Kentucky Auto Insurance (2024)

For some, purchasing Kentucky auto insurance is intimidating, especially if they’re unfamiliar with Kentucky’s insurance requirements, coverage types, or how insurance works. This lack of information could result in people purchasing coverage they don’t need on their Kentucky auto insurance policy, making it harder to find cheap auto insurance.

Whether you’re looking to get the best Kentucky auto insurance coverage on a new vehicle, switch car insurance companies, or confirm you’re getting the best deal out there, look at our Kentucky auto insurance guide to help you find cheap car insurance in KY.

Free Auto Insurance Comparison

Enter your ZIP code below to view companies that have cheap auto insurance rates.

 Secured with SHA-256 Encryption

Required Kentucky Car Insurance Coverage

All Kentucky drivers must carry liability auto insurance, including the following three components:

• Bodily injury. Covers expenses related to bodily injury for other drivers and passengers involved in an accident you caused.
• Property damage. Covers property damage expenses for other drivers involved in an accident you caused.
• Personal injury protection insurance. PIP covers expenses related to bodily injury after you cause an accident.

The minimum required liability insurance coverage amounts in Kentucky are as follows:

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

Drivers can purchase higher coverage than the required state minimum. Although it may cost more to increase your coverage limits, it could be worth it if you’re involved in an accident, and the expenses total more than the state minimum.

For example, say you cause an accident resulting in bodily injury totaling $15,000 and property damage totaling $30,000. The $25,000 in bodily injury coverage would be enough, but extensive property damage totaling $30,000 means you’ll pay the $5,000 difference out of pocket.

Kentucky offers an alternative type of insurance policy known as combined single-limit coverage. Rather than purchase split-limit coverage that assigns an individual dollar amount to bodily injury and property damage claims, combined single-limit coverage assigns one dollar amount that applies to bodily injury, property damage, and personal injury protection.

Additional Options for Car Insurance in Kentucky

Liability coverage is the only insurance Kentucky requires, but auto insurers offer additional coverage options. Any coverage beyond the minimum state-required insurance could be considered full coverage depending on the type of auto insurance coverage added to the policy.

Additional types of auto insurance coverage available in Kentucky include:

• Comprehensive auto insurance. This coverage helps if your car is damaged in a non-accident-related event, like severe weather or vandalism.
• Collision auto insurance. Collision coverage helps pay for repairs if your car is damaged in an accident. Without collision coverage, you may have to pay for repairs to your vehicle out of pocket.
• Guaranteed Auto Protection (GAP) insurance. GAP coverage insurance helps pay the difference between what you owe on your car and what your car is actually worth after depreciation.
• Medical Payments (MedPay). MedPay pays for medical bills, doctor’s visits, and other medical costs associated with a covered event.
• Roadside assistance. This coverage helps if your car breaks down and you’re in need of certain assistance, like fuel services or flat tire repair.
• Uninsured/underinsured motorist coverage. This coverage allows you to be reimbursed after an accident by your own insurance company if the at-fault individual does not carry proper Indiana-mandated liability coverage.
• Rental car reimbursement. If your car is in the shop due to a covered event, your insurance company will reimburse you for the cost of a rental vehicle up to a certain amount.

Although additional coverage is optional, some drivers can benefit from further protection.

Average Cost of Auto Insurance in Kentucky

In Kentucky, the average cost of auto insurance is $748 to $2,128 annually. If you purchase minimum coverage, you’ll pay at the lower end of this range, but if you get full coverage, you’ll pay at the higher end. Of course, these rates vary depending on several factors.

To understand how insurance rates get calculated, you need to know what factors impact rates.

Factors Impacting Kentucky Car Insurance Rates

When you shop around for cheap auto insurance in KY, you must submit certain information to the insurance company. With this information, insurance companies can decide if they want to insure you and how much they want to charge you annually for coverage.

The following information gets used by insurance companies to calculate insurance rates:

• Age. Age is a factor regarding auto insurance rates. Young drivers are more likely to get into accidents, and older drivers face age-related issues like decreased reaction time.
• Claims history. If you’ve filed multiple claims, you’ll have higher insurance rates.
• Credit score. Credit scores affect your rates as well. Drivers with lower credit scores are more likely to file claims or miss payments. So, they’ll pay higher rates. However, California, Hawaii, Massachusetts, and Michigan insurance companies can’t use credit scores as a factor. Some states, however, ban companies from checking credit scores.
• Driving history. Traffic tickets, accidents, DUIs, and other similar charges will raise rates. Auto insurance companies check your driving record to determine rates.
• Gender. Men vs women car insurance rates are different. Men tend to pay higher rates than females, as statistics show men get into more accidents. However, insurers can’t consider gender in California, Hawaii, Massachusetts, Michigan, Montana, North Carolina, and Pennsylvania.
• Marital status and homeownership. Being married and owning a home are signs of responsibility, so it’s assumed that married homeowners carry less risk. Homeowners can bundle multiple auto and homeowners policies, leading to major savings.
• Level of education. Like marital status and homeownership, the assumption is that people with higher education levels are also more responsible. However, education level only minimally impacts rates.
• Vehicle model and make. When setting rates, insurance companies consider safety ratings, crash statistics, and the vehicle’s overall expense.
• ZIP code. Where you live impacts your rates based on weather, crime rates, living costs, and similar factors. The exception is California and Michigan, where using ZIP codes to calculate rates is prohibited.
• Commute distance. If you drive more, you statistically increase your chances of an accident. Therefore, those who drive more than average receive higher rates.

