The horse capital of the world, Kentucky, is not just known for bluegrass. With over 3 million licensed drivers, it is also one of the worst states to drive in the snow and rain, which are both fairly common weather patterns for the state. Fortunately, the number of accidents has decreased by 1.4% between 2018 and 2019, though most drivers still run the risk of causing property damage when accidents occur.
Regardless of your driving habits, it is not unusual to be in a traffic accident in Kentucky. Therefore, having sufficient insurance coverage is a necessity. The increased risk of an accident contributes to higher car insurance rates, which is why Kentucky is also more expensive than most other places in the country.
But getting affordable car insurance in Kentucky is not impossible. To help you in your insurance shopping process, Bankrate reviewed some of the biggest providers in the state by market share to find which ones offer the cheapest auto insurance in Kentucky. With constant watch of the insurance industry, we include up-to-date quoted premiums and insurance carrier reviews in our analysis to streamline your research.
The cheapest car insurance in Kentucky
Compared to the national average, Kentucky motorists pay significantly more for minimum and full coverage car insurance. Whereas the national average is $565 a year for minimum coverage and $1,674 for full, Kentucky drivers see rates between $183-$454 a year higher.
The average cost of car insurance in Kentucky is $748 per year and $2,128 per year for minimum and full coverage, respectively. Because of this, cheap car insurance rates are nearly every Kentucky driver’s dream, but cheap should not mean compromising on quality.
Some of the best car insurance providers also have the cheapest insurance in Kentucky. The following five companies stand out based on average rates, coverage options, third-party ratings, financial strength, discounts and customer service.
|Insurance company||Average annual premium for minimum coverage||Average annual premium for full coverage|
|Kentucky Farm Bureau||$397||$1,754|
For 85 years, Geico has been a household name and trusted provider across the nation. However, its namesake does not come at the expense of Kentucky drivers’ pockets as it offers full coverage premiums at $560 less than the state average. Though Geico’s coverage options are relatively basic, its discounts are plentiful, meaning drivers could save even more with the right ones applied.
For instance, being accident-free might make policyholders eligible for the good driver discount, cutting premiums by up to 22%. Purchasing a new vehicle could qualify for an additional 15% discount, or potentially more if you insure it with another vehicle on the same policy. Geico also consistently ranks well for claims satisfaction and customer service.
Learn more: Geico insurance review
Kentucky Farm Bureau
This local insurance provider started by selling policies to farmers, but today, anyone could be a member for a low monthly fee and enjoy the benefits and discounts. Today, Kentucky Farm Bureau writes the second-highest number of car insurance policies in the state, which might be a testament to the level of trust most Kentuckians have with it.
There are agents in every Kentucky county, and every policyholder is assigned an agent they can directly work with, making the service personalized. Kentucky Farm Bureau offers discounts such as accident-free, good student, defensive driving course, anti-theft devices, driver training and policy bundling.
Learn more: Farm Bureau insurance review
State Farm is the largest insurance provider in the nation, including in Kentucky. Even though its premiums land on the higher end of our list, the average quoted car insurance rates for Kentucky motorists still fall well below average for the location. But drivers may decide to purchase State Farm coverage for a variety of reasons, even if it is not the cheapest auto insurance.
For instance, State Farm ranks competitively for customer satisfaction in the 2020 J.D. Power Auto Claims Study. This shows that even as a large insurer, paying out claims and keeping customers properly insured remains a priority for the brand. Additionally, State Farm has an A++ (Superior) rating from AM Best, further adding to its financial stability. With a host of discounts, drivers are likely to find at least a few to reduce their monthly premiums. There are options for students, safe drivers and those with safety equipment installed, among others.
Learn more: State Farm insurance review
USAA has provided military families with affordable insurance since 1922. Those who are part of the armed forces or have an immediate family member in the military may become USAA members and be eligible for cheaper full coverage in Kentucky. The average cost of full coverage car insurance with USAA in Kentucky is $1,466 per year. Not only does this organization maintain financial strength, it maintains high satisfaction ratings for customer service and value for money. USAA also offers several car insurance discounts to eligible members.
