Kentucky Car Insurance Guide
(Cheap Rates + Best Companies)

Heralded as the “Bluegrass State,” Kentucky boasts large amounts of bluegrass found in most fields, pastures, and meadows. While the state’s green land is perfect for farming and agriculture, Kentucky is also home to the 30th largest city in the United States: Louisville.

Whether you’re a farmer transporting logs from one end of the state to another, or a white-collar worker commuting to Louisville, one thing is for sure: you’re going to need car insurance.

We know finding the right car insurance policy can be difficult and tedious at times, so that’s exactly why we wrote this guide to Kentucky car insurance.

In this guide, we will go over topics like rates, types of car insurance, rules and risks of the road, and can’t-miss car insurance facts. If you want to start comparing rates today, just enter your zip code in the box above to get started; keep reading to learn more about Kentucky car insurance.

What are Kentucky car insurance coverage and rates?

We know finding the best coverage and rate for your lifestyle can be tricky – but don’t worry! Our job is to get you the best rate possible. You have to be an insured driver in Kentucky, there’s no question about that.

To help you start figuring out which rates best fit your budget, we want to show you specific coverage options from least expensive to most expensive. This will give you an idea of what you can afford. But remember, the more car insurance you have the better.

Before we get into costs, let’s first go over Kentucky’s car culture.

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What are Kentucky minimum coverage requirements?

Now that we know all drivers must have car insurance in Kentucky, let’s get into why drivers need and should have car insurance. Kentucky is a “choice no-fault” state, meaning that vehicle owners can “opt out” of the no-fault car insurance system and choose to sue (and potentially be sued) after a car accident.

In “at-fault” states, if you are the one who causes a car accident, you are the one responsible for covering all the costs of damages incurred from that accident. Essentially at-fault means, if you break it, you buy it. In no-fault states, usually if a driver is involved in an accident and did not cause the accident, he or she can still required to go to his insurance company and file a claim.

Nolo explains Kentucky’s complicated fault system like this, “In Kentucky, no-fault takes the form of ‘personal injury protection’ (PIP) benefits, which pay up to $10,000 for medical bills, lost wages and similar out of pocket costs resulting from the policyholder’s car accident injuries.

After an accident, it’s not just the policyholder who is entitled to PIP benefits in Kentucky. Anyone who was driving or riding in the vehicle at the time of an accident is entitled to receive PIP benefits under the policy, and a pedestrian hit by the covered vehicle can also receive PIP benefits.”

No-fault states are a little scarier to drive in because if you get hit by a car and you’re not insured, you’re still held responsible to pay for the damages.

But what exactly is minimum liability coverage? Minimum liability is the smallest car insurance policy you can buy while still being considered a legally insured driver. It is often the cheapest policy as well.

The minimum liability insurance requirements in Kentucky are:

• $25,000 for injuries to any one person, in a single accident you caused
• $50,000 total, for all injuries resulting from a single accident you caused
• $10,000 for property damage resulting from any accident you caused

These amounts may seem like a lot, but insurance money runs out quickly, which is exactly why many drivers have more insurance than the minimum amount required.

What are acceptable forms of financial responsibility?

What is a form of financial responsibility? A form of financial responsibility is a fancy name for proof of insurance or proof of financial security. When and if a law enforcement officer pulls you over, he will ask to see your proof of insurance. This is to make sure you are an insured driver.

Here are a few acceptable forms of proof of financial security in Kentucky:

• Valid liability insurance ID cards
• Copy of your current car’s insurance policy
• Valid insurance binder (a temporary form of car insurance)
• Electronic insurance ID card

If you can’t show proof of insurance, you may face jail time and have to pay a fine.

