Indiana car insurance rates among nation's lowest
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Hoosier drivers are paying about 35% more for car insurance this summer, but they're still getting a better deal than nearly everyone else.
Why it matters: Fast-rising insurance rates are contributing to a transportation affordability crisis, especially in the many parts of the country where people have few alternatives to car ownership.
- And the higher costs come alongside all sorts of other rising consumer costs in recent years — like groceries.
Driving the news: Indiana's average annual cost of full-coverage car insurance hit $1,591 in June when the nationwide average was $2,329, per Insurify, a digital insurance agent that helps users collect quotes from multiple insurers.
- That's up from just $1,178 in June 2023 when the national average was $1,817.
- Indiana's June 2024 rate was 11th lowest in the U.S.
Zoom out: Rates are highest in Connecticut ($3,598), Maryland ($3,400) and South Carolina ($3,336), while they're lowest in New Hampshire ($1,000), Maine ($1,209) and North Carolina ($1,403).
How it works: Insurify's monthly figures are two-year rolling medians to account for "extreme market volatilities" in recent years, the company says.
- And they're based on rates for drivers ages 20-70 with clean driving records and at least average credit scores.
The big picture: Several factors play into the difference in rates between states, including road conditions, accident rates and whether a state requires no-fault coverage (meaning plans must cover medical expenses regardless of who's at fault in an incident).
- Indiana does not require no-fault coverage.
- Individual people's quotes, meanwhile, also take into account their age, gender, driving record, etc.
What they're saying: "Rate increases this year are largely a continuation of hikes in 2023, a year that saw full-coverage premiums rise by 24% in response to insurers' record underwriting losses the year prior," Cassie Sheets, data journalist at Insurify, tells Axios via email.
The intrigue: Insurers are increasingly using data about people's actual driving behavior to inform their rates — sometimes with drivers' explicit knowledge and sometimes less so, per the New York Times.
- In March, General Motors quit sharing details about drivers' behavior with data brokers that worked with insurers to create "risk profiles" following the Times' reporting on the practice.
The bottom line: If you're looking to save on insurance, try shopping around — sometimes you're more likely to get a deal with a new provider.
- And if you're a homeowner, look into bundling your home and auto coverage to save on both.