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Best car insurance companies in Kentucky

Fact-checked with HomeInsurance.com

    Article Highlights

    Kentucky may be known as the horse capital of the world but the best way to get around the Bluegrass State is by road. When it comes to transportation, insurance is a major consideration in this state, thanks in part to one of the highest traffic fatality rates in the country. This makes for stiffer legal car insurance requirements and can effectively drive up rates.  

    For drivers looking for the best car insurance in Kentucky, we have provided an overview of the top providers by market share. Our report includes a look at what the average rates are for Kentucky and how these rates are affected by your driving record. You can also compare rates by provider and major cities in Kentucky.

    Kentucky quick facts

    • Cheapest carrier for full coverage in Kentucky is USAA: $1,502
    • Cheapest carrier for minimum coverage in Kentucky is Kentucky Farm Bureau: $420
    • Carrier with highest customer satisfaction in Kentucky: USAA
    • Number of uninsured drivers in Kentucky: 11.5%
    • Kentucky is on the higher end for car insurance rates
    • High accident statistics make road rules and insurance laws stricter

    The average Kentucky driver pays $1,842 per year for insurance, which breaks down to about $153 each month for 12 months of coverage. In comparison, the national average car insurance rate in the United States is $1,555 per year for a 12 month, full coverage policy. The average minimum coverage rate across the U.S. is $545 for a 12 month premium.

    The table below indicates how much auto insurance costs in Kentucky with a clean record, and how speeding tickets and accidents affect the average cost of full coverage premiums. While these rates may be useful in your comparison-shopping, please keep in mind that the following rates represent averages for Kentucky and may not reflect your actual premium quote.

    Average cost of car insurance in Kentucky

    Clean record1 speeding ticket1 accident
    Full coverage$1,850$2,079$2,340
    Minimum coverage$738$865$1,051

    Quadrant data services, 2020

    Top car insurance companies in Kentucky

    • USAA: Best for military families
    • Kentucky Farm Bureau: Best for cheap minimum coverage
    • Progressive: Best for discounts
    • Allstate: Best for diverse coverage options
    • State Farm: Best for online tools
    Company2019 J.D. Power claim satisfaction scoreAM BestDiscounts offeredAverage rate
    USAA5/5     A++ (Superior)Accident-free, membership, multi-car, annual mileage, family discount$1,502
    Kentucky Farm Bureau4/5A(Excellent)Accident-free, defensive driving course, anti-theft devices, driver training$1,681
    Progressive3/5A+(Superior)Automatic payments, bundling, multi-car, paperless, teen driver$1,998
    Allstate3/5A+(Superior)Anti-lock brakes, automatic payments, bundling, new car, pay in full, paperless$1,946
    State Farm3/5A++ (Superior)Drive Safe and Save, accident-free, good driving, defensive driving course $1,678

    Quadrant data services, 2020

    USAA: Best for military families

    For members of the armed forces and their spouses, the United Services Automobile Association (USAA) remains the top choice in car insurance. Not only is USAA one of the highest rated insurance companies in the country for customer satisfaction, but it also offers the cheapest full coverage rates in Kentucky, at $1502 a year. For those who qualify, USAA is a great option to consider.

    Farm Bureau: Best for cheap minimum coverage

    Since farming is a major occupation in Kentucky, Farm Bureau is a great local choice of auto insurance provider in the state for custom coverage for farmers. Although you have to be a member to qualify for a policy, Farm Bureau offers the cheapest minimum coverage rate in Kentucky at only $420. Membership is $35 a year and you also get a local agent to work with.

    Progressive: Best for discounts

    Although Progressive’s rates are on the higher end for Kentucky, it offers discounts to customers that can help provide significant savings. By using its safe driver program and taking advantage of the steep student, teen driver, online sign-up, annual payment and bundling discounts, Progressive customers can save hundreds of dollars every year on their policy. In addition, the company also has coverage for nearly all drivers, even if they have poor credit or tickets and accidents.

    Allstate: Best for diverse coverage options

    If comprehensive coverage is what you’re looking for, Allstate provides you with more options than most other insurers in Kentucky. From rideshare coverage — for drivers of Uber and Lyft — to coverage for high-end luxury vehicles, Allstate has something for all car owners. You also get dedicated agents to work with you, 24/7 access to the claims center and safe driving rewards with the Drivewise program. 

    State Farm: Best for online tools

    As the largest insurance company in the U.S. by market share, State Farm has some of the best online resources and highly efficient mobile tools to make the policy management process convenient for customers. Claims can be filed through the mobile app, talking to an agent is easy, and requesting roadside assistance can be done quickly. State Farm also ranks particularly high in J.D. Power’s 2019 claims satisfaction study

    Car insurance rates in Kentucky by city

    The best auto insurance rates in Kentucky vary from one city to another, based on the ZIP code. The table below demonstrates the average cost of full and minimum coverage car insurance in major cities in Kentucky.

