Best Cheap Auto Insurance for First-time Drivers in Kentucky

Wouldn’t this article be short if we could look into our crystal ball and tell you the one perfect auto insurance company that has the cheapest rates for first-time drivers? Unfortunately, it’s not that simple as there are a whole bunch of unknown elements like the amount of liability insurance you need, if you are a homeowner, and if you currently have coverage, that all impact the cost of coverage. This article will cover the best ways to avoid paying too much and will hopefully give you a good beginning to your quest for cheaper car insurance in Kentucky.

Deciding which companies offer the most affordable car insurance rates for first-time drivers involves a bit more work than just comparing a company or two.

Each auto insurance company uses a little different formula for filing rates in each state, so let’s take a look at the car insurance companies with the most affordable rates in Kentucky. It’s important to understand that Kentucky car insurance rates are influenced by many factors that will increase or decrease the cost of your policy. Improving your credit score, getting divorced, or getting a DUI can trigger price changes that can now make some companies cheaper than before.

Best Auto Insurance Prices for Inexperienced Drivers

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Cincinnati Insurance generally has some of the best car insurance rates in Kentucky at around $1,126 annually. Kentucky Farm Bureau, USAA, Auto-Owners, and Grange Mutual also make the cut as some of the cheapest Kentucky auto insurance companies.

As illustrated above, if you are currently insured with USAA and switched to Cincinnati Insurance, you may realize a yearly savings of in the vicinity of $49. Insureds with Auto-Owners may save as much as $273 a year, and Grange Mutual policyholders might lower prices by up to $435 a year.

To find the best cheap auto insurance for first-time drivers in Kentucky, click here to begin a quote or feel free to get quotes from the companies below.

It’s important to note that these policy rates are averaged for all types of insureds and vehicles and do not take into consideration a rate surcharge for first-time drivers. So the auto insurance company that can offer you the best price may not even be shown in the rate chart shown above. That underscores the importance of why you need to compare rates from as many companies as possible using your own personalized driver profile and vehicle information.

When shopping for the cheapest insurance for new drivers, one of the many components that insurance companies use when figuring the amount you pay for auto insurance is where you keep your vehicle. Urban areas that are densely populated like Louisville, Ashland, and Saint Matthews will most likely have higher rates, whereas areas with fewer weather claims and lower vehicle theft rates enjoy lower insurance rates.

The illustration below illustrates the most expensive cities in Kentucky for first-time drivers to purchase car insurance in.

Rate information is estimated as specific location information can impact auto insurance rates significantly.

The make and model of vehicle that is being insured is one of the primary factors when comparison shopping for the best cheap auto insurance for first-time drivers in Kentucky. Vehicles with higher performance, a lack of safety features, or a history of substantial liability claims will cost much more to insure than more modest models. The next list shows coverage costs for some of the cheaper automobiles to buy insurance for.

Table data assumes single male driver age 16, no speeding tickets, no at-fault accidents, $500 deductibles, and Kentucky minimum liability limits. Discounts applied include claim-free, and safe-driver. Table data does not factor in specific zip code location which can impact coverage prices significantly.

Based upon the rates shown, vehicles like the Honda Accord, Hyundai Elantra, Honda CR-V, Ford Escape, and Ford F-150 are the less-costly vehicles to insure for new drivers. The cost of a car insurance policy will be more costly because of the fact that there is more exposure for first-time drivers, but in general those particular vehicles will most likely have the best rates compared to other types of vehicles.

Difference between full coverage and liability only rates

Finding the best cheap auto insurance for first-time drivers in Kentucky is important to most vehicle owners, and an easy way to pay lower rates for insurance is to not insure for full coverage. The illustration below visualizes the comparison of annual premium costs with full phyical damage coverage and with liability coverage only. The data is based on no tickets, no at-fault accidents, $500 deductibles, marital status is single, and no discounts are applied to the premium.

Averaged out for all age groups, full coverage costs $2,055 per year more than just insuring for liability. That amount may make you wonder if you should buy full coverage at all. There is no clear-cut formula to exclude physical damage insurance, but there is a general guideline. If the annual cost of having full coverage is about 10% or more of the replacement cost of your vehicle minus the policy deductible, then it’s probably a good time to buy liability coverage only.

For example, let’s say your vehicle’s settlement value is $11,500 and you have $1,000 physical damage deductibles. If your vehicle is severely damaged, the most you would receive is $10,500 after paying the physical damage deductible. If it’s costing in excess of $1,050 a year for physical damage coverage, then you might want to think about dropping full coverage.

Insuring your vehicle with a good quality auto insurance company can be a challenge considering how many companies are available to choose from in Kentucky. The company ratings shown below could help you pick which companies to look at when comparing rate quotes. The ratings below are for companies that insure vehicles nationwide, so smaller companies are not factored into these rankings.

Top 10 Major Car Insurance Companies in Kentucky Ranked by Customer Service

1. USAA
2. Travelers
3. AAA Insurance
4. Nationwide
5. Safeco Insurance
6. Progressive
7. State Farm
8. The Hartford
9. The General
10. Esurance

Who is cheaper: Geico, State Farm, Progressive, or Allstate?

When comparing car insurance for new drivers in Kentucky, the companies that insure more vehicles than anyone else are Geico, State Farm, Progressive, and Allstate. All of them offer physical damage and liability coverage, but each has unique options and discounts that may steer you one way or another. The data below shows price and claims rank as well as some different options that are available for policyholders.