You have surely seen all the commercials from insurers like The General, Farmers, and GEICO that make promises of dirt cheap rates. So drivers just need to choose any of them, right?
It’s just not that easy, however, as there are a whole slew of unknowns such as the area where you live, whether you just need liability insurance, and the vehicle you drive, that all influence how much you pay for auto insurance. This article should teach you a little about the best ways to avoid high prices and will hopefully give the reader a good start to your coverage search.
The type of vehicle you are buying coverage for is a significant factor in finding the most affordable insurance for infrequent drivers. Vehicles with lower performance, a plethora of safety features, or a track record of few liability claims will cost substantially less to insure than higher performance models. The table below features coverage prices for some of the most budget-friendly automobiles to insure in Kentucky.
| Vehicle Insured | Estimated Cost for Full Coverage |
|---|---|
| Honda Accord LX 4-Dr Sedan | $1,987 |
| Ford F-150 STX Regular Cab 2WD | $1,996 |
| Honda CR-V EX-L 2WD | $2,036 |
| Dodge Grand Caravan CV | $2,041 |
| Ford Escape Limited 2WD | $2,036 |
| Ford Focus S 4-Dr Sedan | $2,111 |
| Chevrolet Impala LT | $2,151 |
| Chevrolet Malibu LS | $2,157 |
| Volkswagen Jetta S 4-Dr Sedan | $2,151 |
| Toyota RAV4 Limited 4WD | $2,157 |
| Chevrolet Silverado LT Extended Cab 4WD | $2,151 |
| Ford Explorer Limited 4WD | $2,193 |
| Toyota Prius | $2,209 |
| Toyota Corolla S | $2,266 |
| Ford Edge SEL 2WD | $2,306 |
| Jeep Grand Cherokee SRT-8 4WD | $2,309 |
| Ford F-350 XL Crew Cab Turbo Diesel 2WD | $2,388 |
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Data rating is based on single male driver age 40, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Kentucky minimum liability limits. Discounts applied include safe-driver, multi-vehicle, homeowner, multi-policy, and claim-free. Estimates do not factor in zip code location which can modify price quotes considerably.
Based on these rates, cars like the Honda Accord, Ford F-150, Honda CR-V, Dodge Grand Caravan, and Ford Escape are some of the most budget-friendly vehicles to insure for low mileage drivers.
Finding good, budget car insurance is difficult, and deciding which companies have the cheapest car insurance rates for infrequent drivers takes even more rate comparisons. Each auto insurance company uses slightly different criteria for determining rates, so we’ll go over the most affordable car insurance companies in Louisville.
Find Cheaper Car Insurance in Kentucky
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | Cincinnati Insurance | $1,115 |
| 2 | Kentucky Farm Bureau | $1,163 |
| 3 | USAA | $1,187 |
| 4 | Auto-Owners | $1,357 |
| 5 | Travelers | $1,614 |
| 6 | Motorists Mutual | $1,617 |
| 7 | Grange Mutual | $1,625 |
| 8 | Westfield | $1,832 |
| 9 | State Farm | $1,867 |
| 10 | Safe Auto | $1,972 |
| 11 | Progressive | $2,056 |
| 12 | Nationwide | $2,085 |
| 13 | Electric | $2,097 |
| 14 | State Auto | $2,254 |
| 15 | GEICO | $2,341 |
| 16 | Encompass | $2,382 |
| 17 | Safeco | $2,791 |
| 18 | MetLife | $3,177 |
| 19 | Shelter | $3,231 |
| 20 | Allstate | $3,712 |
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Cincinnati Insurance quotes some of the lowest car insurance rates in Louisville at around $1,115 each year. This is $1,028 less than the average price paid by Kentucky drivers of $2,143. Kentucky Farm Bureau, USAA, Auto-Owners, and Travelers would also be considered some of the cheapest Louisville, KY auto insurance companies.
In the above example, if you buy coverage from Auto-Owners and switched to Kentucky Farm Bureau, you might see yearly savings of upwards of $194. Customers with Travelers may save as much as $451 a year, and Motorists Mutual insureds might reduce rates by $454 a year.
These policy prices are averaged across all insureds and vehicles and do not factor in an exact vehicle garaging location for infrequent drivers. So the auto insurance company that is best suited for you may not even be in the top 21 companies shown above. That underscores the importance of why you need to compare rates from multiple companies using your own individual information.
