The Cheapest Auto Insurance in Kentucky in 2023

Horse racing, bourbon, and barbeque are what most people think of when you mention Kentucky — but it’s also a pretty expensive state for car insurance. The statewide average monthly premium for car insurance in the Bluegrass State is $157.

While this figure can serve as a baseline as you’re shopping around for cheap car insurance in Kentucky, your rates may fluctuate based on factors like your driving history, age, and the coverage levels you choose.

Whether you’re a new driver or a seasoned motorist looking for more affordable coverage, this guide will walk you through the essentials of finding cheap car insurance in Kentucky.

Key Takeaways:

• Encova Insurance and State Farm offer the cheapest car insurance in Kentucky, at $72 and $79 per month.
• Teens and seniors in Kentucky can find the most affordable auto insurance with Encova Insurance.
• Drivers in Kentucky with less-than-perfect driving records can find the cheapest coverage with Encova Insurance, but State Farm is the more affordable insurer for drivers with a DUI.

Kentucky’s Cheapest Car Insurance Companies

Even though car insurance averages $157 per month in Kentucky, you can still find ways to save on your monthly premium.

The table below shows the five cheapest car insurance companies in Kentucky.

Although Encova Insurance offers the cheapest average monthly premiums in the state, all five of our top picks offer monthly premiums far lower than the statewide average.

Later in this article, we’ll cover the cheapest car insurance companies for several rating factors, including coverage levels, age, and driving record.

Compare.com’s Best Kentucky Insurance Companies of 2023

While shopping for your next policy, keep in mind that there’s no single best car insurance company for all drivers. The best option for you depends on your specific needs, circumstances, and preferences.

That said, our “best-of” list considers a combination of factors, including average rates in Kentucky, available discounts, customer ratings and reviews, and coverages offered in the state.

Encova Insurance: Best for basic coverage

Average monthly quote: $72 per month

Compare.com rating: Not rated

Trustpilot rating: N/A

BBB rating: A+

Pros:

• Cheapest rates for multiple rating factors
• Several available discounts
• Policy bundling available

Cons:

• Quotes not available online
• Few local agents outside of Lexington and Richmond
• Multiple BBB complaints due to billing and claims issues

The Encova name is relatively new in car insurance. In 2019, Motorists Insurance Group and BrickStreet Mutual Insurance Company merged, becoming Encova Mutual Insurance.

While Encova is the cheapest car insurance company in Kentucky for several rating factors, it might be particularly appealing for residents looking for minimum coverage. With an average monthly premium of just $39 per month for liability-only coverage, Encova stands out for drivers prioritizing budget-friendly solutions.

State Farm: Best for seniors

Average monthly quote: $79 per month

Compare.com rating: 4.3 out of 5

Trustpilot rating: 1.6 out of 5

BBB rating: A

Pros:

• High ratings for customer satisfaction
• 24/7 claims service with a large repair network
• Many available discounts

Cons:

• Customers have to work with a local agent
• Higher rates for drivers with tickets and accidents
• Limited coverage options

State Farm is known for its extensive network of local agents. Sometimes, this personal touch can result in higher premiums.

However, State Farm is a good option for senior drivers in Kentucky — especially those seeking full-coverage car insurance. With an average monthly rate of $97 for senior drivers, State Farm offers affordability and a variety of coverage options and discounts.

GEICO: Best for drivers with spotty records

Average monthly quote: $81 per month

Compare.com rating: 4.65 out of 5

Trustpilot rating: 1.3 out of 5

BBB rating: A+

Pros:

• Affordable rates for high-risk drivers
• Convenient mobile app
• Variety of available insurance products

Cons:

• Limited discount programs
• Gap insurance not available
• Few local insurance agents

Finding affordable car insurance can be challenging for Kentucky drivers with less-than-perfect driving records. However, GEICO can be a good option because your rates won’t skyrocket after a driving mishap such as a speeding ticket.

For drivers with one speeding ticket, GEICO’s average monthly rate is $65 for liability-only coverage and $114 for full coverage.

The Average Cost of Kentucky Car Insurance

Drivers in Kentucky pay an average of $157 per month for car insurance, but how does that stack up to the rest of the region or even the nation as a whole? The following table shows how car insurance rates in Kentucky compare to those of surrounding states.

Although Kentucky isn’t the most expensive state in the region, its rates are on the higher end. Kentucky’s average rates are 17% higher than the national average.

Several factors contribute to the state’s high cost of car insurance, including the fact that Kentucky is a “no-fault” state for car insurance. This means each driver’s insurance covers their own injuries and damages up to a certain limit, regardless of who caused the accident.

Next, we’ll explore how much Kentucky drivers pay for liability-only insurance policies.