Each company’s rating system is different, but those mentioned above are the main factors that affect auto insurance rates.

Free Auto Insurance Comparison

Enter your ZIP code below to view companies that have cheap auto insurance rates.

 Secured with SHA-256 Encryption

What to Consider When Choosing a KY Auto Insurance Company

As you shop around, you’ll see there are many insurance companies to choose from, which could make the purchasing process hard for you.

Below are a few considerations when looking for a Kentucky auto insurance company:

• Coverage options. You must purchase the state minimum liability coverage, but if you’re interested in additional coverage options, choosing a company that offers what you need is important.
• Coverage amounts. Purchasing the state minimum coverage amount is a good start, but it wouldn’t hurt to have the option to select a higher limit for added protection.
• Cost of policy. Cost is important for many drivers, so once you determine what coverage you want, you can review quotes from different companies to find the most affordable.
• Deductible. A deductible is attached to certain additional coverages, such as collision and comprehensive. You want to select a deductible you can afford because you must make this payment before your insurance covers any vehicle damage after an accident.
• Discounts. Auto insurance discounts help lower the cost of insurance, and the more a company offers, the more money you could potentially save.

Ideally, the above criteria can guide you through purchasing auto insurance and help you choose the best insurance company for you. However, when reviewing coverage options and amounts, you must figure out how much coverage you need.

Determining How Much Auto Insurance Coverage You Need

Affordability is a priority when it comes to choosing the right insurance company. As mentioned, several coverage options are available to drivers through all insurance companies. Knowing what coverage you need and how much ensures you have appropriate coverage to protect you financially.

When determining how much coverage you need, here are a few things to consider:

• Vehicle value. Full coverage may not be worth it if you drive a cheap vehicle. Say your vehicle is worth $1,000, and your comprehensive deductible is $500. If the vehicle gets totaled, you would pay $500 for the deductible and only get $500 from the insurance company.
• Coverage costs. The more coverage you add to your policy, the higher the cost. You will also see a price increase if you increase the limits for these coverages.
• Income. If you get involved in an accident, could you afford to cover out-pocket-costs for you and any other drivers and passengers? Even if your income makes it possible to cover thousands of dollars in bodily injury and property damage, insurance is the best way to protect yourself financially.

Purchasing more than the required coverages will cost more. However, higher annual auto insurance rates will likely be more affordable than the out-of-pocket costs you’ll be stuck paying if you have insufficient coverage.

How to Find Cheap Car Insurance in Kentucky

It’s no secret that auto insurance can be costly, especially if you opt for full coverage. Since insurers consider various factors to calculate rates, it’s common for rates to differ based on the company. However, with all auto insurance companies, drivers have the opportunity to lower their rates.

Here’s how you can get the cheapest car insurance in KY:

• Shop around. Get quotes from multiple auto insurance companies and compare the cost for the coverage you need.
• Bundle insurance policies. Many auto insurance companies offer a discount to customers who bundle policies, so if you’re in the market for auto insurance and homeowners or renter’s insurance, you can get a deal.
• Remove coverage. Review your policy to confirm which coverage you need and remove what you don’t need to lower the price.
• Increase your deductible. The higher your deductible, the less you’ll pay for that coverage, but you don’t want to choose a deductible that’s too high because this is an out-of-pocket expense you must pay before your insurance covers vehicle replacement or repair.
• Improve your credit score. Since insurers often use credit scores to calculate your insurance premium, improving your score can get you a better rate.
• Review available discounts. Review the discounts offered by your insurance company to confirm if they applied to your policy and see if there are discounts you may qualify for that haven’t applied to your premium yet.

Read more:

• How To Save Money by Bundling Insurance Policies
• Where is a good deductible for auto insurance?

Whether you’re a new Kentucky resident needing auto insurance coverage or want to ensure you’re getting the best rate, the above methods are great ways to get cheap insurance in KY. You’ll also want to review your policy annually or semi-annually to confirm you’re getting the best possible rates through your auto insurer.

Companies Offering Auto Insurance in Kentucky

Here are some insurance companies offering car insurance in Kentucky:

• Geico
• Nationwide
• Liberty Mutual
• Progressive
• State Farm
• Allstate
• USAA

Use our online tool to compare Kentucky auto insurance rates from different insurance companies in your area. You can get started by entering your ZIP code. For example, you can compare Geico vs. State Farm auto insurance by shopping online.

Free Auto Insurance Comparison

Enter your ZIP code below to view companies that have cheap auto insurance rates.

