Best Cheap Auto Insurance in Indianapolis, Indiana (2023)

The Circle City has car insurance rates that just keep climbing. Fortunately, you can find better rates through Auto-Owners, State Farm, and USAA. Average rates in the city are $151 for full-coverage car insurance and $79 for liability only, according to Insurify data.

This article aims to help you secure rates as low as possible so you can keep your wheels moving in the Circle City.

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Best car insurance companies in Indianapolis

The best car insurance company in Indianapolis is different for everyone. Whether an insurer offers you the cheapest rates or the best coverage (not always the same thing) will often depend on factors such as your driving record, age, gender, marital status, and even your credit score.

However, as you begin your search for the best insurer, be sure to take a look at the following three.

Best insurer for liability and full coverage: Auto-Owners

Best insurer for financial stability: State Farm

Best insurer for military members: USAA

Cheapest liability-only car insurance in Indianapolis: Auto-Owners

Liability-only car insurance protects you if you damage another person’s car or the other driver and passengers are hurt. If you’re injured or your own car is banged up, however, your insurance wouldn’t pay for those expenses. As such, liability-only insurance is generally the most affordable option.

In Indianapolis, drivers pay a monthly average of $79 for liability-only coverage. You can see a collection of insurance policies from several Indianapolis-area insurers below.

Cheapest full-coverage car insurance in Indianapolis: Auto-Owners

Full-coverage car insurance provides the same protections as a liability-only policy but also covers any damage or hospital expenses for you and your vehicle. Collision and comprehensive coverages can pay to repair or replace your vehicle, but you’ll have to meet your deductible amount before your insurance starts paying.

If you have a high-value car, or if you would find it expensive and difficult to replace or repair your car if it were wrecked, you may want to consider full coverage. In Indianapolis, full coverage costs an average of $151 per month, but you might find better rates with the following insurers.

Car insurance requirements in Indiana

To drive legally in Indiana, you need to have at least a liability-only car insurance policy covering bodily injuries and property damage.^[1] You’re also required to have uninsured and underinsured motorist coverage, though you’re allowed to reject this by putting it in writing (your insurer can explain how to do that).

Just keep in mind if you do, there’s a risk. If you’re in an accident and the other driver’s insurance won’t cover all the damages, you could end up paying for hospital or repair bills yourself because you rejected the uninsured motorist coverage.

The table below spells out the minimum requirements you’ll need to meet for your car insurance coverage. Again, you can inform your insurer that you reject the uninsured and underinsured coverage as long as you do so in writing.

In addition to meeting the minimum-coverage requirements outlined above, you may also want to consider adding the following coverages:

• 

  Collision coverage

  This pays for damage to your car caused by crashing into a car or object.

• 

  Comprehensive coverage

  This pays claims for non-collision damage to your car. For example, if a tree branch falls on your car’s roof, comprehensive insurance would pay to repair it.

• 

  Medical payments coverage

  Also known as MedPay, this coverage pays your medical bills related to an accident, regardless of who caused it.

• 

  Uninsured/underinsured motorist coverage

  Nearly 16% of motorists in Indiana drive without insurance, according to the Insurance Institute for Highway Safety. If you get into a collision with one of them, your UI/UIM coverage can help bridge any financial gap between your actual costs and a payout from the other driver’s insurance company.

Cheapest car insurance for Indianapolis drivers with an incident

If you have an incident on the road — like a speeding ticket, at-fault accident, or a DUI — it can translate into higher premiums. Insurers can see one incident as the start of a bad pattern, and they may raise your premiums in case more expensive problems occur. The good news is that if you drive fo a few years without an incident, insurers will usually lower your rates.

In the sections that follow, you’ll see how having an incident on your record can affect your auto rates in Indianapolis.

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Cheapest car insurance for drivers with a speeding ticket

Indianapolis may be famous for its Indy 500, but the police frown on motorists treating I-465 like their own Indianapolis Motor Speedway. If you’re caught speeding, your premiums may climb. In fact, the overall average cost of car insurance with a speeding ticket in Indianapolis is $172 per month.

