- Trusted Independent Agency Since 2011
Car insurance rates, explained
What Affects Car Insurance Rates in Indiana?
Every insurance company uses its own formula, but most look at the same core factors. Here’s what goes into your car insurance rate in Lafayette and across Indiana, and what you can do to keep it in check.
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4.9-star rated on Google
Serving Greater Lafayette since 2011
3111 Builder Dr., Suite 6, Lafayette
Serving Greater Lafayette since 2011
3111 Builder Dr., Suite 6, Lafayette
Rating factors
The biggest factors in your car insurance rate
No single factor decides your price. Insurance companies combine many of them, and each company weighs them differently.
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Driving record
Accidents, tickets and claims from the last several years. A clean record is one of the most reliable ways to keep your rate down.
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Age and driving experience
Newer drivers, especially teens, cost more to insure. Rates generally improve as drivers gain experience.
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Where you live and park
Your ZIP code matters because traffic, theft and claim costs vary by area, even between Lafayette, West Lafayette and rural Tippecanoe County.
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The vehicle you drive
Repair costs, safety features, theft rates and the value of the vehicle all affect what it costs to insure.
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How much and how you drive
Annual mileage and how the car is used, such as commuting, pleasure driving or business use.
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Credit-based insurance score
Many companies in Indiana use a credit-based insurance score as one factor. It’s different from a lender’s credit score.
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Coverages, limits and deductibles
Higher limits and extra coverages cost more, while higher deductibles lower your premium. The right balance depends on what you have to protect.
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Insurance history
Keeping continuous coverage helps. A gap in insurance, even a short one, can raise your rate with many companies.
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Everyone in your household
All licensed drivers in the home and every vehicle on the policy are part of the rate, including a new teen driver.
Indiana basics
What Indiana requires
Indiana requires every driver to carry liability insurance of at least $25,000 per person and $50,000 per accident for injuries, plus $25,000 for damage to someone else’s property. Uninsured and underinsured motorist coverage is included on your policy unless you reject it in writing.
Those are minimums, not recommendations. A serious accident can easily cost more than $25,000, and anything above your limits can come back to you. We’ll walk you through limits that fit your situation on our car insurance page or in person.
Ways to save
Smart ways to lower your car insurance rate
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Bundle your policies
Pairing auto with home, renters or life insurance with the same company usually earns a multi-policy discount.
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Ask about every discount
Depending on the company, discounts may include good student, multi-car, paid in full, paperless billing and safe-driving programs that track your driving with an app or device.
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Choose the right deductibles
A higher comprehensive and collision deductible lowers your premium. Pick an amount you could comfortably pay after a claim.
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Review coverage on older vehicles
As a vehicle ages, it may make sense to adjust physical damage coverage. We’ll help you weigh the savings against the risk.
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Keep your record and coverage clean
Safe driving and continuous coverage pay off over time with lower rates.
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Compare more than one company
The same driver can get very different prices from different companies. As an independent agency, we shop several for you.
Curious why rates rise? Read some reasons your car insurance will likely go up.
See what your rate could be
We compare car insurance from multiple companies, including ERIE, Progressive, Nationwide, GEICO and National General, so you can see real options side by side.
Common questions
Car insurance rate questions, answered
Why did my car insurance go up if I didn’t have a claim?
Rates can change at renewal even with a clean record. Insurance companies adjust their pricing for everyone when repair costs, medical costs and claims in your area go up. Changes like a new vehicle, a new driver or a move can also affect your rate. When your renewal increases, we can re-shop it with our other companies.
Will a speeding ticket raise my rate?
Often, yes. Most companies look at moving violations from the past several years, and the impact depends on the violation and the company. A single minor ticket affects your rate much less than an at-fault accident or a serious violation.
Does my credit affect my car insurance in Indiana?
Many insurance companies in Indiana use a credit-based insurance score as one rating factor. It’s not the same as the score a lender sees, and each company weighs it differently, which is one more reason quotes can vary so much from company to company.
What does Indiana require for car insurance?
Indiana requires liability coverage of at least $25,000 per person and $50,000 per accident for injuries, plus $25,000 for property damage. Uninsured and underinsured motorist coverage is included unless you reject it in writing. Most drivers are better protected with higher limits than the state minimum.
Is the cheapest policy the best choice?
Not always. Two quotes can look similar on price but have very different limits, deductibles and coverages. We compare the details with you so you know what you’re buying, not just what it costs.
How does an independent agent help lower my rate?
Each insurance company uses its own formula, so the same driver can get very different prices. Because we represent multiple companies, including ERIE, Progressive, Nationwide, GEICO and National General, we can compare several options with one conversation.
Lafayette Insurance is an independent insurance agency located at 3111 Builder Dr., Suite 6, Lafayette, IN 47909. This page is general information, not a quote or a guarantee of any rate. Rating factors and discounts vary by company.
Coverage, features, limits and availability vary by company, state and policy, and are subject to policy terms, conditions, limitations and exclusions.