Why Is Car Insurance So Expensive in Kentucky?

The average car insurance cost in Kentucky, $1,405 per year, is slightly cheaper than the national average. The cost of auto insurance in Kentucky may still be steep for you because of state-specific factors such as high rates of car thefts and uninsured motorists. All drivers are also required to have personal injury protection coverage, which can raise premiums.

Compare Auto Insurance Rates

Insurance Rates

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

widget-location-pin
Advertising & Editorial Disclosure
Last Updated: 11/21/2022
Written By     |  

Car insurance rates in Kentucky are marginally cheaper than the average national rate of $1,424 per year. However, costs can still be high depending on your profile and local factors.

Kentucky is a no-fault state where all drivers must have personal injury protection (PIP), which makes car insurance more costly. Factors such as high traffic density and high rates of car thefts also make car insurance in Kentucky expensive.

MoneyGeek broke down why car insurance is costly in Kentucky to help you understand why your insurance premiums may be high. Our analysis is based on a 40-year-old driver with a clean driving record and a full coverage policy.

Table of Contents
Key Takeaways

kentucky

Car insurance rates in Kentucky are cheaper on average than the national average. However, costs may vary for you due to factors such as your age, driving history, credit score and the make and model of your car.

handcuffs2

State-specific factors like mandatory PIP and high rates of car thefts and uninsured motorists can also affect your rates.

coins2

Fortunately, there are different options that you can use to save on car insurance premiums, including bundling, taking advantage of discounts and comparing quotes from various providers.

Why Kentucky Car Insurance Rates Are So High

Car insurance in Kentucky costs slightly less than the national average but your profile and state-specific factors can drive your rates up.

Some reasons your car insurance may be expensive in Kentucky include high highway density, high rates of uninsured drivers, high vehicle theft rates and mandatory PIP for all drivers.

Highway Density

Kentucky has high traffic density, and a high number of drivers on the road increases the risk factor for accidents and crashes. Insurance companies charge more for car insurance in states like Kentucky because the high traffic density means customers are more likely to file claims.

Many Uninsured and Underinsured Drivers

In Kentucky, up to 14% of motorists are uninsured, higher than the average national rate of uninsured motorists, which is 12%.

This high percentage of uninsured motorists is one of the reasons car insurance can be expensive in Kentucky. Auto insurance companies take on more risk when there is a higher than average chance of getting into a crash with an uninsured motorist.

High Vehicle Theft Rate

Kentucky has a high rate of car thefts and this contributes to increased car insurance costs in the state. Auto insurance companies factor in car theft incidences when calculating premiums since it is a risk factor for more claims.

In states with high vehicle theft rates, you will pay higher car insurance premiums than in areas with low rates of car thefts.

Mandatory PIP

Kentucky car insurance laws require all drivers to carry PIP insurance in addition to personal and property damage liability. Kentucky is a no-fault state which means that if you are involved in a crash, you must file a claim with your insurer regardless of who is at fault. Having a mandatory PIP requirement typically increases car insurance rates because you need additional coverage.

Why Kentucky Car Insurance Might Be Expensive for You

Car insurance rates are affected by controllable and uncontrollable factors. The state-specific factors highlighted above affect car insurance rates across Kentucky. Your profile will also impact your car insurance quotes based on factors such as your:

  • Location
  • Insurance company
  • Age
  • Driving record
  • Credit score
  • Car make and mode

Where You Live

Auto insurance rates in Kentucky are slightly cheaper than the average national rate. Still, you may pay higher rates based on your zip code. For example, drivers who live in Louisville pay an average of $1,610 per year for car insurance, while those in Lexington pay significantly lower rates at $1,201 per year.

Average Car Insurance Rates in Kentucky: State & Cities

Scroll for more

swipe icon
  • Location
    Annual Premium
  • Kentucky’s State Average
    $1,405
  • Lexington
    $1,201
  • Louisville
    $1,610

Insurance Company

If you are looking for cheap car insurance in Kentucky, it is a good move to compare quotes from different providers since rates can vary widely depending on the insurance company. It is also smart to consider which provider offers the best balance of cost and quality service when looking for the best car insurance in Kentucky.

You can use MoneyGeek’s calculator to get a personalized car insurance quote based on your age, driving history, car model and other factors.

Insurance Rates

Compare Auto Insurance Rates

Ensure you are getting the best rate for your insurance. Compare quotes from the top insurance companies.

widget-location-pin

Age

Your age affects your car insurance premiums in Kentucky. Younger drivers who are considered inexperienced and thus more likely to get into accidents pay higher car insurance rates than more mature drivers.

