Best Cheap Car Insurance in Indiana

Benzinga Money is a reader-supported publication. We may earn a commission when you click on links in this article. Learn more.

Finding cheap car insurance doesn’t have to be a time-consuming ordeal. As with many things, you get what you pay for. It’s a good idea to go beyond the basics and get car insurance that fits your needs and budget and also provides you with the financial protection you crave. The good news is that there are many ways to save money on cheap car insurance in Indiana. We’ve reviewed some of the best companies and here are our top picks. 

Best Cheap Car Insurance in Indiana:

  • USAA: Cheapest in Indiana
  • Nationwide: Best for Premium Insurance
  • USAA: Best for Military Families

Indiana Car Insurance Overview

In Indiana, as in other states, there are certain minimums of insurance:

  • Bodily injury: $25,000 of liability per person per accident
  • Bodily injury: $50,000 of liability for all persons per accident
  • Property damage:  $25,000 worth of property damage 
  • Uninsured motorist bodily injury: $25,000/$50,000 
  • Uninsured motorist property damage: $10,000 
  • Underinsured motorist bodily injury: $50,000

Prefer not to buy uninsured or underinsured insurance? You can actually reject this coverage in writing. You’re not required to carry additional insurance coverage, including personal liability, collision or comprehensive insurance in Indiana. It’s a good idea to consider this if you own property or other assets since you’ll be protecting yourself from additional financial loss. 

Indiana Insurance Minimum Explained 

The law in Indiana requires that you carry car insurance. You won’t be able to register a vehicle or renew your registration unless you have at least the minimum insurance coverage. This can be verified through Indiana’s electronic insurance form submission program. 

You’ll face a penalty if you go without insurance. Fines include a 90-day license suspension for your first offense, up to a 1-year license suspension. You may also be subject to a $10,000 fine. It costs between $150–$300 to reinstate your license.

There are a few ways to reduce your car insurance rates, and the number one way to accomplish that is to be a courteous and conscientious driver. 

Indiana Driving Laws You Should Know

Remember what your parents told you: Driving is a privilege, not a right. With that in mind, it’s a good idea to brush up on basic driving laws so you avoid any driving infractions and raise your insurance rates in the process.

Cellphone Use

Indiana prohibits drivers under 18 from using cellphones and any other type of electronic device when driving — including hands-free devices. Drivers over 18 are allowed to talk on their cellphones, but no drivers (regardless of age) may text while driving. 

Seat Belt Use

Every passenger (including the driver) must be properly restrained while your vehicle is moving. Children under 12 must be restrained in an appropriate child safety seat. 


Indiana law prohibits driving any vehicle while under the influence of alcohol or drugs. The Indiana BAC limit is .08 percent with a minimum license suspension (or revocation) of 90 days to 2 years for the first offense, 180 days to 2 years for the 2nd and 1–10 years for the 3rd.

Anyone under the legal drinking age of 21 in Indiana who has a blood-alcohol level of .02 or higher can also be penalized with a misdemeanor, which is punishable by up to 60 days in jail and a fine of up to $500.

Insurance Rates per Vehicle

You may be surprised to learn what actually goes into calculating the rate you pay for your insurance. You can search for cheap car insurance, but note that there are some factors within your control and others that are outside of it. For example, the make and model of the car you drive are within your control, as well as your credit score and driving record, but other factors, like your age and gender, are out of your hands.

Every insurance company has a different formula that it uses to calculate the rate you pay, so the best way to save money on your car insurance is to get a free, customized quote from the companies we’ve profiled below. 

What Makes a Specific Car Expensive to Insure?

If you’re wondering how to lower your cheap car insurance, driving a car that’s less expensive to insure is a good start. It may be more difficult to find parts for foreign cars or may have a more difficult configuration to work with than their American counterparts. In addition, special models of vehicles (denoted by letters like SE or GT) typically cost more than their base model counterparts. 

Insurance Rates by Credit Score

Your credit score is one of the best ways to enjoy cheap car insurance in Indiana. The better your score, the less you’ll pay in insurance rates. Insurers reason that if you make sound financial decisions and make payments on time, you’re likely a lower risk and will pay less for your car insurance. 

