You’ve seen the catchy advertisements from auto insurance companies like Progressive and Allstate claiming dirt cheap rates. So drivers just need to pick the company with the best ad, right?
It’s not that simple, unfortunately, as there are a whole slew of unknown aspects such as whether you are single or married, if you have any driving citations, and if you own a home, that all factor into the price you pay. Car insurance is kind of a dry topic, but this article will explain these things and also should give you a good beginning to your search for cheaper coverage.
Shopping around for reasonably-priced auto insurance is not easy, and deciding which company has the best car insurance rates for low income drivers may require even more diligence. Each insurer uses a little different formula to determine premium rates, so we need to take a look at the most budget-friendly car insurance companies in Kentucky.
Best Cheap Insurance Rates in Kentucky
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | Cincinnati Insurance | $1,126 |
| 2 | Kentucky Farm Bureau | $1,163 |
| 3 | USAA | $1,175 |
| 4 | Auto-Owners | $1,371 |
| 5 | Grange Mutual | $1,577 |
| 6 | Motorists Mutual | $1,601 |
| 7 | Travelers | $1,680 |
| 8 | State Farm | $1,793 |
| 9 | Westfield | $1,814 |
| 10 | Safe Auto | $1,913 |
| 11 | Nationwide | $2,003 |
| 12 | Progressive | $2,077 |
| 13 | Electric | $2,160 |
| 14 | State Auto | $2,232 |
| 15 | Encompass | $2,312 |
| 16 | GEICO | $2,437 |
| 17 | Safeco | $2,763 |
| 18 | Shelter | $3,135 |
| 19 | MetLife | $3,146 |
| 20 | Liberty Mutual | $3,634 |
| View More Rates Go | ||
Cincinnati Insurance has some of the lowest car insurance rates in Louisville at around $1,126 per year. Kentucky Farm Bureau, USAA, Auto-Owners, and Grange Mutual also are some of the cheaper Louisville, KY car insurance companies.
As the example above demonstrates, if you are insured with Auto-Owners and switched to Cincinnati Insurance, you could see a yearly price reduction of around $245. Policyholders with Grange Mutual might save as much as $451 a year, and Motorists Mutual customers might reduce rates by $475 a year.
Remember that these estimates are averaged across all insureds and vehicles and and are not figured with a specific location for low income drivers. So the company that fits your situation best may not even be in the top 21 companies shown above. That is why you need to get rate quotes using your own driver and vehicle profiles.
For poor drivers, one of the more important factors that aid in calculating the annual cost of car insurance is the neighborhood you call home. Areas with a lot of weather claims or more people tend to pay more, whereas areas that tend to be more rural have the gratification of cheaper auto insurance rates.
The illustration below shows the most expensive areas in Kentucky for low income drivers to purchase a policy in. Louisville is ranked #1 with a yearly cost of $2,090 for the average insured, which is approximately $174 monthly.
| Rank | City | Annual Rate |
|---|---|---|
| 1 | Louisville | $2,090 |
| 2 | Frankfort | $1,742 |
| 3 | Ashland | $1,707 |
| 4 | Saint Matthews | $1,694 |
| 5 | Jeffersontown | $1,668 |
| 6 | Paducah | $1,631 |
| 7 | Elizabethtown | $1,611 |
| 8 | Radcliff | $1,606 |
| 9 | Madisonville | $1,600 |
| 10 | Murray | $1,597 |
| 11 | Danville | $1,581 |
| 12 | Georgetown | $1,551 |
| 13 | Henderson | $1,541 |
| 14 | Covington | $1,532 |
| 15 | Hopkinsville | $1,523 |
| 16 | Lexington | $1,514 |
| 17 | Nicholasville | $1,504 |
| 18 | Winchester | $1,501 |
| 19 | Erlanger | $1,478 |
| 20 | Richmond | $1,475 |
| Compare Prices Now Go | ||
Premium costs are estimated as the garaging address in Louisville can decrease or increase prices significantly.
