MoneyGeek ranked the leading auto insurance firms based on factors like affordability, customer satisfaction and more to help you find the best car insurance policy in Kentucky for your requirements. Factors such as driving record, age and location all play a part in deciding your auto insurance costs, so it’s a great idea to obtain quotes from multiple carriers to find the best coverage and cheapest rates. MoneyGeek's rankings demonstrate a potential savings of $1,427 when comparing car insurance costs from the best companies in Kentucky.
The Best Cheap Car Insurance in Kentucky for 2021
The Cheapest and Best Car Insurance in Kentucky
The cheapest option for drivers looking for auto insurance in Kentucky is a minimum liability-only policy, which meets the state requirements for coverage. If you are looking for a policy with broader protection, it would be best to get higher levels of coverage.
Based on MoneyGeek’s study, the cheapest car insurance in Kentucky for a minimum coverage policy are:
- USAA: $369 per year (only available to current and former military members)
- State Farm: $428 per year
The insurance carrier with the most expensive policy for minimum coverage in Kentucky is MetLife. Its policy costs $1,621 per year.
Average Cost for Minimun Liability Coverage
The prices stated are only estimates for an average Kentucky driver and should not be taken as a guide for comparing rates between insurance providers.
These prices are only estimates based on rates for an average Kentucky driver and should not be used to compare insurance prices.
While a minimum coverage policy is the most affordable option for car insurance in Kentucky, it only covers bodily injury and property damage liability. Drivers who want a policy covering their own car or are looking to increase the liability coverage amount should consider getting a full coverage policy.
A full coverage policy with higher liability limits and comprehensive and collision insurance will protect you against most road and off-road accidents in Kentucky. It costs more than a minimum coverage policy, but it will protect you against the cost of damages to your own vehicle. To find the best policy for your needs, compare quotes from various insurers.
The two most affordable auto insurance providers in Kentucky for comprehensive and collision coverage are:
- USAA: $785 per year (only available to current and former military members)
- State Farm: $872 per year
The most expensive full coverage car insurance policy in Kentucky is from MetLife. Their average annual premium is $2,212.
Average Comprehensive and Collision Rates in Kentucky
These prices are based on average rates for a comprehensive and collision insurance policy that covers up to $100,000 in bodily injury liability coverage per person, $300,000 in bodily injury liability coverage per accident and $100,000 in property damage coverage per accident. Individual premiums will vary and may be different from the averages shown.
The Best Car Insurance Companies in Kentucky for 2021
MoneyGeek found that the best car insurance companies in Kentucky for most drivers are:
- Best Overall: Erie
- Runner-up: Auto-Owners
USAA received the highest score in Kentucky by MoneyGeek's rating system. However, because USAA is only available to military members, veterans and their families, it is not listed as best overall.
To arrive at company scores out of 100, MoneyGeek gave equal weight to industry reports like J.D. Power’s U.S. Car Insurance Study and AM Best’s financial strength rating, while also integrating unique pricing data.
You can use MoneyGeek’s ratings to help select the best car insurance provider in Kentucky for your individual requirements.
USAA ranked highest based on MoneyGeek’s evaluation across categories, including affordability, claims ratings and customer satisfaction. However, only current and former military members qualify for USAA policies.
USAA offers a significant discount for qualified active military members who garage their vehicles on base. Additionally, you may also be eligible for a discount if your parents have USAA car insurance in Kentucky because the company gives rewards to drivers whose families stay loyal to their company.Read MoneyGeek's USAA auto Insurance Review
Based on MoneyGeek’s evaluation, Erie ranked second in Kentucky. It garnered high scores across categories and is a good solution for those who do not qualify for USAA.
Erie policyholders who have been loyal to the company for three or more years will get automatic accident forgiveness. Drivers can take advantage of this feature on their first at-fault accident. Check the details with the company to see the specific requirements in Kentucky.Read MoneyGeek's Erie auto Insurance Review
While USAA scores highly in many areas, this provider is only available to military members, veterans and their families.
List of the Largest Insurance Companies in Kentucky
The three largest car insurance companies in Kentucky are State Farm, Kentucky Farm Bureau and Progressive. Market share is measured based on the number of premiums written by the insurer divided by the total number of premiums written in the state. While larger companies may not have the best policies, their financial security means they are able to reimburse legitimate claims.
- CompanyMarket Share
How to Compare Cheap Kentucky Car Insurance Quotes Online
Most car insurance companies in Kentucky have online tools that allow drivers to get reasonably accurate quotes. To find the best policy, it is ideal to get quotes from multiple insurers.
Start by determining the coverage level you will need. Then, keep quotes consistent. For example, if you get a quote for $300,000 in bodily liability insurance per accident from one insurer, use the same number when you get quotes from other providers.
If you want to compare car insurance quotes, you can enter your ZIP code below. You can also review MoneyGeek’s price data to see which company websites you should visit.
