The Full Indiana Auto Insurance Guide [Providers + Coverage]
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UPDATED: Mar 19, 2020
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|Road Miles||Total in State – 96,571
Vehicle Miles Driven – 78 billion
|Vehicles||Registered – 5,821,744
Total Stolen – 13,519
|Most Popular Vehicle||Chevrolet Silverado 1500|
State Rank – 8
|Total Driving Fatalities||2018|
|Speeding-Related Fatalities||Speeding – 188|
|DUI Fatalities||Drunk Driving – 227|
|Annual Average Premiums||Liability – $372
Collision – $237
Comprehensive – $115
|Cheapest Provider||USAA and GEICO|
Indiana offers boundless exploration opportunities, whether you consider the point where the Wabash River meets the Ohio River in the south or Lake Michigan in the north.
The lush green state has a rich history right from indigenous inhabitants to modern industrial growth.
There is so much to explore in the beautiful state of Indiana. However, you must protect your drive with the best insurance policy.
We understand that researching what coverage to take and which company to choose can be an overwhelming affair. We have created this guide to cut through the confusion and help you choose the best policy with confidence.
In this comprehensive guide, we will cover what you need to know about the Indiana auto insurance market. Bookmark this guide as we will discuss types of coverage, discounts, rates, important laws to follow, and much more.
You can also start your purchase process by comparing auto insurance quotes using our FREE comparison tool. All you need is your ZIP code to get started.
Indiana Car Insurance Coverage and Rates
Did you know that Indiana has among the most uninsured drivers on the roads? According to the Insurance Information Institute, around 16.7 percent of drivers in Indiana do not have auto insurance.
With the high number of uninsured drivers, you must maintain adequate insurance for complete peace of mind.
However, we know that sorting through all the information on insurance coverage can be frustrating. However, without the understanding of different types of coverage available, you will not be able to make an informed choice.
The best way to optimize your auto insurance is to choose the coverage suited for your requirements.
In this section, we will explain all the major coverage types, rates, and discounts offered by insurance companies in Indiana. So keep reading to know about coverages and rates in Indiana.
What is Indiana’s car culture?
Indiana with its millions of acres of farmland is also home to the second-largest city in the midwest. Indianapolis is within a single-day drive from approximately 50 percent of the U.S. population.
Indiana is also home to one of the most prestigious races in the world, Indy 500. Indy 500 is one of the oldest races in the world and part of the Triple Crown in Motorsports.
Being a transit point between Northeast and the Midwest, there is so much diversity in and around Indiana. This is also why Indiana has developed a rich culture in automobiles.
The love for automobiles is evident from the car museums, which include the Auburn Cord Duesenberg Automobile Museum with a large display of vintage and exotic cars.
Indiana has also been part of the automobile manufacturing history. According to a study by the Brookings Institution, automobile part manufacturing is still a major employer in the state.
With around 90,000 miles of road and only 3.9 million licensed drivers, Indiana is a great place for road trips. You can enjoy not only the motorways but serene country roads in the state.
What is the minimum coverage required in Indiana?
Indiana, like most other states, requires minimum auto insurance coverage to legally drive.
Indiana auto insurance follows an at-fault system which means that in the event of an accident, the driver “at-fault” is responsible for damages.
In other words, in case you cause an accident that results in car damage or injury to another driver, you are liable to pay for the damages.
This is why minimum car insurance is mandatory.
The state-mandated minimum auto insurance help drivers comply with the financial responsibility law and safeguard against financial injury in case of an accident.
According to the Indiana Department of Insurance, drivers are legally required to carry the following minimum insurance while driving on public roads:
- Bodily Injury to Others – $25,000 per person / $50,000 per accident
- Property Damage Liability – $10,000 per accident
- Uninsured Motorists – Bodily Injury: $25,000 per person / $50,000 per accident
- Uninsured Property Damage – $10,000 per accident
- Underinsured MotoristsBodily Injury – $50,000 per accident
Indiana is one of the few states that require each auto liability policy to include uninsured and underinsured motorist’s coverage. You can opt to not include uninsured liability coverage to your policy, but you have to reject this coverage in writing.
What is a liability and insured coverage, and is the minimum coverage enough for me? Liability coverage on your policy pays for the damages of other drivers in an accident caused by you. Insurance companies will pay for damages to the third-party and protect you from financial injury.
Remember, liability coverage does not cover damage to your car or property in case of an accident caused by you.
Here’s a short video from Allstate Insurance explaining liability insurance:
Here are some of the ways liability insurance can be useful for you in Indiana:
If you read-end a car, you may be held responsible for the damages to the other driver. In such a case, your auto insurer will likely pay for the damages subject to your policy maximum.
For any damage over your policy limit, you have to bear the cost out of your pocket. In case you have substantial assets, the aggrieved party can sue you to recover damages.
This is why you should purchase adequate liability coverage, especially if you have substantial assets.
According to the experts at CBS, you should purchase liability coverage equal to the value of your net worth to protect yourself against lawsuits.
However, what if another driver causes an accident and does not have adequate coverage? This is where uninsured/underinsured coverage is useful.
Here’s another short video from Allstate explaining the uninsured coverage:
In case of an accident caused by an uninsured driver, your auto insurer will likely pay for your damages.
With around 16.7 percent of drivers in Indiana being uninsured, adding adequate uninsured coverage is vitally important.
What are the forms of financial responsibility in Indiana?
There are multiple ways of satisfying the financial responsibility law that allows you to drive legally in India. In this section, we will review each of these options.
According to the financial responsibility law, you must maintain continuous liability insurance coverage on vehicles with active registrations.
The acceptable forms of financial responsibility in Indiana are:
- Valid Liability Insurance ID Cards
- Copy of Your Current Car’s Insurance Policy
- Valid Insurance Binder (a temporary form of car insurance)
You must have at least one of the above forms of financial responsibility to legally drive in Indiana.
