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Kentucky drivers pay high premiums for auto insurance. The reasons vary, but the average cost of an annual policy for a driver in Kentucky is a staggering $1,885. That’s more than double the annual amount for drivers in many other states, and it means paying for insurance is a budget-buster for many families. When it’s time to find a more affordable policy, Kentucky residents want to know where to look, what to do, and what tricks they have up their sleeves to save a few dollars here and there on insurance. Just because so many drivers pay this doesn’t mean it’s what you’re required to pay. If you have a clean credit report and driving history, chances are good you can find a much more affordable policy for your vehicles.

Start With These Companies

There are dozens of insurance agencies in various Kentucky cities you can choose from, but there are only a few that consistently come in with the lowest prices possible for consumers.

  • The Cincinnati
  • Progressive
  • Grange Mutual
  • Kentucky Farm Bureau
  • Geico

Historically, these cities offer far lower rates than others, which means you have a better chance of finding a more affordable policy when you look at one of them. It’s not a guarantee your rate will be lower, but you have a better chance of finding a cheaper policy here.

Know What Factors Determine Your Rates

Before you begin asking for discounts and searching for a new policy, you must become familiar with the many factors insurance companies use to determine your rates and eligibility for their insurance. For many, the idea is simple. These factors determine how likely you are to become engaged in an accident, to become the victim of theft, and how risk you are as an insured driver.

  • Your credit score
  • Your driving history
  • Your home address
  • Where you work and what you do
  • Your car

Your credit score provides insurance agencies with a good idea of what kind of person you are. It doesn’t tell the entire story, and it won’t cause you to be denied a policy. However, it does tell a story of how responsible you are with your finances. Insurance agencies use this to gauge how responsible you are as a whole, even if it’s not the entire picture and doesn’t tell the whole story. Your driving record is important because it shows insurance agencies how good or bad of a driver you are, so they know if they can offer you discounts or if they need to charge you more for your poor driving habits.

Where you live also matters. This is because many people who live in low economic regions are more likely to experience a theft. It also means most people in the same area are uninsured. You’ll pay more for insurance to make up for their lack of insurance, which is not always fair but it’s what insurance companies require of drivers. Your job also makes a difference in your premium. If you work a job that keeps you on the road often, that is risky to you, or that’s far from your home, you’ll pay more for insurance.

Finally, the type of car you drive is what makes a big difference in the rates you pay. Cars that are larger are typically safer, but cars with large engines are more dangerous. Newer cars have more safety features, and they cost less to repair.

Asking for Discounts

If you have good credit and a positive driving history, it’s a good idea to compare rates with at least three different Kentucky insurance companies. You can call your own insurance company and ask for a discount for being such a good customer for so long, let them know you joined a professional organization with a discount program, or that you are looking around. Now you compare rates. If you can get a better rate by bundling all your insurance needs, try that. There’s much you can do to get a better rate than the one you’re paying now, you just have to know where to look and how to ask for a better rate. You can do it, and you’ll be glad you did.