It can be tricky to find cheap car insurance in Kentucky. Rates vary based on company, driver, and location. To find the best prices, Kentucky drivers should understand how their policies are priced, Kentucky car insurance requirements, and what to consider while shopping. 

The “Bluegrass State,” known for horse racing, bourbon, and bluegrass music, has also been recognized as one of the most expensive states for auto insurance policies until just a few years ago. While today the state may be closer to the national average when it comes to traffic accidents, traffic fatalities remain high

kentucky car insurance requirements
Awesome Again Horse at the Kentucky Derby that you may consider attending with cheap auto insurance KY. Photo by Johnny Jet

Some of the problems come down to increased use of alcohol, dangerous roads, and a demographic shift towards urban centers. Whatever the case may be, drivers in Kentucky must choose their auto insurance wisely to protect their health and their bank accounts.

Let’s take a look at the cheapest car insurance rates in Kentucky, how they are calculated, and where you can find them. But before we get into it, knowing the specific Kentucky car insurance requirements can help you narrow down what’s applicable to you and your family. 

Kentucky Car Insurance Requirements

According to the official Kentucky Transportation website, all drivers are required to adhere to the following rules:

  • An owner may not operate a vehicle in Kentucky until insurance has been obtained.
  • An owner who fails to maintain insurance on his vehicle shall have his vehicle registration revoked. The vehicle owner and vehicle driver, are subject to a fine of $500-$1,000, up to 90 days in jail, or both in some cases.
  • All owners of motor vehicles in Kentucky are required to carry minimum liability coverage. This means liability coverage of $25,000.00 for all claims for bodily injury damages sustained by any one person and not less than $50,000.00 for all physical injury damages suffered by all persons as a result of any one accident. Additionally, it means $25,000.00 coverage for all property damage as a result of any one accident.
  • Alternatively, a policy with a single limit of $60,000.00 is acceptable. Also, the policy must provide basic reparations benefits unless the insured vehicle is a motorcycle.
  • KRS 186.020 states that a person who brings a motor vehicle into the Commonwealth of Kentucky shall make an application for registration within fifteen (15) days in the county in which the person resides.
  • KRS 186.430 states that a student can keep home-state registration and insurance as long as they hold a current student identification card from a Kentucky college, university, or technical college in their possession at all times when driving in the Commonwealth of Kentucky.
  • Active duty military personnel can use out of state insurance to title and register any vehicle titled in their name here in Kentucky. 
  • If a vehicle is registered in Kentucky, it must be insured by an insurance company authorized to do business in Kentucky, and you must maintain insurance on that vehicle.

Kentucky is a No-fault Insurance State

One thing to know about Kentucky car insurance requirements is that Kentucky is a no-fault insurance state. When most people hear “no-fault,” they think it relates to responsibility for an auto accident. This isn’t exactly true. So, what does “no-fault” coverage mean?

“No-fault” coverage also is referred to as Personal Injury Protection (PIP). In basic PIP coverage, your insurance company pays you for medical expenses, lost wages, and similar “out-of-pocket” costs due to an injury occurring in an automobile accident, regardless of who is at fault for the accident.

It also means that you cannot recover these and other damages from the at-fault party unless your injuries exceed certain thresholds.

Insurance on all motor vehicles, except motorcycles, must include basic PIP coverage. Basic PIP benefits pay up to $10,000 for medical expenses, lost wages up to $200 per week, replacement services, as well as additional survivor’s benefits.

How Kentucky Car Insurance Rates are Determined

Kentucky car insurance requirements are one thing, but a variety of other factors also dictate an individual’s insurance rates. Some of these factors are out of your control, such as age and gender, but the most significant factors come down to your driving record and credit score.

When an insurance provider assesses you as a customer, they will look at the following factors:

Location – Generally, if you live, commute, or work in an urban area (like Louisville, Lexington, or Bowling Green), your rates will be higher, as accidents are more prevalent in densely-populated regions. However, other location-based factors are important, too, like adverse weather conditions and reports of vandalism.

Age – Statistically, young and senior drivers get in more accidents. This means that at both ends of the driving age spectrum, you should expect a higher premium. The median age in Kentucky is 38.9, which is on par with the national median age.

Gender – According to the National Highway Traffic Safety Administration (NHTSA), men are more likely than women to get in accidents. Additionally, men get more DUIs and traffic violations and drive more miles per year. For these reasons, your gender will affect your insurance rates. 

Marital Status – According to research, married couples get in fewer accidents, and therefore pose a smaller risk for insurance providers.

Driving Experience – While this metric is similar to age, it is still slightly different. Usually, the older you are, the longer you have been driving. But, that is not always true, especially for those who commute to work or drive for a living. Nonetheless, people who have held a driver’s license for longer are more experienced, and therefore pay lower premiums.