For instance, car insurance for a 16-year-old driver in Kentucky costs an average of $3,944 per year, while a 40-year-old driver will pay significantly less at $1,405 per year.

Average Car Insurance Rates by Age in Kentucky

Scroll for more

swipe icon
  • State
    Average Driver (40-Year-Old)
    16-Year-Old
    25-Year-Old
  • Kentucky
    $1,405
    $3,944
    $1,568

Driving Record

Drivers with violations such as speeding tickets and DUIs pay higher premiums for car insurance since they are considered a high-risk category.

If you have a speeding ticket on your record in Kentucky, you will pay up to $277 more annually than a driver with a clean driving record. If you have a DUI, you will pay an average annual premium of $2,597 per year, $1,192 more than what the average driver with a clean record pays.

Average Car Insurance Rates Based on Driving Record in Kentucky

Scroll for more

swipe icon
  • State
    No Violation
    Speeding Ticket
    Accident
    DUI
  • Kentucky
    $1,405
    $1,683
    $2,147
    $2,597

Credit Score

Credit scores can significantly impact car insurance rates in Kentucky, and drivers with poor credit scores pay higher rates. Kentucky's average car insurance cost for a driver with a good credit score is $1,488 per year. This is up to $1,535 cheaper than the rate for a driver with a poor credit score.

Drivers with excellent credit scores pay even less at $1,187 per year, which is $300 less than the rate for a driver with a good credit score, and $1,835 less than the average for a driver with a poor credit score.

Average Car Insurance Rates by Credit Score in Kentucky

Scroll for more

swipe icon
  • State
    Excellent Credit Score
    Fair Credit Score
    Poor Credit Score
  • Kentucky
    $1,187
    $1,862
    $3,023

Car’s Make and Build

The make and model of your car will impact how much you pay for auto insurance in Kentucky. Older cars tend to be less expensive to insure since the value of a car depreciates as it gets older. This means you will pay more on average to insure a new car because it has a higher value.

Sports cars and luxury vehicles typically have higher repair and replacement costs, so they are more expensive to insure. Iit costs $1,172 per year on average to insure a Honda CR-V, while a Nissan GT-R costs $3,096 per year to insure.

You can use MoneyGeek’s calculator to check average rates for insuring your car make and model.

Auto Insurance Calculator

See how the Average Annual Auto Insurance Rates vary with the options chosen.

Kentucky
Female
30-65
Clean

Average Annual Auto Insurance Rates

Click the section of the wheel in your price range to see options.

low end

on average

high end

Click an insurer below to visit their review page or continue to your personalized quote.

USAA

How to Save on Car Insurance in Kentucky

Car insurance rates in Kentucky are lower than the national average, and you can find ways to save even more on your premiums. Some of the most effective ways to make your car insurance more affordable include the following.

  • This is an icon

    Shop around for quotes.

    Car insurance rates can vary widely depending on the insurer, so it is smart to compare quotes from three or more providers. You can use MoneyGeek’s quote tool to find the most affordable options for your unique needs.

  • This is an icon

    Bundle your policy.

    Most insurance companies offer discounts when you bundle your car insurance policy with another policy like home insurance. You can take advantage of bundling discounts to save on costs. You can look up the best companies for bundling discounts to find the best rates.

  • This is an icon

    Look for discounts.

    Depending on your profile, you may be eligible for various discounts on your car insurance premiums. You can look up discounts based on your age and other profile factors.

  • This is an icon

    Increase your deductible.

    A car insurance deductible is the amount of money you must pay out of pocket when you file a claim. The higher your car insurance deductible, the lower your premiums will be. Policies with low deductibles come with higher premiums.

  • This is an icon

    Consider pay-per-mile insurance.

    If you drive fewer than 12,000 miles annually, you can save on car insurance by opting for a pay-per-mile car insurance option which bases your premiums on how many miles you drive each month.

  • This is an icon

    Drop unnecessary coverage.

    In some cases, like when comprehensive car insurance premiums add up to more than 10% of your vehicle's cash value, it may be more practical to opt for minimum liability coverage. It’s a good idea to be careful about dropping coverage since you could risk being underinsured.

Frequently Asked Questions

You can read answers to frequently asked questions about car insurance in Kentucky below.

About the Author


expert-profile

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.