 Secured with SHA-256 Encryption

Kentucky Auto Insurance Laws

Owners of seasonal vehicles, such as RVs and sports cars, must surrender their plates before removing insurance from the vehicle. If you remove the vehicle from your insurance policy after surrendering your plates, you could be penalized for having an uninsured registered vehicle. When you’re ready to get your seasonal vehicle back on the road, you can register and insure it for the driving season.

Drivers with historic license plates must also surrender them if the vehicle is no longer insured. If you wish to drive the vehicle with or without historic license plates, you must register and insure it before driving it.

Confirm how insurance works in Kentucky if you drive for or use rideshare transportation, such as Uber or Lyft. Many insurance companies don’t provide rideshare insurance, but there are a few that offer this specific type of coverage.

Providing Proof of an Insurance Policy in Kentucky

Drivers must report electronically when purchasing, renewing, or transferring car insurance to a new vehicle. Even though this information is on file, drivers should still carry proof of insurance when operating their vehicles. Drivers can face penalties for failing to provide proof of insurance, whether or not they’re insured.

Penalties for Driving Without Auto Insurance in Kentucky

As mentioned, if authorities pull you over, they will request proof of insurance. While insured drivers may not face harsh penalties for failure to present proof of insurance, uninsured drivers aren’t so lucky.

Uninsured drivers face the following penalties for driving without auto insurance in Kentucky:

• Fine of $500 to $1,000
• Up to 90 days in jail
• Registration cancellation

Since a list of insured drivers is provided to the commonwealth by Kentucky auto insurers, the state is aware of which drivers are uninsured. Drivers not on this list get sent requests to provide proof of insurance via mail, and they then have 30 days to provide this proof. If proof isn’t received, their registration gets canceled until they submit the requested documentation.

Kentucky No-Fault Coverage

Kentucky is a choice no-fault state, meaning it doesn’t matter which driver is at fault when an accident occurs. All drivers in Kentucky must carry no-fault car insurance, so after an accident, they must file a claim with their own insurance company to compensate up to $10,000 for medical expenses, lost wages, or replacement services, regardless of fault.

Due to the state’s no-fault limits, an individual’s right to sue the at-fault driver is restricted.

Drivers have the right to opt-out of no-fault coverage, allowing them to sue for damages in the event of an accident. However, opting out also means an individual can sue them for damages if they’re at fault for an accident.

If you wish to reject no-fault coverage, you can speak to your insurance company or the Kentucky Office of Insurance.

Whether drivers have no-fault coverage or not, people can still file claims against the at-fault driver if an injured party’s medical expenses total $1,000. They can also file claims if the injuries resulted in permanent disfigurement, deprivation of a bodily function, or fracture of a weight-bearing bone or other bones.

Additionally, since no-fault insurance only applies to bodily injury, drivers and passengers can file a property damage claim against the at-fault driver. Since Kentucky drivers must carry liability insurance, the at-fault party’s liability insurance covers property damage costs up to the coverage limit. However, they will have to pay out-of-pocket costs if the limit is too low.

Free Auto Insurance Comparison

Enter your ZIP code below to view companies that have cheap auto insurance rates.

 Secured with SHA-256 Encryption

Kentucky Vehicle Title, Registration, and Car Insurance Requirements

To title a vehicle in Kentucky, drivers must provide the following:

• Photo identification
• Original proof of Kentucky insurance, issued within 45 days of the titling date
• Completed TC96-182
• Signed and notarized Kentucky title

If the title and ID list different names, drivers must provide an affidavit proving the person listed on the title and ID are the same. Drivers can also use a marriage license or divorce decree.

To register a vehicle in Kentucky, drivers must provide the following:

• Photo identification
• Original proof of Kentucky insurance
• Registration fee

A sheriff’s inspection is also required to register the vehicle if the owner bought it in Kentucky. Additionally, drivers have 15 days to register the vehicle after relocating to Kentucky.

Kentucky Vehicle Registration and Car Insurance Exceptions and Exemptions

Although all Kentucky drivers are required to register their vehicles and carry a minimum amount of car liability insurance coverage, there are some exceptions and exemptions to the state’s insurance and vehicle registration laws.

Students attending college in Kentucky or out of state can keep their car registered and insured in their home state if they have a student identification card from a Kentucky higher education institution while driving in the state. However, policyholders should confirm their state’s insurance requirements with their insurance company.

Active duty service members can use their out-of-state insurance to title and register a vehicle in Kentucky. However, when registering the vehicle, the insurance policy must be recorded as a military personal policy instead of a standard policy. Our USAA auto insurance review is helpful for military members looking for coverage.

If entered as a standard policy, the vehicle may be flagged as uninsured, and an uninsured notice may be issued. You’ll then need to provide proof of active military service to the county clerk’s office.

The Final Word on Cheap Kentucky Auto Insurance

Because Kentucky auto insurance is so expensive, it’s important to take the time to analyze rates and coverages. Otherwise, you could be stuck paying a high rate for coverages you don’t need.

To jump right into finding affordable Kentucky auto insurance, use our free quote comparison tool. It will help you compare personalized quotes from local Kentucky auto insurance companies.

Free Auto Insurance Comparison

Enter your ZIP code below to view companies that have cheap auto insurance rates.

 Secured with SHA-256 Encryption