Bankrate analyzed the largest car insurance companies by market share in Kentucky to help you find cheap car insurance. Based on our research, Westfield has the cheapest annual premium for minimum coverage at $361 per year. USAA is a close second, with an average annual minimum coverage premium of $376.
Minimum coverage could be the lowest-priced option, but it also offers very low policy limits. If you’re looking for more coverage, you may want to shop for cheap full coverage car insurance. USAA topped our list of cheap Kentucky car insurance companies for full coverage, with an average premium of $1,466 per year. If you aren’t affiliated with the military and don’t qualify for USAA, State Farm might offer you a low full coverage premium, with an average annual rate of $1,540.
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 scores from AM Best and 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 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 agents 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 |
|---|---|---|
| Westfield | $361 | $30 |
| USAA | $376 | $31 |
| Kentucky Farm Bureau | $397 | $33 |
| Motorists | $443 | $37 |
| Geico | $446 | $37 |
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 |
|---|---|---|
| USAA | $1,466 | $122 |
| State Farm | $1,540 | $128 |
| Geico | $1,567 | $130 |
| Nationwide | $1,645 | $137 |
| Grange | $1,709 | $142 |
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. 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 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 charge 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 areas of the state may have different crash statistics, different medical care costs or higher traffic levels (which could lead to more crashes). While moving for 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 based on our research:
| City | Average annual minimum coverage premium | Average monthly minimum coverage premium |
|---|---|---|
| Guthrie | $532 | $44 |
| Elkton | $533 | $44 |
| Dawson Springs | $535 | $45 |
| Nebo | $536 | $45 |
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 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 | $1,554 | $130 |
| Highland Heights | $1,577 | $131 |
| Cold Spring | $1,577 | $131 |
| Crestview | $1,577 | $131 |
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 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 agents recommend that you buy higher than state minimum limits 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.
- Shop around: Getting quotes from a few different insurance providers is one of the best ways to find the most affordable rates for your unique circumstances. Every car insurance company has its own rating algorithm, which means that rates vary between carriers. Comparing coverage types, limits and rates might help you find a cheaper policy.
- Keep a clean driving record: One of the most impactful ways to keep your car insurance rates down is to avoid tickets and accidents. Drivers with clean driving records are viewed as having safer driving habits than drivers with tickets, accidents and DUI convictions. These incidents generally increase your rates; avoiding them can keep your premiums lower.
Frequently asked questions
What is the best car insurance in Kentucky?
The best car insurance company in Kentucky will vary for everyone. It is generally good practice to research all available providers and then compare quotes and available discounts. If you are unsure about your options, consider speaking with a licensed insurance agent.
What is the cheapest car insurance in Kentucky?
Several insurance companies in Kentucky offer competitive rates and a variety of discounts. However, insurance rates are personalized and coverage needs differ from one person to another. Comparing options could help you determine the cheapest Kentucky auto insurance for you with the coverage you need.
What is the average cost of car insurance in the U.S.?
The national average cost of car insurance in the U.S. is $1,674 per year for full coverage and $565 per year for minimum coverage. Kentucky is one of the more expensive states in the country, costing $2,128 annually for full coverage or $748 annually if you opt for minimum coverage.
Does my credit score affect my car insurance rate in Kentucky?
Yes, credit is a rating factor that is allowed by the state of Kentucky. Drivers with poor credit tend to pay higher rates due to a statistically increased risk of filing claims. Remember that car insurance rates are based on risk. If you are more likely to file a claim, and thus cause the insurance company to make a claim payout, you’ll likely pay more for coverage. Raising your credit score could be a good long-term strategy to lower your premium.
Methodology
Bankrate utilizes Quadrant Information Services to analyze 2021 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 coverage that meets 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.
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