The example below highlights how deductible choice can raise or lower insurance costs when searching for cheap insurance for infrequent drivers. The costs are based on a married male driver, full coverage, and no discounts are applied to the premium.
A 50-year-old driver could lower their car insurance rates by $226 a year by changing their physical damage coverage from a $100 deductible up to a $500 deductible, or save $344 by selecting a $1,000 deductible. Even younger drivers, such as the 20-year-old example, can cut $756 annually by choosing a higher deductible.
If you do decide to increase your deductibles, it will be necessary to have plenty of discretionary funds to offset the extra out-of-pocket expense, which is the main disadvantage of using high deductibles.
Liability only or full coverage
Saving money on car insurance is important to most people, and a good way to buy cheaper insurance for infrequent drivers is to not buy full coverage. The diagram below shows the comparison of insurance premiums with liability coverage only compared to full coverage. The data assumes no claims or driving violations, $500 deductibles, single marital status, and no discounts are applied to the premium.
Averaged for all age groups, full coverage on your policy costs an extra $1,541 per year more than carrying just liability coverage. Many drivers may wonder if paying for full coverage is worth it. There is no definitive formula of when to exclude full coverage, but there is a guideline you can use. If the yearly cost of comp and collision coverage is more than around 10% of the replacement cost of your vehicle minus the policy deductible, then it could be time to drop full coverage.
There are some circumstances where removing full coverage is not advised. If you haven’t satisfied your loan, you have to keep full coverage as part of the loan conditions. Also, if you cannot afford to purchase a different vehicle if your current one is in an accident, you should not remove full coverage.
Types of discounts on Louisville auto insurance rates
Insurers that provide coverage for infrequent drivers may also offer policy discounts that can lower rates by as much as 35% if you qualify. Larger car insurance companies and a summarized list of policyholder discounts are:
- Farmers Insurance may have discounts that include early shopping, mature driver, switch companies, teen driver, and multi-car.
- Esurance may offer discounts for anti-theft, DriveSense, defensive driver, paid-in-full, good driver, and online shopper.
- State Farm offers discounts for driver’s education, multiple policy, defensive driving training, safe vehicle, good driver, accident-free, and anti-theft.
- GEICO includes discounts for federal employee, driver training, seat belt use, daytime running lights, and anti-theft.
- Allstate may include discounts for EZ pay plan discount, early signing, utility vehicle, passive restraint, and FullPay discount.
The example below shows the difference between insurance rates with and without discounts applied to the policy rates. The data assumes a male driver, no tickets, no at-fault accidents, Kentucky state minimum liability limits, comp and collision included, and $250 deductibles. The first bar for each age group shows the average rate with no discounts. The second shows the rates with anti-theft, claim-free, passive restraint, accident-free, vehicle safety, and safe-driver discounts applied. When drivers take advantage of discounts, the average savings per year on car insurance for infrequent drivers is 28% or $639.
Why you should compare rates
Kentucky car insurance rates are based on many factors that will increase or decrease the price of your policy. Simply turning a year older, buying higher coverage limits, or getting into an accident can trigger changes in premium that may make certain companies more affordable than competitors. Not only may your risk profile change, but auto insurance companies change rates multiple times each year in order to offset underwriting gains or losses. Heavier than normal losses may result in higher priced premiums, while a lower level of claims can cause cheaper Louisville car insurance rates.
The data below analyzes the cheapest car insurance in Louisville, KY for a 30-year-old male driver with no prior claims, no tickets, and solid credit. If we compare prices based on his current risk profile, Cincinnati Insurance may offer the lowest car insurance rates in Louisville at $1,643 a year. This is $500 less than the average rate paid by Kentucky drivers of $2,143. Kentucky Farm Bureau, USAA, Auto-Owners, and Grange Mutual are the rest of the cheapest Louisville, KY auto insurance companies.
The example below compares rates after we give the driver in the first chart a claim, bad credit, and a traffic citation. Since each auto insurance company has their own formula for determining rates, analyzing rate quotes may now present a completely different list of affordable companies as shown below.
USAA now has the cheapest auto insurance in Louisville, KY with Motorists Mutual, Kentucky Farm Bureau, State Farm, and Westfield also being competitive. This demonstrates why Louisville drivers need to compare many different companies to get the best car insurance quotes for infrequent drivers.
Prices can be altered by many factors and can decrease or increase without notice, so the lowest-price company a year ago may now be quite expensive.