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If you are looking for Auto Insurance in the Indianapolis area, there is good news.
Auto insurance rates for the state of Indiana are about twenty percent below the national average.
For 2021, Maine has the cheapest rates in the continental United States for full coverage, at $965 per year.
On high end, folks in Louisiana pay a whopping $2,724 per year for the same coverage.
Rates for Indiana residents average $1,254 per year.
Types of Auto Insurance Coverage
There are several types of car insurance:
- Liability Insurance: This covers accidents that are your fault. It has two components – Bodily injury and property damage.
Bodily injury liability covers medical bills for another person (Not yourself) due to an accident.
Property damage liability covers another person’s automobile or anything else that might have been damaged during the accident.
The state of Indiana requires that all drivers must carry liability insurance. The
minimum requirements
are:
- Bodily Injury: $25,000 per person and $50,000 per accident
- Property Damage: $10,000
Please note that these are state required minimums.
We recommend higher coverage limits in almost all cases.
nerdwallet
provides a list of minimums for each state.
- Collision insurance covers damage to your car if case of an accident.
There is a deductible that you will have to pay.
Auto insurance policies with higher deductibles cost less.
- Comprehensive insurance covers damage to your car not caused by collision with another vehicle. Things like:
- Cracked windshield
- Fire
- Theft
- Vandalism
- Hail or other acts of nature
- Uninsured / Underinsured motorist covers your expenses if someone else is at fault
and does not have (Or doesn’t have enough) insurance to cover the damages to you or your vehicle.
- Personal Injury Protection (Often referred to as PIP) covers medical payments for you and any passengers in your vehicle.
Factors That May Affect Your Auto Insurance Rates
- The car you drive:
- How much does it cost?
Cars that are expensive to replace have higher rates.
- Do Drivers of that car model have a lot of claims?
You might be the safest driver in the world, but if you buy a sports car, your rates will be high.
Those who drive sports cars like to go fast, so their accident rates are higher.
The cheapest car to insure in 2021 is the Subaru Outback, with the Jeep Wrangler coming in second.
- Some cars cost more to insure because they are frequently targeted by thieves.
A good anti-theft system may help lower your rates.
- Your driving record - If you have a lot of tickets for unsafe driving,
theat will increase your rates.
Driving under the influence will raise your insurance cost significantly.
For 2021 in Indiana, the average additional cost is $470.
- Your credit score - Nobody knows why, but insurance companies have found people with good credit scores
have fewer claims than those with bad credit scores.
Keep your credit rating high and you'll save money on your insurance.
You'll also save when you borrow money to buy your car by receiving a better interest rate.
- Your location - If you are in an area where accidents, car thefts and vandalism are more common,
your rates will be higher.
- Your age - Younger, less experienced drivers pay higher rates.
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