Overall, the three most affordable auto insurance companies in Kentucky are USAA, State Farm and GEICO. You can start your search for the best policy by getting quotes from these companies.
What Is the Average Cost of Car Insurance in Kentucky?
Several unique factors determine your auto insurance premium. MoneyGeek computed the typical cost of 100/300/100 comprehensive and collision insurance for a male driver who is 40 years old and drives a Toyota Camry without any violations on his record. Your average annual rate may be more or less than these Kentucky numbers depending on your age, coverage level, location and driving history.
- Average Driver: $1,405
- DUI: $2,597
- Speeding Ticket: $1,683
- Poor Credit Score: $2,836
- Seniors: $1,499
- Students: $3,509
Kentucky drivers who have serious violations in their driving history, such as a DUI, usually have higher insurance rates due to increased risk. The average cost of car insurance for Kentucky drivers with a DUI is $2,597 per year. A similar policy for a driver with a clean record costs $1,405 annually.
The cheapest options for a full coverage policy for drivers with a DUI in Kentucky are:
- State Farm: $939 per year
- USAA: $1,266 per year (only available to members of the military)
State Farm and USAA are the cheapest options for full coverage policies for drivers with clean records and DUIs, with USAA offering the lowest average rate.
Average Car Insurance Rates With a DUI
A DUI in Kentucky can affect more than just car insurance rates. Even a first time DUI can mean jail time, fines, substance program requirements, ignition interlock and license suspension. In Kentucky, Insurance Institute for Highway Safety, 1,722 people died in car crashes involving alcohol from 2009-2018 and 1.4% of Kentucky drivers admit to driving after drinking too much in the last 30 days. The table above provides an estimate of the monthly premium the average driver can expect to pay with a DUI on their driving record in Kentucky.
A conviction for DUI can stay on your driving record for five years and a commercial license for ten years. Find out the true cost, besides an increase of insurance premiums with our guide outlining the true cost of receiving a DUI.
Individuals who have minor driving violations in Kentucky like tickets tend to have higher rates. The average cost for a driver with a speeding ticket in Kentucky is $1,683 per year, which is more than the $1,405 average annual rate for a driver with a clean record.
Based on average rates for a full coverage policy, the cheapest options for a Kentucky driver with a speeding ticket are:
- State Farm: $939 per year
- USAA: $965 per year (only offered to members of the military)
On average, State Farm and USAA offer the cheapest rates for drivers with tickets as well as those with clean driving records in Kentucky.
Average Car Insurance Rates With a Ticket
Speeding and distracted driving tickets can affect your chances of getting cheap car insurance in Kentucky. Receiving tickets is a sign to insurance companies that you may be a risky driver. The table above shows the average monthly auto insurance premium for the average driver with a speeding or distracted driving ticket.
Currently, the law bans cell phone use for teens but allows calls to be made by drivers 18 and older. However, a bill is being considered to outlaw hand-held cell phone use for all drivers and drivers who are caught will receive higher fines for each offense. Distracted driving is more than using cell phones, it also includes grooming, eating, drinking and talking or interacting with other passengers. It's important to take steps to prevent distracted driving so that you can be safe on the road.
Poor credit scores can lead to higher auto insurance rates in Kentucky. The average cost of a full coverage policy for a driver with bad credit in the state is $2,836 annually. That is more than double the annual average rate for an average driver with good credit, which is $1,405.
The cheapest car insurance companies in Kentucky for a driver with a poor credit score are:
- USAA: $1,520 per year (only available to members of the military)
- State Farm: $1,682 per year
USAA and State Farm are the cheapest options for full coverage insurance for the average driver with good credit and those who have bad credit.
Average Car Insurance Rates for Drivers With Bad Credit
Auto insurance companies may use credit scores to predict the odds someone will file a claim, according to a study by the Federal Trade Commission. The average in Kentucky is 692, slightly lower than the national average of 703. Depending on your credit score, you may still qualify for the best and cheapest car insurance rates in Kentucky. The above table provides estimates of what drivers in Kentucky can expect to pay in auto insurance if they have a low credit score.
It can be helpful to find ways to improve your credit score so you can qualify for the most affordable car insurance with the best coverage.
In most cases, senior drivers in Kentucky have slightly higher rates than young adults and middle-aged drivers. The average cost for senior drivers with full coverage in Kentucky is $1,499 per year. This is higher than the annual rate of $1,405 for average drivers with a similar policy.
The car insurance companies in Kentucky offering the cheapest options for senior drivers are:
- State Farm: $836 per year
- USAA: $861 per year (only available to military members)
Similar to policies for the average driver who is 40 years old, State Farm and USAA offer the cheapest average rates for senior drivers in Kentucky. However, State Farm has slightly cheaper rates for senior drivers.