However, if you are involved in any of the following, the Bureau of Motor Vehicles (BMV) will send a notification to verify that you have the minimum liability insurance coverage:
- An auto accident for which the BMV receives an accident report
- A pointable moving violation within one (1) year of receiving two (2) other pointable moving violations
- A serious traffic violation, such as a misdemeanor or a felony
- Any pointable violation by a driver who was previously suspended for failing to provide proof of financial responsibility
In case you get the notification, you should immediately request your car insurance provider to submit a Certificate of Compliance (COC) to the BMV. If you do not submit the COC within 90 days, BMV will suspend your driving privileges.
If your driving privileges are suspended, you will have to file an SR-22 form to reinstate your driving privileges. An SR-22 form will most likely increase your auto insurance premiums.
How much percentage of income are premiums in Indiana?
Hoosiers spend on average 2 percent of their disposable income towards car insurance, whereas the national average is 2.29 percent.
The disposable income in Indiana in 2014 was $36,364, whereas the average car insurance premium for full coverage was $728.
Compared to that, the national disposable income was higher at $40,726; however, the full coverage insurance premium was also higher at $943. This means that if you stay in Indiana you may pay less than the average American for your car insurance.
Compared to the neighboring states, Hoosiers tend to spend less of their income on car insurance.
|State||Premium as a Percentage of Income|
As evident from the table, residents of Michigan and Kentucky spend a lot more of their income on car insurance.
You can check how much of your income goes towards car insurance using our calculator.
What are the core coverages in Indiana?
The minimum coverage required by law is only the liability coverage which provides coverage in case you damage or injure other drivers.
Generally, we recommend that you increase your liability coverage equal to the value of your net worth. However, buying adequate liability coverage is still not the optimal coverage that you can buy. Liability coverage will not cover damages to or theft of your vehicle.
You will have to purchase collision and comprehensive coverage to secure your car against damage or theft.
According to the National Association of Insurance Commissioners, the following table shows the average premium rates in Indiana:
|Care Insurance Coverage Types||Indiana Average Annual Car Insurance Rates||U.S. Average Annual Car Insurance Rates|
The good news is that the coverage in Indiana is cheaper than the national average.
The full coverage in Indiana is approximately $270 cheaper than the national average.
However, you must understand what is collision and comprehensive coverage before you can choose the most relevant core coverage for your needs.
Collision Coverage is part of the full coverage and is designed to take care of damage to your vehicle while you or another person is driving the car.
To understand let us take an example. You accidentally cause an accident that results in damage to your and the other driver’s car. Your liability coverage will pay for the damage of the third party. But who pays for your car damage? The answer is collision coverage.
It pays to repair the damage to your subject to deductions and policy maximums. It is optional coverage but may be required by the lender if your car is either leased or on loan.
Comprehensive is another optional coverage that you can add to your policy. It covers damage to your vehicle sustained for reasons other than driving.
For example, if a tree falls on your car, comprehensive coverage will pay for the repair of the car. If your car is stolen, comprehensive coverage may also pay for the current value of the car.
However, you must shop around to get the best auto premium rates. In fact, the Indiana Department of Insurance also recommends that you talk with more than one agent and more than one company while researching auto insurance.
Here are some tips that can help you save on your auto insurance premiums:
- Opt to have multiple vehicles on the same policy
- Optimize the deductible — a higher deductible will help reduce the premium rates
- Complete a certified driving course for a discount
- Teenagers can get a discount if they can earn B-average or better grades
- Safety equipment such as ABS, parking sensor, anti-theft alarm
- Aim to reduce your annual mileage
What additional liability is available in Indiana?
While adequate third-party liability is important, it may not be enough to cover you on the road.
According to the Insurance Information Institute, more than 16 percent of drivers in Indiana are uninsured on the road. This means that if you are in an accident that was caused by one of these uninsured drivers, they may not be able to pay for the damages.
In this section, we will talk about the different kinds of liabilities coverages that you can add to your policy.
The first liability coverage that you can include is the uninsured coverage. As we discussed earlier, uninsured coverage pays you in case the driver at-fault doesn’t have insurance coverage.
Here’s a short video explaining uninsured coverage:
Another optional coverage worth considering is Medical Payment (MedPay). In case of an accident, you and your passengers can use MedPay to supplement your existing medical insurance coverage.
MedPay also works if you are in another car as a passenger or, god forbid, are hit by a vehicle as a pedestrian.
MedPay can cover many types of expenses relating to injuries due to an automobile accident. Some of the expenses usually covered are:
- Visits to a doctor or a hospital
- Ambulance fees
- Nursing care
MedPay coverage covers expenses regardless of which driver is considered at fault for the accident.
Understanding what coverage applies to you is the first step. The next important step is to find which insurance company is best suited to provide the coverage.
An important factor in the decision process is the premium amount and whether the premium is expected to increase soon.
The loss ratio is an important piece of information that can help you understand your premium.
What is the loss ratio?
Loss ratio is an indicator of how much a company spends on claims versus how much money it earns through premiums. A loss ratio of 60 indicates that the company is paying 60 cents to every dollar earned through premiums.
While the industry benchmark is a good way to compare a company’s loss ratio but as a rule of thumb, anything between 60–70 is considered ideal.
Why? Well, we don’t want the loss ratio to be skewed either too high or too low. If a loss ratio is too low then the company is collecting more premium than it needs for the number of claims it is getting. If loss ratio is too high, the carrier is not collecting enough premium for the claims it is receiving and is a sign that a rate increase might be coming
Based on the data from the National Association of Insurance Commissioners, we compared the average loss ratio in Indiana to the rest of the country:
|Payment Type||Loss Ratio – 2015|
|Loss Ratio – 2015|
|Loss Ratio – 2014|
|Loss Ratio – 2014|
|Loss Ratio – 2013|
|Loss Ratio – 2013
According to the NAIC, the loss ratio in Indiana is similar to the national average. Although the loss ratio in Indiana increased during 2013–2015 indicating that average premium might increase in the following years.