Driving Record – A driver’s record is one of the most important factors that insurance providers consider. If you have a history of many speeding tickets, DUIs, or other infractions, you will have to pay more. Kentucky’s rate of traffic incidents is slightly lower than the national average.

Claims Record – It’s important to consider how many claims you have made to insurance providers in the past. Any claim can affect your insurance rate. Not-at-fault claims are likely to only increase your rate slightly, while you can be confident an at-fault claim will cause it to spike.

Credit History – Your credit is a good indicator of how financially responsible you are. Still, the research also shows that people with low credit tend to file more claims, making them a higher risk for insurance providers.

Previous Insurance Coverage – If you have maintained auto insurance without any gaps, your new insurance provider will see this as a good sign. However, if you went for several years, months, or even days without any insurance, you will be seen as high-risk. Car insurance rates jump an average of 5.7 percent for drivers who let their policies lapse.

Vehicle Type – Insurance companies use vehicle safety ratings as a factor in your insurance rate. Rates can be determined by your vehicle’s safety rating or by the likelihood of your car being targeted for vandalism or theft.

Annual MileageAnother significant factor in your insurance rate is your yearly mileage. How much you drive directly impacts your chances of getting in an accident. No matter how you use your vehicle (personal or business use), if you put a lot of mileage on your car, you are more likely to file a claim with your insurance provider.

Number of Policies – Finally, the type of insurance and level of coverage you choose will determine your rates. The more policies you have (liability, comprehensive, uninsured motorist, etc.), the more you will need to pay.

Cheapest Car Insurance in Kentucky

Car insurance in Kentucky is close to the national average when it comes to car insurance rates. This comes as great news to Kentucky drivers, as just a few years ago, it was considered one of the most expensive states for auto insurance in the union.

There are many options for Kentuckians to consider when looking for a quote. There seem to be a few companies that perform the most favorably across the board while other popular companies charge significantly higher than average prices for the same coverage.

For example, policies from Nationwide, Progressive, GEICO, and Allstate all cost more than double the state average. Shockingly, with Allstate, the sample driver we used to collect policy data was priced at almost $6,200 per year—over four times the state average and significantly higher than other companies.

This is why Kentucky drivers need to compare at least three different quotes to find affordable auto insurance.

Cheapest Minimum Coverage Policies in Kentucky

Let’s take a look at the cheapest car insurance companies in Kentucky for a minimum coverage policy. These policies will cover only the standard liability insurance and personal injury protection required by Kentucky law.

Our figures are based on thousands of insurance rates from ZIP codes across Kentucky. The sample driver we used is a 30-year old male with a fair credit score and a clean driving record.

ProviderAnnual RateMonthly Rate
State Farm$621$52
Kentucky Farm Bureau$701$58
USAA*$718$60
Progressive$1,607$134
GEICO$1,610$134
Nationwide$1,766$147
Allstate$2,346$196

* USAA is only available to military members, veterans, and their families.

Kentucky residents looking for the absolute cheapest option can get a minimum-coverage policy. However, in most cases, it’s recommended that you buy as much liability insurance as you can afford. Better coverage will protect you from the often devastating costs of bodily injury or property damage to others if you are at-fault in an accident.

Cheapest Full-Coverage Policies in Kentucky

For the best coverage possible, drivers should invest in full-coverage insurance policies. Full coverage insurance includes:

  • Comprehensive insurance – protects you from non-driving related dangers like hail or flood damage.
  • Collision insurance – protects you from the costs of repairing your vehicle after a collision when you’re at fault.

Below, you’ll find a table of rates from the top-performing insurance companies in Kentucky. The companies are ranked from the lowest prices to the most expensive:

ProviderAnnual RateMonthly Rate
State Farm$1,726$144
USAA*$2,085$174
Kentucky Farm Bureau$2,205$184
Nationwide$3,801$317
Progressive$3,890$324
GEICO$4,019$335
Allstate$6,198$517

* USAA is only available to military members, veterans, and their families.

Across Kentucky as a whole, State Farm and Kentucky Farm Bureau appear to be the cheapest widely available options. These two insurers, along with military-insurer USAA, were the only Kentucky car insurance companies beat state average.

It’s important to note that individual rates will vary by location and driver. Insurers like North Carolina Farm Bureau, Allied, and Titan provide low prices for specific areas and select applicants.

To get a deeper understanding of the cheapest auto insurance in Kentucky, let’s take a look at rates by city.

