Cheap Car Insurance for Low-Income Drivers in Indiana

What is low-income car insurance in Indiana?

Low-income car insurance in Indiana isn’t a specific type of policy. Instead, it describes what low-income drivers are looking for in a car insurance policy. That typically means finding the coverage they need at the best price.

Indiana doesn’t offer a state-backed car insurance assistance program. But low-income drivers can still find affordable coverage by maintaining a clean driving record, choosing the right coverage, and taking advantage of discounts.

For example, insurers typically offer discounts for good students, safe driving, and bundling policies. Many Indiana drivers also choose a minimum liability policy because it’s usually the cheapest option. But while minimum coverage can help your budget in the short term, it doesn’t offer as much financial protection as a full-coverage policy.

Find Cheap Car Insurance in Indiana

Compare rates in the Hoosier State, starting at an average of $35 per month

Enter your ZIP codeGet My Quotes

Excellent

4.7 out of 5 based on 14,728 reviews

Secure. Free. Easy-to-use.

Cheapest car insurance in Indiana

Indiana drivers pay an average of $65 per month for liability-only auto insurance. That’s significantly lower than the national average of $98 per month.

But some insurance companies offer consistently lower rates than others. For example, Auto-Owners offers some of the lowest rates in Indiana, with liability-only policies averaging $35 per month.

Across the state, drivers in different cities pay varying rates. In Indiana’s largest city, Indianapolis, the average liability rate is $73 per month. But drivers in smaller cities typically pay cheaper rates. For example, drivers in South Bend pay an average of $61 per month.

The table below shows the cheapest liability insurance rates in Indiana, according to Insurify data.

The below rates in Indiana are estimated rates current as of: Sunday, May 31 at 5:00 PM PDT. 

Insurance Company	Average Quote: Liability Only
Auto-Owners	$35
State Farm	$36
Progressive	$39
USAA	$39
GEICO	$40
First Chicago	$41
National General	$48
Direct Auto	$51
American Family	$54
First Acceptance	$56
The General	$57
Trexis	$58
Hugo	$59
Safeco	$59
AssuranceAmerica	$61
Dairyland	$61
Root	$61
Trexis One	$62
GAINSCO	$64
Liberty Mutual	$69
Elephant	$72
Travelers	$72
Mendota	$73
CSAA	$75
Bristol West	$76
Farmers	$76
Allstate	$86
Insurify Car	$93
Nationwide	$95
State Auto	$180

Disclaimer: Table data sourced from real-time Indiana car insurance quotes from Insurify's 500+ partner insurance providers and quote estimates from Quadrant Information Services. Actual car insurance quotes in Indiana may vary based on the policy buyer's unique driver profile.

Cheapest car insurance for drivers with poor credit in Indiana

Unlike some states, Indiana allows car insurance companies to consider your credit history when determining your auto insurance premiums.^[1] Drivers with poor credit typically pay more for car insurance than people with good credit. Studies show that drivers with poor credit are more likely to file claims.^[2]

The table below highlights average liability quotes for Indiana drivers with poor credit.

The below rates in Indiana are estimated rates current as of: Sunday, May 31 at 5:00 PM PDT. 

Insurance Company	Average Liability Quote: Good Credit	Average Liability Quote: Poor Credit
USAA	$39	$47
Progressive	$39	$48
GEICO	$40	$49
First Chicago	$41	$50
State Farm	$36	$51
Auto-Owners	$35	$52
National General	$48	$59
Direct Auto	$51	$62
American Family	$54	$64
First Acceptance	$56	$68
The General	$57	$70
Trexis	$58	$71
Hugo	$59	$72
Safeco	$59	$72
AssuranceAmerica	$61	$75
Dairyland	$61	$75
Root	$61	$75
Trexis One	$62	$76
GAINSCO	$64	$78
Liberty Mutual	$69	$82
Elephant	$72	$88
Travelers	$72	$88
Mendota	$73	$89
CSAA	$75	$92
Bristol West	$76	$93
Farmers	$76	$93
Allstate	$86	$105
Insurify Car	$93	$113
Nationwide	$95	$116
State Auto	$180	$221

Disclaimer: Table data sourced from real-time Indiana car insurance quotes from Insurify's 500+ partner insurance providers and quote estimates from Quadrant Information Services. Actual car insurance quotes in Indiana may vary based on the policy buyer's unique driver profile.

Car insurance options for low-income drivers in Indiana

Indiana drivers who need car insurance on a budget should start by shopping around. Insurance companies have different methods of calculating rates, so comparing quotes from multiple insurers can help you find the most affordable coverage.

Many insurers also offer a variety of discounts to help you save money. Common discounts include completing an approved defensive driving course or bundling your car insurance with your homeowners insurance.

Opting for minimum coverage can help keep your costs low, but you won’t have as much financial protection in an accident. Likewise, raising your deductible can reduce your monthly premium, but you’ll pay more out of pocket if you file a claim.

The following insurers are a good place to start your search for low-income car insurance in Indiana:

• Auto-Owners: In addition to a wide range of coverage options, Auto-Owners offers many discounts to help you find coverage at an affordable rate.

• Root: Root uses your driving habits to determine your rates. The company tracks your driving and rewards you with affordable rates for practicing safe driving habits.

Compare Auto Insurance Quotes

Find the coverage you need in Indiana at the best price

Enter your ZIP codeView My Rates

Excellent

4.7 out of 5 based on 14,728 reviews

Secure. Free. Easy-to-use.

Minimum car insurance requirements in Indiana

To legally drive on Indiana roads, you must have a minimum amount of auto insurance.^[3] The state requires drivers to have:

• Bodily injury liability coverage: $25,000 per person and $50,000 per accident to help pay for the medical bills of other parties after an accident

• Property damage liability coverage: $25,000 per accident to help repair or replace another driver’s vehicle after an at-fault accident

While a minimum liability car insurance policy is often the cheapest option, it might not be enough to protect your wallet after an accident. For example, liability insurance wouldn’t cover weather-related damage, and you’d have to pay for any repairs yourself.

If you want more financial protection, a full-coverage policy that includes collision and comprehensive coverage might be a better option.

Coverage	Minimum Requirement	What it Covers
Bodily injury liability	$25,000 per person/$50,000 per accident	Pays for medical bills incurred by other parties injured in the accident
Property damage liability	$25,000 per accident	Pays for damage you cause to other vehicles or objects

What affects car insurance rates in Indiana?

Indiana drivers pay an overall average of $97 per month for car insurance. That’s less than the national average of $142 per month.

Relatively light traffic congestion helps keep the state’s rates low. Of course, you can still get caught in traffic on Interstate 65 or Interstate 69. But Indiana drivers only spend an average of 24 minutes commuting, which is less than the national average.^[4]

The state also has relatively low car theft rates, which contribute to Indiana’s affordable rates. But the state has its fair share of severe weather, including tornadoes and winter storms. Frequent severe weather increases the number of claims filed, which pushes up premiums.

Also, Indiana has a relatively large percentage of uninsured motorists. In Indiana, 14% of drivers don’t have car insurance, according to the Insurance Information Institute.^[5] With so many uninsured drivers on the road, coverage costs more for insured drivers.

Low-income car insurance FAQs