The Cheapest Auto Insurance Companies in Kentucky in 2024

The Kentucky Derby and the University of Kentucky in Lexington may put the Bluegrass State on the map, but the state is also known for higher-than-average car insurance rates. Kentucky drivers pay an average of $199 per month for car insurance, according to our research.

But it’s possible to get cheaper car insurance rates in Kentucky if you know where to look. Several auto insurers in Kentucky — including Auto-Owners — offer rates well below that average.

Read our guide to see which auto insurers offer the lowest rates in the state and the strategies you can use to lower your premiums.

Key Takeaways:

• Auto-Owners offers the lowest average car insurance premium in Kentucky, at $92 per month.
• Drivers in Kentucky pay an average of $178 per month for liability-only insurance and $238 per month for full coverage.
• Kentucky is a no-fault state that requires drivers to get personal injury protection (PIP).

In This Article:

• Average Price for Car Insurance in KY
• Cheapest KY Car Insurance Companies
• Best Kentucky Insurers of 2024
• Average Kentucky Rates by Age and Driving Record
• Kentucky Auto Insurance Requirements
• How to Get Cheap Car Insurance in KY
• Frequently Asked Questions

How Much Is Car Insurance in Kentucky?

The average cost of car insurance in Kentucky is $199 per month, but your personal premium will depend on several factors, such as where you live and your driving record.

The table below shows how Kentucky’s average liability and full-coverage rates compare to the national average.

In Kentucky, the average cost of liability coverage is $178 per month, while full-coverage car insurance is $238 per month, according to Compare.com data. Your premiums may be higher or lower depending on your personal risk factors and coverage.

Kentucky’s Cheapest Car Insurance Companies

Though the average cost of car insurance in Kentucky is $199 per month, you can still reduce your costs. By comparing auto insurance quotes, evaluating discounts, and getting the right coverage, you can find the best rates for your situation.

Let’s take a closer look at the five companies that offer the cheapest car insurance in Kentucky, based on our research.

Auto-Owners offers the cheapest car insurance rates in Kentucky, with an average cost of $92 per month. But keep in mind that this average is a guideline — your costs can differ depending on your unique driver profile.

You may get lower rates elsewhere, so it makes sense to shop around and review multiple car insurance quotes before buying your policy. Let’s look at the best auto insurance companies for specific demographics of drivers.

Compare.com’s Best Kentucky Insurance Companies of 2024

Finding affordable car insurance coverage in Kentucky is key to lower costs. While there isn’t one insurance company that’s the “best” for everyone, the good news is many good options are available.

Below, we’ll share our top picks for the best car insurance companies in Kentucky for different types of drivers and needs. We picked the following companies based on overall affordability, discounts, coverage options, and customer satisfaction and ratings.

Best for teens and young drivers: Auto-Owners

• Average premium: $157 per month
• Compare.com Rating: 4.43 out of 5

Pros:

• Multiple student discounts available
• Among the lowest rates for teen drivers
• Road-trouble service coverage available

Cons:

• Low customer rating on BBB
• “Poor” rating on Trustpilot
• Must work with an independent agent

Auto-Owners is among the cheapest auto insurers in Kentucky and offers some of the most affordable rates to teens. On top of already low rates, the company offers several student discounts, including one for good students. Getting a “B” average or better can reduce the overall cost by up to 20%.

Best for discounts: GEICO

• Average premium: $109 per month
• Compare.com Rating: 4.65 out of 5

Pros:

• Competitive rates
• Plenty of available discounts
• AM Best financial strength rating of A++ (Superior)

Cons:

• Many customer complaints on BBB
• “Bad” rating on Trustpilot
• Potentially frustrating claims process

Kentucky drivers who choose GEICO pay $109 per month for car insurance. GEICO’s low rates, in addition to the company’s generous discounts, can help lower costs even more for budget-minded drivers. Discounts include vehicle equipment, good student, and safe driver. And if you insure multiple vehicles with the company, you could earn up to 25% off your policy.

Best for military members: USAA

• Average premium: $118 per month
• Compare.com Rating: 4.91 out of 5

Pros:

• Military on-base discount
• Highly rated mobile app
• A+ rating on BBB

Cons:

• Low customer satisfaction on Trustpilot
• High number of customer complaints on BBB
• Gap insurance not available

Kentucky has 30,755 active-duty military members, according to data from the Defense Manpower Data Center. USAA offers some of the most affordable car insurance rates in Kentucky — but only to military members and veterans.

The insurer is an ideal option if you’re looking for military-specific discounts. You can potentially save even more through the company’s SafePilot program, which could knock up to 30% off for safe driving.

