Inside Story
Top 7 tips to save on car insurance for first-time drivers in Indiana
Quick answer: Indiana requires all drivers, including first-time drivers, to carry at least 25/50/25 liability insurance. In most cases, drivers under 18 will need to be added to a parent's or guardian's policy. New drivers face higher premiums due to limited experience, but Indiana Farm Bureau Insurance offers multiple discounts to help: Driver Education (up to 15% off), Top Scholar, DriveTrend® (up to 15% off), Youthful Driver, and Drive Less, Save More (up to 10% off), among others.
Key takeaways:
- Indiana requires all drivers to carry minimum 25/50/25 liability insurance. In most cases, first-time drivers under 18 will need to be on a parent's or guardian's policy.
- New drivers often face higher premiums due to lack of experience, but several Indiana Farm Bureau Insurance discounts may help lower costs.
- Vehicle choice matters. Reliable, older cars typically cost less to insure.
- Higher deductibles may lower monthly premiums but typically increase out-of-pocket costs after a claim.
- Good grades and a clean driving record may help you qualify for and maintain discounts.
"You passed!"
Those two words open a lot of doors, and spark a lot of questions. Whether you just passed your driving test or you're the parent watching your teenager hold up that new license, one of the first things to figure out is car insurance.
New drivers often pay more for auto insurance. That's the reality. Insurance companies often see inexperienced drivers as higher risk. But "more expensive" doesn't always mean "unaffordable." There are real ways to bring the cost down, especially with the discounts Indiana Farm Bureau Insurance offers for young and first-time drivers.
Car insurance requirements for new drivers in Indiana
Indiana law requires every driver operating a vehicle on Indiana roads to have at least the state's minimum liability insurance, 25/50/25:
$25,000 bodily injury per person
$50,000 bodily injury per accident
$25,000 property damage per accident
If you're under 18, you typically cannot purchase your own auto insurance policy in Indiana. Most likely, you'll need to be added to your parent's or guardian's policy. Once you turn 18, you can buy your own. Though staying on a family policy is often cheaper until your mid-20s. (Related: How much does it cost to add a driver to car insurance in Indiana?)
What affects car insurance rates for new drivers?
Insurance companies weigh several factors when setting your premium. Not all companies weigh them the same way, but here are some of the biggest ones for new drivers:
Factor | How It Affects Your Rate |
Age & experience | Younger, less experienced drivers often pay more. Teen drivers have among the highest crash rates per mile driven, according to the Indiana Criminal Justice Institute. |
ZIP code | Urban areas with more traffic, higher theft rates, and centralized weather claims may come with more expensive rates than rural ZIP codes. |
Gender | Young men often tend to have higher premiums than young women, though other factors like ZIP code, coverage and vehicle often have a bigger impact. |
Car make & model | Vehicles that are statistically involved in more accidents or targeted by thieves may cost more to insure. Older, reliable cars are often cheaper to insure. |
Coverage selections | More coverage often means a higher premium. Your agent can help you find the right balance between protection and affordability. |
7 tips for cheaper car insurance for first-time drivers
1. Stack every discount you qualify for
Indiana Farm Bureau Insurance offers several discounts that are especially relevant for new and young drivers:
Discount | Savings | Who Qualifies |
Driver Education | Up to 15% | Drivers up to age 21 who complete a state-approved driver education course |
Top Scholar | Varies | Students with at least a 2.95 grade point average (GPA) on a 4.0 scale (or equivalent) |
Youthful Driver | Varies | Drivers age 16-24 who enroll (form must be completed and signed) |
DriveTrend® | Up to 15% | Anyone who participates in Indiana Farm Bureau Insurance's telematics driving program |
Drive Less, Save More | Up to 10% | Drivers who drive less than 12,000 miles per year |
Multi-Car | Varies | Families insuring two or more vehicles on the same policy |
Paperless | Up to 5% | Anyone who signs up for paperless policy documents |
These discounts can stack. A teen driver who completes driver's ed, maintains a B+ average, signs up for DriveTrend® and goes paperless may see meaningful savings across multiple discounts.
2. Choose a reliable, affordable-to-insure vehicle
The car you drive can directly affect your premium. Vehicles that are statistically safer, less targeted by thieves and cheaper to repair often cost less to insure. Sports cars, high-performance engines and brand-new models often cost more.
Before you purchase a vehicle for a first-time driver or add them to an existing policy, get a quote or contact your agent to understand how your insurance premium may be affected.
