, five-year accident-free, anti-theft, and anti-lock brakes.
- 21st Century may include discounts for teen driver, driver training, defensive driver, homeowners, anti-lock brakes, automatic seat belts, and theft prevention.
- Progressive has savings for online signing, multi-policy, online quote discount, good student, homeowner, and continuous coverage.
When getting free Indianapolis car insurance quotes, it's a good idea to every insurance company to apply every possible discount. All car insurance discounts might not be offered on policies in your state. If you would like to see a list of companies with significant discounts in Indiana, click this link.
When do I need to have guidance from an insurance agent?
Some people still prefer to sit down with an agent and that is a personal choice. One of the best bonuses of comparing rates online is that you can obtain the lowest rates but still work with a licensed agent. And buying from local insurance agents is important particularly in Indianapolis.
For easy comparison, once you complete this quick form, your coverage information gets sent to local insurance agents in Indianapolis that give free quotes for your business. It's much easier because you don't need to even leave your home due to the fact that quote results will go to the email address you provide. You'll get the best rates without a big time investment. If you wish to get a comparison quote from a particular provider, feel free to navigate to their website to submit a rate quote request.
Is an exclusive or independent auto insurance agent right for you?
If you would like to find a reliable insurance agency, you should know the types of agencies to choose from. Insurance agencies in Indianapolis can either be independent or exclusive.
Independent Insurance Agents
Agents that elect to be independent can quote rates with many companies and that allows them to write policies with multiple insurance companies and get the cheapest rates. If your agent finds better pricing, an independent agent can move your coverage and the insured can keep the same agent. When comparing rate quotes, it's recommended you get insurance quotes from a couple of independent agencies to get the best comparison.
Shown below is a partial list of independent insurance agencies in Indianapolis that may be able to provide free auto insurance quotes.
Exclusive Auto Insurance Agencies
Exclusive agencies can only quote rates from one company such as Farmers Insurance and State Farm. Exclusive agents are unable to provide rate quotes from other companies so you might not find the best rates. Exclusive agencies are usually well trained on their company's products which helps them sell insurance even at higher premiums.
Listed below is a list of exclusive insurance agents in Indianapolis that can give you price quotes.
Deciding on an car insurance agent requires more thought than just a cheap price. The answers to these questions are important, too.
- Are they in the agency full-time?
- Who is covered by the car insurance policy?
- Do they write coverage based solely on cost?
- Do they carry Errors and Omissions coverage?
- Is vehicle damage repaired with OEM or aftermarket parts?
- Is auto insurance their primary focus in Indianapolis?
Don't give up on cheap rates
We just covered a lot of information how to find affordable Toyota Prius insurance in Indianapolis. It's most important to understand that the more price quotes you have, the better likelihood of getting cheaper Indianapolis car insurance quotes. You may even discover the best price on car insurance is with the smaller companies. These smaller insurers may often insure only within specific states and give getter rates than their larger competitors like Allstate and Progressive.
As you restructure your insurance plan, don't be tempted to reduce coverage to reduce premium. There are a lot of situations where an accident victim reduced physical damage coverage only to regret that the small savings ended up costing them much more. The proper strategy is to find the BEST coverage at a price you can afford but still have enough coverage for asset protection.
To read more, link through to the following helpful articles:
- Coverage Information (Progressive Insurance)
- What is the Best Cheap Car Insurance in Jeffersonville, IN? (FAQ)
- Who Has the Cheapest Indiana Car Insurance for Felons? (FAQ)
- What Auto Insurance is Cheapest for 19 Year Olds in Indiana? (FAQ)
- Choosing an Insurance Company (Insurance Information Institute)
- New head restraint design cuts injuries (Insurance Institute for Highway Safety)
- Air Bags: Potential Dangers to Your Children (Insurance Information Institute)