Cheapest State-Minimum Car Insurance in Kentucky

Different factors affect your rates, including the coverage levels you choose. State-minimum liability coverage is the cheapest policy you can get. If you cause an accident, it’ll cover injuries and damage to the other party and their vehicle. But it won’t cover your injuries or damage.

The table below highlights the cheapest auto insurers for liability insurance and each company’s monthly premium.

Auto-Owners offers Kentucky drivers the cheapest liability insurance, with an average cost of $75 per month, according to our data.

That said, liability insurance probably won’t provide the protection you need, so insurance experts recommend getting higher coverage limits. If you lease or finance your car, your lender will likely require you to get full coverage for the greatest protection.

Cheapest Full-Coverage Car Insurance in Kentucky

Purchasing full-coverage auto insurance will protect you and your car, but it comes at a higher cost. In addition to liability insurance, full coverage includes comprehensive coverage and collision coverage. These coverages pay for collisions with other vehicles or objects, regardless of fault. They also cover non-collision incidents, such as fire, debris, or vandalism damage.

The table below shows the five cheapest companies for full coverage in Kentucky and each company’s average monthly premiums.

Auto-Owners is the cheapest option in Kentucky for full-coverage car insurance. The company’s average premium is $109 per month, according to Compare.com data.

Car insurance companies consider many factors when setting rates. That’s why it’s crucial to know which companies offer the cheapest policies to get the best rate possible.

Let’s explore how factors like your age and driving record affect rates.

Compare Kentucky Auto Insurance Rates by Age

Your age also influences car insurance rates. It’s one of the main factors insurance companies consider, as it reflects your experience and your statistical likelihood of an accident. Teen drivers have higher rates of accidents, while senior drivers have fewer. As you age, costs go down, but there’s a slight uptick in cost once you reach age 70.

Here are the average car insurance rates for various age groups and the cheapest insurer for each group.

Cheapest car insurance for Kentucky teens: Auto-Owners

Teen drivers are by far the most expensive age group to insure because of their limited driving experience. It’s not just lack of experience causing a surge in rates but risky driving as well.

Kentucky teens only make up 6% of the state’s driving population, but they’re involved in about 18% of fatal car crashes, according to the Kentucky Office of Highway Safety.

Teens in Kentucky pay an average of $157 per month with Auto-Owners, according to Compare.com data.

Cheapest car insurance for Kentucky seniors: Auto-Owners

As you approach retirement age, you can expect to enjoy some of the lowest car insurance rates of all age groups. Senior drivers have extensive driving experience and generally drive less which translates to cheaper rates. We found that Auto-Owners charges drivers in their 70s an average of $71 per month — the lowest rates of any insurer.

Compare Kentucky Auto Insurance Rates by Driving Record

Your driving record record is another important factor that affects your car insurance rates. Insurers view driving history as a critical indicator of how likely you are to file a claim in the future. Drivers with a clean driving record generally qualify for the best rates. But if you receive a traffic infraction such as a ticket, DUI, or accident, your risk profile goes up — and so do your premiums.

The table below shows the average monthly premium for different driving records and the cheapest insurer for each.

Cheapest car insurance in Kentucky after a ticket: State Farm

Getting a speeding ticket will cause your auto insurance rates to go up. A single speeding ticket increases national average premiums by 27%, according to Compare.com data.

State Farm is the cheapest auto insurer in Kentucky for drivers with one speeding ticket, with an average rate of $117 per month. That’s much less than the overall monthly average of $275.

Cheapest car insurance in Kentucky after an accident: Auto-Owners

At-fault accidents can be jarring for you and your budget. Causing a car accident is a major infraction that puts everyone at risk. The potential for damage and injury is high, so insurance companies will raise your car insurance rates. After just one at-fault accident, national average rates rise by 34%, according to Compare.com data.

Auto-Owners offers the cheapest coverage to drivers in Kentucky after an accident, with an average rate of $120 per month.

Cheapest car insurance in Kentucky after a DUI: Auto-Owners

Safe driving means being in total control of your vehicle. When you drive under the influence (DUI), mind-altering substances affect coordination and decision-making. A DUI can have a lasting effect on your car insurance rates. In fact, average rates skyrocket by 50% after just one DUI, according to Compare.com data.

Auto-Owners is the cheapest option in Kentucky after a DUI, according to our research. The company charges an average premium of $143 per month.