A USAA auto policy may be especially appealing because of its savings options. Some of the discounts offered in Kentucky are safe driver, new vehicle, annual mileage, family discount, length of membership, military installation and policy bundling. A new telematics program for safe drivers was recently launched, potentially saving drivers up to 30% at policy renewal.
Learn more: USAA insurance review
Westfield is a smaller regional provider that packs a punch with its coverage. Its minimum coverage policies average at $361 per year, making it the cheapest option on our list. However, more robust policies from Westfield are also worthwhile, such as its convenient Wespak policy, which can bundle loan coverage, trip protection, replacement cost coverage and even more options to fit your needs.
Standard Westfield Kentucky car insurance policies include all the required coverages with available roadside assistance. Policyholders may be more impressed by its high-ranking customer satisfaction scores in the North Central region, surpassing larger national providers by several points. With high-ranking customer experience, drivers may also choose Westfield for motorcycle insurance and RV and camper insurance.
Learn more: Westfield insurance review
Minimum coverage requirements for Kentucky drivers
- $25,000 bodily injury liability per person
- $50,000 bodily injury liability per accident
- $25,000 property damage per accident
- $10,000 personal injury protection
Kentucky is also a no-fault state, which means the insurer will help pay your claim in case of a crash regardless of which party was at fault. Because this increases the risk for insurance companies, premiums are typically higher in no-fault states.
Not being insured can result in fines and license suspension, but it could also result in significant out-of-pocket expenses to cover unexpected accidents. Between 2015 and 2019, there was a sharp rise in vehicle theft, while rain and storms also cause considerable vehicular damage every year. The bare minimum insurance will likely not protect you against these factors, calling for additional coverage to help cover these incidents.
How to get cheap car insurance in Kentucky
Although insurance is state-regulated, the cost varies depending on ZIP code, population density and risk of road accidents. Some cities in Kentucky are cheaper to insure compared to others, but the following steps could help you lower your insurance rates with even the best Kentucky car insurance companies, irrespective of your location:
- Have a clean record: Being a safe driver is generally rewarded by insurance companies. Because safe driving and good driver discounts are common across several insurers, having a clean record without accidents or claims is one of the easiest ways to reduce your premium, even in the expensive state of Kentucky.
- Secure your car: Having various safety devices installed in your vehicle often gets drivers auto insurance discounts. Airbags, anti-lock brakes, electronic stability control, adaptive headlights and car alarms are some of the safety equipment that may qualify you for discounts from insurers.
- Shop smart: When shopping for auto insurance in Kentucky, make sure to compare quotes from multiple providers. Most experts suggest keeping the requested coverage options consistent when quoting to compare which provider offers the best price.
- Pay in full: If you can afford the upfront cost, consider paying your premium in full instead of monthly. Many insurers offer a price cut when the premium is paid in full.
- Find a balance: Raising the deductible is usually a straightforward way of reducing your premium. However, this option is most effective when you have planned for the higher out-of-pocket costs following a claim so that you are not left with additional strain on your budget.
Frequently asked questions
What is the best car insurance in Kentucky?
The best car insurance companies in Kentucky will vary for everyone. It is generally good practice to research all available providers, 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?
There are several insurance companies in Kentucky offering competitive rates and a variety of discounts. However, insurance rates are personalized and coverage needs differ from one person to another. Compare options to 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 average cost of car insurance in the U.S. is $1,674 per year. 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.
Do I need full coverage in Kentucky?
It depends. Full coverage car insurance is not required by the state. However, carrying comprehensive and collision coverage on your policy is usually required by your lender if your vehicle is financed or leased. It is also important to consider carrying higher liability limits to help reduce your risk of paying out-of-pocket expenses from an accident. If your vehicle is leased, you may even be required to carry higher liability limits.
How do I get the best insurance rate in Kentucky?
Collecting quotes from multiple providers is one of the easiest ways to get the best rates on auto insurance. When looking for the lowest rate, it may help to consider customer service, financial strength and coverage options so that you are not sacrificing qualities you care about in an insurer for the cheapest cost.
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 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.