Bluegrass State Drivers: Get Cheap Car Insurance in KY

Whether driving down Whiskey Row in Louisville or taking a road trip from Lexington to Frankfort, having cheap car insurance in Kentucky is always a smart move. The only problem is how to get it. 

Affordable car insurance rates don’t just fall in your lap, but knowing where to start, what to look for, and the basics of Kentucky car insurance laws can get you where you want to go. This article will cover ways to save on car insurance throughout the Bluegrass State and offer some handy tips and other important information about cheap car insurance in KY.

What Car Insurance Companies Have the Cheapest Car Insurance in KY?

The average rate for car insurance in Kentucky is $173.87 per month. While that may seem like a reasonable price, it’s nearly double the national monthly rate of $89.17. The best way to find a better rate on Kentucky auto insurance is by shopping around.

Begin your search with a few of the best car insurance companies in the state, as they often provide the best rates, get high marks for customer service, and offer a quick, easy claims process:

1. Liberty Mutual
2. Nationwide
3. Travelers
4. AAA
5. Safeco

Although you could go to the website of each of these insurance companies, using Compare.com allows you to compare multiple car insurance quotes at once, taking the hassle out of car insurance shopping while also saving you time and money.

Why Is Car Insurance in Kentucky So Expensive?

With car insurance premiums nearly double the national average, you’re probably asking the same question as your fellow Kentuckians: Why is car insurance so expensive in Kentucky? Unfortunately, no single answer can explain the discrepancy; it’s a mix of various individual factors and statewide trends that insurers use to determine premiums.

However, these statistics illustrate some reasons why Kentucky insurance is pricier:

• Kentucky has one of the highest rates of uninsured motorists at nearly 14%. When more cars are on the road without insurance, the chance of a significant payout on a claim increases exponentially.
• The state has a high rate of traffic fatalities compared to its population, with 806 deaths on Kentucky roads in 2021 alone.
• A 2% yearly increase in statewide medical expenses means higher premiums and auto insurance rates.
• The cost of repairs due to labor shortages, supply chain issues, and the complexities of modern cars increase premiums even more.

What Kentucky Drivers Should Know About Statewide Car Insurance

Every state has its own laws regarding car insurance, and Kentucky is no different. However, understanding these laws — at least at a basic level — can help you choose the right coverage and understand what insurance products are the best for your needs.

Kentucky Is a Choice No-Fault State

Kentucky is one of only 12 no-fault states in the country. This means that the drivers involved in an accident file claims with their own insurance company rather than the at-fault driver’s policy paying for property damage and medical bills.

A key advantage, at least according to legislators, is that a no-fault car insurance system shortens the amount of time for a payout from an insurer. Because car insurers don’t have to determine fault, those involved in an accident can get payment for medical bills and lost wages without having to wade through delays, litigation, and other red tape.

However, Kentucky — along with New Jersey and Pennsylvania — also gives drivers the choice of using traditional no-fault insurance or opting out to use a conventional liability policy. This is known as a choice no-fault state.

Should I Opt-Out of the No-Fault System?

One of the major advantages of opting out is that you can sue the other driver in a catastrophic accident. Under no-fault laws, getting sued or suing another driver is almost impossible due to the structure of the laws. But if you opt-out, you can sue other drivers for damages and medical bills, albeit with the added risk of being sued yourself.

The only other advantage of opting out of the no-fault system to go with basic liability coverage is that it’s far cheaper. In a no-fault system, you must have personal injury protection (PIP) coverage, which adds a significant cost to your car insurance policy premiums.

What Is Minimum Coverage for Auto Insurance in Kentucky?

Whether you choose a no-fault policy or a traditional liability policy, you will need state minimum car insurance coverage. Insurance requirements vary from state to state, but the Kentucky state requirements are 25/50/25 minimum liability insurance. This equates to:

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

If you choose to stay in the no-fault system, Kentucky also requires you to have $10,000 in personal injury protection, which pays for your medical bills, regardless of who is at fault in an accident.