Kentucky Auto Insurance Requirements

Kentucky requires insurance on all vehicles registered in the state. The state-mandated minimum coverages are:

• Bodily injury liability: $25,000 per person, $50,000 per accident
• Property damage liability: $25,000 per accident
• Personal injury protection (PIP): $10,000 per person, per accident

You may also opt for a policy with a single limit of $60,000 instead.

Personal injury protection and no-fault insurance in Kentucky

Kentucky is a “no-fault” state, meaning each driver’s car insurance covers their own injuries and damage up to a certain limit, regardless of who caused the accident.

As a result, Kentucky requires all car insurance policies in the state to include PIP coverage. This helps cover medical expenses, lost wages, or funeral costs for drivers and passengers after a car accident.

Kentucky requires policies to provide minimum PIP limits of $10,000 per person per accident, but you can opt for higher limits.

Penalties for driving without auto insurance in Kentucky

Kentucky penalizes drivers who drive without insurance. If get into an accident or an officer pulls you over, and you can’t provide proof of insurance, the state may revoke your vehicle registration and issue you a fine between $500–$1,000. You could also spend up to 90 days in jail.

How to Get Cheaper Car Insurance in Kentucky

Finding affordable car insurance can be challenging no matter where you live, but there are strategies you can follow to find lower rates.

Jeffrey L. Brewer, division vice president of public affairs at the American Property Casualty Insurance Association, recommends a few strategies:

• Increase your deductible. A higher deductible can lower your premiums — but make sure you can afford the extra expense if you file a claim.
• Remove non-essential coverages. Consider whether you really need full glass coverage, rental reimbursement, and roadside assistance coverage. Dropping them can lower your monthly premiums.
• Consider usage-based insurance. If you don’t drive a lot, usage-based programs that base your premiums on your driving habits and mileage can provide substantial savings.
• Take advantage of discounts. Many insurance companies offer discounts for things like safe driving, having multiple policies with the same company, or installing an anti-theft device on your vehicle.
• Shop around. Regularly compare car insurance quotes from other insurers to see if there’s a better match for coverage and cost.

Kentucky Auto Insurance FAQs

If you want to know more about auto insurance in Kentucky, here are answers to some of the most commonly asked insurance questions in the Bluegrass State.

What’s the cheapest auto insurance company in Kentucky?

Auto-Owners is the cheapest auto insurance company in Kentucky, with an average rate of $92 per month, according to data from Compare.com. That said, the rates you qualify for will depend on your unique driver profile.

How much is car insurance in Kentucky?

Car insurance in Kentucky costs drivers an average of $199 per month, according to Compare.com data. Keep in mind that your premiums can vary depending on your level of coverage, driving history, location, age, and other factors.

Why is Kentucky car insurance so high?

The cost of car insurance in Kentucky is high due to several factors. Kentucky is a no-fault state with minimum-coverage requirements that include purchasing personal injury protection coverage. Plus, the state has seen an increase in highway fatalities, which may also drive up costs.

Does Kentucky require SR-22s?

No, Kentucky doesn’t require high-risk drivers to file SR-22s. But if you have an SR-22 in another state, you should maintain it as required by that state. If you don’t maintain the SR-22 and a police officer stops you for a traffic violation, the state may suspend your license.

Data Methodology:

Data scientists at Compare.com analyzed more than 50 million real-time auto insurance quotes from more than 75 partner insurers in order to compile the rates and statistics seen in this article. Compare.com’s auto insurance data includes coverage analysis and details on drivers’ vehicles, driving records, insurance histories, and demographic information.

All the rates listed in this article have been collected from a combination of real Compare.com quotes and external insurance rate data gathered in collaboration with Quadrant Information Services. Compare.com uses these observations to provide readers with insights into how auto insurance companies determine their premiums.

Sources:

1. Better Business Bureau, “Auto-Owners Insurance Group,” accessed July 3, 2024.
2. Trustpilot, “Auto-Owners Insurance,” accessed July 3, 2024.
3. Insurance Information Institute, “Auto insurance basics—understanding your coverage,” accessed July 3, 2024.
4. Insurance Information Institute, “What determines the price of an auto insurance policy?” accessed July 3, 2024.
5. Kentucky Office of Highway Safety, “Driving Tips for Teens and Parents,” accessed July 3, 2024.
6. Kentucky Transportation Cabinet, “Mandatory Insurance,” accessed July 4, 2024.
7. Kentucky Department of Insurance, “No Fault Rejection/Verification (PIP),” accessed July 4, 2024.
8. Commonwealth of Kentucky Transportation Cabinet, “Kentucky Officials Announce Increase in Highway Fatalities Last Year,” (pg. 1) accessed July 4, 2024.