What add-ons, endorsements, and riders are available in Indiana?
In addition to the optional coverage such as MedPay and uninsured coverage, you can also add the following add-ons to your policy:
- Guaranteed Auto Protection (GAP)
- Personal Umbrella Policy (PUP)
- Emergency Roadside Assistance
- Mechanical Breakdown Insurance
- Rental Reimbursement
- Modified Car Insurance Coverage
- Classic Car Insurance
- Non-Owner Car Insurance
- Pay-As-You-Drive or Usage-Based Insurance
Does gender and age affect my car insurance in Indiana?
Insurance companies in Indiana consider your gender while calculating your premium rates. In partnership with Quadrant Data Solutions, we analyzed the average rates offered by auto insurers in Indiana. In the following table, you can see the average rates organized by gender, marital status, and age:
|Company||Single 17-Year-Old Female||Single 17-Year-Old Male||Single 25-Year-Old Female||Single 25-Year-Old Male||Married 35-Year-Old Female||Married 35-Year-Old Male||Married 60-Year-Old Female||Married 60-Year-Old Male|
|American Family Mutual||$6,342.08||$9,188.19||$2,305.56||$2,839.57||$2,305.56||$2,305.56||$2,072.87||$2,072.87|
|First Liberty Ins Corp||$8,652.09||$13,064.06||$3,951.85||$5,418.04||$3,951.85||$3,951.85||$3,632.20||$3,632.20|
|Illinois Farmers Ins 2.0||$8,369.82||$8,927.88||$2,053.19||$2,219.06||$1,558.68||$1,538.30||$1,333.35||$1,497.61|
|State Farm Mutual Auto||$4,476.08||$5,736.50||$1,637.30||$1,821.69||$1,480.20||$1,480.20||$1,318.52||$1,318.52|
|Travco Ins Co||$7,586.22||$11,997.40||$1,295.87||$1,500.67||$1,225.25||$1,246.82||$1,148.12||$1,147.95|
As we can see from the table, premiums are highest for teens, especially male drivers.
Why? Because insurance carriers tend to attach a higher risk factor with teen drivers because of inexperience.
The difference in premium that a 17-year-old male driver and a 35-year-old male driver have to pay is a staggering $12,040.
With age, you tend to gain experience and become risk-averse. Maintaining a clean driving record for a 35-year-old is also a major factor in reducing the auto insurance premium.
Your gender also plays a significant role in determining your premium amount.
In Indiana, a male 17-year-old driver has to pay around $1,800 more than what an average female 17-year-old driver has to pay. This is because insurance companies consider males to be more prone to risk.
The difference in premium amount by gender tends to decrease as you age. By the age of 35 years, a male and female driver has to pay nearly the same premiums on average.
However, these are average figures and different companies can offer widely different rates. While First Liberty offers an average rate of $13,064 for 17-year-old male drivers, USAA seems to offer the same coverage for $3,325.
Some companies also do not tend to charge different rates based on gender.
The best way to ensure that you are getting the best deal is to shop around for your policy. Seek multiple quotes from different auto insurers and compare the coverage and cost of each of these policies.
But keep in mind that the Quadrant Data is based on purchased coverage by the state population and includes rates for high-risk drivers and those drivers who choose to purchase more than the state minimum as well as other types of coverage not required such as uninsured/underinsured motorist, PIP, and MedPay.
What are the cheapest rates by ZIP code in Indiana?
Where you live is an important factor in determining your car insurance rates.
Why? Because it helps insurance companies understand the risk of theft, accidents, claims, etc.
Based on where you live, insurance companies are better able to calculate the risk involved in writing your policy.
With data from Quadrant Data Solutions, we calculated the average premium across various ZIP codes in Indiana. We also included the average rates offered by different companies in different ZIP codes
Here’s the list of top 25 ZIP codes in Indiana with the cheapest insurance premiums:
|ZIP Code||Average||Allstate P&C||American Family Mutual||Illinois Farmers Ins 2.0||Geico Cas||First Liberty Ins Corp||Nationwide Mutual||Progressive Paloverde||State Farm Mutual Auto||Travco Ins Co||USAA|
And, here is the list of 25 most expensive ZIP codes for auto insurance in Indiana:
|ZIP Code||Average||Allstate P&C||American Family Mutual||Illinois Farmers Ins 2.0||Geico Cas||First Liberty Ins Corp||Nationwide Mutual||Progressive Paloverde||State Farm Mutual Auto||Travco Ins Co||USAA|
As you can see, there is a significant disparity in auto insurance based on where you live. The difference in premiums between the most expensive ZIP code and the least expensive ZIP code is little more than $1,800 for the same coverage.
As you can see not all auto insurers offer the same rates in a ZIP code. Because each insurance company has a different way of pricing the premium, you can potentially reduce your premiums by shopping around.
What are the cheapest rates by city in Indiana?
While average premiums by ZIP codes are helpful, we also calculated the city-level average premium data to help you understand the expected insurance rates.
Here are the top 25 least expensive cities by insurance premium Indiana:
And the top 25 most expensive cities by insurance premium:
As you can see, depending on which city you live your insurance premium may vary. However, it is interesting to note that Gary and not Indianapolis is the most expensive city for car insurance in Indiana.
But wherever you live in Indiana, we always recommend that you shop around to get the best rates.
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Best Car Insurance Companies in Indiana
To get the best car insurance coverage you should not only optimize your coverage but also find the best insurance provider.
Thus far we talked about how to optimize coverage. In this section, we will talk about how to choose the best car insurance company in Indiana.
Insurance is a product that is usually required to help us recover financially after an accident. Therefore, you should not just purchase the cheapest policy available in your ZIP code.
You must invest the time to find whether the insurance carrier can pay for any future claims and provide good customer service experience. But don’t worry as we will provide all the information you need to make the assessment.
