Cheapest Car Insurance for Low-Income Drivers in Kentucky (October 2024)


The cheapest car insurance for individual drivers with low-income and poor credit in Kentucky is Cincinnati Insurance at $521 annually. For families with low-income, Travelers offers the most affordable rate at $866 annually.

Kentucky does not provide state-backed car insurance programs for low-income families and individuals. Therefore, finding the provider with the most affordable rate is one option to manage costs. Additionally, there are ways to get discounts to help alleviate the cost of car insurance.

While minimum coverage will help you drive legally, there are downsides. For instance, if you are in an at-fault accident, minimum coverage might not cover all the damages.

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Cheapest for Individuals With Low Income

Cincinnati Insurance is the cheapest car insurance provider for individual drivers with low-income and poor credit history in Kentucky with an average minimum coverage premium of $43 per month or $521 per year.

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Cheapest for Families With Low Income

Travelers is the cheapest car insurance provider for families with low-income in Kentucky with an average minimum coverage premium of $72 per month or $866 per year.

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Cheapest for Senior Drivers With Low Income

Cincinnati Insurance is the cheapest car insurance provider for seniors with low-income and poor credit score in Kentucky with an average minimum coverage premium of $38 per month or $454 per year.

Why Trust MoneyGeek? We analyzed thousands of data points and quotes from Quadrant Information Services and the Kentucky Department of Insurance to get the cheapest average costs for low-income drivers of Kentucky.

25,510Quotes Analyzed
 
13Companies Compared
 
37ZIP Codes

Does Kentucky Offer Low-Income Insurance?

Car insurance companies in Kentucky do not consider income when calculating your car insurance rates. Instead, they look at factors like age, driving record, credit history, and type of car. At-fault accidents and moving violations can increase your rates significantly. Comparing quotes from several insurance companies is the best way to find the cheapest rates.

If your budget is tight, a basic minimum coverage policy is often the cheapest way to stay legal on the road. Additionally, if you rarely drive, pay-per-mile insurance can be the best option to save money. MoneyGeek rounded up the cheapest insurers for low-income drivers in Kentucky to help you save.

Minimum Car Insurance Requirements in Kentucky

To legally operate a vehicle in the Bluegrass State, you must have car insurance that meets the state's minimum car insurance requirements, which include:

  • $25,000 for bodily injury liability per person
  • $50,000 for bodily injury liability per accident
  • $25,000 for property damage liability per accident
  • $10,000 personal injury protection (PIP) per person

Kentucky drivers can choose a liability-only car insurance policy, which covers expenses for the other driver if you're at fault in an accident, but doesn't cover your own vehicle's damages. For broader protection, including your own vehicle, consider a full coverage car insurance policy. This includes collision and comprehensive coverages, safeguarding against non-collision events like theft or natural disasters.

In Kentucky, where weather can be unpredictable, opting for full coverage is wise if you're driving a newer model or have a car loan. This ensures your investment is protected against a wide range of incidents. Understanding the risks and benefits of different coverages is crucial in selecting the right policy for your needs.

Cheapest Car Insurance for Individuals With Low Income in Kentucky

Credit history is crucial for drivers with low income as it can significantly affect car insurance premiums in Kentucky. A poor credit record may indicate higher risk to insurers, resulting in increased premiums. Understanding the impact of your insurance score can help manage costs effectively.

The cheapest car insurance companies for drivers with low-income and poor credit record in Kentucky are:

  • Cincinnati Insurance: $521 per year, $43 per month
  • Travelers: $736 per year, $61 per month

Drivers with good insurance credit can get the cheapest car insurance in Kentucky from:

  • Cincinnati Insurance: $296 per year, $25 per month
  • Auto-Owners: $410 per year, $34 per month

Securing state minimum coverage is vital because driving without insurance is illegal. In Kentucky, this can lead to penalties such as suspension of your driver’s license, vehicle registration, and fines ranging from $175 to $1,000.

Data filtered by:Results filtered by:
Credit Score:
Credit Score:Poor
Cincinnati Insurance$521$43
Travelers$736$61
Progressive$742$62
Nationwide$773$64
GEICO$1,133$94
Auto-Owners Insurance Co$1,141$95
Allstate$1,160$97
State Farm$1,190$99
Grange Insurance$1,262$105
Kentucky Farm Bureau$1,312$109
Shelter$1,408$117
Westfield$1,441$120
Compare Auto Insurance Rates

Ensure you're getting the best rate for your auto insurance. Compare quotes from the top insurance companies.

Cheapest Car Insurance for Families With Low Income in Kentucky

While your income doesn't directly sway car insurance rates, your family makeup does. In Kentucky, a single parent with a teen faces an annual premium that's $370 more than married couples with a teen. Married couples enjoy a more affordable rate, saving $138 yearly on average.

The most budget-friendly car insurance companies for married couples with a teen in Kentucky are:

  • Travelers: $866 per year; $72 per month
  • Allstate: $873 per year; $73 per month

For single parents with a teen, the top choices for minimum coverage are:

  • State Farm: $1,370 per year; $114 per month
  • Auto-Owners: $1,431 per year; $119 per month

These figures highlight the cost impact of being a single parent versus part of a married couple when insuring a teen driver. The gap in premiums underscores the importance of maintaining a solid credit score to access the most affordable car insurance rates available.

