Summary
- Auto-Owners is the cheapest car insurance company in Indiana, averaging $34/month for liability-only and $63/month for full coverage, per Insurify rate data updated September 15, 2026. State Farm ($36/$68), USAA ($38/$72) and Progressive ($40/$73) follow — four carriers within $6 of each other at the top.
- Indiana is one of the cheapest states in our library: liability averages $65/month against the national $98, full coverage $129 against $187 — about a third below the national figure on both.
- The trend is calm. Full coverage fell nearly 7% during 2025, has moved only 0.4% since December, and sits 8% below its September 2024 peak; the forecast for 2026 is a 0.1% rise.
- The cost gradient runs north and south: Elkhart drivers average $55/month for liability, Gary $75, and the Louisville suburbs — Jeffersonville and New Albany — top the state at $80 and $81.
- Indiana is an at-fault state with 25/50/25 minimums, and every new policy includes uninsured/underinsured motorist coverage unless you reject it in writing. It is an SR-22 state.
- The carrier spread is $34 to $177/month for the same liability profile, so see where your own quote lands before you renew.
Cheapest Car Insurance Companies in Indiana
Auto-Owners posts the lowest average in Indiana for both liability-only and full coverage — the Lansing-based carrier's fourth sweep in our library after Georgia, Michigan, and Illinois, and its closest race yet. State Farm is $2 behind on liability and $5 on full coverage; USAA, for military families, and Progressive are within $6. In Kentucky, across the river, the same top three run $61 to $78 for liability. In Indiana they run $34 to $40.
| Insurance company | Liability only (mo.) | Full coverage (mo.) |
|---|---|---|
| Auto-Owners | $34 | $63 |
| State Farm | $36 | $68 |
| USAA | $38 | $72 |
| Progressive | $40 | $73 |
| GEICO | $42 | $79 |
| First Chicago | $42 | $109 |
| National General | $47 | $116 |
| Allstate | $52 | $101 |
| Direct Auto | $52 | $104 |
| American Family | $54 | $100 |
| Safeco | $58 | $85 |
| Root | $63 | $104 |
| Liberty Mutual | $72 | $128 |
| Travelers | $72 | $134 |
| Farmers | $75 | $140 |
Source: Insurify Indiana rate data, current as of August 31, 2026 (page updated September 15). Actual quotes vary by driver profile.
Two things in the table are worth a second look. First Chicago ties GEICO on liability at $42 but charges $109 for full coverage — a cheap-liability carrier, not a cheap-full-coverage one. And the expensive end of the market is far away: the same liability profile that Auto-Owners writes for $34 runs $177 at State Auto, a five-to-one spread that makes comparing quotes worth more than $1,700 a year in a state where the average premium is already low. One practical note on the leader: Auto-Owners sells only through independent agents, with no online quoting.
How Much Is Car Insurance in Indiana?
Indiana averages $65/month for liability-only and $129/month for full coverage — about $774 and $1,543 a year. Both sit roughly a third below the national averages of $98 and $187.
The trend is the opposite of what most states in our library are showing. Full coverage peaked at $1,675 a year in September 2024, then fell through 2025 — from $1,649 in January to $1,537 in December, a drop of nearly 7% in a year when the national average fell about 6%. Since then the series has flattened: $1,543 in August, up 0.4% since December against a 0.9% national rise. The American Driver report projects a 0.1% increase for all of 2026, and the series is tracking it. Indiana is in the flat group with Illinois and Michigan, not the steep-rise group with Kentucky and Connecticut. Over five years the picture is the national one in miniature: up 41% since 2021, nearly all of it in 2023 and 2024. Our September rate report has the full national picture.
The structural reasons Indiana stays cheap are the ones you'd expect — low population density outside the Indianapolis metro, less traffic than Illinois or Ohio, and moderate weather risk. The pressures pushing the other way are severe storms (Indiana sees more than 20 tornadoes a year, plus the hail and straight-line winds that make convective storms the most common billion-dollar disaster in the country) and a statewide average credit score that runs below the national figure, which insurers price in a state that allows credit-based scoring.
