Everything You Need to Know About Auto Insurance in Kentucky

Known for its bourbon, whiskey, tobacco and derbies that draw large global crowds, including royalty, Kentucky is a firmly Southern state with traces of Appalachian culture. More than 4.5 million Americans live in the Bluegrass State — land that was home to Native American tribes dating back thousands of years.

Splitting from Virginia when it joined the Union in 1792, Kentucky was christened the Bluegrass State on account of the green grass European settlers had brought over and used to create grazing pastures for livestock, particularly thoroughbreds.

Though it was part of the antebellum South during the Civil War period, with farms and tobacco plantations tended by slaves, Kentucky didn’t break from the Union, remaining neutral despite having been brought into the confederacy. It was during this time that an infamous quarrel broke out between neighbors living on the Kentucky and West Virginian borders of the Big Sandy River, which would go down in American folklore as the feud between the Hatfields of West Virginia and the McCoys of Kentucky.

Places to visit and put on your bucket list in Kentucky include checking out the Kentucky Derby at Churchill Downs (dress up and ladies, don’t forget your hat!), and hiking and rock climbing at Red River Gorge or exploring Mammoth Cave. Those interested in gastric history can stop for a great meal at the Sanders Café & Museum where Col. Sanders opened his very first finger-lickin’ Kentucky Fried Chicken. Those looking for American history can walk around the birthplace of President Abraham Lincoln.

If you’re looking for an affordable auto policy to keep you and your loved ones safe on the road, InsureOne expert agents can help you find the best auto insurance at a great rate in Kentucky.

How Much Does Car Insurance Cost in Kentucky?

In Kentucky, drivers pay annual auto premiums of $2,124 for full coverage and $678 for minimum liability insurance.

These premiums are much higher than national averages, which are $2,014 and $622 for full and minimum coverage, respectively. That means Bluegrass State drivers pay $110 more for a full coverage policy and $56 more for a basic one compared to other U.S. drivers.

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What Does It Mean if Kentucky Is a No-Fault State?

Being a no-fault state means Kentucky drivers bear their own costs for an auto accident, regardless of who is at fault. This means your coverage is what kicks in to help you pay for medical bills and repairs.

As part of that, Kentucky car owners must have personal injury protection (PIP) as part of their auto insurance coverage. PIP covers the driver’s medical costs and lost wages regardless of who caused the crash.

Affordable Car Insurance Rates Comparison by Cities in Kentucky

For a comparison of the average monthly premiums drivers in different cities across the state pay, check out our breakdown below.

City Full Coverage Insurance Liability Insurance Coverage
Louisville $197 $69
Florence $118 $39
Lexington $126 $43
Paducah $136 $42
Bowling Green $124 $40

Our average monthly premiums by city are based on the following methodology: male, age 30, lowest possible legal coverage allowed by Kentucky.

How Bundling Your Vehicle and Homeowners Insurance Can Save You Money in Kentucky

Those who bundle coverage typically receive a 5% to 25% discount on their annual premiums. This especially benefits homeowners, who tend to pay more for protection than renters do.

If you own a house in Louisville, Paducah, or Evansville, for example, and bundle your home insurance and auto coverage, you’ll likely get the maximum 25% reduction on your premium. By contrast, someone renting an apartment in any Kentucky town or city might only receive a discount of up to 15%.

An InsureOne agent can help you build a quality package that meets your needs and budget. They do all the work, comparing offerings from top providers, which saves you time and money.

What Types of Auto Discounts Are Available in Kentucky?

Driver discounts help policyholders save money on their premiums, especially if they’re eligible for more than one. For example, if you own a house and more than one car, bundling homeowner’s insurance and auto coverage could bring your rate down by as much as 25%.

Other rate-reducing discounts include:

  • Military
  • Good driver
  • Paperless billing
  • Anti-theft
  • Loyalty
  • Defensive driver
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Kentucky Car Insurance Laws

This state requires drivers to carry 25/50/25 minimum mandatory liability insurance along with $10,000 in personal injury protection (PIP). Here’s a closer look at what this means.

What Are the Mandatory Car Insurance Requirements in Kentucky?

States set mandatory monetary limits (or cash amounts) that insurers must pay if a policyholder causes a crash. In Kentucky, these limits are 25/50/20. That means if you cause a crash, your policy must provide:

  • $25,000 to pay the medical expenses of an injured person or their funeral expenses if they die from their injuries
  • $50,000 to cover treatment for injuries or deaths if two or more persons are involved
  • $25,000 to pay for property damage

Because Kentucky is a no-fault state, you will also need $10,000 in personal injury protection (PIP). This coverage pays your medical bills if you’re injured in a car accident -regardless of fault.

What Is the Penalty for Driving Without Insurance in Kentucky?

Whether you’re the one driving your car or someone else is, failing to provide proof of valid auto insurance typically leads to vehicle registration revocation. It also brings a $500 to $1,000 fine and can include up to 90 days in jail for both the vehicle owner and the person who was driving the car.

What Factors Does Kentucky Law Allow in Determining Your Premiums?

State law allows insurers to charge premiums based on several factors. Some of the most important ones are:

  • Gender
  • Age
  • Marital status
  • Location
  • Credit history
  • Vehicle type
  • Driving record and experience
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Auto Insurance Rates for Young Drivers vs. Older People in Kentucky

Young drivers typically cost more to insure than older ones, and this holds true in Kentucky. In the Bluegrass State, annual premiums for a 17-year-old teen driver in Louisville are $4,200 for full coverage and $3,468 for minimum liability insurance. By contrast, a 65-year-old driver in this city pays annual premiums of $2,148 for full coverage and $804 for basic coverage — that’s 48% to 76% less than what younger drivers pay.

Young drivers cost more to insure because they lack a driving history and as a collective group, tend to file more claims.

At InsureOne, our expert agents help you find the best auto insurance with customizable options that best meet your needs.

What Is Driving Like in Kentucky?

This state has hot, rainy summers and cold winters, meaning excessive rain and snow could pose road hazards during these months. It also experiences tornado activity, which also creates dangerous conditions.

How Many Car Accidents Happen in Kentucky?

In 2021, 734 fatal crashes in Kentucky resulted in 806 deaths. The following chart shows the number of fatal crashes that took place in various cities across the state that year.

City Fatal Crashes in 2021
Louisville 99
Florence 1
Lexington-Fayette 36
Paducah 6
Bowling Green 7
Morehead 1
Prestonburg 1
Mount Vernon 1
Elizabethtown 4
Shelbyville 2
Covington 3
Hopkinsville 3
Dry Ridge 1

Source: U.S. Department of Transportation National Highway Traffic Safety Administration.

How Many Uninsured/Underinsured Motorists Are in Kentucky?

Nearly 14% of Kentucky drivers don’t have auto coverage. In 2019, the state ranked no. 17 among those with the highest number of uninsured or underinsured motorists.

Get the Best Car Insurance in Kentucky Today

InsureOne offers a one-stop auto insurance shopping experience with expert agents who will listen to your needs and help you find top-quality insurance options that work best for you.

We will save you time and money by researching quotes and presenting you with several options that meet your needs. Get a quote online, visit us at an office near you, or call us at (800) 836-2240 for a quote.