We will consider several factors such as financial health, customer reviews, credit rating, loss ratio, etc. to find the best insurance company in Indiana.
What are the financial ratings of the largest car insurance companies in Indiana?
The first aspect that we will look at is the financial health of the insurance company. It would help us understand if the carrier is financially capable of settling any future claims.
However, how do we do it? Most of us are not able to analyze different financial reports and filings of each of these insurers to understand their financial health.
But the good news is that we can figure out the financial health using an easy-to-understand manner.
With the help of A.M. Best Credit Ratings, we can understand the credit standing of the leading insurance carriers in Indiana. A.M. Best is one of the most reputed insurance credit rating agencies in the industry.
Here are the 10 largest Car Insurance Companies in Indiana:
|Carriers||A.M. Best Credit Rating|
|Allstate Insurance Group||A+|
|American Family Insurance Group||A|
|Erie Insurance Group||A+|
|Indiana Farm Bureau Group||-|
|Liberty Mutual Group||A|
|State Farm Group||A++|
As you can see almost all large auto insurance companies in Indiana are rated A or better. However, few companies are rated better than the others. State Farm, Geico, USAA, and Auto-Owners are rated A++ (the highest rating).
Which car insurance companies have the best ratings in Indiana?
It is important to know the financial health of a carrier as it would mean that it is financially able to settle a future claim. However, how the company goes about processing and paying your claim is also important to understand.
Understanding not only the ability of an insurance company but also the efficiency and promptness in disbursing a claim is going to help us should we ever need to file a claim.
The process of filing a claim should be easy and the fund disbursement for all legitimate claims should be quick and efficient.
But how do we know whether an insurance company provides good customer service? The answer is customer reviews.
Customer reviews help us figure out the subjective data on quality of service, response time, ease of claim settlement, etc. But most of us don’t have the time to go through online forums and reviews for each of the insurance carriers.
Instead, we can use the ratings provided by J.D. Power, a globally reputed automotive review and rating agency.
Here’s what the J.D. Power Auto Insurance Study has to say about the top insurance companies in Indiana:
|Insurance Carriers||Overall Customer Satisfaction Rating (out of 1,000)|
|Automobile Club Group||801|
|Erie Insurance Group||852|
|Indiana Farm Bureau Group||854|
|MI Farm Bureau||839|
|North Central Average||830|
|State Farm Group||841|
The average rating for the North Central U.S. is 830 (out of 1,000). Customer satisfaction ratings of some auto insurers such as Nationwide, Progressive, Allstate are below the average rating in the region. This would mean that the customer service provided by these companies may not be the best in the region.
Which car insurance companies have the most complaints in Indiana?
Another way to gauge the quality of service is to look at how many complaints are received against each of the major auto insurance carriers in Indiana.
You can’t expect to receive excellent customer service from an auto insurer that has a higher-than-average complaint number.
However, in this competitive market, auto insurance companies are always trying to improve the quality of service to retain customers. So past data may not be reflective of the actual quality of service that you might receive.
However, we cannot compare the actual complaints number as it can represent very skewed information. A carrier that significantly does more business will naturally have a higher number of complaints. We need a way to measure companies of different sizes.
The answer is the complaints ratio. It divides the number of complaints to the number of policies (100,000) written during the period.
Here’s the complaints data we gathered from the National Association of Insurance Commissioners (NAIC) and the Indiana Department of Insurance:
|2||Indiana Farm Bureau||0.17|
|12||Indiana Farmers Mutual||0.83|
As you can see, the companies that fared in customer satisfaction such as Erie and Indian Farm Bureau also had a lower complaints index. This means that these companies were able to provide quality customer service.
What are the cheapest car insurance companies in Indiana?
While customer service and coverage availability are important, it should also be reasonably priced to give value to the customers.
Here are the average annual rates offered by large insurance companies in Indiana:
|Company||Average Premium||Compared to State Average ($3,318.12)|
|Allstate P&C||$3, 979.74||$661.62|
|American Family Mutual||$3, 679.03||$360.91|
|First Liberty Ins Corp||$5, 781.77||$2, 463.65|
|Geico||$2, 260.74||-$1, 057.38|
|Illinois Farmers Insurance||$3, 437.24||$119.11|
|Nationwide Mutual||$2, 712.47||-$605.66|
|Progressive Paloverde||$3, 898.01||$579.89|
|State Farm Mutual Auto||$2, 408.63||-$909.49|
|Travco Ins Co||$3, 393.54||$75.42|
|USAA||$1, 630.06||-$1, 688.06|
As you can see, insurance companies offer varied rates in Indiana. To save money on your premium, it is best to shop around for the best policy.
You can also use our easy to use FREE online tool to get insurance quotes from leading auto insurers in Indiana. All you need is your ZIP code to get started.
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Does my commute affect my car insurance rate in Indiana?
To save money on your premium, you must understand the answer to the following question:
What factors affect your auto insurance rate? Well, many factors impact your auto insurance premium including your location, driving record, how much you drive, and more.
Your annual commute is considered while calculating your auto insurance rates.
Why? Because the more you drive the higher is the risk of a claim for the insurer.
Here’s the average rate offered by insurance companies organized by annual commute in Indiana:
|Companies||10-Mile Commute. |
6,000 Annual Mileage.
12,000 Annual Mileage.
As you can see, insurance companies in Indiana do not tend to increase rates for a reasonable increase in annual commutes. In fact, some companies do not increase rates with an increase in annual commute.
Shop around and get quotes from multiple insurance companies if you intend to drive for higher than the average annual mileage.
Can coverage level change my car insurance rate with companies in Indiana?
We have already talked about different types of coverages available in Indiana. However, the more coverage you opt for, the higher will be your insurance premium.
The higher the coverage you purchase on your policy, the higher the risk your insurer assumes on your behalf.
