The Best Car Insurance in Kentucky for 2023
The best car insurance companies offer a balance of financial stability, affordability and customer service. Focusing on these criteria, MoneyGeek found that State Farm is Kentucky’s best auto insurance company, receiving the highest rating for affordability and customer satisfaction. It’s tied for second place for claims.
Keep in mind that these general recommendations will not apply to all situations. Certain coverages you might find more suitable than others depending on your needs and circumstances. For instance, drivers with new cars will find the best rates and coverage under Travelers.
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The Best Car Insurance in Kentucky
If you're less concerned with service quality and more concerned with cost, MoneyGeek's study might help you find the cheapest auto insurance plans in Kentucky.
Best Full Coverage Car Insurance Companies in Kentucky: Overall
In Kentucky, State Farm is the overall best car insurance company. In order, the top two car insurance companies in Kentucky based on MoneyGeek’s ranking system are:
- State Farm: MoneyGeek score of 87 out of 100 ($872 per year)
- GEICO: MoneyGeek score of 86 out of 100 ($874 per year)
MoneyGeek's analysis of Kentucky’s best auto insurance companies considered several factors, including claims history, customer satisfaction and affordability.
If you’re looking for the cheapest options, MoneyGeek has also listed the most affordable full-coverage car insurance in Kentucky to help you maximize your savings.
THE TOP CAR INSURANCE COMPANIES IN KENTUCKY
State Farm quotes about $872 per year for its car insurance plans. It ranked first in affordability and user satisfaction and tied for first place in claims. Its rideshare insurance is a unique add-on coverage.
Average Annual Cost: $872
State Farm offers standard coverages that help alleviate stress from your everyday commute. Its roadside assistance pays for mechanical labor, towing, locksmith labor and delivery of gas, oil, battery or replacement tires. Meanwhile, State Farm’s rental car and/or travel reimbursement pays for car rental and travel expenses, including meals, lodging and transportation up to certain limits if you are responsible for an accident in your rental car.
Additionally, State Farm's rideshare insurance is a unique add-on that ensures your auto insurance policy's medical, roadside assistance and rental car reimbursement coverages remain active during work-related driving time. The coverage considers your personal policy's deductible, even if it is less than the ridesharing company's.
GEICO quotes about $874 per year for its car insurance policies. It ranked second in affordability, second in user satisfaction and tied for first in claims. It offers mechanical breakdown insurance.
Average Annual Cost: $874
GEICO provides roadside assistance and rental car and/or travel reimbursement, which other companies commonly offer. Roadside assistance coverage pays for flat tires, towing, jump starts and lockout services, while rental car and/or travel reimbursement pays for the expenses of a rental vehicle if your car isn't roadworthy for more than 24 hours.
Cars under 15 months old and under 15,000 miles in mileage can get GEICO's Mechanical Breakdown Insurance (MBI), which covers all parts and systems. A dealer-extended warranty is more expensive and does not cover all parts and systems. If your car isn't driveable for more than 24 hours due to an accident covered by your policy, GEICO will reimburse you for a rental car up to a certain amount per their policy limits.
Travelers’ average quote of $1,310 gives it an average affordability rating. It was rated best in financial stability and tied for first in claims. The company offers a gap insurance add-on.
Average Annual Cost: $1,310
Gap insurance, often known as loan/lease insurance, can be helpful for people who have financed or leased a car. If your vehicle is totaled, this coverage may pay the difference between the car's true cash value and the unpaid balance of your auto loan or lease. Travelers' Responsible Driver PlanSM includes accident forgiveness. This coverage forgives one accident within a defined timeline, thereby protecting your premium from an upcharge.
Allstate tied for second-best in financial stability and first in claims ratings. Its average annual cost of $1,250 gave it an average affordability rating. One of the add-ons that stands out is the portable electronics and media coverage.
Average Annual Cost: $1,250
The portable electronics and media coverage is one of Allstate’s unique add-ons. For comprehensive coverage policies, this add-on covers loss to any tapes, compact discs or similar goods used with your vehicle's sound system. Its Ride for Hire can cover you during the coverage gap when your app is on and you're waiting to be matched with a passenger.
Progressive quotes a yearly average of $1,575. It tied for second-best in financial stability and received an average affordability rating. The company provides a one-of-a-kind custom parts coverage.
Average Annual Cost: $1,575
You may repair or replace unique accessories like the navigation system, radio or even a paint job with Progressive's custom parts and equipment add-on coverage. Additionally, its rideshare insurance protects your injuries or damages if you are involved in an accident while waiting for a ride request, per your car insurance policy.
