Cheap Kentucky Low-Income Car Insurance for Families and Individuals

Kentucky does not have a government car insurance program to help with costs. MoneyGeek reviewed car insurance companies in Kentucky to help low-income drivers save money on auto insurance. We found State Farm offers the cheapest car insurance in Kentucky for low-income families and individuals.

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Last Updated: 11/21/2022
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Car insurance rates do not depend on your income. In Kentucky, adding a teen driver, your credit score and age are the most critical factors in determining car insurance rates. MoneyGeek found the cheapest auto insurance for low-income individuals and families in Kentucky with poor or good credit.

Is There Car Insurance for Low-Income Families and Individuals in Kentucky?

There is no government car insurance program in Kentucky for low-income individuals and families. Car insurance is mandatory in Kentucky, but the Insurance Research Council reports that 13.9% of Kentucky drivers are uninsured. That may be because they struggle to afford car insurance.

The minimum coverage requirement is the best option for low-income car insurance in Kentucky. There is also pay-per-mile insurance in Kentucky that might be an option for low-income drivers who travel infrequently and want to save money on car insurance.

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Does Kentucky Have a Government Program to Support Low-Income Drivers with Insurance?

There is no government-sponsored insurance program in Kentucky to assist low-income drivers in obtaining car insurance. You must compare car insurance quotes from multiple companies to determine those that offer insurance at a cheaper price point.

MoneyGeek researched the cheapest Kentucky car insurance options to help drivers with a low income meet their auto insurance needs while saving money.

The Cheapest Kentucky Car Insurance Companies for Low-Income Drivers

Your income is not used by Kentucky car insurance companies to decide how much to charge for car insurance, but they consider other factors, like age and credit score, that may link to income.

For low-income drivers, state minimum coverage is the cheapest choice. MoneyGeek discovered that State Farm is the most affordable insurer for various low-income driver types in Kentucky.

MoneyGeek also examined the cheapest minimum car insurance policies for low-income individuals and families of different ages.

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The Cheapest Kentucky Car Insurance Companies for Low-Income Families

While income has no bearing on car insurance premiums, low-income families should be aware that their credit score has a significant impact on car insurance premiums. MoneyGeek’s sample single parents in Kentucky pay around $2,638 more annually if they have a poor credit score than with a good credit score. The difference between having a poor credit score and a good credit score for couples with a child in Kentucky is roughly $3,716 per year.

On average, the cheapest companies for a couple with a child and poor credit in Kentucky are:

  • State Farm: $4,516 per year
  • Kentucky Farm Bureau: $4,877 per year

At around $3,403, USAA is the most affordable choice for an eligible military family couple with a child and poor credit.

On average, a single parent with poor credit gets the lowest rate from:

  • State Farm: $2,670 per year
  • GEICO: $2,933 per year

For a single parent with a military background, USAA costs around $2,337 per year.

Being a low-income family does not mean you have poor credit. Find your matching profile in the table below to see the best deal.

Sort by family type:

Single parent w/ a kid

Switch by Credit Score:

Good Credit Score

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  • Company
    Annual Rates
  • USAA
    $1,152
  • State Farm
    $1,316
  • GEICO
    $1,446
  • Kentucky Farm Bureau
    $1,624
  • Allstate
    $2,249
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The Cheapest Kentucky Car Insurance Companies for Low-Income Individuals

With a poor credit score, MoneyGeek’s sample 40-year-old driver in Kentucky spends around $842 more per year than if they have a good credit score.

On average, the most affordable companies for low-income individuals with poor credit in Kentucky are:

  • State Farm: $895 per year
  • GEICO: $1,031 per year

If you’re a low-income driver with poor credit and a military affiliation, USAA is the cheapest option at around $771 annually.

A low-income driver doesn’t automatically have a poor credit score. If you have a good credit score, State Farm costs around $441 per year, GEICO roughly $508 annually, and USAA, if eligible, is around $380 a year.

Switch by Credit Score:

Good Credit Score

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  • Company
    Annual Rates
  • USAA
    $380
  • State Farm
    $441
  • GEICO
    $508
  • Kentucky Farm Bureau
    $545
  • Allstate
    $744

The Cheapest Kentucky Car Insurance Companies for Low-Income Students

MoneyGeek found that young student drivers pay more for car insurance due to their lack of experience. College students are not charged for having a low income, but since many do, their car insurance consumes a large amount of their income.

