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Kentucky has a relatively low cost of living, but the state's average cost of car insurance is $173 per month, while the national average is $193.
Learn why auto coverage is so expensive in the Bluegrass State and what you can do to save money on your policy.
Key takeaways
- The average cost of car insurance in Kentucky is $173 per month for full coverage policies.
- The average cost of state-minimum liability policies is $111 per month.
- Teens pay an average of $341 per month for car insurance.
How much does car insurance cost in Kentucky?
Car insurance is surprisingly expensive in Kentucky. The average cost of a full coverage policy — which includes collision, comprehensive, and liability insurance — is $173 per month. State-minimum coverage averages $111 per month.
Why is car insurance so expensive in the Bluegrass State? There are several contributing factors, including:
- Kentucky drivers cover more miles: Nationwide, drivers averaged 13,489 miles annually in 2021. But drivers in Kentucky were on the road for 16,143 miles annually on average in the same year. Since they spend more time behind the wheel, Kentucky drivers are more likely to be in accidents. As a result, insurers charge them higher premiums.
- There is a high percentage of uninsured drivers: 13.9% of drivers in Kentucky are uninsured, according to the Insurance Research Council. With such a high percentage of drivers going without insurance — leaving those with insurance to cover the bill — insurers charge drivers higher rates.
| Avg. cost for full coverage | Avg. cost for liability coverage | Cheapest insurance provider |
| $173/month | $111/month | State Farm |
| Avg. full coverage cost for teen drivers | Avg. full coverage cost for seniors (60s) | Avg. full coverage cost for drivers with an accident on their record |
| $341/month | $143/month | $242/month |
Average cost of car insurance in Kentucky by provider
Premiums and coverage options vary by insurer. In Kentucky, several providers issue car insurance policies, including national companies and smaller insurers.
We found that State Farm offers the lowest rates for both full coverage insurance and state-minimum liability protection. State Farm's average premiums were significantly lower than the state averages.
| Provider | Full coverage | Minimum liability coverage |
| Farm Bureau |
$1,404/year |
$456/year |
| Allstate | $120/month | $76/month |
| Nationwide | $176/month | $111/month |
| GEICO | $94/month | $59/month |
| State Farm | $83/month | $52/month |
| Progressive | $136/month | $86/month |
| USAA | $102/month | $65/month |
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How does credit score affect car insurance rates in Kentucky?
Kentucky insurers cannot use credit scores as the sole reason for declining or canceling insurance policies, but they can take drivers' credit histories into consideration to set premiums.
We found that those with excellent credit — meaning a score of 750 or better — pay an average of $174 per month, less than half the rate of those with poor credit.
| Credit health | Avg. monthly premium |
| Poor (550-649) | $194/month |
| Average (650-699) | $168/month |
| Good (700-749) | $164/month |
| Excellent (750+) | $174/month |
Average car insurance rates for high-risk drivers in Kentucky
Maintaining safe driving habits is crucial to keep your car insurance premiums as low as possible. Kentucky insurance companies charge much higher premiums for individuals with driving violations on their records.
| Violation | Avg. monthly premium before violation* | Avg. monthly premium after violation |
| At-fault accident | $173/month | $242/month |
| DUI | $173/ month | $277/month |
| Speeding ticket | $173/ month | $238/month |
*Assumes clean driving record with good credit
Average rate:
How does age affect car insurance rates in Kentucky?
Although it's common for insurers to charge teens higher rates than other groups, the rates for teens in Kentucky are especially high. The average premium for drivers 17 years of age is $341 per month, more than three times the state average.
Considering that the median household income in Kentucky is just $55,454, families would have to pay a significant amount of the household's income to pay for a teen's car insurance.
| Age | Avg. monthly premium |
| 17 | $341/month |
| 25 | $223/month |
| 30 | $168/month |
| 40 | $157/month |
| 60 | $143/month |
Kentucky car insurance rates by city
At $240 per month, drivers in Louisville have the highest average premiums in the state. NeighborhoodScout, a platform for neighborhood analytics, gave Louisville a four on its crime rating index.
This means that 96% of U.S. cities are safer. City residents are far more likely to be the victims of property crime, so insurers charge higher rates to offset the increased risk of auto theft.
| City | Avg. monthly/annual full-coverage premium |
| Louisville | $240/month |
| Bowling Green | $152/month |
| Covington | $1,827/year |
| Lexington | $162/month |
| Owensboro | $134/month |
| Georgetown | $1,612/year |
KY's minimum car insurance requirements
Drivers in Kentucky must have car insurance before they get behind the wheel, and policies must meet the following minimum requirements:
- $25,000 in bodily injury protection for one person
- $50,000 in bodily injury protection for two or more people
- $25,000 in property damage insurance
Alternatively, drivers can have coverage with a single policy limit of $60,000.
How to save money on car insurance in Kentucky
Here are some tips that may help you reduce your premiums in Kentucky:
- Increase your deductible: Your deductible — which can be anywhere from $250 to $2,500 — is how much you have to pay out of pocket before your insurer starts covering the claim. Increasing your deductible typically decreases your monthly or annual premiums, but make sure you choose a deductible amount you can comfortably afford if an accident happens.
- Ask about discounts: Many insurance companies offer robust discount programs, so you may be able to lower your premiums by taking advantage of good student, accident-free, anti-theft, or multi-vehicle discounts.
- Sign up for pay-per-mile insurance: If you drive fewer miles than the typical Kentucky resident, you may be able to save some money with usage-based or pay-per-mile insurance. These policies set your premiums based on your driving habits and mileage.
- Get quotes from other companies: Shopping around and getting quotes from several insurers is key to finding the best car insurance rates.
Methodology
Our analysis was conducted using six different auto insurance marketplaces to determine the average cost of auto insurance in each state. The data we analyzed included coverage premiums from up to 10 different insurance providers. We looked at rates by city, driver profile, and credit score, as well as factored in the impact of driving violations. This data is for comparative purposes only. Your actual quote may be different.
FAQs about car insurance costs in KY
Is car insurance expensive in KY?
Car insurance tends to be more expensive in Kentucky than in other states. The average premium for full coverage insurance is $173, while the national average is $193.
Data throughout provided by Insurify.
Average rate:
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