3. Consider a higher deductible
Choosing a higher deductible can lower your monthly premium. The tradeoff: you'll pay more out of pocket if you file a claim. If your family can comfortably cover a $1,000 deductible in an emergency, it may be worth the monthly savings. If not, a lower deductible may help keep your out-of-pocket costs more manageable after an accident.
4. Explore payment options
How you pay can affect your total cost. At Indiana Farm Bureau Insurance, the Full Payment Discount may give policyholders up to a 5% discount on eligible auto, home and farm coverages when the premium is paid in full before the policy term begins. If full payment isn't possible, automatic payments via electronic funds transfer (EFT) may help you avoid late fees and the risk of a policy lapse.
5. Sign up for DriveTrend®
DriveTrend® is Indiana Farm Bureau Insurance's telematics mobile app that tracks your driving habits, including how you brake, accelerate, and handle your phone while driving. Good driving behavior may earn you up to a 15% discount on qualifying auto premiums. For a new driver building their record, this can be one of the most powerful tools available. It can allow you to prove you're a safe driver through actual data, not just statistics about your age group.
6. Keep a clean driving record
As a brand-new driver, you have no history for insurers to evaluate, which is one reason why premiums typically start higher. But every month you drive without a ticket, accident or violation, your record gets stronger. Over time, a clean record is often one of the most significant factors in bringing your premium down. (Related: How long does a speeding ticket stay on your record in Indiana?)
7. Parents: teach safe driving habits
This last tip is for adults. Your teen is watching how you drive, and they may mimic what they see. Practice the habits you want them to adopt: put the phone away, use your turn signals, follow the speed limit and keep a safe following distance. Once they start driving on their own, encourage them to minimize distractions and drive defensively. The habits they build in the first year behind the wheel can shape their driving record for decades.
Ready to insure your new driver?
Request a free auto insurance quote online, and one of our local Indiana Farm Bureau Insurance agents will reach out to walk you through your options and available discounts.
Frequently asked questions about car insurance for new drivers
How much is car insurance for an 18-year-old in Indiana?
The cost varies based on several factors including driving experience, vehicle, ZIP code and coverage selections. The best way to find out is to request a free quote from Indiana Farm Bureau Insurance. One of our agents can walk you through the options and help you find affordable coverage.
Can a teenager get their own car insurance policy in Indiana?
In most cases, not until they turn 18. In Indiana, drivers under 18 are typically added to their parent's or guardian's auto insurance policy. Staying on a family policy is often cheaper than a standalone policy, even after turning 18. Many drivers may save by staying on a family plan until their mid-20s. (Related: How much does it cost to add a driver in Indiana?)
Does getting a traffic ticket raise rates for new drivers?
It may. A traffic violation can signal higher risk to insurers and may result in a premium increase. It's one more reason to drive safely, beyond the obvious one that safe driving protects you and everyone around you on the road.
How can students save on auto insurance in Indiana?
Indiana Farm Bureau Insurance offers the Top Scholar Discount for students who maintain at least a 2.95 GPA on a 4.0 scale, and the Youthful Driver Discount for drivers age 16-24 (enrollment form required). These may be combined with other discounts like DriveTrend® and Paperless for additional savings.
What vehicles are cheapest to insure for teen drivers?
Older, reliable vehicles with good safety ratings and low theft rates are often cheaper to insure. Before you purchase a vehicle for a first-time driver or add them to an existing policy, get a quote or contact your agent to understand how your insurance premium may be affected.
What is the best car insurance for new drivers?
The best policy is one that provides the coverage you need at a price you can afford, from a company you trust. Indiana Farm Bureau Insurance takes pride in claims customer service, with local agents and claims representatives ready to help guide you through the process if the unexpected happens.
* Limitations and restrictions apply. Discount ranging from 1% to 10%, based on mileage up to 12,000, can be applied to eligible personal auto policies issued or renewed on or after 1/1/2025.
** Limitations and restrictions apply; the DriveTrend® discount, ranging from 10% to 15%, is based on your driving habits.
Inside Story is for educational and informational purposes only. Inside Story is compiled from various sources, which may or may not be affiliated with our family of companies, and may include the assistance of artificial intelligence. While we strive to provide accurate and reliable content, we make no warranties or guarantees about its completeness, accuracy, or reliability, and are not responsible for the content of any third-party sources or websites referenced herein. The inclusion of any content does not establish a business relationship or constitute our endorsement, approval, or recommendation of any third party. Testimonials and examples provided are for illustrative purposes only and do not guarantee future or similar results or outcomes, and may not consider individual circumstances, goals, needs, or objectives. Inside Story does not provide legal, tax, or accounting advice. For individual guidance, please consult a qualified professional in the appropriate field.
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