However, you must do a cost-benefit analysis to see if the risk exposure is worth the savings you may get by not opting for specific coverage.
Here are the average insurance rates offered for different coverage levels in Indiana:
The good news is that the major auto insurance carriers in Indiana do not seem to increase rates significantly for additional coverage. In Indiana, you can choose to protect yourself with a high coverage policy and still keep your insurance rates reasonable.
How does my credit history affect my car insurance rate with companies in Indiana?
Another factor that some auto insurance companies might take into consideration is your credit score. Your credit score is an indicator of the risk involved in writing your insurance policy.
Here are the average insurance rates organized by credit score in Indiana:
Insurance companies tend to increase the premium significantly for drivers with bad credit scores. In Indiana, the average increase in annual auto insurance premium is $1,300 for drivers with a poor credit score compared to a driver with a good credit score.
However, not all companies increase premiums equal to the average amount. Some companies, such as USAA and Geico, might increase the premium by around $900, whereas companies like Liberty Mutual may increase the rate by more than $3,000.
It is highly recommended that you seek multiple quotes before finalizing your auto insurance provider. It can help you save a significant amount on auto premiums.
As a benchmark, you can consider the credit scores provided by the State of the Credit Report by Experian. The average credit score in Indiana was 699 in 2019, whereas the national average was 703. You can consider your credit score good if it is higher than the average credit score of 699.
How does my driving record change my rates with car insurance companies in Indiana?
By far the most important factor in determining your auto insurance rate is your driving record. If your driving record has multiple at-fault accidents, DUI convictions, or speeding violations, you can expect that your auto insurance premium will be significantly more expensive than the average premium in your neighborhood.
Why? Because your driving record is a direct indicator of the risk involved in writing your policy.
If you have a record of breaking the law or causing accidents, insurance companies will consider you a high-risk driver than might file a claim in the near future.
Let us review the average auto insurance rates offered by insurance companies in Indiana based on driving record:
|Carriers||Clean Record||With One |
|With One Accident||With One DUI|
If you have a DUI conviction or an at-fault accident on your record, expect that your annual insurance premium will increase by an average of $1,000. Each insurer has a different risk pricing model and therefore will quote you a different premium rate.
For a DUI conviction, Liberty Mutual might increase your auto insurance premium by more than $3,800, whereas Nationwide might increase by $550.
Similarly, if we consider speeding violations, some insurers are more lenient than others. While State Farm may not increase your auto insurance premium for a single speeding violation, Progressive may increase your rates by more than $1,100.
Keeping a clean driving record gives you the best chance of securing inexpensive auto insurance premiums. In case you accumulate a bad driving record, you may have to pay higher premiums than what others might be paying for in your neighborhood.
Regardless, you should give yourself the best chance of securing a low premium rate by seeking multiple quotes before finalizing your auto insurance provider.
Which car insurance companies are the largest in Indiana?
To purchase the best car insurance, you must also take into account the stability of the insurer. Being a large auto insurer would also mean that their network and service might be easily available across the state.
Here are the top ten auto insurance companies in Indiana:
|Carriers||Loss Ratio||Market Share|
|Allstate Insurance Group||51.71%||7.61%|
|American Family Insurance Group||61.90%||4.54%|
|Erie Insurance Group||72.18%||3.80%|
|Indiana Farm Bureau Group||68.18%||7.34%|
|Liberty Mutual Group||63.31%||4.92%|
|State Farm Group||60.03%||24.05%|
The three biggest insurance companies in Indian are State Farm, Progressive, and Allstate. The big three companies write around 43 percent of auto insurance policies in Indiana.
USAA and Erie Insurance have the highest loss ratio whereas Allstate has the lowest. This might mean that USAA and Erie are better at claim disbursement than Allstate in Indiana.
How many car insurance companies are available in Indiana?
Apart from the large insurance companies, there are many other options available to you in Indiana.
|Type of Insurer||Count|
More than 1,000 insurance companies are operating in Indiana. In this context, domestic companies are based out of Indiana whereas foreign companies are based out of other states within the U.S.
Indiana State Laws
To understand what coverage is most appropriate for you, you need to understand the driving laws applicable in Indiana.
However, understanding state laws can be extremely confusing and tedious to follow. Therefore, in this section, we will help you understand all the important driving laws applicable in Indiana.
What are the car insurance laws in Indiana?
Auto insurance is governed by the Department of Insurance in Indiana. The department is responsible for monitoring the auto insurance requirements, the approval of insurer rates, seat belt requirements, and drunk driving laws. Other state laws such as maximum speed limits or handheld device laws are also important to know while driving on the road.
Indiana follows an at-fault system which means that you are liable to pay for the damage you cause to the other driver. This is why minimum liability coverage is mandatory in Indiana.
The unique rule about insurance in Indiana is that all auto insurance policies must include uninsured/underinsured motorist liability coverage. You can choose to opt-out but you have to do it in writing.
Let us review some of the other important rules and regulations in Indiana.
Insurers in Indiana can choose to use aftermarket or used parts for your windshield. If your car is less than five years old, you can choose to opt for an OEM part but you will have to pay the difference in cost.
Indiana insurance law doesn’t have a specific rule for windshields, but companies may provide the option with comprehensive coverage.
There are also third-party repair shops that can help you replace or repair your windshields. Here is an advertisement for one such repair shop:
If you have a bad driving record, e.g. you have multiple at-fault accidents or you have DUI convictions against your name, you will find it difficult to find an insurance company willing to write you a policy.
You may ask, why? Because insurance companies see your previous record as a direct indicator of the future claim risk.
Some reasons why you can be tagged as a high-risk driver are:
- DUI conviction
- Multiple traffic violations (e.g. speeding)
- Caught driving uninsured
- Any traffic violations that have resulted in a fatality or serious injury
- Accumulated a high number of points on your driving record
If you are considered a high-risk driver, the local state insurance department may need you to carry an SR-22 certificate. An SR-22 is itself not expensive but the underlying need for you to get one will cause your premiums to shoot up.