Cheapest Kentucky Car Insurance Rates by City

Aside from your driving history, location is one of the most critical factors insurers use to rate drivers.  A city’s population, crime rates, weather conditions, cost of living, and even specific roads can all affect the amount you pay each year.

Individuals who live and work in rural areas typically have the lowest rates. However, the majority of Kentucky residents live in urban areas, where prices tend to be higher.

The table below shows the average yearly auto insurance rates for 50 of the most populated cities in Kentucky. 

CityAvg. Annual RateAvg. Monthly Rate
Fort Thomas$2,361$197
Cold Spring$2,417$201
Owensboro$2,430$203
Edgewood$2,444$204
Bowling Green$2,467$206
Florence$2,471$206
Alexandria$2,509$209
Independence$2,526$211
Covington$2,549$212
Richmond$2,549$212
Newport$2,560$213
Murray$2,574$215
Versailles$2,592$216
Franklin$2,609$217
Nicholasville$2,618$218
Lexington$2,620$218
Glasgow$2,620$218
Berea$2,622$219
Hopkinsville$2,634$220
Wilmore$2,636$220
Georgetown$2,658$222
Frankfort$2,658$222
Lawrenceburg$2,660$222
Russellville$2,661$222
Mayfield$2,661$222
Oak Grove$2,662$222
Henderson$2,664$222
Danville$2,682$224
Cynthiana$2,691$224
Winchester$2,697$224
Harrodsburg$2,737$228
Elizabethtown$2,739$228
Radcliff$2,751$229
Madisonville$2,759$230
Maysville$2,786$232
Campbellsville$2,863$239
Morehead$2,874$240
Leitchfield$2,877$240
Shelbyville$2,882$240
Ashland$2,887$241
Flatwoods$2,924$244
Jeffersontown$2,974$248
Bardstown$3,097$258
Mount Washington$3,148$262
Somerset$3,222$269
London$3,390$283
Corbin$3,419$285
Louisville$3,848$321
Middlesborough$3,892$324
Pikeville$4,309$359

 

As you can see, your city can increase, or even double, the cost of your insurance rate in Kentucky.

There isn’t a direct connection between city population and insurance cost. The highest population city, Louisville, is one of the most expensive. In contrast, Lexington and Bowling Green, the second and third most populous cities, respectively, are some of the cheapest when it comes to auto insurance.

Cheap Kentucky Auto Insurance in the 5 Major Cities

Now, let’s take a closer look at the five most populated cities in Kentucky and compare their auto insurance rates:

Car insurance quotes in Louisville, Kentucky

  • #1 most populous city in Kentucky.
  • #47 cheapest city out of 50.
  • The average annual rate is $3,848, which is 13% higher than the state average.
  • For our driver, the cheapest auto insurance company is State Farm at $1,776 per year.
  • The only top city that is more expensive than the state average

Car insurance quotes in Lexington, Kentucky

  • #2 most populous city in Kentucky.
  • #16 cheapest city out of 50.
  • The average annual rate is $2,620, which is 23% lower than the state average.
  • For our driver, the cheapest auto insurance company is State Farm at $1,257 per year.

Car insurance quotes in Bowling Green, Kentucky

  • #3 most populous city in Kentucky.
  • #5 cheapest city out of 50.
  • The average annual rate is $2,467, which is 28% lower than the state average.
  • For our driver, the cheapest auto insurance company is State Farm at $1,165 per year.

Car insurance quotes in Owensboro, Kentucky

  • #4 most populous city in Kentucky.
  • #3 cheapest city out of 50. 
  • The average annual rate is $2,430, which is 29% lower than the state average.
  • For our driver, the cheapest auto insurance company is State Farm at $1,162 per year.
  • Cheapest city among the top five.

Car insurance quotes in Covington, Kentucky

  • #5 most populous city in Kentucky.
  • #9 cheapest city out of 50. 
  • The average annual rate is $2,549, which is 25% lower than the state average.
  • For our driver, the cheapest auto insurance company is State Farm at $1,315 per year.

Kentucky Car Insurance Requirements

With high variation among policies based both on location and company, it’s clear that Kentucky drivers need to keep a sharp eye out for the best rates. We advise Kentuckians to get multiple quotes when shopping for insurance. Knowing Kentucky car insurance requirements is also helpful to help you plan. 

Across the board, State Farm, Kentucky Farm Bureau, and USAA have the cheapest insurance rates in Kentucky. These companies should be considered first as they are reputable and inexpensive for drivers all over the state.

Going forward, you should keep in mind that keeping your rate low means driving safe, keeping the mileage low, maintaining coverage regularly, and keeping a good credit score. These factors can cost you thousands of dollars per year.

If you’re interested in more guides like this, check out our other car insurance guides and resources.

Johnny Jet Editorial