Here are four penalties you may face for breaking the law:

1. Pay A Fine: On your first offense, you could face a fine of between $500 and $1,000. In subsequent offenses, you will be required to pay between $1,000 and $2,500.
2. Go To Jail: The first time you are caught driving uninsured, you may face jail time of up to 90 days or a combination of jail time and a fine. If you commit future offenses, you can expect jail time of up to 180 days or a combination of a steeper fine and jail time.
3. Lose Driving Privileges: Unless you can provide adequate proof of insurance in court, your registration will be suspended for one year the first time you are caught driving uninsured. On your second offense, your registration will again be suspended for a year. On your third offense and any thereafter, your registration will be revoked for two years.
4. Meet Reinstatement Requirements: To reinstate your registration and get back on the road, you will need to pay a $40 fee (on top of court fees). You will also need to provide solid proof of a new insurance policy. If your license was suspended for more than one year, you will need to retake and pass a driving exam.

Don’t get caught driving without insurance. It’s literally cheaper (and safer) to drive with car insurance than it to drive without it.

How much are premiums as a percentage of income?

The point of this section is to show you what percentage of your income you might be paying towards your car insurance policy each year. Kentucky’s average income per capita in 2014 was $33,237.In 2013 it was $31,951. and in 2012 it was $32,202.

In 2014, Kentucky drivers paid an average of $917.49 per year for a car insurance policy. If the average income per year is $33,237, this means drivers are paying about 2.76% of their income on car insurance alone!

Kentucky’s car insurance is still cheaper than the national average of $981.77 per year. Tennessee drivers paid $855.56 in 2014 for one year of car insurance and Ohio drivers paid $766.66 for car insurance.

Kentucky rates are still higher than both of these surrounding states, however, the average disposable income in both Tennessee and Ohio is also higher than Kentucky’s average disposable income.

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The data from the table above is pulled directly from the National Association of Insurance Commissioners. Because this data is from the year 2015, car insurance rates are most likely a little higher today.

The national average cost for car insurance is $981.77 per year. Kentucky’s average is a little lower at $917.49 per year.

We always recommend buying more car insurance than what is required; that’s why we included this next section on car insurance add-ons.

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Do you need additional liability limits coverage in Kentucky?

Although none of the additional liability coverage options shown above are mandatory, it’s still recommended that every driver carry these types of insurance.

But why?

Because Kentucky is a no-fault state, each driver could be responsible to pay for their own damages resulting from an accident – even if a driver isn’t technically at fault for an accident. This is where uninsured and underinsured motorist insurance could come into play.

11.5 percent of all drivers in Kentucky are uninsured. This means Kentucky is ranked 26th in the U.S. for uninsured drivers.

An uninsured driver could go bankrupt while attempting to pay for damages incurred from an accident. If that uninsured driver owes you money after causing damage to your person or vehicle, you’re might never get it because that driver won’t have any money to pay you.

Why are loss ratio percentages important?

Loss ratio percentages are how we measure a companies financial strength. If a loss ratio is too low (under 50 percent), the insurance company might have overpriced their policies for the number of claims submitted.

On the other hand, if a company’s loss ratio is too high (over 100 percent), that company is losing money. This might be because they underestimated the number of claims that would come in, they underpriced their policies or even changes in the legal landscape.

Notice all of these loss ratios above are right in the middle of these numbers.

Just remember: when you’re looking for a new insurance provider, make sure the loss ratio percentage is somewhere between 50-100 percent.

What add-ons, endorsements, and riders are available?

More car insurance equals better car insurance. Take a look at the following car insurance policies. None of them are required, but good to have. Click on the links below to learn more.

• Guaranteed Auto Protection (GAP)
• Personal Umbrella Policy (PUP)
• Rental Reimbursement
• Emergency Roadside Assistance
• Mechanical Breakdown Insurance
• Non-Owner Car Insurance
• Modified Car Insurance Coverage
• Classic Car Insurance
• Pay-As-You-Drive or Usage-Based Insurance

Add on or add them all. The choice is up to you.

What are average monthly premiums for car insurance rates by age & gender in KY?

Did you know details like gender, marital status and age can play a role in deciding your car insurance rate?

Car insurance companies bet on the fact that experience comes with age. You’re more likely to get into an accident if you’re young because of the lack of driving experience. That being said, your car insurance rate will most likely decrease the older you get if you keep a clean driving record.

