Car insurance in Kentucky

Posted on September 25, 2014

Buying auto insurance is far from optional if you own a car in Kentucky. So here’s the latest statistical report on Kentucky car insurance laws and premiums. Armed with this valuable info, Kentucky drivers can customize auto insurance plans to suit their personal needs.

Kentucky Minimum Liability Coverage

The minimum amount of auto insurance coverage required by law in the state of Kentucky is $25,000 in Personal Injury Protection (better known as PIP), $50,000 in multiple injury protection (for others killed or injured), and $10,000 in protection against property damage. Insurance agents refer to this minimum coverage amount as 25/50/10. However, most car insurance minimums do not cover the actual cost of an accident. Experts recommend 100/300 coverage for all drivers. Uninsured Motorist Insurance (UMI) is also recommended.

Penalties for Driving Without Insurance in Kentucky

For the first offense, the penalty for driving without insurance in Kentucky is a fine of up to one thousand dollars and/or ninety days in jail. Repeat violations within a five year period result in fines of up to $2,500 and jail terms of up to six months. Despite the stiff penalties, roughly eighteen percent (18%) of vehicles on Kentucky roads are uninsured.

Auto Insurance Rates in Kentucky

The average annual auto insurance premium for drivers in the state of Kentucky was $1,295 in 2016. This is slightly below the national average annual car insurance premium, which was about $1,347 at that time. This may be partly a result of Kentucky’s relatively poor economy, which helps explain the state’s higher than average rate of uninsured vehicles. Also, statistical reports from Top50States.com reveal a strong correlation between the number of uninsured vehicles on the roads and the rate of fatalities caused by speeding. More or less, increased fatalities lead to increased premiums.

Also weighing in is the fact that Kentucky is a “no-fault” state. This means that car insurance in Kentucky will cover monetary damages regardless of who is at fault. No-fault states have higher premiums, in comparison to tort states. This is why the average car insurance premiums in Kentucky are not lower.

Low Cost Car Insurance Programs in Kentucky

Most carriers of auto insurance offer discounts. Depending on your car insurance provider, low cost auto insurance programs in Kentucky can include Accident-Free Discounts, Good Driver Discounts, Good Student Discounts, Multiple Auto Discounts and Multiple Line Discounts, to name a few. Check with your local agent for complete details. Ask about discounts when receiving quotes. Then compare quotes.

Obtaining Auto Insurance Quotes in Kentucky

Recent online consumer reviews indicate that the top publicly available auto insurance companies in the United States are Allstate, Geico, Auto Owners Insurance, The Hartford, State Farm and 21^st Century. Also popular in Kentucky are nationally recognized firms like AMICA Mutual, Liberty Mutual and Encompass. Some Kentucky car owners opt for local carriers like Kentucky Farm Bureau Insurance. Kentucky has dozens of auto insurance companies to choose from, all of them offering competitive rates. Call an agent near you for quotes and further assistance.

Kentucky Car Insurance

Here are some current and updated facts and figures regarding Kentucky car insurance.

Drivers in the state of Kentucky can look here to read about Kentucky median incomes, Kentucky poverty levels, statistics on Kentucky drivers, and Kentucky zip code data. Scan a list of car insurance quotes from eight different Kentucky zip codes, ranging from the cheapest to the priciest in terms of car insurance premiums. The difference in auto insurance rates across zip codes is an important factor in determining your personal Kentucky car insurance quote.

Learn of all the ways in which drivers in Kentucky can reduce their car insurance premium rates. See which types and amounts of auto insurance coverage Kentucky drivers need. Also see a list of the 10 largest car insurance companies in the state of Kentucky, along with a list of the 10 largest car insurance companies in the United States. While you’re at it, check out a selection of unique facts about Kentucky.

This page will likely benefit any driver who is considering buying a Kentucky car insurance policy, as well as anyone who just wants to know more about the state of Kentucky.

Kentucky Car Insurance Statistics

A population estimate from 2016 indicates that the state of Kentucky is home to well over 4.4 million people. More than 20 percent of Kentucky residents live in and around the cities of Louisville and Lexington. The average population density across the entire state of Kentucky is about 110 people per square mile.

The resident median age of the people who live in the state of Kentucky is about 38.8 years. The poverty rate in Kentucky is around 18.5 percent, which is considerably higher than the national average poverty rate of 13.5 percent. In fact, statistics show that nearly one in six Kentucky residents currently lives at or below the poverty line. Kentucky’s unemployment rate is around 5.1 percent, which is about the 6^th highest unemployment rate among states. The national average unemployment rate is 4.4 percent.

