Best cheap car insurance in Louisville

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Car insurance provides numerous benefits. It can help cover your financial liability when you are at fault for an accident, pay to repair your vehicle after a fender bender and cover hospital expenses following an injury accident.

In 2019, Kentucky had nearly 4.4 million registered vehicles. In 2020, the Kentucky Office of Highway Safety reported 174 highway fatalities in Louisville. Unfortunately, the fatality rate may climb even higher in 2021, with 23 deaths reported for the year in early March. Those statistics help show how car insurance is important financial protection.

Louisville drivers pay an average annual premium of $950 for minimum coverage and $2,274 for full coverage, above state and national averages. Because of that, people in Louisville may want to search for the best cheap car insurance available.

Best car insurance companies in Louisville

To find our top four Louisville car insurance carriers, we looked for companies that can provide the best combination of price, discounts, customer support and financial stability. All our top picks earned a spot in J.D. Power’s 2020 U.S. Auto Insurance Satisfaction Study, which rates and ranks providers based on how well they perform in areas such as billing process, claims handling, customer interaction, policy information and price. All our favorite Louisville auto insurance companies have earned an A (Excellent) or better AM Best financial strength rating. We also used 2021 rate data from Quadrant Information Services to determine average rates.

Insurance company J.D. Power customer satisfaction score Average annual premium for minimum coverage Average Annual premium for full coverage
Geico 857 / 1,000 $659 $1,639
Kentucky Farm Bureau 851 / 1,000 $584 $1,814
Progressive 848 / 1,000 $1,447 $2,964
USAA 909 / 1,000 $510 $1,599

Geico

Geico ranked fourth in the 2020 J.D. Power study and offers Louisville drivers average annual rates well below many other providers. Geico provides all the standard coverages you need, along with optional roadside assistance coverage. The service covers battery jump starts, emergency fuel delivery, lockout services up to $100, tire changes and towing. Best of all, you can request roadside assistance from the convenience of the Geico mobile app, available for Android and Apple devices.

We are particularly impressed by Geico’s discounts. Cars equipped with air bags and anti-theft systems may receive up to a 23% discount on car insurance and new vehicles may qualify for up to a 15% discount. Geico also extends discounts to military members and offers them up to a 25% discount when they are on deployment.

Kentucky Farm Bureau

Founded in 1943, Kentucky Farm Bureau serves customers in all 120 Kentucky counties and operates 18 agencies in Jefferson County. The provider sells all standard auto coverages, along with optional medical payments, rental car reimbursement and towing and labor coverages. Kentucky Farm Bureau allows you to file claims over the phone by calling its 24/7 toll-free claims hotline.

For a regional insurer, Kentucky Farm Bureau offers a wide range of insurance products. The carrier writes policies for ATV/UTVs, classic and collector cars, motorcycles and motor homes. The provider also offers commercial vehicle insurance, condo and homeowners association insurance and workers compensation insurance.

Progressive

Progressive ranked among the top ten in the southeast region in J.D. Power’s 2020 auto study and has earned an A+ (Superior) AM Best financial strength rating. People who like lots of options may appreciate Progressive’s exceptional selection of optional coverages, including gap insurance, which helps pay the difference between an insurance settlement payment and the amount you still owe a lender if you total a new car.

Progressive also offers optional rideshare and rental car reimbursement coverages to eligible policyholders, as well as custom parts and equipment value coverage, which pays up to $5,000 to repair or replace customizations such as navigation systems, paint jobs, stereos and wheels following a covered loss. Progressive offers customers a deductible bank option. When you remain claims free during a policy period, the deductible bank will subtract $50 from your next policy period’s collision and comprehensive deductible.

USAA

In the southeast region, USAA earned the highest overall customer satisfaction score in J.D. Power’s study with 909 out of 1,000. However, USAA only offers car insurance to members of the military, veterans, pre commissioned officers and their children and spouses, which disqualifies it from ranking in the survey. The Louisville area is home to eight military installations, making USAA an excellent choice for many residents.

USAA is committed to meeting military families’ needs. It extends up to a 10% family discount to kids of USAA members who continue their USAA car insurance coverage after leaving home. The carrier also offers up to a 15% discount on comprehensive coverage to members who garage their vehicles on base and up to a 60% savings when they store their automobiles, a valuable benefit when on deployment.