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Where are the cheapest auto insurance rates by ZIP code?

Where you live can also affect your car insurance rate. Let’s take a look at the most expensive ZIP codes first.

Kentucky’s most expensive ZIP codes are spread out at numerous cities instead of clustered at one major city.

What are the cheapest rates by city in Kentucky?

Find your city on the lists below.

Lookout, Hoskinton, and Ransom have the most expensive car insurance rates in Kentucky.

Owensboro has the cheapest car insurance rate.

Which are the best Kentucky car insurance companies?

With literally hundreds of car insurance providers to choose from, it can be difficult to pick just one to keep you and your family safe when tragedy strikes. No one wants to spend their free time searching high and low for what makes a car insurance company a good one.

But that’s just it: you don’t have to do any of this because we’ve done all the work for you. In this section, we will cover AM Best Ratings, company complaints, financial ratings and more. After reading this section, you should have an idea of which company you want protecting you and your vehicle.

The Largest Companies Financial Rating

The companies listed in the table above are some of the highest-rated insurance companies in the U.S. Notice that every AM rating is ranked as an “A” or higher. Loss ratios are also something to pay attention to. None of the companies have poor loss ratios: the percentages all fall somewhere between 50-100 percent.

Companies with Best Ratings

We’ve talked about financial ratings, but another thing to look for in a solid company is a customer service rating. In 2018, J.D. Power ranked companies for customer satisfaction.

This study was called the 2018 U.S. Auto Insurance Study and it ranked companies based on five key areas: interaction; policy offerings; price; billing process and policy information; and claims.

Aside from USAA (a company that only serves military members and their families), Farm Bureau Insurance of Tennessee was ranked as the number one insurance company in Alabama, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, South Carolina, and Tennessee.

Top 10 Largest Companies with Most Complaints in Kentucky

Everyone complains. It’s just a fact of life. Even the best companies get some of the worst complaints. How a company deals with a complaint can make all the difference in the world.

Overall satisfaction is always important, but don’t be discouraged by these numbers because they are still extremely low.

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Which are the cheapest companies in Kentucky?

Below is a list highlighting some of the cheapest car insurance companies in Kentucky.

State Farm, USAA, and Geico have some of the cheapest rates out there.

What are commute rates by companies?

How far you drive day in and day out can affect your car insurance rate.

Take a look at these 6 major factors affecting auto insurance rates in Kentucky.

What are coverage level rates by companies?

Sometimes your insurance provider will give you a break on the cost of your insurance policy if you have a bigger insurance policy. Confused? Read the prices in the table below to find out more.

According to this table, having better coverage might only cost you a couple hundred more dollars a year; this investment could save you thousands in the long run.

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What are credit history rates by companies?

Credit history is important for many financial reasons, but you can bet your bottom dollar that your credit score plays a major role when figuring out your car insurance rate.

As you can see, the difference in rate between a good credit score and a poor one is a few thousand dollars a year.

According to Experian, Kentucky’s average credit score is 663. America’s average credit score is 675.

If you keep your credit score in good standing, your rates are more likely to stay lower. Be aware that it can take years to recover from poor credit, and poor credit affects many things in life.

What are driving record rates by companies?

The biggest factor to consider when it comes to estimating your car insurance rate is your driving record. Driving records are the first thing a car insurance company looks at. Sometimes, they might even choose to deny a person looking for insurance because the person’s driving record is so bad.

Keep a clean driving record, and you have nothing to worry about.

Number of Insurers in Kentucky

How many licensed insurance companies are there in Kentucky?

What’s the difference between foreign and domestic insurance?

Domestic Insurer – an insurance company admitted by and formed under the laws under the state in which insurance is written

Foreign Insurer – an insurance provider which was formed under the laws of any other state in the union

What Kentucky state laws do you need to know?

You could live in the same state for a hundred years and still not know every state law ever written. But just because you don’t know the laws, doesn’t mean you shouldn’t learn them.