The Insurance Research Council recently ran a study of drivers in the state of Kentucky. The study concluded that approximately 15.8 percent (roughly one in six) vehicles on Kentucky roads is uninsured.

Some Kentucky drivers are curious to know the statewide “average” annual premium rate for Kentucky car insurance. According to research, the statewide “average” annual premium rate for a car insurance policy purchased in the state of Kentucky was roughly $1,752 early in 2017. Compare this to the national average car insurance rate for the same time period, which was about $1,355. The state of Kentucky is the 6^th most expensive state in the nation (on average) to buy car insurance.

However, statewide averages are primarily useless, as your Kentucky car insurance policy rate will be determined by your driving history, as well as by the demographics of your particular Kentucky zip code.

The 10 Largest Kentucky Car Insurance Companies

It may seem difficult, at first, to choose a car insurance carrier. To get you started, here is a list of the ten largest car insurance companies in Kentucky, based on each company’s total revenue earned, which indicates the company’s total market share within the state of Kentucky.

Rank	Company	Premiums ($)	Market Share (%)
1	State Farm Group	$556,704	22.58
2	Kentucky Farm Bureau Group	$467,918	18.98
3	Allstate Insurance Group	$177,180	7.19
4	Liberty Mutual Insurance	$175,346	7.11
5	Progressive Insurance Group	$169,721	6.88
6	Berkshire Hathaway Insurance	$158,631	6.43
7	USAA Group	$104,851	4.25
8	Nationwide Group	$89,631	3.64
9	State Auto Insurance Companies	$57,797	2.34
10	Shelter Insurance Companies	$49,124	1.99

It seems clear that State Farm is the most popular Kentucky car insurance carrier, having sold more than 1 in 5 car insurance policies in the state. Yet, there are many major Kentucky car insurance companies to look at, in addition to many smaller, regional carriers. There is really no such thing as The One Best Kentucky Car Insurance Company.

The ten largest car insurance companies in Kentucky are a bit different from the ten largest car insurance companies in the United States. According to a study from insure.com, America’s top ten car insurance companies are Allstate Insurance, State Farm Insurance, Geico, Progressive Insurance, Nationwide Group, AAA, Liberty Mutual Insurance, 21^st Century Insurance, GMAC, and AIG, in that order. In this case, car insurance companies were ranked by the total dollar amount in annual premiums written.

Cutting Costs on Kentucky Car Insurance

Kentucky is not the cheapest state in the nation to buy car insurance. As mentioned, the state of Kentucky is the 6^th most expensive state in terms of the average rates on auto insurance premiums. In fact, one Kentucky zip code (41464, Royalton) is ranked as the 10^th most expensive zip code in the whole United States to buy car insurance. However, drivers in Kentucky can still find clever ways to reduce their car insurance policy rates to a minimum.

One helpful tactic is to read consumer reviews regarding each of several Kentucky car insurance companies. Studying independent car insurance reviews can help you decide which auto insurance company is the best one for you. Car insurance companies are more or less competitive with one another, with each one having slightly different target markets. In any case, no matter how they operate, all insurance companies receive customer complaints.

After you read some reviews, compile a list of the Kentucky car insurance companies you like best. Then visit each website and compare online quotes across different zip codes. You could enter your home zip code, your work zip code, and/or your school zip code, for instance. While you are on each company website, be sure to check on all the available discounts for Kentucky car insurance. If you think you are eligible for a discount that doesn’t factor into your online quote, call the company and inquire. It’s important to be very proactive in asking for discounts.

Comparing quotes and snagging discounts are the best ways to cut costs on Kentucky car insurance.

What Types Of Car Insurance Do Kentucky Drivers Need?

For car insurance policies, Kentucky state law requires minimum liability limits of $25,000 in bodily injury protection for each person injured, $50,000 coverage in per accident protection, and $10,000 insurance to cover the cost of property damage. Also required in the state of Kentucky is $10,000 in coverage for personal injury protection (PIP). However, it happens that the state-mandated minimum liability limits on auto insurance policies are usually too low to cover the cost of real auto accidents.

That’s why American insurance experts agree that Kentucky drivers (in fact, all drivers) should purchase more than the minimum amount of car insurance coverage required by the state. Experts recommend coverage amounts of $100,000 for personal injury protection, $300,000 against bodily injury to others, and at least $50,000 insurance to cover the cost of property damage.

