Who Has Affordable Indianapolis Car Insurance Rates for 16 Year Olds?

For new drivers, one of the more important components that are used to help calculate car insurance rates is where your residence is. More densely populated places are more likely to have higher rates, whereas areas with less congestion benefit from lower prices.

The table below ranks the most expensive cities in Indiana for 16 year olds to purchase a policy in. Indianapolis is ranked #8 with the annual price of $1,050 on average, which is around $88 per month.

How much is car insurance in Indianapolis?
Rank City Average Per Year
1 Gary $1,360
2 Hammond $1,314
3 Merrillville $1,139
4 Portage $1,126
5 Lawrence $1,099
6 Evansville $1,087
7 Jeffersonville $1,070
8 Indianapolis $1,050
9 Kokomo $1,041
10 Terre Haute $1,035
11 New Albany $1,028
12 Anderson $1,001
13 Bloomington $998
14 South Bend $985
15 Fishers $983
16 Greenwood $969
17 Elkhart $965
18 Mishawaka $965
19 Richmond $964
20 Fort Wayne $956
21 Carmel $947
22 Columbus $946
23 Muncie $937
24 Noblesville $930
25 Lafayette $926
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Information shown are comparative as zip code location can change auto insurance rates noticeably.

The make and model of vehicle that needs insurance is a significant factor when quoting the most economical insurance for 16 year olds. Vehicles with lots of speed or power, poor safety ratings, or a track record of large liability claims will cost significantly more to insure than safer models. The table below showcases car insurance premiums for some of the most cost-effective automobiles to buy coverage for.

Cheapest Vehicles to Insure in Indianapolis, IN
Vehicle Estimated Cost for Full Coverage
Ford Escape XLS 2WD $4,559
Honda CR-V EX 4WD $4,600
Volkswagen Jetta S 2.5 Station Wagon $4,878
Honda Accord EX-L 4-Dr Sedan $4,887
Toyota Prius $4,919
Ford F-150 XL Crew Cab 2WD $5,133
Ford Explorer Eddie Bauer 2WD $5,141
Ford Edge Limited 2WD $5,369
Chevrolet Impala LS $5,376
Chevrolet Equinox LT AWD $5,410
Toyota RAV4 2WD $5,419
Chevrolet Malibu LS $5,410
Nissan Altima 2.5 4-Dr Sedan $5,417
Ford Fusion S 4-Dr Sedan $5,410
Dodge Grand Caravan Crew $5,451
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Prices based on single female driver age 16, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Indiana minimum liability limits. Discounts applied include claim-free, and safe-driver. Table data does not factor in zip code location which can influence premiums noticeably.

Based upon the rates shown, we can assume that cars like the Ford Escape, Honda CR-V, Volkswagen Jetta, Honda Accord, and Toyota Prius will definitely be some of the more affordable vehicles to insure for new drivers. The cost of auto insurance will trend higher just due to the fact that there is more liability exposure for 16 year olds, but generally speaking those particular models will tend to have the cheapest rates compared to other vehicles.

Deciphering which companies quote the cheapest car insurance rates for 16 year olds will take a tad more effort than just comparing a company or two. Each auto insurance company has a different process to set premium rates, so to begin we’ll rank the car insurance companies with the most affordable rates in Indiana.

Cheap Insurance Rates for Teens

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Cheapest Indiana car insurance ranked by price
Rank Company Cost Per Year
1 Travelers $602
2 Cincinnati Insurance $664
3 USAA $667
4 Erie $705
5 Western Reserve $846
6 Indiana Farmers Mutual $867
7 The Hartford $881
8 Auto-Owners $888
9 Motorists Mutual $956
10 State Farm $957
11 Nationwide $958
12 Utica National $965
13 Safeco $973
14 Hastings Mutual $1,013
15 Farmers $1,064
16 Wolverine Mutual $1,072
17 Westfield $1,094
18 Progressive $1,095
19 State Auto $1,098
20 GEICO $1,133
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Travelers offers some of the cheapest car insurance rates in Indianapolis at around $602 per year. This is $638 less than the average rate paid by Indiana drivers of $1,240. Cincinnati Insurance, USAA, Erie, and Western Reserve also qualify as some of the cheaper Indianapolis, IN auto insurance companies.

