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, Louisville, Kentucky residents and residents in other cities of Kentucky 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.
Auto Insurance Statistics in Kentucky
Research done by NAIC.org indicates that the auto insurance premiums in Kentucky seem to be rising steadily. The data reflects Kentucky’s auto insurance rates in comparison to national averages.
Average Car Insurance Premiums State Vs. National
Drunk Driving Fatalities
Drunk driving is an unfortunate reality in the United States. Examining the statistics regarding drunk driving in Kentucky can provide insight into the level of risk involved in driving locally.
The National Highway Traffic Safety Administration has done a tally of the number of drunk driving fatalities in Kentucky vs. nationwide.
Drunk driving fatalities in Kentucky from 2010 to 2014
Teen Drinking and Driving
Teen drinking and driving in Kentucky is one of the concerns that drivers have to be aware of. Thankfully the rate of teen drinking and driving in the state is significantly lower than the national average. The below statistics represent the percentage of Kentucky drivers that are teenagers who are drinking and driving when compared with national averages.
Teen Drinking & Driving in Kentucky vs. Nationwide
Car Theft in Kentucky
Car theft in Kentucky is significantly lower than the reported national averages. However, car thefts still take place which requires that motorists carry some type of vehicular insurance to protect themselves. The below data shows how Kentucky ranks against other states nationwide in the number of car thefts.
Vehicle thefts by rank nationwide vs. Kentucky
Uninsured Motorists in Kentucky
When buying insurance, it is suggested to consider obtaining uninsured and underinsured motorist coverage. If a car accident takes place where the other driver doesn’t have insurance, you will need to carry the costs unless you have this type of coverage in place. The below data shows how well Kentucky ranks in the total number of reported uninsured motorists in the state in the year 2015.
Percentage of uninsured drivers (Top States in 2015)
Source: Insurance Information Institute
Start With these Companies
There are dozens of insurance agencies in various Kentucky cities including Louisville that you can choose from, but there are only a few that consistently come in with the lowest prices possible for consumers.
- The Cincinnati
- Grange Mutual
- Kentucky Farm Bureau
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 risky 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 repayment patterns you have. 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. Living in Louisville may be different for people living in other cities. 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 and then you compare rates. If you can get a better rate by bundling all of your insurance needs, try that. There’s so 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.
Types of Auto Insurance Coverage in Kentucky:
- Comprehensive Insurance Coverage
- Bodily Injury Liability Insurance
- Uninsured/Underinsured Motorist Bodily Injury Insurance
- Uninsured Motorist Property Damage Insurance
- Property Damage Liability Insurance
Minimum Requirements For Car Insurance in Kentucky
There are minimum requirements for car insurance in the state of Kentucky. According to the Kentucky Department of Insurance, it is mandatory to have at least liability coverage as well as no-fault personal injury protection.
Liability Coverage minimums for the state of Kentucky:
$10,000 for property damage.
$25,000 per single bodily injury or death
$50,000 per multiple bodily injury or deaths
Personal Injury Protection (PIP or No-Fault)
$10,000 for lost wages, medical expenses, and replacement services for accidents involving injuries.
Source: Kentucky Department of Insurance
Cheap Auto Insurance Discounts
If you want to save even more on the price you pay for car insurance, it is recommended to get auto insurance discounts. Auto insurance discounts can reduce the amount that you have to pay each month for car insurance. At CheapAutoInsurance.co, our goal is to help you save as much as you can on your auto insurance rates. Browse the list below to see if any of the discounts apply to your situation.
- Anti-theft discount
- Mature driver discount
- Military or Veteran discount
- Bundling insurance policies discount
- Senior citizen discount
- Car safety features discount
- Good student discount
- Defensive driving discount
- Low-mileage discount
- Multi-car auto insurance discount
- Infrequent usage discount