What car insurance costs in Kentucky

How Kentucky's average compares

The National Association of Insurance Commissioners (NAIC) publishes what insurers collected per insured car in each state. For 2023, the latest year available, the Kentucky average expenditure was $1,046, up 11% from $938 in 2022. That figure mixes minimum policies with full coverage; the combined premium for a car carrying all three main coverages was $1,208.

Every Kentucky line is under the national average, by about 8% for comprehensive, 14% for liability and 23% for collision. Liability is still more than half of the full-coverage premium, so the limits you pick there move the total most. To see why two neighbors can pay very different amounts, read about age and driving experience.

Kentucky's minimum coverage and the no-fault choice

Kentucky requires liability of at least $25,000 per injured person, $50,000 per accident and $25,000 for property damage, or a $60,000 single limit. On top of that, the Motor Vehicle Reparations Act makes most vehicles carry basic personal injury protection (PIP), the state's no-fault coverage.

• Basic PIP pays up to $10,000 per person for medical bills, lost wages (up to $200 a week), replacement services and survivors' benefits, whoever caused the crash. It is optional for motorcycles, and you can buy more than the basic amount.
• The trade-off: a driver who keeps no-fault can't be sued for pain and suffering over a minor injury. A claim needs medical expenses over $1,000, a broken bone, a permanent injury or a death.
• Uninsured motorist coverage is included at $25,000/$50,000 unless the named insured rejects it in writing. Underinsured motorist coverage must be made available if you ask for it.

Kentucky lets you step out of the no-fault system by filing the Department of Insurance's rejection form. It takes effect when the department receives it and lasts until you revoke it in writing. The department warns of the cost: you lose basic PIP unless you buy it back, other people can sue you over smaller injuries, and your liability premium may go up. Before you decide, compare the price difference with what you give up; our page on limits and deductibles can help.

Rate filings and credit in Kentucky

KRS 304.13-051 sets a split system for personal lines. An insurer can put a rate change of up to 25% in any classification within 12 months into use and then file it within 15 days; a bigger change needs the commissioner's approval first, after a 30-day waiting period. Within those rules, each company sets its own prices.

Credit history can play a part in pricing, but under the same checklist an insurer or agent may not decline or end coverage based solely on your credit history or the lack of one. Under KRS 304.13-075, an insurer that uses credit must, on written request, consider an exception if your credit was hurt by events such as a serious illness or injury, the death of a spouse, child or parent, divorce, identity theft, a job loss lasting three months or more, or overseas military deployment. Our guide to credit-based insurance scores covers what you can check and correct.

The Kentucky Automobile Insurance Plan

Drivers who can't buy coverage in the regular market can turn to the Kentucky Automobile Insurance Plan, the state's assigned-risk pool. If an insurer cancels or refuses to renew your policy for a reason other than nonpayment, its notice must mention that you may be eligible for the plan and that you can ask the insurance commissioner to review the decision. For how these plans price and what they sell, see our guide to assigned-risk plans.

Discounts Kentucky requires, and other savings

1. 1 Use the mature-driver course. Under KRS 304.13-063, insurers must reduce the premium for at least three and up to five years for policyholders 55 or older who complete an approved accident prevention course (retaken every five years); members of the U.S. armed forces who complete a qualifying defensive driving course also get a reduction.
2. 2 Claim the anti-theft discount. Kentucky requires a discount on comprehensive coverage for qualifying anti-theft devices. See safety and anti-theft discounts.
3. 3 Price a PIP deductible. Insurers must offer PIP deductibles of $250, $500 or $1,000 on request, which lower the premium if you can cover that amount yourself.
4. 4 Get help from the state. The Department of Insurance's Division of Consumer Protection answers at 800-595-6053 (option 1) inside Kentucky and 502-564-3630 from out of state.

Questions drivers ask