Bad driving habits will cost you more
In a perfect world, the best way to earn the most affordable car insurance rates in Kentucky for poor drivers is to be an attentive driver and avoid getting tickets or having accidents. The information below demonstrates how traffic citations and accident claims can impact insurance prices for different insured age categories. The prices are based on a married male driver, comprehensive and collision coverage, $500 deductibles, and no discounts are applied to the premium.
The data in the chart shows the average cost of a car insurance policy in Louisville per year with no accidents or violations is $1,315. Get two speeding tickets and the average cost increases to $1,806, an increase of $491 each year. Now include two accidents along with the two speeding tickets and the 12-month cost of car insurance for low income drivers increases to an average of $3,734. That’s an increase of $2,419, or $202 per month, just for being a less-than-perfect driver!
Louisville car insurance companies
Selecting the top car insurance provider can be difficult considering how many companies there are in Kentucky. The rank data listed below can help you choose which car insurance providers to look at buying from.
These rankings include the largest companies in the United States, so companies that focus mainly on Kentucky business are not factored into these rankings. To compare prices from these and other companies in Kentucky, click this link.
| Company | Value | Customer Service | Claims | Customer Satisfaction | A.M Best Rating | Overall Score |
|---|---|---|---|---|---|---|
| Travelers | 93 | 98 | 99 | 88% | A++ | 95.1 |
| USAA | 83 | 99 | 100 | 91% | A++ | 94.1 |
| AAA Insurance | 91 | 95 | 92 | 90% | A | 93.3 |
| Nationwide | 85 | 95 | 97 | 89% | A+ | 92.4 |
| Allstate | 77 | 100 | 97 | 88% | A+ | 90.7 |
| State Farm | 80 | 94 | 96 | 88% | A++ | 90.6 |
| The Hartford | 88 | 93 | 91 | 87% | A+ | 90.4 |
| Safeco Insurance | 91 | 95 | 85 | 88% | A | 90.2 |
| Progressive | 88 | 94 | 83 | 88% | A+ | 90.1 |
| American Family | 91 | 86 | 95 | 83% | A | 89.7 |
| Esurance | 86 | 90 | 94 | 90% | A+ | 89.5 |
| The General | 86 | 93 | 89 | 84% | A- | 88.2 |
| GEICO | 79 | 89 | 95 | 87% | A++ | 87.8 |
| 21st Century | 86 | 82 | 90 | 84% | A | 86.4 |
| Liberty Mutual | 79 | 87 | 95 | 78% | A | 85.3 |
| Erie Insurance | 87 | 84 | 85 | 85% | A+ | 85.3 |
| Farmers Insurance | 77 | 80 | 80 | 84% | A | 80.3 |
| Compare Rates Now Go | ||||||
Data Source: Insure.com Best Car Insurance Companies
Why you are probably overpaying for car insurance
Kentucky car insurance rates are influenced by many factors that control the policy price. Simply getting older, moving to a different location, or having a fender bender can trigger rate changes resulting in some companies being cheaper than competitors. Not only may things change on your end, but auto insurance companies amend premium rates as often as every three months in order to be able to pay unexpected claims. A period of higher than normal claims may result in price increases, while a profitable period can produce cheaper Louisville car insurance rates.
The graph below shows a variety of companies that have the cheapest car insurance in Louisville, KY for a 40-year-old female driver with no prior accidents, a clean driving record, and good credit. When comparing rates based on her current situation, Cincinnati Insurance might quote the lowest car insurance rates in Louisville at $1,660 a year. This is $483 less than the average premium paid by Kentucky drivers of $2,143. Kentucky Farm Bureau, USAA, Auto-Owners, and Motorists Mutual are the rest of the cheapest Louisville, KY auto insurance companies.
In this example, we will give the driver from the first rate comparison a claim or two, less-than-perfect credit, and a few blemishes on her driving record. Due to the fact that each insurance company has their own formula to establish rates, comparing quotes could now result in a new list of companies as shown below.
Kentucky Farm Bureau now has the cheapest auto insurance in Louisville, KY with Travelers, USAA, State Farm, and Westfield now rounding out the top five. This shows why drivers need to perform an extensive rate comparison when trying to get cheap insurance quotes for low income drivers.
Prices are determined by many things and can change substantially, so the best company the last time you shopped around may now cost much more than other companies.