I’m sure you’ve seen the captivating commercials from auto insurance companies like GEICO, Farmers, and State Farm that make promises of enormous savings, so drivers just need to choose the one with the flashiest ad, right?
Unfortunately, it’s not that simple as there are a whole slew of unknowns such as the number of miles you drive in a year, what your desired deductibles are, the amount of liability coverage you want, and your financial stability. We will attempt to cover the causes of high insurance rates and should give you a good beginning to your search for cheaper coverage.
Trying to buy low-cost insurance is easier said than done, and figuring out which companies offer the most affordable car insurance rates for low mileage drivers will take even more rate comparisons.
Each insurance company uses slightly different criteria to set policy rates, so let’s rank the car insurance companies with the overall cheapest rates in Indiana. We do need to point out that Indiana car insurance rates are determined by lots of factors which can substantially change the policy premium. Simply improving your credit score, marrying your spouse, or getting a reckless driving citation can trigger rate changes resulting in some rates now being much higher than others.
Find the Cheapest Auto Insurance in Indiana
|Rank||Company||Cost Per Year|
|5||Indiana Farmers Mutual||$867|
|Find Your Rate Go|
Travelers quotes some of the cheapest car insurance rates in Indianapolis at around $614 a year. This is $626 less than the average rate paid by Indiana drivers of $1,240. Cincinnati Insurance, USAA, Erie, and Indiana Farmers Mutual would also be considered some of the cheapest Indianapolis, IN car insurance companies.
In the above example, if you have coverage with Cincinnati Insurance and switched to Travelers, you might achieve a yearly savings of in the neighborhood of $64. Drivers with USAA might save as much as $67 a year, and Erie customers might see rate reductions of $119 a year.
To get a quick, customized rate comparison, click here to start your free quote or visit any of the low-priced companies below.
It’s important to note that these premium estimates are averaged across all drivers and vehicles and do not factor in a specific zip code for low mileage drivers. So the car insurance company that has the lowest price for you may not even be in the top 36 companies shown above. That is why you need to get rate quotes using your own personal information and vehicle type.
For infrequent drivers, one of the more important criteria that determine the cost of insurance is where your residence is. Cities with larger populations will most likely pay more, whereas areas with less people or fewer weather incidents have the gratification of cheaper auto insurance rates.
The information below ranks the highest-priced areas in Indiana for low mileage drivers in which to buy car insurance. Indianapolis comes in at #9 with an annual cost of $1,050 for the average policyholder, which is approximately $88 monthly.
|Find Cheaper Rates Go|
Premium amounts are estimated as the specific area where the vehicle is garaged can influence price quotes significantly.
Cautious Indianapolis drivers save money
The easiest way to snag the cheapest car insurance prices in Indianapolis for infrequent drivers is to drive safely and avoid accidents and traffic violations. The example below illustrates how traffic citations and accident claims drive up insurance costs for each different age category. The information is based on a married male driver, full physical damage coverage, $1,000 deductibles, and no discounts are factored in.
In the chart above, the average cost of an auto insurance policy in Indiana per year with no accidents and a clean driving record is $1,358. Receive one speeding ticket and the average cost jumps to $1,563, an increase of $205 each year. Then add two accidents along with the one speeding ticket and the 12-month cost of car insurance for low mileage drivers goes up to an average of $3,483. That’s an increase of $2,126, or $177 per month, just for being a careless driver!
Difference between full coverage and liability only rates
Saving on car insurance is the goal of the majority of vehicle owners, and a good way to find cheap insurance for low mileage drivers is to buy only liability coverage. The diagram below illustrates the difference between insurance premiums with full coverage and liability only. The information is based on no violations or accidents, $1,000 deductibles, drivers are not married, and no discounts are taken into consideration.
If we average the cost for all age groups, full coverage on your policy costs $1,577 per year over liability only. That may make you wonder if paying for full coverage is worth it. There is no definitive guideline to exclude physical damage coverage on your policy, but there is a general guideline. If the yearly cost of full coverage is 10% or more of the vehicle’s replacement cost less your deductible, then you might want to think about dropping full coverage.
For example, let’s assume your vehicle’s claim settlement value is $10,500 and you have $1,000 physical damage deductibles. If your vehicle is totaled in an accident, the most your company would pay you is $9,500 after the deductible is paid. If premiums are more than $950 annually for physical damage coverage, the it may be a good time to stop paying for full coverage.
There are some cases where only buying liability is not advised. If you haven’t paid off your loan, you must maintain physical damage coverage to satisfy the loan requirements. Also, if your finances do not allow you to purchase a different vehicle if your current one is damaged, you should not buy liability only.
Get discount Indianapolis auto insurance
Car insurance companies that sell policies for low mileage drivers may have discounts that can reduce rates by 25% or more if you qualify for them. A few popular companies and some of the premium reductions they offer are detailed below.
- 21st Century offers discounts including automatic seat belts, student driver, defensive driver, air bags, early bird, and good student.
- State Farm offers discounts for defensive driving training, safe vehicle, passive restraint, good student, student away at school, and accident-free.
- AAA may have discounts that include multi-car, pay-in-full, good student, multi-policy, AAA membership discount, good driver, and anti-theft.
- Liberty Mutual has discounts for new graduate, newly retired, multi-policy, preferred payment discount, and teen driver discount.
- Progressive discounts include multi-vehicle, multi-policy, continuous coverage, good student, online quote discount, homeowner, and online signing.
The example below illustrates the difference between car insurance costs with and without policy discounts. The costs are based on a male driver, no claims or driving citations, Indiana state minimum liability limits, full physical damage coverage, and $100 deductibles.
The first bar for each age group shows premium with no discounts. The second bar shows the rates with safe-driver, marriage, anti-theft, homeowner, defensive driving course, and multiple policy discounts applied. When drivers qualify for the discounts, theamount saved on car insurance for low mileage drivers is 27% or $494.
The Indianapolis auto insurance agencies shown below can probably help you determine which coverage fits your budget, as some people prefer to get some help when buying car insurance for low mileage drivers. It can be complicated to find the best coverage on your own, and getting advice from a licensed Indiana insurance agent can provide you satisfaction knowing your coverage gives you enough protection.
To locate an agency close to where you live, click the link at the bottom or click here to compare prices now.
Access Auto Insurance
2107 W Washington St – Indianapolis, IN 46222 – (317) 687-8807
Haleh Krauter – State Farm Insurance Agent
11204 Fall Creek Rd – Indianapolis, IN 46256 – (317) 849-9996
Killion Insurance Agency
6316 W Thompson Rd – Indianapolis, IN 46221 – (317) 856-4550
Allstate Insurance: Scott Verbarg
6120 E Thompson Rd Ste B – Indianapolis, IN 46237 – (317) 802-1550
Dalessandro Agency Inc.
4255 Lafayette Rd – Indianapolis, IN 46254 – (317) 290-2055