Cheapest State-Minimum Insurance: Encova Insurance

One of the biggest factors affecting your car insurance rates is the level of coverage you choose. The cheapest option available is liability-only coverage at the state-minimum limits. This basic coverage meets the legal requirements for drivers in the state but doesn’t cover damage to your own vehicle if you’re involved in an accident.

Below, we’ve summarized Kentucky’s most affordable options for state-minimum coverage.

Encova offers the cheapest average rates for state-minimum insurance, although all five companies offer relatively affordable rates.

Now, let’s look at the cheapest companies for full coverage.

Cheapest Full-Coverage Insurance: GEICO

Full-coverage car insurance goes beyond basic liability coverage to offer more protection. However, it comes with a higher price tag.

In addition to liability insurance, a full-coverage policy includes collision and comprehensive coverage, which pays for damage to your vehicle if you’re involved in an accident or a non-collision event, such as theft, vandalism, or falling tree limbs.

The table below features Kentucky’s cheapest car insurance companies for full coverage.

GEICO offers the cheapest average rates for full coverage, at $103 per month, although Encova Insurance is a close second. State Farm is another affordable full-coverage option.

Compare Kentucky Auto Insurance Rates by Age

Your age plays a big role in your car insurance rates because insurance companies use your age to assess your driving experience and risk potential.

Young drivers are generally considered higher risk, while older drivers with more experience enjoy lower rates. The following sections delve into average rates for different age brackets.

Cheapest car insurance for Kentucky teens: Encova Insurance

Teen drivers are by far the most expensive drivers to insure. Young drivers are more likely to be involved in car crashes because of their immaturity and lack of driving experience, according to the Insurance Information Institute (Triple-I). Rates usually begin to drop once drivers reach age 25.

The table below shows the companies offering the best rates for Kentucky teens based on 18-year-old drivers, sorted by liability rates.

Encova Insurance offers the lowest average rates in Kentucky for both liability-only and full coverage.

Let’s see which company offers the cheapest coverage for Kentucky seniors.

Cheapest car insurance for Kentucky seniors: Encova Insurance

As drivers approach retirement age, they often benefit from some of the cheapest car insurance rates available. This is because senior drivers have decades of driving experience and tend to spend less time on the road than they did when they were younger.

To provide a clearer picture of what seniors in Kentucky might expect to pay for car insurance coverage, here’s a table showing the cheapest rates for 65-year-old drivers.

While Encova offers the most affordable rates for liability-only coverage, State Farm’s rate is just a few bucks more per month. But State Farm is the clear winner for full-coverage car insurance.

Compare Kentucky Auto Insurance Rates by Driving Record

Another critical factor car insurance companies consider when setting rates is your driving record. Your driving record shows a history of car accidents and traffic violations.

In the following sections, we’ll examine how different driving records impact car insurance premiums and show you the cheapest car insurance companies for various scenarios.

Cheapest car insurance for good drivers in Kentucky: Encova Insurance

Good drivers typically get the best rates. Insurance companies reward drivers who demonstrate responsible driving habits with some of the lowest premiums because a good driving record — with no tickets or accidents — indicates a lower risk of future accidents and claims.

Here are Kentucky’s cheapest auto insurers for drivers with no accidents or tickets, according to Compare.com data.

Encova offers the lowest rates for both liability-only and full-coverage policies. However, State Farm is a close second.

Now, let’s look at the cheapest car insurance companies after a ticket.

Cheapest car insurance in Kentucky after a ticket: Encova Insurance

Getting a traffic ticket isn’t just a momentary inconvenience — it can also have a lasting effect on your car insurance rates. When you get a ticket, it signals to car insurance companies that you might have a higher risk of getting into an accident or filing a claim in the future, which often results in a premium increase.

As a matter of fact, car insurance rates go up by roughly 37% after receiving just one ticket, according to Compare.com data.

The table below shows the cheapest car insurance for drivers in Kentucky with one ticket on their record.

Encova Insurance takes the top spot again as the cheapest company in Kentucky for liability-only coverage, with average rates as low as $45 per month. But GEICO comes out on top for full-coverage car insurance.

Let’s see how a car accident can influence your rates.

Cheapest car insurance in Kentucky after an accident: Encova Insurance

Causing a car accident raises concerns for insurance companies about the likelihood of future incidents and claims — which ultimately affects the cost of your car insurance.

Car insurance rates increase by an average of 44% after just one at-fault accident, according to Compare.com data.

Here’s a look at the five insurers with the most affordable rates for drivers in Kentucky with one at-fault accident.

Encova offers the cheapest rates for liability-only coverage. However, State Farm comes in a close second for liability-only coverage and offers the cheapest rates for full-coverage car insurance.

Now, let’s look at the cheapest car insurance companies after a DUI.

