Residents of Kentucky typically fall into one of three market divisions: preferred, for low-risk drivers with clean records; standard, for average-risk drivers with a few tickets or accidents on their records or are insuring higher-risk drivers; and non-standard, for high-risk drivers or those with several or major offenses on their records. The preferred market drivers typically enjoy the best car insurance rates in Kentucky, though standard market drivers can still get affordable auto insurance in Kentucky. Unfortunately, though, non-standard drivers typically have the most costly insurance policies.

Know Your Rates

Auto insurance rates are calculated based on every driver in a household. Some factors are out of your control, but there are also some that you can do something about:

• Age. Licensed teenage drivers make up only 6% of Kentucky’s drivers, yet they are involved in 20% of all accidents. Because they are so much more likely to be involved in an accident than older driver, their rates are much higher.
• Gender. Statistics show that males, especially those under 25, are more likely to be involved in an accident than young female drivers, so they will pay higher rates.
• Driving record and claims history. Every time you have a collision or are convicted of certain violations, you may see a rate increase. For this reason, safe drivers will receive the lowest auto insurance rates in Kentucky.
• Geographical area. In some parts of Kentucky, insurers might base rates on the cost of potential car repairs based on the number of shops or limited competition in a given area. They might also consider the proximity of the nearest emergency medical facilities. The number of accidents in an area and the characteristics of an average local driver may also be considered.
• Make, model, and year of the vehicle. Generally, owners of sports cars will pay higher rates than owners of family-friendly or economy vehicles. High-performance cars are more likely to be stolen and are more expensive to repair.
• Credit history. Companies will look at your credit information to determine whether or not to issue or renew your policy, and it can also affect the rate you get on your policy. In Kentucky, an insurance company can not decline or cancel coverage based solely on a poor credit score or a lack of credit history.

Lower Your Rates

The Kentucky Department of Insurance has several tips for drivers to keep their insurance rates as low as possible:

• Compare auto insurance rates in Kentucky. Look for different rates before you settle on one insurance provider.
• Raise your deductible and limit the number of claims you file. If you experience a small loss and no one else was involved, pay for the damage yourself if you can, and it might lower the risk of a rate increase.
• Ask about discounts that might be available for a good driving record, good students, low mileage, anti-theft devices, membership in a business association, and package or multi-car discounts.
• Consider how the purchase of particular vehicles might affect your rates. Contact your agent or broker with questions.

Picking an Insurance Agent/Broker

Insurance agents with insurance companies work to sell policies for commission. Insurance brokers, on the other hand, do not represent a particular company. Instead, they work with individual clients to find insurance options that best fit their needs. Like agents, however, they also receive a commission for the sales they make from different insurance companies.

Whether you use an agent or broker, make sure that they are licensed with the Kentucky Department of Insurance. In addition, you can request information from the department about how many complaints have been filed against a particular agent or broker. They can also tell you how many times they have faced disciplinary actions.

If you have had issues with an insurance company, you can file a complaint against the company through the insurance department’s website, Kentucky Gov.

After an Accident

Accidents are never fun for anyone involved, but by following the laws established by Kentucky, and by following a few simple tips provided by the Kentucky Department of Insurance, the process of recovery can become easier.

If no one is injured in your accident, it is Kentucky law that you clear your vehicle from the roadway but as near to the accident scene as possible as quickly as you can without obstructing traffic.

If someone is injured in an accident, call for emergency response immediately. It is ok to provide basic first aid, but unless you have medical training, do not move an injured person because you could make their medical condition worse.

Record, mentally or otherwise, the weather conditions, time of day, position of other vehicles on the road, and any other factors that could have played a role in the accident. Using a phone or digital camera if possible, take photographs of the scene so you can document conditions and back up your claim as necessary.

Exchange information with any other parties involved to provide to your insurance company. You’ll want to know their names, addresses, phone numbers, insurance company information and policy number and information, even if they have no car insurance in Kentucky. If there were any witnesses, get name and contact information from them so they can provide information to your insurance company about accident details and verify your claim. Report the claim to your insurance company as soon as possible, even if someone else was at fault.

Insurance for High-Risk Drivers

The Kentucky Automobile Insurance Plan was created to provide insurance coverage to drivers who have been deemed too risky by insurance providers in the voluntary market. With time, these drivers can mend their driving records and move back to low cost car insurance in Kentucky, but in the meantime, to qualify for non-standard insurance, you must:

• Certify that you have been refused automobile insurance coverage within the last 60 days,
• Provide a premium deposit with the application, and
• Maintain your principal residence in Kentucky, or the automobile to be insured must be registered in Kentucky.

Contact (502) 327-8909 or a local voluntary market insurance agent or broker to sign up for the KAIP, and find out more online at their website.

Additional Help

The Kentucky Department of Insurance is in place to protect a fair insurance market, advocate on behalf of consumers, and advise consumers to make wise choices. Allegations of fraud or other criminal threats to the consumer can be addressed through the DOI’s Fraud Investigation Division at (502) 564-1461. A report form is available on the DOI webpage.

Online resources include:

• Kentucky Department of Insurance
• Kentucky Transportation Cabinet, Driver Licensing