As illustrated above, if you have coverage with Erie and switched to Travelers, you may realize a yearly savings of upwards of $103. Indiana drivers with Western Reserve might save as much as $244 a year, and Indiana Farmers Mutual customers might reduce prices by as much as $265 a year.

To find out how much you can save, click here to get quotes or visit several of the following companies.

Remember that these prices are averages for all drivers and vehicles in Indiana and are not factoring in a specific location for 16 year olds. So the car insurance company that is best suited for you may not even be in the top 36 companies shown above. That’s why you need to get rate quotes from many companies using your own driver data and vehicle information.

The illustration below demonstrates how choosing different deductibles can change insurance costs when trying to find cheap insurance for 16 year olds. The information is based on a single male driver, full coverage, and no other discounts are factored in.

The chart above illustrates that a 50-year-old driver could lower their policy premium by $322 a year by switching from a $100 deductible to a $500 deductible, or save $484 by using a $1,000 deductible. Young drivers, like the 20-year-old example, could roll back prices as much as $1,066 every year just by using higher deductibles. If you do make the decision to raise your deductibles, it is important to have spare funds to be able to cover the extra out-of-pocket expense, which is the main drawback of higher deductibles.

Illustration showing the impact of accidents and violations

The recommended way to maintain the cheapest car insurance rates in Indianapolis for new drivers is to be a good driver and not get tickets or have accidents. The diagram below demonstrates how citations and at-fault fender-benders impact insurance rates for different age groups. The price estimates are based on a single female driver, comp and collision included, $1,000 deductibles, and no discounts are factored in.

In the chart above, the average cost of an auto insurance policy per year with no accidents or violations is $1,505. Receive one speeding ticket and the average cost increases to $1,708, an increase of $203 each year. Now add two accidents along with the one speeding ticket and the yearly cost of car insurance for 16 year olds increases to an average of $3,625. That’s an increase of $2,120, or $177 per month, just for being a little careless behind the wheel!

Cost comparison with and without full coverage

Paying less for car insurance should be important to the majority of drivers, and an easy way to find cheaper insurance for 16 year olds is to buy only liability coverage. The diagram below illustrates the comparison of yearly insurance costs with full physical damage coverage compared to only buying the minimum liability limits required in Indiana. The price estimates are based on no accidents or driving violations, $500 deductibles, drivers are not married, and no additional discounts are factored in.

If averaged for all ages, physical damage insurance costs an additional $1,328 per year more than buying just liability insurance. At some point, every insured wonders if it’s a good idea to buy full coverage. There is no set guideline to stop buying comprehensive and collision coverage on your policy, but there is a guideline you can use. If the annual cost of comprehensive and collision coverage is about 10% or more of the replacement cost minus the deductible, then it’s probably a good time to buy liability coverage only.

The auto insurance agents in Indianapolis shown below can probably aid you in deciding which auto insurance coverages would be the best in your situation, since some drivers wish to have some professional guidance when trying to find lower insurance rates for 16 year olds. It can be hard to find the best policy on your own, and professional agents can give peace of mind knowing you have suitable coverage if you ever need to use it.

To find an Indianapolis insurance agency closest to you, click the button link following the list.

Phil Kunkel – State Farm Insurance Agent
5510 S East St dIndianapolis, IN 46227(317) 783-3127

Killion Insurance Agency
6316 W Thompson RdIndianapolis, IN 46221(317) 856-4550

Tia Walker – State Farm Insurance Agent
2169 Glebe St #100aCarmel, IN 46032(317) 890-1200

Dalessandro Agency Inc
4240 N Franklin Rd #109Lawrence, IN 46226(317) 898-1866

A-1 Insurance Agency
2929 E 96th St Suite A.Indianapolis, IN 46240(317) 844-3049

Find an Indianapolis, IN insurance agent near you