Why Is Car Insurance so Expensive In Kentucky?

Last Updated on April 25, 2021

Kentuckians are often dismayed by how much auto insurance can cost in their state. Insurance companies, however, aren’t simply “picking” on Kentucky. There are many factors at play when determining how much you will pay for auto insurance.

Some factors that can determine the cost of auto insurance premiums are the vehicle you drive, your past driving record, gaps in insurance coverage, your annual mileage, your age, how long you’ve been driving, and where you live.

In the United States, car insurance rates vary depending on which state you live in. On average, auto insurance premiums in Kentucky costs $2,050 per year. This is 43.7% above the national average. Why is car insurance in Kentucky this expensive? Continue reading to find out.

Kentucky Auto Insurance Laws and Requirements

Kentucky has thousands of miles of roadways, traveled by over 3.5 million licensed drivers. Each of these car owners drives about 11,000 miles per year. In 2017, there were 721 fatal car crashes in this state. For these reasons, carrying auto insurance in Kentucky is required by law. Not only that, but it is a commonsense thing to have in such a dangerous state for car accidents.

The Bare Minimum Car Insurance Coverage Required for Kentucky Drivers Is:

  • $25,000 bodily injury per person per accident
  • $50,000 bodily injury per all persons per accident
  • $10,000 property damage liability
  • $10,000 personal injury protection

Kentucky does not require you to carry additional coverage such as underinsured and uninsured motorist insurance or Collision and Comprehensive. However, it may be smart to get these things to avoid monetary loss.

Why Are Kentucky’s Rates so Expensive?

Why is Car Insurance so Expensive in Kentucky?One of the reasons that car insurance is so much more expensive in Kentucky is because Kentucky requires personal injury protection. Essentially, in an accident, your insurance is responsible for paying out medical costs for your personal injuries and those of your passengers, even if you were not at fault in the accident. This means that the risk of a claim is increased.

Another reason that car insurance is so expensive in Kentucky is that there are many more car accidents in Kentucky than in other states. Where you live certainly plays a role in car insurance premiums because some areas are riskier than others. Even within the state of Kentucky some cities and towns will be cheaper than others.

Car insurance premiums are based on risk. Each car insurance company assesses the amount of risk of an accident and a payout. Kentucky is a high-risk state for accidents. This, combined with the no-fault personal injury protection (that is required), make car insurance extremely expensive in Kentucky.

The Cheapest Cities for Insurance in Kentucky

There are some cities and towns in Kentucky that are much cheaper than others. These cities and towns are deemed to be less of a risk than other areas of the state. If you live in one of these areas you will pay less than other residents of Kentucky. If you are looking at moving within the state, you should consider one of these locations. The cheapest cities in Kentucky for car insurance are:

  • Lexington
  • Owensboro
  • Covington
  • Versailles
  • Nicholasville

Finding Affordable Car Insurance in Kentucky

There are some good ways to save on your car insurance in Kentucky. While you may still pay more than others in similar situations but other states, you can still minimize your costs by following these tips. First, you want to shop around for the best coverage at the best price. The cheapest car insurance you can find may not be adequate or from a reputable company. However, if you shop around and get a lot of different quotes you can discover the best possible coverage at the cheapest price.

Another thing that you can do to minimize your car insurance expense is to take advantage of discounts. There are a lot of discounts available with different car insurance companies. Most companies have discounts for good drivers, but there are other discounts that you can get if you ask for them. You can often get discounts for going paperless, using autopay, having good grades, or being a homeowner. You can also bundle your auto insurance with other types of insurance like renters insurance or homeowners insurance so that you will be able to get a lower rate.

You can also save some money on your car insurance with some companies that offer telematics driving apps. These apps track your driving habits and allow you to earn discounts for good driving behavior. These apps can be very helpful in lowering your car insurance premiums, especially if you have negative marks on your driving history.

The best way to get cheaper car insurance in Kentucky is to watch where you live and to keep a clean driving record. Obeying all traffic laws and avoiding accidents will help keep your car insurance premiums to a minimum. To get started finding cheap car insurance, start your search for quotes today.

James Shaffer
James Shaffer James Shaffer is a writer for InsurancePanda.com and a well-seasoned auto insurance industry veteran. He has a deep knowledge of insurance rules and regulations and is passionate about helping drivers save money on auto insurance. He is responsible for researching and writing about anything auto insurance-related. He holds a bachelor's degree from Bentley University and his work has been quoted by NBC News, CNN, and The Washington Post.
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