Some auto insurers may not agree to file an SR-22 on your behalf. You have to keep looking for an insurer that is willing to take on the risk.
Sometimes a high-risk driver may be denied coverage by all major insurers. Different insurers might consider the level of risk associated with your record to be too high.
However, the government of Indiana doesn’t want uninsured drivers on the road jeopardizing the safety of other drivers. This is why the Indiana state law has a provision for high-risk drivers to get liability insurance.
If you are denied coverage by insurance providers, you can opt for the Indiana Automobile Insurance Plan (IA AIP).
The IA AIP is an assigned risk plan that helps high-risk drivers purchase automobile insurance.
You need to apply for IA AIP with Automobile Insurance Plan Service Office (AIPSO). AIPSO will assign you to an insurance provider.
The coverage you will receive under the IA AIP will be the same that you would have received in the voluntary market. However, the premiums under the high-risk insurance plan will be significantly higher.
To be eligible under the IA AIP, you must meet the following criteria:
- Certify that you failed to secure insurance in the voluntary market within the last 60 days
- Have a valid driver’s license
- Car registered (or about to be registered) in Indiana
- Not have missed car insurance payments in the previous 12 months
Unfortunately, there are no government-mandated insurance programs for low-income drivers in Indiana. You are encouraged to find ways to keep your auto insurance low. Some of the things that you can do keep your auto insurance premiums from rising are:
- Seek quotes from multiple vendors
- Keep a clean driving record
- Make smart coverage choices
- Use the discount offers available with insurance companies (such as driving training discount)
Automobile Insurance Fraud in Indiana
Insurance fraud is a crime in Indiana, as well as all of the other states in the country. And rightly so. Auto insurance fraud negatively impacts the profit of insurer providers which results in higher premiums for the rest of us.
Remember the loss ratio we discussed earlier? If companies have to pay out fraudulent claims, the loss ratio will rise which will result in future claim obligations for all of us.
That is why it is important to report if you suspect anyone you know is committing insurance fraud. You can report insurance fraud with the NAIC or by calling the National Fraud Information (800-835-6422).
However, what qualifies as auto insurance fraud?
Auto insurance fraud can generally be classified either as a hard or soft fraud.
Fraud intentionally committed with criminal intent to cheat an insurance company can be classified as hard fraud. Examples of hard fraud include staging an accident to file a fraudulent claim.
However, sometimes we also commit fraud unknowingly due to a lack of understanding of the laws. For example, it is unlawful to claim garage parking for a discount when the car is parked on the street. Such manipulation of information on a policy to achieve a lower premium is an example of soft fraud.
Some other kinds of fraud that you should be aware of are:
- Fake insurance companies that collect premiums for false policies
- Legitimate companies selling unlicensed insurance products
- Agents collecting premiums without passing it on to the insurer
Statute of Limitations
The statute of limitations defined as the time after an accident until which you can file a lawsuit against another driver.
Each state may have a different statute of limitations but if you do not file a claim within the stipulated time, you may not receive any compensation against your claims.
In Indiana, the statute of limitations is two years for both personal injury claims and property damage claims.
Regardless of whether you were a driver, passenger, pedestrian, or a bicyclist, you can sue for compensation for the following injuries suffered as the result of a car accident:
- Medical expenses
- Lost wages (both past and future)
- Loss of companionship of a spouse
- Disability costs
- Pain and suffering
Similarly, you can sue for property damage:
- Damage to your home or other real property
- Personal property, such as repairing or replacing your car and any lost items inside
The statute of limitations in Indiana is relatively short compared to other states and therefore you must file your claim as soon as possible.
What are the vehicle licensing laws in Indiana?
Driving without a driving license is illegal in Indiana. In this section, we will share all that you need to know about licensing laws in Indiana whether you are going for your first license or renewing the old one.
If you’re getting a new driver’s license or your current license is up for renewal, we recommend that you get a REAL ID-compliant driver’s license.
A REAL ID is an enhanced driver license that came into existence after the Federal REAL ID Act was passed in 2005.
REAL ID will come into effect on October 1, 2020, and will allow you to board domestic flights, enter federal buildings, or cross U.S. border crossings.
Here’s a brief video explaining the Indiana REAL ID-compliant driver’s license:
You do not need REAL ID if you have any of the following to board flights or enter federal buildings:
- U.S. Passport
- Foreign Passport
- U.S. Military ID
- Permanent Resident Card (Green Card)
Penalties for Driving Without Insurance
It is unlawful to drive without insurance in Indiana. The state laws require you to maintain continuous liability coverage with an active vehicle registration in the state.
You can expect stiff penalties. if you are caught driving without insurance in Indiana. These are the penalties you can expect if you choose to drive without insurance:
- For the first offense, an uninsured driver can expect a 90-day driver’s license suspension. The driver is also required to carry an SR-22 certificate for three years.
- In case of a second offense, there is a $500 fine and a one-year license suspension. There is also a requirement to carry an SR-22 for three years.
- For any subsequent offenses, there is a $1000 reinstatement fee, and license suspension for one year. The SR-22 requirement is increased to five years.
Also, note that the suspension of the license will not end until the required amount of time has passed.
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Teen Driver Laws
If you are under the age of 21 and you can get a probationary driver’s license. To obtain a probationary driver’s license, you must meet Indiana’s age requirements below and have held a learner’s permit for 180 days (approximately six months).
- With a completed approved driver education program, you must be at least 16 years and 90 days old to obtain a driver’s license.
- If you have not completed an approved driver education program you must be at least 16 years and 270 days old to obtain a driver’s license.
According to the Bureau of Motor Vehicles, teen drivers with a learner’s permit must complete at least 50 hours of supervised driving practice with a licensed instructor or a licensed driver, with valid driving privileges, who is at least 25 years of age and related by blood, marriage, or legal status.