    CityFull coverage annual rateMinimum coverage annual rate
    Louisville$2,051$996
    Lexington$1,631$655
    Bowling Green$1,619$598
    Owensboro$1,697$561
    Covington$1,618$611

    Quadrant data services, 2020

    Louisville

    The cost of full coverage car insurance in Louisville is higher than other cities in the state. The annual premium averages $2,051 a year, almost 11% higher than the state average of $1,850 a year. Because it is the largest city in Kentucky, traffic is dense and the risk of accidents is greater, insurance rates here are costlier. 

    Lexington

    Lexington is a populous city, but it has some of the cheapest car insurance rates in Kentucky. Despite being the second largest city in the state, the annual full coverage premium here is $1,631, which is close to 12% lower than the state average and fairly in line with the national average. 

    Bowling Green

    Bowling Green, Kentucky also has fairly low average premiums. At $1,619 a year, it is over 12% cheaper than the state average of $1,850 a year for full coverage. 

    Owensboro

    Owensboro is fairly populous as well, which may lead to slightly higher rates. Full coverage insurance averages around $1,697 a year, which is just 8.3% cheaper than the state average.

    Covington

    Covington auto insurance rates are, on average, nearly the same as those in Bowling Green. Compared to the state average, the rate here is 12% cheaper at $1,618.

    Kentucky car insurance considerations

    Kentucky has 3.5 million drivers and a relatively high percentage of road accidents, in addition to high population density in some cities. There has also been a significant rise in vehicle theft between 2015 and 2019, according to data from Kentucky State Police. Among natural disasters, flooding is common in this region, which can be a cause for vehicle damage. When all these factors are considered, it is no surprise that car insurance is more expensive in Kentucky than the rest of the country. 

    Premiums also vary in each city and specific ZIP code. You can expect to pay more for auto insurance if you live in an area with higher population density, uninsured motorists or crime. 

    It is mandatory for motorists to have minimum auto insurance coverage in Kentucky, although that is not always enough to protect you against natural disasters, theft or uninsured drivers. It’s best to make sure you have sufficient coverage beyond just the required minimums. 

    Because this is a no-fault state, Kentucky auto insurance companies will pay your injury claims regardless of who was responsible for the accident. Being uninsured can result in fines and jail time. 

    Kentucky minimum liability requirements

    The minimum car insurance requirement in Kentucky for all motorists is listed as 25/50/25. This includes:

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

    How we chose the best car insurance providers in Kentucky

    Coverage chose the top auto insurance companies in Kentucky by evaluating the state’s largest providers by market share. The review process included comparing industry ratings, coverage options, average rates, available discounts and customer service. Each company was then selected based on its standout features to help guide your comparison-shopping.

    Other car insurance providers in Kentucky to consider

    In addition to the top five Kentucky insurance companies on our list, the following are some alternative options to consider when shopping for car insurance:

    Company2019 J.D. Power claim satisfaction scoreAM BestDiscounts offeredAverage rate
    Travelers3/5A++(Superior)Multi-policy, electronic billing, safe driving, InteliDrive®$1,327
    GEICO3/5A++(Superior)Military, multi-policy, student, seniors, federal employee, emergency deployment $993
    Nationwide4/5A+(Superior)Multi-policy, SmartRide, anti-theft, safe driver, accident-free$2,808
    Liberty Mutual3/5A(Excellent)Paperless, multi-policy, alternative energy, RightTrack$2,180

    Travelers

    One of the oldest companies in the industry, Travelers has a large selection of coverage options and a long-standing reputation that may appeal to Kentucky drivers. The annual premium is also affordable, at $1,327 a year — significantly lower than the state average. Travelers also offers discounts, online resources and strong financials to ensure policyholders are prioritized.

    Geico

    Providing affordable auto insurance to Kentucky drivers, GEICO has some of the cheapest premiums in Kentucky. The average annual rate for full coverage with GEICO is only $993, although compared to other providers, the coverage options are fairly basic. 

    Nationwide

    Even though it’s on the more expensive side, with average premiums at $2,808 annually, Nationwide has many advantages to offer. These include a range of online tools, bundling discounts and resources for customers to learn more about different policies. 

    Liberty Mutual

    A variety of discounts and an easy online quote and application process make Liberty Mutual a good provider to consider, though average full coverage premiums run higher, at $2,180 a year. The company does have a special coverage for teachers, as well as mileage-based premiums.

    Methodology

    Coverage utilizes Quadrant Information Services to analyze quoted rates from thousands of zip codes across all 50 states, using the top 15 carriers by premiums written by state. Quoted rates are based around the profiles of a 30-year-male and female with clean driving records, good credit and the following full coverage details:

    • $100k bodily injury liability per person
    • $300k bodily injury liability coverage per crash
    • $100k property damage liability coverage per crash
    • $500 collision coverage deductible
    • $500 comprehensive coverage deductible

    Minimum coverages were applied to match state requirements. Both drivers used a new, financed 2018 Toyota Camry, commuting 5 days a week and driving 12,000 miles per year.

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