Also highly recommended for drivers in Kentucky is uninsured / underinsured motorist insurance (UMI). As mentioned, more than one in seven drivers on Kentucky roads is uninsured. Also, because of the low state minimum liability requirements, even vehicles that have insurance are often underinsured.

For the ultimate vehicle protection, Kentucky car owners can also buy comprehensive and collision coverage. These types of insurance will cover the cost of potentially expensive vehicular mishaps such as collisions, animal strikes, falling objects, weather conditions, wildfires, floods, vandalism, and car theft, among others.

Unique Facts About Kentucky

The state of Kentucky (Cumberland Falls) features the ONLY moon bow in the western hemisphere. A moon bow is like a nighttime rainbow, reflecting the light of the moon.
The state of Kentucky is home to 16 Universities.
Kentucky’s ten largest cities are Louisville, Lexington, Bowling Green, Owensboro, Covington, Hopkinsville, Richmond, Florence, Georgetown and Elizabethtown, in that order. Of these, only Louisville and Lexington have more than 50,000 residents.
The state of Kentucky has many fascinating caves to explore.
Bourbon was invented in Kentucky.
Kentucky is called the Blue Grass state because the grass in certain parts of Kentucky actually looks bluer than the grass in other regions.
Kentucky is probably most famous for the Kentucky Derby, also known as The Most Exciting Two Minutes in Sports.

Best And Worst Zip Codes For Kentucky Car Insurance

Annual rates on premiums for Kentucky car insurance policies will range high and low among zip codes within the state of Kentucky. Auto insurance premium rates depend not only on the on-road behavior of the driver, but also on the demographics of the driver’s zip code, such as population density, unemployment rates, median resident age, median income levels, poverty stats, crime rates, and the percentage of uninsured drivers on the road, among other things.

Scroll down to view a list of the four most expensive zip codes to buy Kentucky car insurance. Annual premium rates in these neighborhoods can range from about $1,080 to more than $4,350.

Zip Code	Pop Density	Unemployed %	Poverty %
40827 (Essie)	51	0%	33.50%

This Leslie County zip code is home to fewer than 800 people. The population density here is very light, but the poverty rate is almost twice the 18.5 percent state average in this neighborhood.

Zip Code	Pop Density	Unemployed %	Poverty %
40972 (Oneida)	22	7.10%	42.30%

This Clay County neighborhood is home to fewer than 1,300 people. Although he population is light, unemployment is above the 5.1 percent state average, and the poverty rate in this zip code is way out of the ballpark.

Zip Code	Pop Density	Unemployed %	Poverty %
41723 (Busy)	61	30.20%	37.60%

This Perry County zip code is home to fewer than 1,300 people. The population density is light, but the unemployment and poverty rates are sky high in this neighborhood.

Zip Code	Pop Density	Unemployed %	Poverty %
40914 (Peabody)	19	5.50%	42.10%

Approximately 250 people live in this Clay County neighborhood. The population density is very low here, and the unemployment rate is not too far above the state average. However, poverty in this area is well over twice the state average.

Now compare the above zip codes in Kentucky to the ones shown below. Here are the four cheapest zip codes (on average) in the state of Kentucky to buy auto insurance. Yearly premium rates can range from about $770 to just under $2,020.

Zip Code	Pop Density	Unemployed %	Poverty %
42301 (Owensboro)	253	8.60%	18.00%

This Davies County neighborhood is home to more than 43,000 people, although the population density is very light. The unemployment rate is rather high, but the poverty rate is slightly below the state average of 18.5 percent.

Zip Code	Pop Density	Unemployed %	Poverty %
42303 (Owensboro)	835	5.50%	15.80%

More than 40,000 people live in this lightly populated neighborhood, where unemployment approaches the state average, and poverty falls below the state average.

Zip Code	Pop Density	Unemployed %	Poverty %
41075 (Fort Thomas)	2,739	5.00%	8.00%

This Campbell County zip code is home to more than 16,000 people. The population density is average, and the unemployment and poverty rates fall below the state average.

Zip Code	Pop Density	Unemployed %	Poverty %
42355 (Maceo)	67	5.80%	5.90%

Less than 2,000 people live in this neighborhood, where the population density is light. The unemployment rate is near the state average, and the poverty rate falls far below the state average.

All in all, the state of Kentucky is home to 946 zip codes that span 120 counties which contain 783 cities, from Adairville to Wurtland and everywhere in between. There is quite a bit of difference in premium rates between the cheapest zip codes and the priciest zip codes to buy Kentucky car insurance.

Look up your own Kentucky zip code. See how much money you can save on auto insurance in the state of Kentucky.

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