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.
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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.
State-specific factors like mandatory PIP and high rates of car thefts and uninsured motorists can also affect your rates.
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.
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.
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:
- Insurance company
- 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
Kentucky’s State Average
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.
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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
Average Driver (40-Year-Old)
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
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
Excellent Credit Score
Fair Credit Score
Poor Credit Score
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.
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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.
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.
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.
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.
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.
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.
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.
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