However, before you can apply for a probationary driver’s license, you need to get a learner’s permit. To get a learner’s permit you need the following:
- You must be at least 15 years old and enrolled in an approved behind-the-wheel training course
- You must also present documents of identification, pass a vision screening, and pass a knowledge examination
If you are new to Indiana, you must exchange your out-of-state driver’s license for an Indiana driver’s license within 60 days of becoming a resident of the state.
When you apply for an Indiana driver’s license you must surrender all valid credentials (identification card, learner’s permit, or driver’s license) you hold from other states.
If you are 18 years and older with a valid out-of-state driver’s license you must visit one of the BMV branches with the following documentation:
- Your current out-of-state driver’s license
- Documentation proving your identity
- Lawful status
- Social Security number
- Indiana residency
Your valid out-of-state driver’s license will be exchanged for an Indiana driver’s license without the need for written or road tests. However, you will have to pass a vision test to get your new license.
If your old out-of-state driver’s license is expired when you transfer to Indiana, you are required to take a knowledge exam. And if the old driver’s license has been expired for more than three years or you have held the license for less than a year, you must pass a road test.
License Renewal Procedures
A driver’s license in Indiana is valid for six years from the time of the issue. Your driver’s license expires at midnight on your birthday.
Here’s the validity of your driver’s license organized by age:
- Six years if you are 74 years or under in age
- Three years if you are 75–84 years of age
- Two years if you are 85 years of age or older
In Indiana, you can renew your driver’s license up to two years prior to its expiration. If you are in Indiana on a temporary lawful status, you can renew up to 30 days prior to the expiration of your current license.
What are the rules of the road in Indiana?
We mentioned that a clean driving record will help you keep your auto insurance premiums low. Therefore, you must know the rules of the road in Indian so that you can avoid breaking the law.
Consider this section as a basic refresher of rules and regulations in Indiana.
Fault Versus No-Fault
As we discussed earlier, Indiana follows the at-fault system. This means that you are liable to pay damages for an accident caused by you. Therefore, you are expected to purchase liability insurance to pay for the damages.
Seat Belt and Car Seat Laws
It is well known that seat belts are vital for passenger safety in case of an accident. According to the National Highway Traffic Safety Administration (NHTSA), safety belts saved approximately 14,000 lives in 2016.
Indiana laws also promote the usage of seat belts to reduce the dangers on the road.
In Indiana, each occupant 16 years and older must wear seat belts regardless of whether they are passengers or drivers. Not wearing a seatbelt is unlawful and attracts a $25 fine. The police have the right in Indiana to stop and fine you if you are found driving without your seat belts on.
The driver is also responsible to follow the child seat belt laws.
|Car Seat Requirements||Age/Fine|
|Child Safety Seat||7 years old or younger|
|Adult Belt Permissable||8 through 15 years old|
|Maximum fine for first time offense||$25|
Children younger than 7 years old must be secured in a protected child seat. Any child eight years or older can use the adult seats. You will have to pay $25 as fine for not following the rule.
Keep Right and Move Over Laws
In Indiana, if you are approaching a stopped emergency vehicle with flashing lights you must move over to the adjacent lane or slow down.
Indiana law requires you to move to the right lane if you are slower than the surrounding traffic.
Passing on the right side is allowed under a few conditions such as:
- When the vehicle overtaken makes or is about to make, a left turn
- Roadways with the unobstructed pavement that isn’t wide enough for two vehicles
Multiple speeding infractions may lead to an increase in your auto insurance rates. You must observe speed limits
|Type of Roadway||Speed Limit (mph)|
|Rural Interstates||70 (65 for trucks)|
|Other Limited Access Roads||60|
These are the maximum allowed speeds for each type of road. However, you must pay attention to the posted road signs on maximum allowed speed.
Indiana passed a law in 2016 allowing companies like Uber to operate in the state.
However, if you are planning to drive for companies like Uber and Lyft, you need to ask your auto insurance provider if they offer rideshare insurance. Your personal insurance does not cover the ride when logged into a rideshare system.
You can seek a quote from any of the following insurers if you drive for a ridesharing company in Indiana:
- State Farm
Automation on the Road
We are some time away from self-driving cars but unfortunately, Indiana does not have any laws managing the use of automated vehicles.
What are the safety laws in Indiana?
Driving carelessly on the road can result in unfortunate accidents. Especially if the driver is impaired or distracted. This can cause a serious accident resulting in severe injury or harm to anyone sharing the road.
Indiana, like other states, has strict laws to discourage drivers from driving in an impaired state. In this section, we will review some of the safety laws enacted to keep you safe in Indiana.
Driving under influence may seriously impair your cognitive and decision-making ability making you a danger on the road. It is why DUI is a serious offense in Indiana.
In 2017, there were 220 alcohol-impaired driving fatalities in Indiana. This is about 24 percent of the total road fatalities in the state. Out of the 220 fatalities, 20 were young drivers under the age of 21.
Indiana, the first infraction attracts a misdemeanor charge but the second offense is considered a felony.
The lookback period for DUI in Indiana is five years. That means that any repeat occurrence within the five years will count as a subsequent offense and attract a harsher penalty.
Here are the penalties for DUI driving in Indiana:
|Offense||License Suspension |
|First||30 days to two years OR probation with rehabilitation course||No minimum but up to one year||$500–$5,000|
|Second||180 days to two years||Five days to three years AND/OR community service||No minimum, but up to $10,000|
|Third||One to 10 years||10 days to three years AND/OR community service||No minimum, but up to $10,000|
The laws increase the penalties for multiple offenses within the lookback period.
Another thing that a DUI conviction will do is increase your insurance premiums substantially. It can also make you a high-risk driver thereby making it difficult for you to get insurance. Therefore, it is smart that you avoid driving under the influence.