On average, the cheapest car insurance in Kentucky for low-income students with poor credit scores is through:

  • State Farm: $2,204 per year
  • GEICO: $2,537 per year

If you are a student driver from a military family, the cheapest choice could be USAA, around $1,897 a year.

Being a low-income student doesn’t mean you have a poor credit score. Students with good credit pay around $1,086 a year with State Farm, GEICO charges roughly $1,251 annually, and USAA is around $935 a year if eligible.

Switch by Credit Score:

Good Credit Score

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  • Company
    Annual Rates
  • USAA
    $935
  • State Farm
    $1,086
  • GEICO
    $1,251
  • Kentucky Farm Bureau
    $1,340
  • Allstate
    $1,830

The Cheapest Kentucky Car Insurance Companies for Low-Income Seniors

Senior drivers pay a bit more for car insurance than middle-aged drivers, and their credit score may also impact their premiums. For MoneyGeek’s sample 70-year-old driver with a good credit score, the cost of insurance in Kentucky is around $935 less per year than if they have a poor credit score.

On average, the companies offering the cheapest car insurance for low-income seniors in Kentucky with poor credit are:

  • State Farm: $895 per year
  • Kentucky Farm Bureau: $1,225 per year

USAA is the cheapest car insurance provider for senior drivers in Kentucky with a military background and poor credit at around $907 per year.

Senior drivers with a low income do not automatically have poor credit. For senior drivers in Kentucky with good credit, State Farm charges around $441 a year, Kentucky Farm Bureau charges roughly $604 annually, and for eligible seniors, USAA is around $447 annually.

Switch by Credit Score:

Good Credit Score

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  • Company
    Annual Rates
  • State Farm
    $441
  • USAA
    $447
  • Kentucky Farm Bureau
    $604
  • GEICO
    $656
  • Allstate
    $804

Does Income Affect Car Insurance Rates in Kentucky?

Insurance companies in Kentucky cannot consider your income as a factor in determining your car insurance rates. Some other factors that do tend to relate to income, though, may affect rates.

For example, Kentucky's young drivers pay more for car insurance since they're inexperienced. They often have a low income because they are new to the workforce, which makes the high insurance rate they pay more of a burden.

MoneyGeek uncovered the factors that influence car insurance rates the most in Kentucky that may correlate to income. They are:

  • Adding a teen driver.
  • Credit score.
  • Age of driver.

Other factors that affect car insurance costs in Kentucky include coverage levels and car model.

  • Factor
    How It Affects Your Rates
  • Adding a Teen Driver

    In Kentucky, a policy is 2.9x more expensive when you add a teen driver.

  • Credit Score

    A poor credit score could make you pay 2.5x more than a good credit score.

  • Age of Driver

    In Kentucky, premiums for young drivers may be 2.5x higher than rates for middle-aged drivers.

  • Coverage Levels

    Full coverage insurance costs 2.0x more than the state minimum.

  • Car Model

    The insurance rate might be 2.0x more, depending on your car model.

Frequently Asked Questions About Low-Income Car Insurance in Kentucky

Searching for low-income car insurance in Kentucky can bring about questions. MoneyGeek answers the most frequently asked questions below regarding Kentucky low-income car insurance for individuals and families.

Methodology

MoneyGeek calculated the cost of car insurance for low-income drivers in Kentucky using quotes sourced in partnership with Quadrant Information Services. The sample driver is either a 40-year-old male, a single 40-year-old parent with a 16-year-old child, an adult couple (each 40 years old), or a couple with a 16-year-old child. The individual or family drives a 2010 Toyota Camry LE. The driver buys the minimum car insurance required in Kentucky.

Costs for poor and good credit scores were extrapolated based on MoneyGeek’s dataset of credit score rate adjustments by score categorization.

About the Author


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Mark Fitzpatrick is a senior content manager with MoneyGeek specializing in insurance. Mark has years of experience analyzing the insurance market and creating original research and content. He graduated from Boston College with a Bachelor of Arts and Johns Hopkins University with a Master of Arts.


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