City spread, per Insurify:
| City | Liability only (mo.) | Full coverage (mo.) |
|---|---|---|
| Elkhart | $55 | $112 |
| Goshen | $56 | $117 |
| Muncie | $56 | $113 |
| Lafayette | $57 | $118 |
| Columbus | $58 | $115 |
| Terre Haute | $58 | $108 |
| West Lafayette | $58 | $139 |
| Mishawaka | $60 | $120 |
| South Bend | $60 | $124 |
| Anderson | $65 | $122 |
| Evansville | $68 | $134 |
| Fort Wayne | $68 | $133 |
| Greenwood | $68 | $132 |
| Indianapolis | $73 | $151 |
| Gary | $75 | $163 |
| Jeffersonville | $80 | $145 |
| New Albany | $81 | $142 |
The gradient is unusual. Indianapolis is not the most expensive place to insure a car in Indiana — the Louisville suburbs are, at $80 and $81 for liability, and Gary, on the Chicago side, has the highest full-coverage average at $163. The Ohio River is a rate border in both directions: Jeffersonville and New Albany price well above the Indiana average, but at less than half of Louisville's $198 a few miles away. Everything from Terre Haute to Elkhart clusters within about $10 of each other for liability.
Indiana Car Insurance Requirements
Indiana requires 25/50/25 liability coverage — $25,000 per person and $50,000 per accident for bodily injury, $25,000 for property damage. Three rules around the minimum matter more than the numbers:
- Uninsured and underinsured motorist coverage is in every new policy by default, at the same 25/50/25 limits. You can reject it, but only in writing, and it's the coverage that pays when the other driver has none.
- Indiana is an at-fault state. The driver who causes the crash is responsible, through their liability coverage — no PIP, unlike neighboring Michigan and Kentucky.
- Driving uninsured can cost your license. Indiana verifies coverage and suspends the licenses of drivers who can't show proof of financial responsibility.
Indiana is an SR-22 state. A suspension, an OWI, or a lapse can bring a filing requirement, and SR-22 policies average about $81/month for liability and $161 for full coverage, per current rate data. Our SR-22 explainer covers the mechanics and our suspended-license guide covers reinstatement.
One Indiana-specific rule worth knowing if you're buying a car: state law guarantees existing policyholders at least 14 days of liability coverage on a newly purchased vehicle, and four days of physical-damage coverage if the policy carries it — a grace period, not a free pass. Add the car to the policy before it expires.
High-Risk Drivers in Indiana
Indiana's violation surcharges are moderate, and the cheapest carrier doesn't change. Auto-Owners averages $47/month for liability after a speeding ticket and $47 after an at-fault accident — about $13 above its clean-record rate — and $51 for drivers with poor credit. The exception is an OWI (Indiana's term for a DUI): drivers with one average $97/month for liability, nearly three times the cheapest clean-record rate, and the conviction typically brings the SR-22 requirement above. Our post-accident rate guide and not-at-fault accident explainer cover what actually moves after a claim; our coverage-lapse guide covers keeping a clean record while you rebuild one.
Credit counts in Indiana — the state allows credit-based insurance scoring, and its average score runs below the national average, so the credit-score playbook applies in full. Age moves the number more than any violation except an OWI: teens find their cheapest liability rate with Auto-Owners at $72/month, more than double the adult rate, and our teen safe-car guide covers the vehicle side. Seniors do best of anyone: Auto-Owners averages $27/month for liability — the lowest figure anywhere on this page.
Best Cheap Car Insurance Companies in Indiana
- Auto-Owners — best for minimum coverage. The price leader in both lanes, with an A.M. Best A++ rating, a low complaint index (0.46), a common-loss deductible when you bundle auto and home, and more than a dozen discounts. Insurify Quality Score: 8.2/10. Trade-offs: agent-only, no online quotes, and a below-average J.D. Power score for the region (646).
- State Farm — best for full coverage. Two dollars behind on liability and $5 on full coverage, with agents in more than 160 Indiana cities, above-average claims satisfaction for the Midwest region (665), and strong bundling discounts. IQ Score: 9.3/10, A.M. Best A++. Trade-offs: higher premiums in Indianapolis, fewer digital tools.
- Progressive — best for savings. Fourth-cheapest at $40/$73, competitive for higher-risk drivers, and the Snapshot program rewards safe driving on the state's high-crash corridors — I-65, I-80, and U.S. 31. IQ Score: 8.7/10, A.M. Best A+. Trade-offs: renewal increases, and Snapshot isn't kind to drivers who speed. Our telematics comparison covers when it pays.