Here’s a look at what you can expect to pay for auto insurance in Indianapolis with a speeding ticket on your record.

Cheapest car insurance for drivers with an at-fault accident

You can expect at-fault accidents to push your car insurance rates higher. Indianapolis drivers with a ticket on their records pay a monthly average of $118 for liability-only insurance and $226 for full coverage.

Here’s a look at how an accident on your record could affect your auto rates in Indianapolis.

Cheapest car insurance for drivers with a DUI

If you have a DUI on your record, you can expect your premiums to go way up. In some cases, your insurer may drop you altogether. 

While Indianapolis drivers with clean motor vehicle records pay a monthly average of just $115, those with a DUI see an average of $197. The table below shows what you would pay, on average, for your insurance premiums in Indianapolis if you have a DUI on your record.

Cheapest car insurance for Indianapolis seniors

Insurers calculate your insurance premiums by examining many different factors, including your age. Generally, senior drivers have the lowest rates of any age group, averaging $74 per month in Indianapolis.

But if you’re 75 or older, you can expect your premiums to begin to climb. This is because statistics show older drivers are involved in more accidents and suffer more severe injuries when an accident occurs. If you live in Indianapolis and are a senior, the table below shows what you may pay, on average, for your auto insurance premiums.

Cheapest car insurance for Indianapolis teens

You may be a teenager who aced your driver’s test and is as safe a driver as they come, but insurers will still charge you higher premiums than older, more experienced drivers. Fortunately, teenagers have ways to offset the financial pain of high insurance rates.

For instance, insurers charge less when a teenage driver stays on their parents' policy as opposed to getting their own insurance policy. Driving a car that your insurer considers a safe model could also help your rates. And if you report your good grades, you could qualify for a good student discount.

On average, teen drivers pay $139 per month for liability-only insurance in Indianapolis and $265 for a full-coverage policy. If you’re a teen driver living in Indianapolis, the table below shows what you’d pay, on average, for your insurance premiums.

How to get the cheapest car insurance in Indianapolis

A number of factors go into determining the car insurance rates you’re offered, including your:

• Age

• Gender

• Driving record

• Location

• Type of car

• Amount of coverage

• ZIP code

To increase your chances of obtaining the lowest quote possible, follow these strategies:

• Compare quotes. Obtain quotes from several car insurance companies, and compare them against one another.

• Increase your deductible. Raising your full-coverage deductible from, say, $250 to $1,000 typically lowers your car insurance costs because you’re taking on more of the up-front risk yourself. However, be sure to never set a deductible above what you can afford should you need to file a claim.

• Bundle coverage. Your insurance company might provide a discount if you buy at least two policies, such as car insurance and homeowners insurance.

• Explore discounts. You may be able to score a discount if you maintain a clean driving record or complete a defensive driving course. You can also inquire with your company to see if it has any discount agreements with certain insurers.

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Rates start as low as $32/mo. for liability coverage

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Indianapolis car insurance quotes by credit tier

Most states, including Indiana, allow insurers to consider credit scores. Insurers have concluded that your credit score is a sign of how safe a driver you are. As such, if you have an excellent or good credit score, you’ll often enjoy far lower insurance premiums than a person with a poor credit score.

The table below shows how Indianapolis drivers’ insurance premiums are affected by credit scores.

Is car insurance more expensive in Indianapolis?

While car insurance in Indianapolis is more expensive than in the rest of the state, it’s still cheaper than the national average. The U.S. national car insurance average for liability-only coverage is $170 a month, and full coverage is $253. In Indianapolis, the average rate is $79 for liability-only coverage and $151 for full coverage.

More cities in Indiana

How does car insurance in Indianapolis stack up against other cities across the state? The table below gives you an idea.

Indianapolis car insurance FAQs