MoneyGeek determined the best full coverage car insurance policies in Kentucky by evaluating quotes from several providers and comparing them to the NAIC's and J.D. Power's customer satisfaction and claim ratings. However, each insurance company has a different way of estimating quotes and considers a number of important variables. For more details on this study, see MoneyGeek's approach.
MoneyGeek's Kentucky Car Insurance Resources:
Best Car Insurance in Kentucky for Customer Service
The following two companies are the best in Kentucky in terms of customer service:
- Erie: MoneyGeek score of 95 out of 100
- Auto-Owners Insurance Co: MoneyGeek score of 87 out of 100
MoneyGeek rated the best auto insurance companies in Kentucky for this category entirely on user satisfaction and claims history, without considering cost.
THE TOP TWO CAR INSURANCE COMPANIES IN KENTUCKY FOR SERVICE QUALITY
Erie was rated as the best company in Kentucky for customer service based on its high claims score of 5 out of 5 and for receiving 4.5 for customer satisfaction and financial stability.
Like most car insurance companies, Erie offers rental car and/or travel reimbursement. But it goes the extra mile by providing great customer service, which is essential when filing a claim can otherwise be a tremendous hassle. In the J.D. Power 2022 U.S. Insurance Shopping Study, Erie ranked second highest among midsize auto insurers in terms of customer satisfaction.
Erie also offers some rare coverages which you can purchase as endorsements. One of these is Better Car Replacement coverage. If your new car is totaled, Erie will replace it with the most recent model if you've had it for less than two years. If you have had your car for more than two years, you will receive a model that is two years newer.
Auto-Owners Insurance Co got the highest financial stability score of 5 out of 5. It tied for first place with a 4.5 score in customer satisfaction and a 4 out of 5 in claims.
In addition to providing excellent service, Auto-Owners Insurance Co is also one of the very few companies that provide new car replacement coverage, which replaces your totaled car with a brand new vehicle of the same make and model.
When you drive your new car off the lot, its value depreciates immediately. If you are involved in an accident, you are responsible for the difference between the vehicle's initial purchase price and the outstanding debt on your lease or loan. Auto-Owners Insurance Co's Gap Insurance coverage will cover the difference. Even if you repair an accident-damaged car with OEM components, its value will be compromised. However, if you choose the company's Diminished Value Coverage, you will be compensated for your vehicle's diminished value.
Best Car Insurance in Kentucky for Minimum Coverage
State Farm is Kentucky's best car insurance company for drivers on a budget. Drivers looking to save money may only want to buy a policy that meets Kentucky's state minimum requirements.
The best providers for drivers on a budget are:
- State Farm: MoneyGeek score of 88 out of 100 ($428 per year)
- GEICO: MoneyGeek score of 85 out of 100 ($493 per year)
MoneyGeek evaluated insurers based on how much they quote for a minimum insurance policy.
If you prioritize savings, MoneyGeek’s top picks for the cheapest minimum coverage car insurance in Kentucky can offer some options.
MoneyGeek’s Pick: State Farm
An affordable minimum coverage policy at $428 per year on average
It offers discounts for insuring two or more vehicles and for bundling home or renters insurance to auto insurance. There’s a discount on medical payments coverage for insuring new cars.
Claims score of 4 out of 5 and user satisfaction ratings of 4.5 out of 5
No discounts for making payments in full or for paperless billing.
Policyholders of State Farm can receive substantial discounts if they bundle their home, renters, condo or life insurance with their State Farm auto insurance. If you have more than two vehicles, you might want to consider purchasing all your auto policies from State Farm to be eligible for multiple car discounts. Better yet, being a safe driver with no charged violations for three years might qualify you for safe driving and good driving discounts.
Additionally, State Farm policyholders could qualify for discounted rates when their vehicles are equipped with anti-theft devices and airbags. Plus, if your car was manufactured in 1994 or later, you may be eligible for a medical payment coverage discount.
Best Car Insurance in Kentucky for Young Drivers and Students
For young drivers and students, State Farm is the top-rated insurance company in Kentucky.
The following companies are the cheapest and best in the state for young drivers:
- State Farm: MoneyGeek score of 86 out of 100 ($2,603 per year)
- GEICO: MoneyGeek score of 81 out of 100 ($3,042 per year)
These scores are based on MoneyGeek’s analysis of covered rates for those in their late teens to early 20s.
But if cost is your primary consideration in choosing a provider, MoneyGeek has also researched the cheapest car insurance options in Kentucky for young drivers and students.
MoneyGeek’s Pick: State Farm
Affordable quotes for adding students and young drivers at around $2,603 per year
Offers good student, driver's education and distant student discounts
Highest user satisfaction score of 4.5 out of 5
4 out of 5 score for claims ratings
It’s expensive to insure students and young drivers or to add them to a parent's policy. State Farm offers affordable rates to them while providing superior customer service. Because young drivers are more likely to file claims, having strong customer service can be advantageous.
