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Cheapest car insurance in Kentucky in 2022

Written by
Cate Deventer
and
Mariah Posey
Reviewed by
Mark Friedlander
Updated Sep 30, 2022
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Bankrate analyzed the largest car insurance companies by market share in Kentucky to help you find cheap car insurance. The average cost of car insurance in Kentucky is $658 per year for minimum coverage and $1,954 annually for full coverage. Based on our research, USAA has the cheapest annual premium for minimum coverage at $347 per year. Following closely behind in second place is Kentucky Farm Bureau , with an average annual minimum coverage premium of $374.

The cheapest car insurance companies in Kentucky

Bankrate’s insurance editorial team searched for the cheapest car insurance companies in Kentucky by obtaining average rates from Quadrant Information Services. While price is likely the most important factor for policyholders looking for cheap coverage, we also wanted to ensure that the carriers that we feature offer quality policies. To achieve that, we took coverage offerings, discounts, policy features and third-party ratings from AM Best and scores from J.D. Power into consideration as well. Based on our findings, the following carriers offer not only low average prices but also robust policy options, high customer service ratings and strong historical financial strength.

The cheapest companies for minimum coverage in Kentucky

Minimum coverage means that you purchase just the state-required liability limits to drive legally. While this means that you could pay among the lowest Kentucky insurance rates, it also means that you will have relatively low policy limits. Insurance professionals recommend buying higher limits or even full coverage for more financial protection. If you are interested in minimum coverage, though, these are the cheapest companies based on our investigation:

CAR INSURANCE COMPANY AVERAGE ANNUAL MINIMUM COVERAGE PREMIUM AVERAGE MONTHLY MINIMUM COVERAGE PREMIUM
USAA $347 $29
Kentucky farm Bureau $374 $31
Westfield $37 $31
Electric Insurance $395 $33
State Farm $411 $34

The cheapest companies for full coverage in Kentucky

Full coverage means you add comprehensive coverage and collision coverage to your policy. These two coverage types provide financial protection for damage to your vehicle. If you have a loan or lease, your financial institution likely requires you to carry full coverage. Even if you own your car outright, a full coverage policy can be a good idea if you don’t have the funds available to repair or replace your car out of pocket.

CAR INSURANCE COMPANY AVERAGE ANNUAL FULL COVERAGE PREMIUM AVERAGE MONTHLY FULL COVERAGE PREMIUM
State Farm $1,363 $114
USAA $1,430 $119
Geico $1,499 $125
Grange $1,620 $135
Westfield $1,682 $140

Events that can impact your cheap rates in Kentucky

Life events often mean your insurance coverage will change, which can lead to an increase in your premium. You may want to consider switching companies or at least shopping around if you’ve experienced one of the following events:

  • Added a teen driver: Teen drivers often pay higher rates due to their inexperience driving and high accident frequency. However, premiums for teens usually decrease as they gain experience, assuming they can keep a clean driving record. You may also be able to take advantage of special teen discounts to save money.
  • Received a speeding ticket: Insurance companies view speeding tickets convictions as an indication of risky driving behavior. Speeding can lead to more accidents and more severe accidents. As a result, your premium will likely be surcharged for three to five years.
  • Involved in an at-fault accident: Like speeding, at-fault accidents can indicate that you may be more likely to cause accidents in the future. Because insurance rates are based on risk, this makes you a riskier driver to insure. Most companies increase rates for at-fault losses for three to five years.
  • Deemed a high-risk driver: Not every driver with a few incidents on their driving record will be deemed high-risk. If you have a DUI conviction, several accidents, a few tickets or a combination of driving infractions, though, you could be considered a high-risk driver. This could limit your insurance company options, but you may be able to shop around to find a cheap car insurance policy.

Cheapest cities in Kentucky for minimum coverage

The average cost of car insurance in Kentucky varies depending on where in the state you live. Different cities and ZIP codes may have different crash statistics, medical care costs or traffic levels (which could impact collision probability). While moving just to achieve the cheapest car insurance isn’t very practical, if you’re already considering a move, you may want to account for your area’s average cost for coverage.
 
If you’re looking for minimum coverage, these are the four cheapest cities in the Bluegrass State based on our research:
City AVERAGE ANNUAL MINIMUM COVERAGE PREMIUM AVERAGE MONTHLY MINIMUM COVERAGE PREMIUM
Owensboro $471 $39
Philpot $482 $40
Whitesville $482 $40
Maceo $483 $40

Cheapest cities in Kentucky for full coverage

All the factors that affect minimum coverage premiums also affect full coverage premiums. Additionally, the cost of parts and labor to repair your car could impact the price you pay for your optional comprehensive coverage and collision coverage. The following four cities have the cheapest average annual full coverage premiums, according to our analysis:
City AVERAGE ANNUAL FULL COVERAGE PREMIUM AVERAGE MONTHLY FULL COVERAGE PREMIUM
Fort Thomas $1,514 $126
Owensboro $1,515 $126
Dayton $1,548 $129
Erlanger $1,560 $130

Minimum coverage requirements for Kentucky drivers

Kentucky car insurance laws require that drivers must carry at least minimum levels of some car insurance coverage types to drive legally. The mandatory minimum car insurance requirements in Kentucky are:
 
  • $25,000 bodily injury liability per person
  • $50,000 bodily injury liability per accident
  • $25,000 property damage liability per accident
Kentucky car insurance companies must also offer each driver uninsured and underinsured motorist coverage, but these options can be declined in writing. Kentucky is also a no-fault state. Personal injury protection (PIP) must also be offered but can be declined. However, if you decline PIP, guest personal injury protection still applies to your policy. Driving without insurance can result in fines and license suspension, but it could also result in significant out-of-pocket expenses to cover unexpected accidents. Most insurance professionals recommend that you buy higher limits than the state minimums or even full coverage to get more financial protection. Remember, if you have a loan or lease on your vehicle, full coverage will likely be required.

Here is how to find (and keep) cheap car insurance in Kentucky

Finding a cheap insurance provider is important to many drivers. With dozens of carriers on the market, you can take some steps to find the lowest-priced policy for your situation. Once you’ve found the cheapest car insurance policy for you, though, you’ll need to take some additional steps to maintain your low rates.
 
  • Know your coverage needs: Each driver has unique coverage needs and should be aware of the coverage types that would benefit them and which might not. Paying for coverage you don’t need can increase your insurance costs. For instance, if you have access to another car, you might not need to pay for rental reimbursement on your policy.
  • Shop at renewals: When your policy comes up for renewal, consider getting multiple quotes to compare to your current carrier. This is one of the easiest ways to verify you are paying the most affordable rates in your Kentucky city based on your driving record and household profile.

Frequently asked questions

Methodology

Bankrate utilizes Quadrant Information Services to analyze 2022 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on a 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:

  • $100,000 bodily injury liability per person
  • $300,000 bodily injury liability per accident
  • $50,000 property damage liability per accident
  • $100,000 uninsured motorist bodily injury per person
  • $300,000 uninsured motorist bodily injury per accident
  • $500 collision deductible
  • $500 comprehensive deductible

To determine minimum coverage limits, Bankrate used minimum coverages that meet each state’s requirements. Our base profile drivers own a 2019 Toyota Camry, commute five days a week and drive 12,000 miles annually. These are sample rates and should only be used for comparative purposes.

Compare rates and save on auto insurance today!

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Written by
Cate Deventer
Insurance Writer & Editor
Cate Deventer is a writer, editor and insurance professional with over a decade of experience in the insurance industry as a licensed insurance agent.
Reviewed by
Mark Friedlander
Director of corporate communications, Insurance Information Institute