Marijuana-Impaired Driving Laws
Many states including California, Maine, and Colorado, have legalized the use of marijuana. Other states have a mixed approach by allowing the use of medicinal marijuana. But Indiana is among the states that have a zero-tolerance for marijuana. If you are caught driving impaired, you can be jailed and fined.
Distracted Driving Laws
Distracted driving is quite common in this age of smartphones and other handheld electronic items. In Indiana, it is illegal to use your smartphones for texting while driving.
According to the Insurance Institute of Highway Safety (IIHS), you can use your cellphone to make and receive calls if you are above the age of 21. All drivers below the age of 21 are not allowed to use cellphones while driving.
Driving in Indiana
Accidents and vehicle thefts are a direct risk to auto insurers and therefore play a significant role in determining your auto insurance rates.
Therefore in this section, we will take a look at the theft and accident data in Indiana.
Knowing about vehicle thefts and accidents may also help you to keep yourself safe in the Hoosier State.
How many vehicle thefts occur in Indiana?
According to the National Insurance Crime Bureau, the following were the most stolen vehicles in Indiana in 2016.
|Rank||Make/Model||Model Year||Number of thefts|
|1||Ford Pickup (Full Size)||2005||659|
|2||Chevrolet Pickup (Full Size)||1994||619|
|4||Dodge Pickup (Full Size)||2001||263|
|6||GMC Pickup (Full Size)||1995||192|
|7||Chevrolet Pickup (Small Size)||1998||186|
|9||Pontiac Grand Prix||2004||183|
Ford and Chevrolet pickup trucks are the most stolen vehicles in Indiana. Pickups seem to be the most stolen type of vehicles in Indiana.
However, not all areas are equally vulnerable to vehicle theft. As per the FBI data, we created the following table summarizing the number of thefts organized by different cities in Indiana. You can search for your city to find the number of car thefts.
|City||Motor Vehicle Theft|
The three cities that report the highest number of thefts in Indiana are Indianapolis, Fort Wayne, and Evansville.
Road Fatalities in Indiana
Unfortunately, some road accidents lead to fatalities. In this section, we will analyze the primary reasons for road fatalities in Indiana.
Most Fatal Highway in Indiana
According to the National Highway Traffic Safety Administration, the most fatal highway in Indiana is Highway 41. The highway traverses from the north to the south and connects Gary to Evansville.
According to the driving data company Geotab, there were 106 crashes on US 41 in the last 10 years.
Fatal Crashes by Weather Condition and Light Condition
Here is the data on fatal crashes as a result of weather:
|Weather Condition||Daylight||Dark, |
|Dark||Dawn or Dusk||Other / Unknown||Total|
You may imagine that inclement weather might be more fatal, however, a higher number of fatal accidents are reported during normal weather. This might be due to over speeding in normal conditions.
Fatalities (All Crashes) by County
The following table will help you find out how many fatal crashes happened in your county.
Based on the data, Marion County reports the highest number of road fatalities in Indiana. And it is getting worse.
Road fatalities are getting worse for all these counties, but especially for the counties that report the highest number of traffic-related fatalities.
According to the data from the National Highway Traffic Safety Administration, rural roads in Indiana are a bit more dangerous than the urban ones.
Fatalities by Person Type
|Light Truck – Pickup||101||88||115||86||87|
|Light Truck – Utility||92||115||98||124||101|
|Light Truck – Van||42||41||34||44||43|
|Light Truck – Other||3||1||2||0||0|
|Bicyclist and Other Cyclist||12||12||19||13||22|
According to the NHTSA data, passenger car occupants accounted for the most traffic-related fatalities in Indiana, followed by pedestrians and motorcyclists.
Fatalities by Crash Type
|Total Fatalities (All Crashes)||745||817||829||916||858|
|Involving a Roadway Departure||406||435||454||473||421|
|Involving an Intersection (or Intersection Related)||189||217||221||261||189|
|Involving a Rollover||166||181||176||174||149|
|Involving a Large Truck||128||118||118||152||146|
In Indiana, single-vehicle crashes are the most fatal accidents.
Five-Year Trend for the Top 10 Counties
|Top Ten Counties||298||327||318||367||337|
|All Other Counties||447||490||511||549||521|
|All All Counties||745||817||829||916||858|
Apart from Allen County, road fatalities in the top ten counties in Indiana have been increasing in the last five years.
Fatalities Involving Speeding by County
Speeding is one of the major causes of traffic-related fatalities in Indiana. Marion County has the highest number of speeding-related fatalities in Indiana.
Fatalities in Crashes Involving an Alcohol-Impaired Driver by County
Alcohol-impaired drivers have resulted in many road fatalities, especially in Marion County.
Teen Drinking and Driving
According to the Federal Bureau of Investigation, law enforcement in Indiana arrested 61 under-18 drivers for drunk driving in 2016.
According to Responsibility.org, Indiana registered 1.1 alcohol-impaired-driving fatalities per 100,000 people, which is roughly equal to the national average of 1.2.
What is transportation like in Indiana?
Let us now review the commute time in Indiana.
When you drive through your neighborhood in Indiana, you may see most households have two or more cars.
According to DataUSA, around 41 percent of households own two cars in Indiana.
According to DataUSA, commuters in Indiana have to spend 23 minutes on their daily commute. This is slightly less than the national average of 25.7 minutes.
More than 82 percent of daily commuters prefer to drive alone to work in Indiana.
Traffic Congestion in Indiana
Indianapolis is the only city in Indiana that is reported in the INRIX scorecard for global traffic. According to INRIX, Indianapolis is the 38th most congested city in the country. Every year, drivers waste 59 hours in congestion, and the cost of congestion per driver is $826.
We hope this comprehensive guide will help you navigate the auto insurance market in Indiana. What were the most helpful tips for you?
To stay safe on the road, you should have the best auto insurance coverage in Indiana. You get quotes from auto insurance providers in Indian using our FREE online tool. You just need to enter your ZIP code to get started.