Compare Cheap Auto Insurance in Kentucky

Full coverage car insurance provides liability protection with higher limits as well as comprehensive and collision coverage. In Kentucky, the average full coverage premium is $2,782 per year, but Travelers has a lower average rate at $1,860 per year. USAA ($1,963 annually) and Kentucky Farm Bureau ($2,002 annually) also have below-average rates.

Kentucky requires a minimum amount of car insurance to drive legally, but it’s important to note that minimum coverage could leave you financially vulnerable in the event of an accident.

The average minimum coverage premium in Kentucky is $982 per year, but for military-affiliated drivers, USAA has the cheapest average at $595 annually. For those who don’t qualify for USAA, other budget-friendly options include Kentucky Farm Bureau ($598/year) and Travelers ($699/year).

Households with teen drivers face some of the highest insurance rates due to teens’ lack of driving inexperience. The average cost in Kentucky of insuring a teen driver is $7,852 per year, but USAA offers the lowest rate at $4,550 annually — a savings of 42 percent compared to the state average. Note that USAA is only available to military members, veterans, and their families, however. For those who don’t qualify for USAA, Travelers ($5,091 annually) and Auto-Owners ($6,219 annually) provide other competitive options.

cheapest provider for drivers with a speeding ticket is USAA; for military-affiliated drivers, their average rates are $2,148 per year, 32 percent less than the state average of $3,151. Other cheaper options include GEICO ($2,170 per year) and Travelers ($2,290 per year).

Having an at-fault accident within the past three years will likely increase your insurance rates. The Kentucky average for drivers with an accident is $3,847 per year, but Travelers offers the lowest rate at $2,424 annually — a 37 percent less than the state average. State Farm ($2,562 annually) and USAA ($2,592 annually) also have cheaper-than-average rates.

A DUI can have long-lasting financial and legal consequences, including much higher insurance premiums. The average cost of insurance for a driver with a DUI in Kentucky is $5,042 per year, but Travelers has a much lower rate at $2,607 annually on average. Shelter ($3,157 annually) and USAA ($3,177 annually) also have relatively lower average rates.

Kentucky allows insurers to consider credit history when calculating auto insurance rates. The statewide average for drivers with low credit is $5,240 annually, but GEICO has a significantly lower average rate at $3,077 per year — 41 percent cheaper than the state average. Other lower-cost options include USAA ($3,194 annually) and Travelers ($3,630 annually).

USAA has some of the highest scores for customer and claims satisfaction for auto insurance in Kentucky in recent J.D. Power studies. For nonmilitary drivers, Kentucky Farm Bureau and State Farm also perform well. While Auto-Owners underperformed on J.D. Power studies, the provider made the Honor Roll on CRASH Network’s Insurer Report Card, which surveys collision repair shops on insurers’ claims practices.

• Compare multiple quotes: The best way to find the cheapest rate is to get quotes from at least three providers. Each insurance company uses different criteria to determine premiums, so comparing options will help you identify the most cost-effective policy for your needs.
• Ask about discounts: Ask your insurer about discounts for things like bundling multiple policies, maintaining a clean driving record, or tracking your driving with a telematics program. Review the discounts offered by your provider and make sure you’re applying for all the ones you’re eligible for.
• Improve your credit score: In Kentucky, low credit can significantly increase your auto insurance premiums. Paying down debts, correcting errors on your credit report, or working with a credit counselor to boost your score can help you lower your insurance rates over time.
• Raise your deductible: A higher deductible can lower your premium, but be sure you can afford it in case of an accident. If you can afford it, a deductible of $1,000 is usually a good balance.

The cost of car insurance varies by location. Rates are usually higher in major cities due to increased density and risk of accidents and theft. Louisville has the highest average premium among Kentucky’s major cities at $2,953 annually, while Owensboro has the lowest at $2,106.

To legally drive in Kentucky, you must carry at least:

• $25,000 per person and $50,000 per accident in bodily injury liability
• $25,000 per accident in property damage liability⁴

Kentucky is a “choice” no-fault state — by default, drivers carry Personal Injury Protection (PIP) coverage of at least $10,000 per person, but they can choose to reject this coverage. Carrying PIP coverage increases your insurance premium, but it can provide significant savings in the event of a serious injury, as it helps cover medical expenses and lost wages without relying on another party’s insurance.

We analyze average premiums in Kentucky for full and minimum coverage for good drivers with good credit as well as various driver profiles, including those with DUIs, accidents, low credit, and teenagers. Full coverage averages use the following limits:

• Bodily injury liability: $100,000 per person/$300,000 per accident
• Property damage liability: $100,000 per accident
• Personal injury protection: $10,000
• Uninsured and underinsured motorist bodily injury: $100,000 per person/$300,000 per accident
• Comprehensive and collision: $500 deductible