INSURANCE - CAR INSURANCE

Average Cost of Car Insurance in Kentucky for 2024

Updated Jan. 3, 2024
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State Farm is generally the cheapest car insurance in Kentucky for both full coverage and minimum liability policies.

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Kentucky has a relatively low cost of living, but the state’s average cost of car insurance is $1,764 per year, while the national average is $1,582.

Learn why auto coverage is so expensive in the Bluegrass State and what you can do to save money on your policy.

In this article

Key takeaways

  • The average cost of car insurance in Kentucky is $1,764 per year for full coverage policies.
  • The average cost of state-minimum liability policies is $833 per year.
  • Teens pay an average of $6,008 per year 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 $1,764 per year. State-minimum coverage averages $833 per year.

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 minimum coverage Cheapest insurance provider
$1,764/year $833/year State Farm
Avg. for young drivers Avg. cost for seniors Avg. for high-risk drivers
$6,008/year $2,330/year $2,897/year

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 $2,058/year $1,039/year
Nationwide $2,331/year $1,340/year
GEICO $1,663/year $768/year
State Farm $1,175/year $454/year
Progressive $1,547/year $985/year
USAA $1,318/year $490/year

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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 $1,878 per year, less than half the rate of those with poor credit.

Credit health Avg. annual premium
Poor (550-649) $3,803/year
Average (650-699) $2,706/year
Good (700-749) $2,327/year
Excellent (750+) $1,878/year

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.

On average, a driving under the influence (DUI) conviction can cause premiums to increase by about $2,029 per year. And an at-fault accident may increase premiums by an average of $1,272 per year.

Violation Avg. annual premium before violation* Avg. annual premium after violation Avg. cost increase
At-fault accident $1,764/year $3,036/year $1,272
DUI $1,764/year $3,793/year $2,029
Speeding ticket $1,764/year $2,605/year $841

*Assumes clean driving record with good credit

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 18 years of age is $6,084 per year, 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. annual premium
18 $6,084/year
25 $2,055/year
30 $2,048/year
40 $2,014/year
60 $2,177/year

Kentucky car insurance rates by city

At $2,501 per year, 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. annual full-coverage premium
Louisville $2,501/year
Bowling Green $1,909/year
Covington $1,827/year
Lexington $1,824/year
Owensboro $1,700/year
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 $1,764, while the national average is $1,582.

How much is car insurance per year in KY?

The average cost of car insurance in Kentucky is $1,764 per year for full coverage policies and $833 per year for state-minimum liability insurance.

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Author Details

Kat Tretina Kat Tretina is a personal finance expert focusing on practical financial matters, including student loans, debt repayment, side hustles, insurance, and healthcare. Drawing from her personal experience, she aims to simplify complex financial topics and provide individuals with the information they need to make informed decisions.