Who Has the Cheapest Car Insurance in Kentucky?

April 3rd, 2021 by

When purchasing a new or preowned vehicle, it’s important to find out how much you’ll pay to insure the make and model you have in mind. If you live in Kentucky and need an auto policy, review this guide designed to help you find the cheapest car insurance in KY.

Who Actually Has the Cheapest Car Insurance?

According to data from the website ValuePenguin, you’ll find the best rates for minimum Kentucky auto insurance coverage with Kentucky Farm Bureau. This insurer offers average rates of $698 per year. Other affordable options in the state for minimum auto insurance coverage include:

  • Allstate: $1,442
  • Farm Bureau: $698
  • GEICO: $1,184
  • Nationwide: $2,065
  • Progressive: $978
  • State Farm: $3,735
  • USAA: $744

State Farm offers the cheapest full auto insurance policy at an average cost of $1,610 per year. Other companies with affordable full coverage in Kentucky include Kentucky Farm Bureau at a cost of $2,099 per year and Progressive at a cost of $2,579 per year. 

No matter which insurer you choose, you can save money on auto insurance by shopping around for discounts with various providers.

What Is the Average Cost of Auto Insurance in Kentucky?

Image via Flickr by iLoveMountains.org

Image via Flickr by iLoveMountains.org

ValuePenguin reports that the average Kentucky driver pays about $1,549 for annual auto insurance. The site used sample driver characteristics to gather quotes for hundreds of zip codes from seven large Kentucky insurers.

Drivers who have an accident claim in Kentucky pay about 48 percent more for auto insurance. The website recommends choosing State Farm or Kentucky Farm Bureau if you fall into this category for an average rate increase of 17 percent.

Another source, The Zebra, estimates that drivers in Kentucky pay about $2,050 a year for auto insurance. This exceeds the national average policy price by nearly 44 percent.

The Zebra also calculated the average cost of auto insurance by age in Kentucky. While teen drivers across the U.S. pay more for insurance because of their higher accident risk, the state has the highest rates for 16-year-old motorists at an average of $12,054 per year. Average annual premiums by age in Kentucky are as follows:

  • 17 – $9,316
  • 18 – $7,720
  • 19 – $4,878
  • 20s – $2,774
  • 30s – $2,044
  • 40s – $1,939
  • 50s – $1,824
  • 60s – $1,860
  • 70s – $2,272

What Is the Minimum Auto Insurance Coverage in Kentucky?

To drive legally in Kentucky, motorists must have at least:

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

In lieu of these separate policies, Kentucky allows you to carry a single auto policy with coverage of at least $60,000. If you recently moved here from another state, you have 15 days to update your auto registration, which requires proof of a valid Kentucky car insurance policy.

If you drive without the appropriate auto insurance, the state will revoke your vehicle registration and charge you a fine of $500 to $1,000. You could also receive up to 90 days in jail.

What Is Considered Full Coverage Auto Insurance in Kentucky?

You have full coverage if you have comprehensive and collision policies in addition to the minimum Kentucky liability insurance and PIP coverage. ValuePenguin recommends carrying full coverages on cars valued at $3,000 or more.

In addition to adding policies to your auto insurance coverage, you can also expand the limits of your liability coverage. Doing so prevents out-of-pocket costs if you cause an accident and the related injury and repair expenses exceed the limits of your liability insurance. 

Do I Need Full Coverage on a Financed Car?

According to CarInsurance.com, most auto lenders require borrowers to have full insurance coverage when they finance a vehicle. Because the bank or loan company owns the car until you pay it off, they want you to carry sufficient insurance to protect your investment.

To determine how much auto insurance you need, U.S. News and World Report recommends comparing the value of your personal assets to the value of your insurance policy. For example, if you have $100,000 in home equity and carry only the minimum $25,000 in bodily injury liability, a person with serious injuries resulting from an accident in which you were at fault can sue you and claim $75,000 in the value of your home. 

Select a policy that covers the value of your assets, but do not overpay. If you have no assets except your vehicle, you may not need additional coverage beyond the minimum.

Is Kentucky a No-Fault State?

Kentucky uses no-fault laws for auto insurance, which means that each driver must carry PIP insurance to cover his or her own medical bills in a crash, regardless of who caused the accident. As the Insurance Information Institute notes, each driver in a no-fault state files a claim with his or her own auto insurance policy. 

According to the NOLO Legal Encyclopedia, Kentucky drivers can sue at-fault motorists only in these circumstances:

  • If you have opted out of Kentucky’s no-fault laws, which allows you to sue after an accident but also leaves you vulnerable to lawsuits. You must opt out in writing when you buy your insurance policy if you wish to do so.
  • You have at least $1,000 in medical expenses from an accident caused at least in part by another driver.
  • The accident resulted in permanent bodily function loss, permanent injury, bone fracture, or permanent disfigurement.

If your injuries fit the criteria to file a lawsuit, you only have one year from the accident date to do so under state law. Lawsuits for property damage only have a two-year statute of limitations in Kentucky.

Now that you have the comprehensive facts about purchasing an affordable auto insurance policy in Kentucky, it’s time to visit the team at Oxford Ford Lincoln Mercury to find your next vehicle. We have the largest selection of cars, trucks and SUVs in the Louisville area, so stop by today and browse our extensive showroom.

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