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Kentucky Car Insurance

Auto Insurance Basics in Kentucky

When you get car insurance you enter into a contract with a provider. In return for your payments, your insurance carrier will absorb much of the costs of property damage, injury and even death resulting from a car accident you are involved in. Your payments are known as premiums and the costs your insurance company will cover are very specifically spelled out in your policy. Every policy will also have a specified deductible threshold which is the amount you must pay out of your own pocket before your insurance starts to pay out claims.

Car accidents are costly events. It has been estimated that the cost of a fatal car accident is well over a million dollars and even a small wreck averages about $3,500 in damages. The potentially ruinous financial cost of accidents is one reason why Kentucky, like most states, requires any vehicle registered in its domain to carry insurance. There are many types of car insurance to consider. The basic car insurance product is known as Liability insurance. Liability provides financial protection against claims made against you from an accident that you caused. It provides coverage up to the stated maximum for bodily injury, death and property damage.

But, you need to keep in mind that it only covers costs for the other party. In order to protect against costs for your own injuries and property damage you must get additional coverage. Collision insurance covers the cost of repairing your own vehicle up to the specified level of your policy. Kentucky drivers should take care to determine whether the book value of your car justifies the expense of your collision premiums and deductible. Comprehensive insurance provides coverage for theft, vandalism, weather-related damage and other risks.

There are other car insurance products to consider. Personal injury protection is a type of insurance that helps pay for any of your own medical bills resulting from an accident. Rental car reimbursement insurance covers the cost of a temporary replacement vehicle if your car is in the shop. Uninsured and Underinsured policies provide you an extra layer of protection if your own damages exceed the limits of the at fault party in an accident. And there are other protections available to you that vary from carrier to carrier.

Your insurance policy price tag will also be determined by your own personal information. Having a safe driving record will almost always Kentucky drivers preferred rates, as will having a good credit rating. Your place of residence will also be factored into the cost of your policy. Generally speaking, urban dwellers pay more for insurance than suburban or rural motorists.

So, when seeking to get car insurance you should determine the level of coverage you want. A good rule of thumb holds that you should purchase as much coverage as you can safely afford. The costs of a serious car accident can be financially devastating and car insurance provides a safety net.

Auto Insurance Requirements in Kentucky

Kentucky follows the No Fault insurance model but with a twist. You can choose to opt out of the no fault model. In a no fault system of auto insurance, a driver gets compensated from his or her own damages from their own carrier in the event of an accident. They do not usually get reimbursed by the other party’s insurance provider except under very particular circumstances. In Kentucky you can choose to opt out of the no fault system and, instead, opt for more traditional “At Fault” coverage. In the At Fault model, the driver who causes an accident is liable for damages and a driver may sue an at fault party for any damages in excess of their coverage. Be aware, though, that it is a two-way street. Opting out of No Fault means that you can be sued for excess damages if you cause an accident.

Unless you opt out of the no fault model, the state requires drivers to carry $10,000 of PIP insurance. In addition, Kentucky requires all registered vehicles to carry at least $25,000 for injuries to a single person, $50,000 for injuries to more than one person, and $10,000 for any property damage in any accident you cause. Remember, these are minimal requirements – you can choose to purchase deeper coverage.

Average Cost of Coverage in Kentucky

The average insurance cost for a good driver in Kentucky is about $2,000 per year or almost 40% higher than the national average. The reasons for it’s relatively high costs are generally attributed to the PIP requirement and the high rate of accidents in the state.

Age Average Premium (yearly)
16 $12,053
17 $9,312
18 $7,711
19 $4,879
20s $2,781
30s $2,044
40s $1,931
50s $1,827
60s $1,862
70s $2,273

Cheapest Car Insurance Companies in Kentucky

Because there are so many variables in the price of car insurance, it’s hard to state with certainty which specific carrier would give you the best deal. In additional to the big, name brand insurance providers, there are many other smaller, regional companies to choose from. With so many insurance companies serving the Kentucky market so there’s no reason to accept the first quote you get.

Rank Company  Avg. Premium (annual)
1 Kentucky Farm Bureau $1,159
2 USAA $1,471
3 Travelers $1,649
4 State Farm $1,661
5 GEICO $2,101

Unique Car Insurance Rules and Penalties in Kentucky

As mentioned earlier, Kentucky allows motorists to opt out of their No Fault insurance system. In order to do so you must file a special No Fault Rejection form with the Kentucky Department of Insurance. Be aware that driving without insurance in the state is prohibited. If you are caught you will be subject to fines and even possible imprisonment for multiple offenses.

Violation Avg. Annual Auto Insurance Rate % Insurance Rate Increase $ Insurance Rate Increase
Hit and Run $2,951 55% $1,053
Refused Breathalyzer/Chemical Test $2,840 50% $942
DUI $2,840 50% $942
Racing $2,868 51% $969
Reckless Driving $2,868 51% $969
Driving with a Suspended License $2,692 42% $794
At-Fault Accident $2,940 55% $1,042
Driving with an Open Container $2,228 17% $330
Operating a Vehicle Without Permission $2,335 23% $436
Passing a School Bus $2,285 20% $386
Improper Passing $2,300 21% $402
Following Too Closely $2,300 21% $402
Speeding $2,315 22% $416
Failure to Stop at a Red Light $2,300 21% $402
Illegal Turn $2,300 21% $402
Driving Wrong Way/Wrong Lane $2,249 18% $350
Failure to Yield $2,300 21% $402
Speeding in a School Zone $2,249 18% $351
Driving Too Slowly $2,249 18% $351
Distracted Driving $2,249 18% $350
Driving with Expired Registration $2,078 9% $179
Failure to Show Documents $2,078 9% $179
Not-at-Fault Accident $2,096 10% $197
Failure to Use Child Safety Restraint $1,975 4% $77
Failure to Wear a Seat Belt $1,947 3% $48
Driving Without Lights $1,947 3% $48

How to Get the Cheapest Car Insurance in Kentucky

There’s no big secret to getting the cheapest car insurance in Kentucky. You should shop around. Prices can differ dramatically between providers. Get free quotes from three or more carriers. Make sure they are for the exact same coverages - apples to apples, in other words. There is no obligation to getting a quote. Make a small investment of time and you will save money. At General.com, our simple, free online tool will make it easy for you to get insurance companies to compete for your business.

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