Data filtered by:Results filtered by:
Family Type:
Family Type:Married Couple with Teen
Travelers$866$72
Allstate$873$73
Nationwide$919$77
State Farm$1,007$84
Auto-Owners Insurance Co$1,048$87
Progressive$1,254$104
GEICO$1,651$138

Cheapest Car Insurance for Seniors With Low Income in Kentucky

Car insurance premiums generally decrease as you reach the early senior years, typically around age 55 to 65, especially with a clean driving record.

The two cheapest car insurance for senior drivers with low-income and poor credit history are:

  • Cincinnati Insurance: $38 per month, $454 per year
  • Nationwide: $63 per month, $757 per year

After the age of 70, car insurance rates typically increase as older drivers are statistically considered higher risk. This trend continues each year, meaning premiums generally rise as seniors age. In Kentucky, seniors should be aware of specific laws or guidelines affecting their car insurance.

Data filtered by:Results filtered by:
Credit Score:
Credit Score:Poor
Cincinnati Insurance$454$38
Nationwide$757$63
Progressive$767$64
Travelers$769$64
Auto-Owners Insurance Co$1,097$91
State Farm$1,118$93
Grange Insurance$1,222$102
GEICO$1,235$103
Kentucky Farm Bureau$1,240$103
Allstate$1,282$107
Shelter$1,408$117
Westfield$1,601$133
Compare Auto Insurance Rates

Ensure you're getting the best rate for your auto insurance. Compare quotes from the top insurance companies.

What Factors Affect Car Insurance Rates in Kentucky?

Many factors influence car insurance rates. Although your income doesn't affect the price directly, you might pay more if a low income leads to a poor credit record. Understanding these factors can help you find the best car insurance for your needs.

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    Driving record

    At-fault accidents and moving violations can increase rates for drivers in Kentucky. Insurers see these as indicators of risk, leading to higher premiums.

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    Age and gender

    Younger drivers and males often face higher rates in Kentucky due to statistical risk factors. Insurers consider these demographics more likely to file claims.

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    Credit history

    A poor credit history in Kentucky can result in higher premiums. Insurers use credit-based insurance scores to assess risk and set rates.

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    Location

    Living in areas with high crime rates or heavy traffic in Kentucky can lead to higher insurance rates. Insurers consider these locations riskier.

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    Vehicle type

    Driving a luxury or sports car in Kentucky can increase your rates. These vehicles often cost more to repair and replace, leading to higher premiums.

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    Coverage levels

    Opting for higher coverage levels increases your insurance costs. Minimum coverage is cheaper but offers less protection.

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    Insurance company

    Different insurers have unique underwriting methods and discounts. Comparing quotes can help you find the best rate.

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    Claims history

    A history of filing a claim can lead to higher rates as it indicates a higher risk to insurers. If you can afford to pay for your own repairs, it might pay not to file a claim.

How to Save on Car Insurance in Kentucky

There are several ways to find affordable car insurance in Kentucky. Whether or not there are state-sponsored programs for low-income drivers, you can still find good deals on car insurance. Here are some tips to lower your car insurance premiums:

1
Choose minimum coverage

Choosing a state-mandated minimum coverage can help you save yet meet legal requirements to drive.

2
Comparison shop

Getting quotes from multiple insurers to compare rates and discounts and shopping locally might lead to the lowest rates in your state.

3
Look for discounts

Many insurance companies offer discounts for various factors, such as being a good student, having a safe driving record, being a military member, or bundling your auto insurance with other policies.

4
Increase your deductible

If you opt to get collision or comprehensive coverage, opting for a higher car insurance deductible can significantly reduce your monthly premium. Be sure you can afford the deductible in case of an accident.

5
Consider pay-per-mile insurance

If available in your state, pay-per-mile is a great option if you're a low-mileage driver. You pay a base rate plus a per-mile fee, so you only pay for the miles you drive.

6
Bundle your policies

If you have other insurance needs, like homeowners or renters insurance, bundling them with your auto policy can often lead to discounts. The best home and auto bundles can save you around $496 each year.

7
Drive a cheaper car

Your car's make, model, and year significantly impact your insurance costs. Driving the cheapest cars to insure can save you hundreds of dollars in insurance costs each year.

FAQ: Low-Income Car Insurance in Kentucky

Finding affordable car insurance for low-income drivers in Kentucky can be tough. Get answers to some of the most commonly asked questions about low-income car insurance in Kentucky.

Does Kentucky have a state-backed low-income car insurance program?
How can low-income families get affordable car insurance in Kentucky?
Does your income affect the cost of car insurance in Kentucky?
What are the benefits of usage-based telematics programs for drivers with low-income in Kentucky?

About Mark Fitzpatrick


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Mark Fitzpatrick is a Licensed Property and Casualty Insurance Producer and MoneyGeek's Head of Insurance. He has analyzed the insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. He has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.

Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.