Cheapest car insurance in Kentucky after a DUI: State Farm

Driving under the influence (DUI) is one of the most serious offenses in terms of its effects on car insurance rates. Car insurance rates skyrocket by an average of 94% after a DUI conviction, according to Compare.com data.

The penalties for a DUI extend beyond higher car insurance premiums. In Kentucky, a first offense can result in mandatory participation in a 90-day alcohol or substance abuse program and having your driver’s license suspended for six months.

The table below shows the cheapest car insurance companies for Kentucky drivers with a DUI on their record.

State Farm offers the cheapest average rates for both liability-only and full coverage in this category. Interestingly, although Shelter Insurance is the most expensive for liabilty coverage, it’s the second-cheapest insurer for full coverage.

5 Ways to Get Cheap Car Insurance in Kentucky

Finding affordable car insurance can be challenging no matter where you live, but there are strategies you can follow to find lower rates. Here are a few tips to help you reduce your car insurance costs from Jeffrey L. Brewer, division vice president of public affairs at the American Property Casualty Insurance Association.

• Increase your deductible. Opting for a higher deductible can lower your premiums — but make sure you can afford the extra expense if you file a claim.
• Remove non-essential coverages. Consider whether you really need full glass coverage, rental reimbursement, and roadside assistance coverage. Dropping them can lower your monthly premiums.
• Consider usage-based insurance. If you don’t drive a lot, usage-based programs that base your premiums on your driving habits and mileage can provide substantial savings.
• Take advantage of discounts. Many insurance companies offer discounts for things like safe driving, having multiple policies with the same company, or installing an anti-theft device on your vehicle.
• Shop around. Regularly compare car insurance quotes from other insurers to see if there is a better match for coverage and cost.

Kentucky Auto Insurance Requirements

Kentucky requires all vehicles registered in the state to be insured. The state-mandated minimum coverages are:

• Bodily injury liability: $25,000 per person, $50,000 per accident
• Property damage liability: $25,000 per accident
• Personal injury protection (PIP): $10,000 per person, per accident

Penalties for driving without auto insurance in Kentucky

Kentucky penalizes drivers who are caught driving without insurance. If you’re involved in an accident or get pulled over and can’t provide proof of insurance, the state may revoke your vehicle registration and issue you a fine between $500 and $1,000. You could also spend up to 90 days in jail.

Personal injury protection and no-fault insurance in Kentucky

Kentucky is a “no-fault” state, meaning each driver’s car insurance covers their own injuries and damage up to a certain limit, regardless of who caused the accident.

As a result, Kentucky requires all car insurance policies in the state to include PIP coverage. This helps cover medical expenses, lost wages, or funeral costs for drivers and passengers after a car accident.

Kentucky requires policies to provide minimum PIP limits of $10,000 per person per accident, but you can opt for higher limits.

Kentucky Auto Insurance FAQs

Finding affordable car insurance in Kentucky can be complicated. To help make the process easier, here are answers to some frequently asked questions about car insurance in the state.

Which insurer is the cheapest auto insurance company in Kentucky?

Encova Insurance offers the lowest average rates for car insurance in Kentucky, at $72 per month. But the cheapest auto insurance for you varies based on your age, driving record, and other rating factors.

How much is car insurance in Kentucky?

The average cost of car insurance in Kentucky is $157 per month. You may qualify for lower rates if you maintain a clean driving record and qualify for discounts offered by your insurance company.

How much car insurance is required in Kentucky?

Kentucky requires all cars registered in the state to have minimum liability coverage of $25,000 per person, $50,000 per accident for bodily injury, and $25,000 for property damage. Additionally, all drivers must purchase personal injury protection coverage with a minimum limit of $10,000.

What happens if you get caught driving without insurance in Kentucky?

If you’re caught driving without insurance in Kentucky, you can face fines ranging from $500 to $1,000, potential jail time, and vehicle registration suspension. Penalties may increase for subsequent offenses.

Methodology

Data scientists at Compare.com analyzed more than 50 million real-time auto insurance rates from more than 75 partner insurance providers in order to compile the quotes and statistics seen in this article. Compare.com’s auto insurance data includes coverage analysis and details on drivers’ vehicles, driving records, insurance histories, and demographic information.

All of the quotes listed in this article have been gathered from a combination of real Compare.com quotes and external insurance rate data gathered in collaboration with Quadrant Information Services. Compare.com uses these observations to provide drivers with insight into how auto insurance companies determine their premiums.

Sources

1. Insurance Information Institute, “Background On: Teen Drivers,” accessed November 28, 2023.
2. Kentucky Transportation Cabinet, “DUI Penalties,” accessed November 28, 2023.
3. Kentucky Transportation Cabinet, “Mandatory Insurance,” accessed November 28, 2023.
4. Kentucky Public Protection Cabinet, “No Fault Rejection/Verification (PIP),” accessed November 28, 2023.