Average Car Insurance Rates for Seniors
In Kentucky, 16.3% of traffic fatalities in 2017 were caused by drivers ages 65 and older. Many states have specific driving and renewal rules for seniors. However, Kentucky is not one such state. Even without restrictions, seniors should use caution when driving to maintain safety; Always wear a seatbelt, only driving during clear conditions and avoid consuming substances that will impair your driving (check with a health care professional for guidance about taking certain medications and driving). The table below shows the average cost per month that seniors can expect to pay for auto insurance in Kentucky.
Slowed reaction times, reduced vision and certain medications can impair a senior’s ability to drive, resulting in increased chances of getting a ticket or into an accident. To maintain eligibility for the cheapest auto insurance rates in Kentucky, seniors can do things like drive a safe vehicle and take a safe driving class.
Insurance carriers in Kentucky tend to charge more for young drivers because they are riskier and have less experience. The average cost of car insurance for student drivers in Kentucky is $3,509 per year. This is more than double the rate for the average driver, which is $1,405 annually.
The cheapest car insurance companies in Kentucky for young student drivers with full coverage are:
- Allstate: $2,253 per year
- State Farm: $2,603 per year
Although USAA offers the cheapest average rates for the average driver in Kentucky who has full coverage, Allstate is the cheapest option for students.
Average Car Insurance Rates for Students
According to the Kentucky Transportation Cabinet, teenagers make up around 6% of all the state's drivers but are involved in close to 18% of all collisions. The state requires parents of drivers under 18 years old to sign a statement saying they are liable in case of an accident. Teenagers will need to be added to the family insurance plan when they get their intermediate driver's license. Kentucky, in its manual A Parent's Guide for First Time Drivers, has an essential tip for parents: Be as involved in the learning process as possible.
Kentucky has a pretty straightforward rule for college students: whether they're from Kentucky or from out-of-state, they don't need to change their insurance or registration while going to school in Kentucky. They just need to carry their student identification card with them whenever they drive.
Both high school and college students may be eligible for discounts to make the auto insurance more affordable: good student, being away at college more than 100 miles from home, driving a safe car and maintaining a clean driving record all help reduce the cost of insurance. Consider the above estimates when looking for auto insurance for a young driver in Kentucky.
Insurance Rate Information for Military Drivers and Veterans
Average Rates for Kentucky service members
Car Insurance in Kentucky: What You Need to Know
Unless you register a vehicle as either salvage or a classic motor vehicle project — which means it isn't fit for the road — you need to register your car in Kentucky. Inoperable cars that remain on your property do not need to be insured, but drivers should notify the state that a car is out of commission. Vehicles used seasonally do not have to be insured year-round, but motorists have to turn in their license plates to the county clerk to avoid fines when the car is not in use.
Proof of Insurance in Kentucky
Kentucky insurers provide motorists with proof of coverage in the form of a paper insurance card or an electronic version. Drivers will likely need to show this card when:
- The driver registers the vehicle
- A police officer requests it
- They are in an accident
Minimum Liability Insurance Requirements in Kentucky
Here is the minimum amount of coverage drivers in Kentucky must maintain:
- $25,000 for injuries per person
- $50,000 for injuries per accident
- $25,000 for property damage
Alternatively, a Kentucky motorist may carry a policy with a single limit of $60,000.
Alternatives to Insurance in Kentucky
Kentucky drivers have the option of self-insuring their vehicles. They must file paperwork with the Executive Director of Insurance, showing they can pay claims if needed, and must also deposit cash or hold property they can liquidate to pay for a claim. Typically, you will also need to provide a list of vehicles to be self-insured and make a security payment via a surety bond.
Self-insurance does not provide extra protection if you are at fault. You also will end up paying out of pocket should a claim be made — and a large claim can wipe out your savings.
How Much Coverage Do You Need in Kentucky?
Insurance experts generally recommend coverage of $100,000/$300,000 for bodily injury liability. You should also consider comprehensive and collision coverage. Comprehensive covers damage caused by events other than a traffic collision, such as inclement weather. Collision coverage will pay to fix your vehicle if it’s involved in an accident. Speak with an insurance professional to determine if you need these coverages for your vehicle.
Average Insurance Rate by City in Kentucky
FAQs About Car Insurance in Kentucky
For most Kentucky drivers, the most common questions about auto insurance center around the cost of the policy and insurance company information.
Expert Advice on Finding Cheap Car Insurance in Kentucky
To help you find trustworthy and accurate insight on car insurance in Kentucky, MoneyGeek collected expert advice from proven professionals. The views and sentiments expressed are those of the individual contributor.
- What are the key factors drivers in Kentucky should look for when searching for the best auto insurance coverage?
- What steps can drivers in Kentucky take to find affordable car insurance?
- How do regulations and rules in Kentucky impact insurance pricing and how consumers might shop for coverage?
Assistant Professor of Finance at Western Kentucky University
Professor of Economics at Thomas More University
About the Author
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