Who Has the Cheapest Indianapolis Auto Insurance for Drivers with Bad Credit?

The words “low-cost” and “auto insurance” probably shouldn’t be used in the same sentence, in particular when looking for the best insurance rates for drivers with bad credit. In an attempt to save some money, let’s open your eyes to a few of the factors that have an impact on insurance rates, and find a way to lower the cost of your next policy.

The vehicle model that is being insured is a large factor when comparing the lowest-priced coverage for drivers with bad credit. Vehicles with higher performance characteristics, poor passenger safety features, or a high likelihood of having liability claims will cost more to insure than safer, lower-performance models.

The next table ranks insurance prices for some of the more affordable vehicles to insure in Indiana.

Cheapest Vehicles to Insure in Indianapolis, IN
Insured Vehicle Estimated Cost for Full Coverage
Ford Explorer XLT AWD $1,189
Ford F-150 XL Regular Cab 4WD $1,194
Ford Escape XLS 4WD $1,218
Ford Focus SE 4-Dr Sedan $1,232
GMC Sierra SLE Regular Cab 2WD $1,255
Jeep Grand Cherokee Laredo 4WD $1,263
Toyota RAV4 Sport 4WD $1,255
Jeep Wrangler Unlimited Sport 2WD 4-Dr $1,276
Dodge Grand Caravan Crew $1,278
Toyota Tacoma Double Cab TRD Off-Road Package 4WD $1,286
Honda CR-V LX 4WD $1,299
Hyundai Elantra SE Touring Station Wagon $1,318
Nissan Rogue SL 2WD $1,346
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Prices based on single female driver age 50, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Indiana minimum liability limits. Discounts applied include multi-vehicle, multi-policy, homeowner, claim-free, and safe-driver. Price estimates do not factor in the specific area where the vehicle is garaged which can impact coverage rates greatly.

Looking at the rates, models like the Ford Explorer, Ford F-150, Ford Escape, Ford Focus, and GMC Sierra will be some of the cheapest vehicles to insure for people with poor credit. The cost of a car insurance policy will be more expensive because there is more claim risk for drivers with bad credit, but in general those makes and models will most likely have the lowest insurance rates compared to all other vehicles.

For people with poor credit, one of the big criteria that are used to help calculate auto insurance rates is your zip code in Indianapolis. Regions with larger populations or more claims tend to have higher auto insurance costs, whereas areas with less crime or weather claims have the benefit of cheaper car insurance.

The table below lists the most expensive places in Indiana for drivers with bad credit to purchase car insurance in. Indianapolis is listed at #5 with an annual rate of $1,092 for coverage, which is approximately $91 per month.

How much does car insurance cost in Indianapolis, IN?
Rank City Premium Per Year
1 Gary $1,360
2 Hammond $1,314
3 Merrillville $1,128
4 Portage $1,093
5 Indianapolis $1,092
6 New Albany $1,059
7 Lawrence $1,055
8 Jeffersonville $1,048
9 Evansville $1,045
10 Terre Haute $1,045
11 Kokomo $1,041
12 Anderson $1,001
13 Elkhart $995
14 Fort Wayne $985
15 Columbus $984
16 Fishers $983
17 South Bend $976
18 Bloomington $968
19 Mishawaka $965
20 Greenwood $960
21 Noblesville $958
22 Richmond $935
23 Carmel $929
24 Muncie $927
25 Lafayette $926
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Table data uses estimated as specific location information can impact coverage rates greatly.

Comparing quotes for affordable auto insurance is difficult, and deciding which company quotes the lowest-priced car insurance rates for drivers with bad credit requires even more diligence.

Every insurance company has their own process for setting rates, so we’ll go over the most affordable car insurance companies in Indianapolis. We do need to point out that Indianapolis car insurance rates are determined by lots of factors which can substantially change the cost of having a policy. Things like having a birthday, adding a teenager to your policy, or getting caught speeding can trigger changes in premium that may make certain companies more expensive than competitors.

