Indiana’s Car Insurance Rates Are Among the Lowest in the U.S.

While car insurance is certainly not cheap, folks in the Hoosier State are definitely getting a better deal than some people in other states.

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I don’t like shopping for car insurance, or really any insurance for that matter. It’s no secret that rates have been increasing across the board, and I find it incredibly frustrating. While I currently have no claims on my record, I was recently told that my rates were rising because of the increasing costs of fixing damaged vehicles. Hard pass. I shopped around and found a better rate, and while I still wasn’t happy with it, it’s much better than what some people are paying in other states.

What States Have the Highest Car Insurance Rates?

According to Axios Indianapolis, the state with the highest rates is Connecticut, with an average annual car insurance premium of $3,598. That’s about $300 per month (ouch). Maryland is next on the list at $3,400, followed by South Carolina at $3,336. Luckily, Hoosiers are not paying anywhere near these prices, but they are still paying more than in a handful of other states.

What States Have the Lowest Car Insurance Rates?

The states with the lowest car insurance rates are New Hampshire, with an annual premium of $1,000. Maine is next on this list at $1,209, followed by North Carolina, which boasts an annual premium of $1,403. Indiana also falls into this category, with the annual cost of full-coverage car insurance around $1,591, according to reported June 2024 rates. This is still well below the nationwide average, which is now $2,329.

Why Are Indiana’s Car Insurance Rates Low?

Axios Indianapolis notes that there are a couple of reasons why Hoosiers are paying less money to insurance companies. For one, Indiana does not require “no-fault coverage,” sometimes referred to as personal injury protection insurance (PIP). This type of coverage pays for medical bills in the event of an accident. Additionally, coverage premiums can depend greatly on road conditions, accident rates, and the average age or gender of drivers in that state. Regardless, I’ll take any savings I can get.