Students enrolled full-time and earning at least a B average, 3.0 GPA or in the top 20% of their class can get a good student discount. Those under 25 who live away from home and only drive at home are eligible for a distant student discount. Drivers under 21 on the policy can get a driver's education discount by completing an approved course.
Families with young drivers can also take advantage of significant discounts when insuring multiple cars under State Farm.
Best Car Insurance in Kentucky for Seniors
MoneyGeek analyzed the premiums and customer service reputation of the top-rated auto insurance companies in Kentucky for older adults.
We found that these companies are the best in this category:
- State Farm: MoneyGeek score of 89 out of 100 ($836 per year)
- GEICO: MoneyGeek score of 83 out of 100 ($1,067 per year)
The company scores for this category were computed by weighing affordability and service quality for seniors on equal terms.
However, if cost is your main deciding factor in selecting a policy, MoneyGeek also identified the best companies offering cheap but excellent car insurance options for Kentucky seniors.
MoneyGeek’s Pick: State Farm
Affordable rates for Kentucky senior drivers at an average of $836 per year
Provides common coverages like roadside assistance and rental car reimbursement
Offers discounts for bundling, multiple cars and defensive driving
Received a MoneyGeek claims rating of 4 out of 5
Has a perfect MoneyGeek rating of 5 out of 5 for user satisfaction
No discounts for full payments
No senior discounts
No loyalty or legacy discounts
Insurance companies typically charge higher premiums to senior drivers to offset the increased risk that they’ll file a claim. This is because older adults tend to experience age-related physical and mental limitations that already compromise their reaction time and make them more susceptible to accidents. Fortunately for Kentucky seniors, affordable companies like State Farm provide reasonable premiums and great customer service.
Aside from offering the cheapest car insurance in Kentucky, State Farm also provides common coverages such as roadside assistance and rental car and/or travel reimbursement — perks to seniors who enjoy being on the road. Senior drivers also have the option to lower their premiums by completing a defensive driving course.
Best Car Insurance in Kentucky for Bad Driving Records
In Kentucky, State Farm ranks as the best provider for drivers with poor driving records.
The following are the top two providers for this category:
- State Farm: MoneyGeek score of 89 out of 100 ($1,006 per year)
- GEICO: MoneyGeek score of 81 out of 100 ($1,697 per year)
MoneyGeek rated Kentucky's auto insurance companies for drivers with a history of traffic violations, such as being involved in at-fault accidents. The best companies balance cost and customer service for drivers with bad records.
Alternatively, if you’re looking to get the lowest rates possible, MoneyGeek also analyzed the cheapest car insurance in Kentucky for those with a DUI or bad record.
MoneyGeek’s Pick: State Farm
An affordable full coverage policy for drivers with a bad driving history at $1,006 per year
Provides roadside assistance and rental car reimbursement coverages as an add-on
Claims score of 4 out of 5 and user satisfaction ratings of 4.5 out of 5
Does not offer accident forgiveness, new car replacement or better car replacement coverages
State Farm offers the cheapest auto insurance in Kentucky for those with a poor driving record, costing about $1,006 per year.
These are some add-on coverages available with State Farm, even if you have a poor driving history:
- Roadside Assistance: This includes services such as mechanical assistance, tire replacement, towing and the supply of fuel, oil, batteries, etc. If you misplace your key or lock yourself out of your vehicle, you will be entitled to one hour of locksmith services.
- Rental Car Reimbursement: If you are at fault in an accident with your rental car, State Farm reimburses you for car rental costs up to certain limits, travel expenditures up to $500 and deductible repayment up to $500.
Best Car Insurance in Kentucky for a Military Background
According to MoneyGeek, USAA is the top auto insurance company in Kentucky for current and past military members. The company received a total MoneyGeek score of 97 out of 100 based on its financial stability, claims history, affordability and user satisfaction.
An average military driver's state-minimum auto insurance coverage from USAA costs an average of $369 per year but roughly $1,141 per year for those at fault in an accident.
Examining USAA's services reveals some benefits and drawbacks. Consider them in making your decision.
MoneyGeek’s Pick: USAA
An affordable full coverage policy of $1,141 per year on average for poor drivers
Claims score of 5 out of 5, user satisfaction rating of 4.5 out of 5
Offers accident forgiveness coverage
Offers loyalty discounts
Policies are only accessible to current and former military personnel and their families
USAA offers some of the most affordable insurance plans in Kentucky and exceptional customer care. The company's reputation is well-known throughout the country.
Here are some noteworthy USAA benefits:
- Rental Car and/or Travel Reimbursement: This covers the cost of a rental car while your car is being repaired following a covered loss.