In this next section, we will discuss important (and confusing) driving laws. Knowing these laws could prevent you from having to pay fines, face penalties, and could help you avoid an accident.

To learn more about Kentucky state driving laws, car seat laws, seat belt laws, high-risk auto insurance, DUI laws, texting laws and more, keep scrolling down the page.

Did you ever wonder how car insurance laws are formed?

According to the NAIC, State laws have a considerable influence on auto insurance. Each state determines the type of tort law and threshold (if any) that applies in the state, the type and amount of liability insurance required, and the system used for approval of insurer rates and forms.

In addition, the states have enacted varying auto seat belt requirements, drunk driving laws, and maximum speed limits.

The states employ a variety of rate regulation mechanisms. Options include: 1) determined by Commissioner; 2) prior approval; 3) modified prior approval; 4) flex rating; 5) file and use; 6) use and file; and 7) no file.

Form filing laws govern the type of policy form regulation used by the state. Options include prior approval; file and use; use and file; and no file.

The state of Kentucky uses a few different methods. One method is called use and file.

Use and File: Rates/forms must be filed with the state insurance department within a specified period after they have been placed in use.

Another method is called prior approval.

Prior Approval: Rates/forms must be filed with and approved by the state insurance department before they can be used. Approval can be by means of a deemer provision, which indicates approval if rates/forms are not denied within a specified number of days.

Teen Driver Laws

Teaching your child to drive can be a terrifying act. In Kentucky, teenagers must be at least 16 years old to start a driver’s education class. Below are some laws regarding teen driving.

Teenage drivers must have a restricted license before receiving a graduated license.

Driver License Renewal Procedures

Every driver young or old must renew their license in Kentucky every eight years. Proof of adequate vision is not required at the time of license renewal, and you may not renew your license online or through the mail.

New Kentucky Residents

Moving to Kentucky?

Kentucky law 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.

When you move, make sure you let your insurance company know so they can adjust your rates and plan because almost every state has different car insurance laws.

Remember that minimum liability insurance requirements in Kentucky are:

• $25,000.00 for all claims for bodily injury damages sustained by any one person
• $50,000.00 for all bodily injury damages sustained by all persons as a result of any one accident
• $25,000.00 for all property damage as a result of any one accident

Alternatively, a policy with a single limit of $60,000.00 is acceptable. In addition, the policy must provide basic reparations benefits, unless the insured vehicle is a motorcycle.

Negligent Operator Treatment System (NOTS)

The Kentucky Point System identifies persons that may be habitually negligent (or reckless) drivers. Motorists convicted of reckless driving in Kentucky face $20 to $100 in fines. For a third reckless driving conviction within a 12-month period, the motorist’s license will be revoked for six months.

A reckless driving conviction will also add four points to the motorist’s driving record. Accumulating 12 or more points within a two-year period can lead to license suspension.

Failure to appear for the hearing results in a driving suspension for a period of six months for the first such accumulation of 12 points, one year for the second such accumulation of 12 points, and two years for any subsequent accumulation of 12 points within the two year period.

What are the rules of the road?

If you are unaware of the rules of the road, you are more susceptible to getting into a car accident or violating the law. Both of these events can add points to your driving record, which in turn can cause your insurance rate to increase.

Keep reading as we cover speed limit laws, seat belt and car seat laws, safety laws, and more.

Fault vs No-Fault

As previously stated, Kentucky is a no-fault state. All persons involved in the same accident must file a claim with their own insurance companies.

If you have a minimum liability policy, your claim money can drain very quickly. It’s always smart to have more insurance than required.

Seat Belt and Car Seat Laws

Most vehicle accidents are the leading cause of injury and death among children of all ages in the U.S. Kentucky wants its drivers and children to be safe while on the road — that’s why there are strict seat belt and car seat laws.

If you break any of these seat belt laws, you will be charged with paying a $25 fine plus fees. Keep reading for information regarding car seat laws.

Keep your child safe while riding in a moving vehicle. These laws are set in place to make sure children are in the correct car seat at all times.