- USAA — best for customer service. Third-cheapest at $38/$72 for the more than 328,000 veterans who call Indiana home, with the highest J.D. Power score in the state (726). IQ Score: 9.1/10, A.M. Best A++. Trade-offs: military families only, no 24/7 service line.
How to Save on Car Insurance in Indiana
- Quote Auto-Owners, State Farm, and Progressive first — and USAA if you're eligible. Four carriers under $41/month for liability in a state that averages $65; that's the benchmark.
- Don't reject UM/UIM to save money. It's in your policy by default for a reason, and the rejection form is the most expensive signature in Indiana insurance.
- Check your credit report before you shop. Indiana allows credit-based scoring and its average score is below the national figure — errors cost real money here.
- Keep comprehensive if you drive rural roads at dawn or dusk. Indiana's deer season peaks October through December, and an animal strike is a comprehensive claim, not a collision one.
- If you're in the Louisville suburbs or Gary, shop twice as hard. Both price well above the state average, and carrier pricing varies most where the base rate is highest.
- Bundle for the storm deductible. In a state with 20-plus tornadoes a year, an insurer that applies a single deductible when one storm hits your house and your car (Auto-Owners is the standout) can be worth more than a cheaper standalone rate. Our discounts guide covers the bundling math.
- Compare before renewal, not after. Flat markets are where loyalty costs the most — pull fresh quotes a month out, check the national standings, and price your own profile against the tables above.
Rate data from Insurify's Indiana car insurance analysis, updated September 15, 2026, with table rates current as of August 31, 2026, based on real-time quotes from 500+ partner insurers for drivers ages 20–70 with clean records and average or better credit unless noted; driver-profile figures from the same source's Indiana profile pages. Annual trend figures from the same source's monthly Indiana series (August 2021–August 2026) and the Insuring the American Driver report. State requirements, UM/UIM rules, and the new-vehicle grace period per the Indiana Bureau of Motor Vehicles as cited in the same analysis; tornado frequency per NOAA and veteran population per the U.S. Census Bureau as cited there. Actual quotes vary by driver profile.
Frequently Asked Questions
Which company has the cheapest car insurance in Indiana?
Auto-Owners has the cheapest car insurance in Indiana, averaging $34 per month for liability-only coverage and $63 for full coverage, according to rate data current as of August 2026. State Farm ($36/$68), USAA ($38/$72, military only), and Progressive ($40/$73) are close behind — four carriers under $41 a month for liability in a state that averages $65.
How much is car insurance in Indiana in 2026?
Indiana drivers pay an average of $65 per month for liability-only coverage and $129 per month for full coverage — about $774 and $1,543 a year — roughly a third below the national averages of $98 and $187. Full coverage fell nearly 7% during 2025 and has been essentially flat in 2026, up 0.4% since December.
Why is car insurance cheap in Indiana?
Low population density outside Indianapolis, less traffic than neighboring states, and moderate weather risk keep claim costs down. The main pressures pushing the other way are severe storms — Indiana averages more than 20 tornadoes a year, plus hail and straight-line winds — and a statewide average credit score that runs below the national figure, which insurers price.
What are Indiana's minimum car insurance requirements?
Indiana requires 25/50/25 liability coverage — $25,000 per person and $50,000 per accident for bodily injury, $25,000 for property damage. Every newly written policy must also include uninsured and underinsured motorist coverage at the same limits, which you can reject only in writing. Indiana is an at-fault state, and driving without insurance can bring a license suspension.
Does Indiana require an SR-22?
Yes. Indiana uses SR-22 certificates after certain suspensions, an OWI conviction, or driving without insurance. SR-22 policies in Indiana average about $81 per month for liability-only coverage and $161 for full coverage, per current rate data.
How much does a ticket or accident raise rates in Indiana?
Less than in most states, and the cheapest carrier is the same one. Auto-Owners averages $47 per month for liability after a speeding ticket and $47 after an at-fault accident — compared with $34 for a clean record. An OWI is the expensive one: Indiana drivers with an OWI average $97 per month for liability, nearly three times the cheapest clean-record rate.