Cheap Insurance Rates with Bad Credit

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Cheapest auto insurance in Indiana ranked by cost per year
Rank Company Cost Per Year
1 Travelers $614
2 Cincinnati Insurance $678
3 USAA $681
4 Erie $733
5 Indiana Farmers Mutual $841
6 Western Reserve $872
7 Auto-Owners $879
8 The Hartford $881
9 Nationwide $930
10 Motorists Mutual $956
11 Utica National $956
12 Safeco $983
13 State Farm $987
14 Hastings Mutual $1,003
15 Farmers $1,033
16 Westfield $1,094
17 State Auto $1,098
18 Wolverine Mutual $1,105
19 GEICO $1,133
20 Celina Insurance $1,135
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Travelers generally has some of the lowest car insurance rates in Indianapolis at around $614 annually. This is $626 less than the average rate paid by Indiana drivers of $1,240. Cincinnati Insurance, USAA, Erie, and Indiana Farmers Mutual are also some of the cheapest Indianapolis, IN car insurance companies.

As depicted above, if you are a customer of Erie and switched to Cincinnati Insurance, you may realize a yearly price reduction of approximately $55. Policyholders with Indiana Farmers Mutual might save as much as $163 a year, and Western Reserve customers might lower prices by up to $194 a year.

To compare your rates to other Indiana insurance companies, click here to start a quote or visit any of the companies below.

It’s important to note that these estimates are averages across all ages of drivers and types of vehicles and are not factoring in a specific zip code for drivers with bad credit. So the insurer that is most affordable for your situation may not even be in the top 36 companies in the list above. That illustrates why you need to get car insurance quotes using your own specific driver and vehicle information.

Types of discounts on Indianapolis auto insurance

Save on car insurance for people with poor credit in IndianapolisInsurance companies that provide policies for drivers with bad credit may also give you discounts that can reduce rates by 35% or more if you qualify for them. The best car insurance companies and a partial list of their discounts are included below.

The example below visualizes the comparison of car insurance costs with and without some available policy discounts. The prices are based on a male driver, no accidents, no driving violations, Indiana state minimum liability limits, comp and collision included, and $1,000 deductibles.

The first bar for each age group shows the average annual price with no discounts. The lower bar shows the rates with homeowner, defensive driving course, multiple policy, anti-theft, multiple vehicle, and vehicle safety discounts applied. When drivers qualify for the discounts, theaverage yearly reduction on car insurance for drivers with bad credit is 28% or $354.

Difference between full coverage and liability only rates

Saving money on car insurance should be important to most vehicle owners, and one common way to save on the cost of insurance for drivers with bad credit is to only buy liability insurance. The illustration below shows the difference between insurance costs with full coverage compared to only the Indiana minimum liability coverage. The price estimates are based on no claims or driving violations, $250 deductibles, single marital status, and no other discounts are factored in.

Averaged for all ages 20 through 70, comprehensive and collision coverage on your policy costs $1,635 per year more than just insuring for liability. Many people question if physical damage coverage is worth the money. There is no definitive rule for phasing out physical damage coverage on your policy, but there is a general guideline you can use. If the annual cost of comprehensive and collision coverage is more than around 10% of the settlement you would receive from your company, then it might be time to consider dropping full coverage.

There are some conditions where removing full coverage is not in your best interest. If you have an outstanding loan on your vehicle, you must maintain physical damage coverage in order to keep the loan. Also, if you don’t have enough money to buy a different vehicle if your current one is in an accident, you should not opt for liability only.

How to find cheaper insurance for drivers with bad credit

The list below summarizes a few money-saving suggestions that can help drivers locate cheaper coverage.

The last item on the list is extraordinarily significant, as we hit on in this piece. Coverage rates in Indianapolis can be adjusted at any time, so don’t be afraid to buy a policy from a new company if you can find a cheaper rate.

Brand loyalty is great, but we do not recommend it if that dedication is costing money that could be going to better use. It takes less than five minutes to shop around and find cheaper insurance for drivers with bad credit.

If you have questions and prefer to get some help when comparing insurance rates for drivers with bad credit, the agents below can most likely answer your questions and help you decide which auto insurance policy would work best for you.

To locate an Indianapolis auto insurance agent close to you, click the button below the list.

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