There are no state laws against riding in the cargo area of a pickup truck, however, the state of Kentucky still believes it is unsafe to do so.

Keep Right and Move Over Laws

Have you ever heard of keep right or move over laws? When someone is going very slow on the road while driving, what should you do?

In the state of Kentucky, it is illegal to drive in the left lane, except for when you are passing someone or turning left. You are to keep right except to pass if there are at least four lanes or a speed limit of 65mph (effective June 26, 2007).

The state law of Kentucky also requires drivers approaching a stationary emergency vehicle displaying flashing lights, including towing and recovery vehicles, traveling in the same direction, to vacate the lane closest if safe and possible to do so, or slow to a speed safe for the road, weather, and traffic conditions.

Speed Limit Laws

Listed below are Kentucky speed limit laws. Always pay attention to speed limit signs when driving so you are not susceptible to getting a ticket.

Please be aware that these are the maximum speed limits allowed on Kentucky roads.

Ridesharing

Have you ever heard of ridesharing services like Uber or Lyft? If you are employed or are thinking about being employed by a ridesharing company, you must have ridesharing insurance.

The four companies listed below have ridesharing insurance policies:

• Allstate
• Erie Insurance
• State Farm
• USAA

Keep in mind that some insurance companies can refuse to insure you as a driver if you work in the ridesharing industry.

Automation on the Road

What is automation on the road?

The IIHS defines automation as a vehicle that involves using radar, camera, and other sensors to perform parts or all of the driving tasks on a sustained basis instead of the driver. One example is adaptive cruise control, which continually adjusts the vehicle’s speed to maintain a set minimum following distance.

Features such as automatic braking, which acts as a back-up if the human driver fails to brake, or blind-spot detection, which provides additional information to the driver, aren’t considered automation under this definition.

Currently, Kentucky does not have any laws about automation while on the road. But that might change in the coming years.

What are the safety laws?

Safety laws are one of the most important types of laws to know and understand while driving. Not knowing safety laws could threaten your life and the longevity of your vehicle.

In this next section, we want to go over DUI laws, distracted driving laws, impaired driving laws, and more. To keep your perfect driving record and accident-free vehicle, read below for more info on these important safety laws.

DUI Laws

In 2017, there were 181 alcohol-impaired traffic fatalities in Kentucky. This number is shockingly high, which is exactly why there are strict laws against drinking and driving.

The penalties for drinking and driving are listed in the table below.

Please don’t drink and drive – if you do, you risk your own life and someone else’s.

Marijuana Impaired Driving Laws

There aren’t any marijuana-specific impaired driving laws right now in Kentucky, but this doesn’t mean you can’t be pulled over for what is called impaired driving.

Drug-impaired driving can be worse than drinking and driving.

If you are convicted of impaired driving, you could end up paying fees and facing jail time.

Distracted Driving Laws

A few seconds is all it takes to cause an accident, especially when you’re looking down at your phone or texting and driving. Below are Kentucky’s laws about cellphone use while driving on the road.

Studies have shown that the effects of texting and driving can be worse than drinking and driving. That text isn’t worth your life or someone else’s. Don’t be distracted on the phone while driving.

How bad is vehicle theft in Kentucky?

So far, we’ve covered insurance laws, safety laws, distracted driving laws, and more. Now it’s time to discuss the risks and dangers of Kentucky’s beautiful, scenic roads.

Risks on the road are a huge factor when it comes to figuring out your car insurance rate. In this section, we want to talk about vehicle theft, fatality rates, traffic congestion, and more.

Don’t go away, find out the vehicle theft rate in your city up next.

Did you know some types of vehicles are more stolen than others?

The “year of vehicle” category listed above is the most popular year of the model listed that was stolen the most. According to this list, trucks are the most-stolen vehicle.

Some areas are worse than others for vehicle theft. Below is a list pulled directly from the FBI. This list shows where vehicle theft occurs the most.

Some of these cities have a total of zero theft. That’s not a typo – that’s the truth.

Do a lot of road fatalities occur in Kentucky?

