Indianapolis, IN Car Insurance
Experts break down auto insurance costs, coverages, companies, and more.
Anyone can be involved in a collision. That is why vehicle owners in Indianapolis are required by state law to carry car insurance. From fender benders on Massachusetts Avenue to serious collisions on I-70, a good auto insurance policy can shield you from facing large financial losses as a result.
Independent agents make it easy to obtain great coverage. These agents are free to work with some of the best car insurance companies in Indiana to find a policy that has the coverage you want at the most competitive price. Contact an independent insurance agent near you to learn more.
How Much Does Car Insurance Cost in Indianapolis, IN?
The average cost of car insurance in Indiana, and in Indianapolis specifically, is lower than the national average. This is great news for Indianapolis drivers who are looking for an affordable policy.
- National average annual car insurance cost: $1,311
- Indiana average annual car insurance cost: $1,033
- Indianapolis average annual car insurance cost: $1,126
Of course, this is just an average rate. Car insurance cost can vary significantly from one driver to the next because they are based on several factors such as:
- The make, model, and year of the vehicle(s) you are insuring
- Your age, occupation, driving record, and claims history
- Details about other licensed drivers in your household
- Whether you own or rent your home
- The accident and auto theft rates in the vicinity of your home
- How much liability coverage you want to purchase
- Which, if any, coverage options you are including in your policy
You can frequently earn lower rates for coverage if you have a long history as a safe driver. You can also get car insurance discounts if a teen driver in your household is a student with good grades, or if you are bundling your coverage with another policy like homeowners insurance or renters insurance.
Every insurance company has its own way of calculating rates, so it pays to do some comparison shopping before selecting a policy.
What Are Indiana’s Minimum Car Insurance Requirements?
As a vehicle owner in Indianapolis, you will need to carry a car insurance policy that is in compliance with Indiana’s minimum coverage requirements.
All car insurance policies in Indiana must include liability insurance. Liability insurance can cover medical expenses and property damage sustained by others if you are at fault for a collision. Your car insurance policy must meet or exceed the following liability insurance minimums:
- Bodily injury liability insurance per person: $25,000
- Bodily injury liability insurance per accident: $50,000
- Property damage liability insurance per accident: $25,000
If you cause an accident and your liability coverage is not high enough to cover your financial obligations, you will need to make up the difference out of pocket. That is why many Indianapolis residents opt to purchase more liability coverage than the state requires, and sometimes also purchase umbrella insurance.
The state of Indiana also requires you to carry uninsured motorist insurance (UIM) to cover your own medical bills and property damage if an uninsured, under-insured, or hit-and-run driver is at-fault for a collision with you.
Unlike liability coverage, however, the requirement to carry uninsured motorist coverage may be waived if you opt out in writing.
If you decide to keep your UIM coverage, your policy must meet or exceed the following minimums:
- UIM bodily injury insurance per person: $25,000
- UIM bodily injury insurance per accident: $50,000
- UIM property damage insurance per accident: $25,000
All other coverage is optional by law.
What Else Can Car Insurance Cover in Indianapolis, IN?
In addition to the required coverage mentioned above, you can choose to add a variety of coverage options to your auto insurance policy. Some of the coverage options most car insurance providers offer include:
- Full Coverage: This is designed to cover damage to your own car. It is usually required by lenders if you are financing your vehicle and by dealerships if you have it on a lease. Full coverage includes:
- Collision insurance: This can cover the cost to repair or replace your vehicle if it is damaged or totaled in a car accident, regardless of fault.
- Comprehensive insurance: This can cover the cost to repair or replace your vehicle if it is damaged or totaled in a non-collision event like a hailstorm or a garage fire.
- Medical payments insurance: This can provide some coverage for medical treatments for you and your passengers if you are injured in a collision, regardless of fault.
- Gap insurance: This can bridge the gap between your car’s current value and how much you still owe for it if it is totaled in a covered event. This is often a good idea during the first year or two of new-car ownership.
- Towing and roadside assistance insurance: This can cover the cost of assistance if your vehicle breaks down while you are out on the road.
- Rental car reimbursement insurance: This can cover the cost to rent a car while your own vehicle is being repaired following a covered event.
You may want to review what each option covers in full as well as how much each costs when you are deciding which are a good fit for you and your family.
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What Is the Penalty for Driving without Car Insurance in Indianapolis, IN?
If you are caught driving without car insurance in Indiana, you can be penalized with:
- Fines ranging from $250 to $1,000
- The suspension of your driving privileges for 90 days to one year
- The need to pay a reinstatement fee of $250 to $1,000 to get your driving privileges back
- The requirement to maintain an SR-22 for three years
- Higher car insurance premiums
- Possible jail time if you are a repeat offender or cause a serious collision while driving uninsured
Even though it is illegal, approximately 16.7% of all drivers in the state of Indiana are riding around in uninsured vehicles. This is significantly higher than the national average rate of 13%.
Uninsured motorist insurance lets you to rest assured that if an uninsured, underinsured, or hit-and-run driver is responsible for a collision with you, you will have the coverage you need for your injuries and property damage without the need to go through lengthy legal channels to collect it.
Unless you have specifically opted out of this coverage in writing, your policy should cover you against uninsured drivers.
What Is the Auto Theft Rate in Indianapolis, IN?
The car theft rate in Indiana is the same as the national average. However, in Indianapolis, the rate is more than twice as high. Residents of this city report around 5,000 auto thefts a year.
- National auto theft rate per 1,000 vehicles: 2.29
- Indiana auto theft rate per 1,000 vehicles: 2.29
- Indianapolis auto theft rate per 1,000 vehicles: 5.64
Given the high auto theft rate in this city, it is important that you are aware that you can only be compensated for an auto theft if you have included comprehensive coverage in your car insurance policy.
Comprehensive insurance covers far more than just vehicle theft. It can also pay to repair or replace your car if it is damaged in another non-collision event like a tornado or a flood.
If you are still paying for your vehicle or if you have it on a lease, chances are good that your policy already includes comprehensive insurance. If not, you may want to look into how much it would cost to add it to your car insurance policy. That way, you can decide whether or not this coverage is worth the cost.
How Can an Independent Agent in Indianapolis Help You Find the Best Car Insurance?
Independent agents in Indianapolis are available to search for an auto insurance policy that meets your coverage and budgetary needs. These agents are not tied to a particular insurance provider, so they are free to obtain customized quotes from some of the best car insurance companies in Indiana.
It doesn’t cost anything to work with an independent agent. Contact an insurance agent near you to discover how easy it can be to find a suitable and reliable car insurance policy at a competitive price.
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