The Best Cheap Car Insurance in Kentucky for 2021

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Kentucky law prohibits drivers from operating a vehicle in the state if they do not have proper auto insurance. Failure to comply may lead to the revocation of vehicle registration, fines and up to 90 days of imprisonment. Some drivers choose liability-only coverage. The state minimum requirement is $25,000 for bodily injuries per person, $50,000 for bodily injuries per accident and $25,000 for property damage. Generally, State Farm policyholders in Kentucky have the most affordable annual premiums, with an average cost of $428 per year. Meanwhile, its higher option of 50/100/50 coverage has an average annual premium of $511.

Average Cost for Liability Coverage

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.

While USAA scores highly in many areas, this provider is only available to military members, veterans and their families.

Market Share by Company

The National Association of Insurance Commissioners’ annual report shows the three auto insurance companies in Kentucky who insure the most drivers are State Farm, Kentucky Farm Bureau and Progressive. The table below shows how much of the market each of the companies insures in the state.

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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

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 below provides an estimate of the monthly premium the average driver can expect to pay with a DUI on their driving record in Kentucky.

Average Car Insurance Rates With a DUI

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.

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 below shows the average monthly auto insurance premium for the average driver with a speeding or distracted driving ticket.

Average Car Insurance Rates With a 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.

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 following table provides estimates of what drivers in Kentucky can expect to pay in auto insurance if they have a low credit score.

Average Car Insurance Rates for Drivers With Bad Credit

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 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.

Average Car Insurance Rates for Seniors

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.

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 following estimates when looking for auto insurance for a young driver in Kentucky.

Average Car Insurance Rates for Students

If you're a veteran or one of the 31,000+ active-duty military personnel living in Kentucky, always compare prices on auto insurance and ask for a military discount to save money. Bundling policies with the same carrier can also cut costs. Veterans may also be eligible for reduced rates on car insurance.

Whether living in Kentucky or deployed out of state, military members can register their vehicles with proof of insurance by mailing the fees to the County Clerk's office in your hometown. Military personnel can also renew online for a small fee. The following table showcases what active-duty members and veterans can expect to pay for auto insurance in Kentucky.

Average Rates for Kentucky service members

25 years$1,412
50 years$1,087

25 years$1,318
50 years$1,064

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.

1. What are the key factors drivers in Kentucky should look for when searching for the best auto insurance coverage?

   Jonathan Handy

   Coverage, coverage, coverage! Price, price, price! Drivers should get the appropriate level of coverage for their particular situation and should shop around for the best deal. I generally recommend choosing auto insurance from a major provider.

2. What steps can drivers in Kentucky take to find affordable car insurance?

   Malcolm Robinson

   The internet is a great source. Search for something like "best price car insurance Kentucky" and all sorts of comparison tools pop up.

   Jonathan Handy

   I think the best thing drivers can do is call and receive quotes from a variety of companies. Even amongst the top providers, coverage costs can vary substantially. A quick internet search should yield a variety of auto insurance companies – call them, obtain quotes, compare costs across similar coverage levels, and then choose the cheapest. Make sure to ask questions and understand the coverage fully – the worst time for a surprise is right after a major accident.

3. How do regulations and rules in Kentucky impact insurance pricing and how consumers might shop for coverage?

   Malcolm Robinson

   State regulations require drivers to have insurance; there is no opting out like with health or life insurance. State regulators also determine what a minimum coverage package should look for. This will effectively put a floor on how low insurance premia can be. My advice, again, search the web for comparison information. This is so much easier than when I first got car insurance and the tools that we have today did not exist.

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Jonathan HandyAssistant Professor of Finance at Western Kentucky UniversityREAD ANSWERS

Malcolm RobinsonProfessor of Economics at Thomas More UniversityREAD ANSWERS

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About the Author

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Mandy Sleight is a freelance writer and a licensed insurance producer since 2005. She has extensive knowledge in property and casualty insurance as well as life and health insurance. She writes on topics including insurance, sustainability, budgeting, nutrition, and fitness.

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