Why do road fatalities happen? What circumstances cause them to happen? Does it have anything to do with the weather, the type of road, EMS response time? All this is covered next.

Fatal Crashes by Weather Condition and Light Condition

Did the weather play a significant role in the traffic fatality rate?

According to this table above, most of these fatalities happened during the day when there were normal weather conditions. Some occurred at night, but we think it’s safe to say the weather didn’t really have an effect on fatality rates.

Fatalities (All Crashes) by County

Below is a list showing the number of fatalities per county in Kentucky.

Traffic Fatalities Rural vs Urban

Did more fatalities occur in rural areas or urban areas?

Usually, more fatalities happen in rural areas than in urban areas. This is most likely caused by the fact that there are more emergency service locations in cities than there are in rural areas.

Fatalities by Person Type

What kinds of vehicles cause the most fatalities?

Fatalities by Crash Type

Did the specific crash type have anything to do with the fatality rate?

Five-Year Fatality Trend For The Top 10 Counties in Kentucky

Up next is the five-year fatality trend for the top ten counties in Kentucky.

Fatalities Involving Speeding by County

Speeding is another major cause of traffic fatalities.

Fatalities in Crashes Involving an Alcohol-Impaired Driver (BAC = .08+) by County

Drinking and driving took the lives of 181 people in 2017 in Kentucky. Below are the number of fatal crashes involving alcohol-impaired drivers by county.

Teen Drinking and Driving

Teenage driving can be a scary thing sometimes, but when you mix that inexperienced teenager with some alcohol and put him behind the wheel, bad circumstances are sure to happen.

Kentucky is ranked 31st in the U.S. for under-18 DUI arrests. Even though Kentucky has a higher arrest rate, the DUI fatality rate in children under 18 is lower than the national average.

In 26 states and Washington D.C., under-21 alcohol-impaired driving fatalities per 100,000 population were at or below the national average of 1.2 deaths per 100,000 population. Kentucky’s rate is 0.9 teenage alcohol-related deaths per 100,000 population.

EMS Response Time

Arriving just seconds too late or too early can sometimes literally mean the difference between life and death. After you’ve been in a life-threatening accident, all you want to know is how soon will help arrive.

Below is a table of average response times based on rural accident sites and urban accident sites.

Usually, response times are faster in the city than they are in rural areas just because there are more EMS services in cities than there are in less populated areas.

What is transportation like?

Have you ever wondered how many cars are owned by each family in Kentucky?

Car Ownership

The following chart brought to you by Data USA displays the households in Kentucky distributed between a series of car ownership buckets compared to the national averages for each bucket. The largest share of households in Kentucky has two cars, followed by three.

The orange bars show Kentucky’s average while the gray bars display America’s average.

Commute Time

Using averages, employees in Kentucky have a shorter commute time (22.4 minutes) than the normal US worker (25.5 minutes). Additionally, 1.9 percent of the workforce in Kentucky have “super commutes” in excess of 90 minutes.

The chart below shows how the median household income in Kentucky compares to that of it’s neighboring and parent geographies.

Commuter Transportation

In 2017, the most common method of travel for workers in Kentucky was to drive alone.

Traffic Congestion in Kentucky

According to Inrix, two of the most traffic-congested cities in the world are in Kentucky: Lexington and Louisville.

Lexington is the 148th most traffic-congested city in the world.

What is Kentucky’s car culture?

According to The Hartford, Kentucky is the third-largest market for automobile manufacturing behind Michigan and Ohio – so cars aren’t used for just transportation in Kentucky, they’re used as a form of entertainment.

Nearly 500 automotive manufacturing firms and sites around the state produce parts and vehicles for use around the world. Toyota recently announced a record $1.3 billion investment to upgrade its assembly plant in Georgetown which is the company’s largest facility in the world and employs 8,200 people.

Now that you’ve read this complete guide to Kentucky car insurance, it’s time to start shopping for a car insurance policy. To begin, use our free tool by entering your zip code in the box below.

Happy shopping.