Cheapest car insurance in Louisville

While Kentuckians pay an average annual auto insurance premium of $748 for minimum coverage and $2,128 for full coverage, Louisville motorists pay an average of $950 for minimum coverage and $2,274 for full coverage. Nationwide, drivers pay an annual average premium of $565 for minimum coverage and $1,674 for full coverage. We found several providers that offer great average annual rates for Louisville drivers, some below the state and national averages.

Insurance company Average annual premium for minimum coverage Average annual premium for full coverage
USAA $510 $1,599
State Farm $532 $1,542
Geico $659 $1,639
Nationwide $827 $1,662
Allstate $1,134 $3,460

The above companies that are not among our top picks compete well with the ones that are. Like Progressive, State Farm offers optional rental car reimbursement and rideshare coverages, for significantly lower average annual rates. USAA and Allstate offer good student and new car discounts, but USAA only sells auto insurance to a select military clientele. Geico sells auto and home insurance, as does Nationwide, but Nationwide also offers banking products, including checking and savings accounts, home mortgages and personal loans. When shopping for car insurance, consider your top priorities to find what works for you.

Louisville insurance requirements

Kentucky law requires all drivers to buy minimum levels of auto insurance, including:

  • $25,000 in bodily injury liability coverage per person
  • $50,000 in bodily injury liability coverage per accident
  • $25,000 in property damage liability coverage per accident

Auto owners also have the option to buy a policy with a single $60,000 limit for all coverages.

Some people prefer more protection than the minimum. If you are at fault in an accident in which the other driver sustains serious injuries, $25,000 will not provide enough coverage to pay for extended hospitalization. If you total a luxury automobile, Kentucky’s mandatory minimum property damage liability coverage may not be enough to replace it. And Kentucky law does not require medical payments or uninsured motorists coverage, which can help pay your medical costs following an accident.

If you own or lease an automobile, the leasing company or lender will likely require full coverage, which will include collision and comprehensive coverages.

Car insurance discounts in Louisville

Kentucky auto insurance companies extend a wide variety of discounts, including:

  • Defensive driver course discounts
  • Good student discounts
  • Multi-vehicle discounts
  • Multi-policy discounts
  • Vehicle safety and security devices discounts

Some discounts have a greater impact on your premium than others. A good student discount may save you up to 10% to 15% on car insurance and driving safely might earn you up to a 25% good driver discount. But the amount of savings you can earn often depends on the provider you choose.

Frequently asked questions

What is the best car insurance company?

Buying auto insurance is subjective. While our top four Louisville car insurance companies meet our criteria for customer service, discounts, financial strength and price, they may not meet your needs. When shopping for the best car insurance company, look for one that provides the other insurance products you need – like home or renters insurance – extends discounts for which you qualify and offers a price that fits your budget.

How much does car insurance in Louisville cost?

Louisville auto insurance is expensive. Louisville drivers pay an average annual auto insurance premium of $950 for minimum coverage and $2,274 for full coverage, higher rates than state and national averages.

How much car insurance do I need in Louisville?

By law, all Kentucky drivers must carry minimum levels of bodily injury liability and personal property liability coverages. But state-required minimum coverages do not provide the best financial protection. To determine how much coverage you need, speak with an insurance agent.

Methodology

Bankrate utilizes Quadrant Information Services to analyze 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 sample drivers own a 2019 Toyota Camry, commute five days a week and drive 12,000 miles annually.

These are sample rates and should be used for comparative purposes only. Your quotes may be different.

Rates are determined based on 2021 Quadrant Information Services data.

Written by
Michael Evans
Personal Finance Contributor
Michael Evans has worked in numerous industries, including education, finance, government, insurance and journalism. He began writing professionally while working for the world's first online mortgage brokerage in San Francisco, California. His writings have appeared in print and online publications, including Fox Business, International Living, Motley Fool and Yahoo Finance. Michael has contributed to Bankrate since 2013. He and his family divide their time between residences in Northern California and Colombia. When Michael is not writing, he enjoys working in his photography business and playing with his cat, Cyndi Lou.