- Accident Forgiveness: By remaining accident-free for five years with USAA, your policy won’t be subject to surcharges after your first accident. Keep in mind that policyholders may face increased premiums for subsequent accidents.
- Legacy Discount: You’ll get lower premiums if you are under 25 and were previously covered by your parent's USAA insurance but are now purchasing your own USAA policy.
- New Vehicle Discount: This applies when you insure a car only three years old or newer.
Best Car Insurance in Kentucky for Those With New Cars
MoneyGeek's research looked at the best auto insurance companies in Kentucky for those with new cars and found that Travelers is the best company across the state.
- Travelers: MoneyGeek score of 74 out of 100 ($1,310 per year)
If new drivers want to take advantage of Travelers’ new car replacement coverage, it must be added to the policy. The perk is getting a replacement vehicle of a similar model and brand if the new car is totaled within the first few years.
Additionally, if your insurer offers better car replacement coverage, you may be able to purchase a newer model of car to replace your damaged one. Insurers typically provide this coverage for vehicles less than five years old. This coverage is not included in your standard policy and must be purchased as an add-on.
MoneyGeek’s Pick: Travelers
Affordable policies costing an average of $1,310 per year
Offers new car replacement coverage
Claims rating of 4 out of 5
User satisfaction ratings of 3.5 out of 5
Doesn’t offer better replacement coverage
With its affordability and new car replacement coverage, Travelers is an excellent choice for drivers with new cars. Because your vehicle loses value as soon as you drive it off the lot, this coverage helps you acquire a new one if you have an accident shortly after purchase. Travelers' Premier New Car Replacement coverage replaces your new car with a brand new car of the same make and model if it is totaled during the first five years.
Travelers also offers gap insurance which you can add to your policy. This protects you if your financed or leased vehicle is totaled by covering the difference between the actual cash value of the car and the unpaid balance of your auto loan or lease.
Best Car Insurance in Kentucky for Low-Mileage Drivers
Kentucky's top-rated pay-per-mile program is Nationwide SmartMiles.
Quite a few insurance providers offer pay-per-mile coverage. This policy allows you to pay for car insurance depending on the miles you drive, providing a discount to those who drive less frequently.
MoneyGeek’s Pick: Nationwide
Offers affordable policies to those who drive very little.
User satisfaction and claims ratings of 4 out of 5
This coverage is more expensive than standard auto insurance for frequent drivers
SmartMiles, Nationwide's pay-per-mile program for Kentucky’s drivers, provides a base rate and a variable rate depending on total miles driven. The best part is that this program only counts the first 250 miles of a road trip in a single day. Those who seldom drive but take occasional road trips may profit significantly from this. Plus, your safe driving skills may qualify you for additional discounts.
This pay-per-mile policy offers the same coverages as a traditional Nationwide car insurance policy, but the only difference is you’ll pay lower premiums. It is an ideal option for people who live and work within the same area and those who work from home. It is also perfect for insuring an extra car that you rarely use.
How to Find the Best Car Insurance in Kentucky For You
Choosing the best auto insurance plan in Kentucky involves a number of considerations. Likewise, you should choose a company that maintains a proper balance between service quality, affordability and financial stability.
MoneyGeek used these factors to rate the top auto insurance in the state, but you should do your own research to determine which insurance company and plan best suits your needs.
Research customer service reputations in Kentucky
To discover the top insurers in Kentucky, MoneyGeek gathered auto insurance quotes from multiple providers using a sample driver profile and compared NAIC complaint ratios and J.D. Power's customer satisfaction scores. In addition to MoneyGeek's suggestions, you may dig into J.D.Power's ratings and the NAIC complaint index to see which provider is the best fit for your requirements. Additional insurance information is available on the website of the state department of insurance.
Compare quotes for yourself
For this study, MoneyGeek looked at insurance rates for a sample driver rather than the entire state. To obtain a better picture of the state's typical rates and coverage, you must compare quotations from at least three different insurance companies.
Make sure the company has coverages you want in Kentucky
Before purchasing vehicle insurance, be sure the business you're considering provides the coverage you need and any discounts or incentives you may be qualified for. Some insurers may offer a discount or coverage but fail to specify whether it is available in Kentucky.
Double-check financial stability ratings
When buying insurance, check the company's financial stability. Large insurance companies are more likely to pay claims quickly and equitably. Regional insurance firms may not be financially sound, resulting in poor handling of claims.
FAQs About the Best Car Insurance in Kentucky
Several factors, like the amount of coverage needed, determine your premium. MoneyGeek addressed some of the most commonly asked questions regarding auto insurance in Kentucky.
About the Author
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