Kentucky Cities With the Most Expensive and the Cheapest Car Insurance

Where you live in the Bluegrass State profoundly affects how much you pay. While geographic location isn’t the only defining factor, knowing what cities tend to have the most expensive and cheapest auto insurance can help you put things in perspective if you find that your quotes are on the higher side.

The Kentucky cities with the most expensive insurance are:

• Louisville: $179 per month
• Fairdale: $172 per month
• Mount Washington: $167 per month
• Hazard: $146 per month
• Manchester: $140 per month

The Kentucky cities with the cheapest car insurance are

• Scottsville: $90 per month
• Franklin: $94 per month
• Ashland: $96 per month
• Covington: $96 per month
• Owensboro: $99 per month

What Affects Your Kentucky Car Insurance Premiums

Several factors determine how much a Kentucky resident pays for car insurance, and each auto insurance company has internal methodologies to determine car insurance rates. Each of these characteristics plays into your car insurance costs:

• Where you live in the state: Cities such as Louisville and Lexington tend to have higher rates due to more drivers, a higher chance of a claim, and an increased chance of theft and vandalism
• Your credit score: Insurance companies deem drivers with a good credit score are a lower risk compared to drivers with a poor credit score.
• Your age: Teen drivers and young drivers under the age of 25 are considered a higher risk due to a lack of experience and a higher chance of driving erratically.
• Your driving record and driving history: If you’re a safe driver with no moving violations and few speeding tickets, you typically pay less than those with multiple tickets. The same goes for accidents. If you can avoid accidents, whether it’s an at-fault accident or not, you stand to save extra cash on your car insurance.
• Marital status and home ownership: Married individuals and those who own homes rather than rent are considered less risky and, thus, have a lower average cost for car insurance coverage.

What You Can Do to Get Cheap Car Insurance in KY

Although car insurance companies have internal methods to determine your car insurance premiums, you can still do a few things on your own to decrease your car insurance bill.

• Increase your deductible: If you can afford to pay more out of pocket, increasing your deductible can reduce your car insurance rate. When the deductible is higher, you pay more for the repairs, but the insurance company reflects this in a decreased price in premium.
• Search for car insurance discounts: One easy way to get substantially lower car insurance rates in Kentucky is to ask for car insurance discounts. Some common discounts include bundling home and auto insurance, paying the entire premium up front, multi-car discounts, defensive driving discounts for taking an accredited class, and a good student discount.
• Choose the right type of coverage: While the minimum requirements for insurance include liability coverage, you may need a full coverage policy as part of a loan agreement or if you want to protect a new car. However, an old beater doesn’t need collision coverage, comprehensive coverage, or full coverage car insurance. You’ll ultimately have to decide your insurance type, coverage levels, and coverage limits, but consider the car’s value and how much you can afford for repairs and insurance before you make a final decision.

• Maintain a clean driving record: If you can avoid tickets, DUIs, or accidents, your stand to save hundreds of dollars each year on car insurance.

Pro Tip: Although you can lower your coverage however you see fit, you may want to include uninsured or underinsured motorist coverage. With 13.9% uninsured motorists on the road in KY, you have a higher chance of getting into an incident with someone who’s underinsured. Add this coverage to your policy; it’s inexpensive and can save you from significant financial headaches.

Compare Kentucky Car Insurance Rates by City

The area you live in is one of the main factors that determine how much or how little you pay for car insurance. If your area has a high auto theft rate, you may pay more. If there is very little traffic on your way to work, you may end up paying less. To help you see how rates vary from city to city, check out our rate comparison table below.

Click on the name of each city in the table above to find detailed breakdowns on all the factors that go into calculating your monthly premium. Here, you’ll find all the information you need on how things like driving record, age, gender, vehicle make and model, and more will affect how much you pay for car insurance in each locality.

Find Cheap Auto Insurance in Kentucky

Follow our tips above if you want the cheapest rates for your auto insurance coverage, but most importantly, shop around and collect quotes when you are ready to buy. For affordable car insurance, log onto Compare.com, answer a few questions, and you’ll instantly get multiple quotes, regardless of your coverage needs.

Whether you live in Louisville, Owensboro, Paducah, or anywhere else in Kentucky, find the best rate for Kentucky car insurance by entering your ZIP code below.