Even if your credit score isn’t the best, there’s never been a better time to start taking steps to raise your credit score

Below are the rates for state minimum coverage from the best providers of cheap car insurance in Indiana based on your credit score: 

Credit ScoreCheapest ProviderRate for State Minimum Coverage
Poor 300–579USAA$1,452
Fair 580–669USAA$2,197
Good 670–739USAA$1,244
Excellent 740+State Farm

Insurance for Drivers with a Clean Record

You can also lower your insurance rates if you have a clean driving record. If you’ve gone without an accident or infractions on your driving record, you can use the table below to see examples of what you’d pay from the top insurance companies across Indiana.

Insurance AgencyState Minimum InsuranceStandard CoverageFull Coverage
State Farm$2,296$2,408$2,523

Insurance with Driving Infractions

As you can see, a spotless driving record can save you quite a bit of money. But even if your driving record isn’t flawless, it’s still a good idea to know approximately what you can expect to pay for insurance if you’ve got serious driving infractions, like an at-fault accident or a DUI. 

Insurance Agency At-Fault Accident Speed Violation DUI
American Family$4,043$3,022$5,118

3 Best Insurance Providers in Indiana

The truth is that there is no single “best car insurance” in Indiana. There are, however, several solid choices depending on what you’re looking for. We’ve chosen some of the best places to get cheap car insurance in Indiana and can save you money whether you want to bundle multiple cars on 1 policy, insure a luxury vehicle or just want cheap car insurance. 

1. Cheapest Car Insurance in Indiana: USAA

It’s hard to beat the great low rates and customer service of USAA. However, USAA membership is limited to military members and their families.

If you aren’t an active military member (or have a spouse, parent or grandparent who is or was enrolled in USAA), then you may have to choose the second cheapest option for car insurance: State Farm.

Both offer significantly lower rates than their competitors. But as with many things in life, you shouldn’t look solely at just one thing: price. 

2. Best Premium Car Insurance in Indiana: Nationwide

Do you own a premium or luxury car or want to insure your classic car? You’ll want to take a closer look at Nationwide.

Nationwide has teamed up with Hagerty, a well-known name in the premium vehicle and classic car insurance world, to help you protect your investment.

A classic car could save you up to 42% over the cost of traditional insurance since these types of vehicles are driven less and give you less risk and lower rates. 

3. Best for Military and Military Families: USAA

If you, your spouse or a close family member, such as a parent or grandparent served or is serving in the military, you may be able to qualify for USAA insurance.

The company is known for its financial strength and excellent customer service. 

Choose the Right Car Insurance in Indiana

There’s no single insurance company that you can turn to for cheap car insurance in Indiana, but these options can help you save money. Whether you want to bundle multiple vehicles on one policy, take advantage of savings for using vehicle safety devices, complete an accredited driving course or serve as a member of one of several organizations, car insurance companies in Indiana are stepping up to the plate to offer you a number of discounts. 

Frequently Asked Questions

Q: How does my personal credit play a role?

Q: How does my personal credit play a role?

A: Insurance carriers run credit scores to help determine policy premiums. Your insurance rates will likely be lower if you have an excellent credit score. On the other hand, your insurance rates may be higher if you have a poor credit score. Insurance companies believe credit scores are an indicator of whether you’ll make your insurance payments on time and credit scores combined with other data can be predictive of risk. Check out the best companies for all credit scores now.


Q: How much is my car insured for?

Q: How much is my car insured for?

A: With a standard auto insurance policy, your vehicle is insured using actual cash value, which means that a deduction may be taken for depreciation based on age or usage. As your vehicle ages, it’s worth less money which reduces the insurable value. If you own a collectible or classic car, you’ll want to consider a specialized classic car insurance policy that insures your vehicle to its full value without a deduction for depreciation.


Q: Does auto insurance cover business use?

Q: Does auto insurance cover business use?

A: In most cases, the business use of your vehicle is not covered by your auto insurance policy and can lead to denied claims. However, where you’re most likely risk losing coverage is when you are transporting products or passengers, which insurers define as livery. If your job requires traveling from point A to point B or C to visit customers, attend conferences, or perform other tasks, your personal auto insurance is likely to provide coverage. Get a customized quote now for the best deal.


*Quotes were obtained using the following profile: base 2015 Toyota Camry, male, 40-years-old. Policies reflect state minimum coverage options. We make every effort to provide the most accurate quotes based on the profile above. Due to the many combined variables involved in insurance quotes, the only way to get an accurate quote is to enter your own information through our partners’ secure websites.

Hire a Pro: Compare Financial Advisors In Your Area