The words “cheap” and “insurance” really shouldn’t be used together, specifically when searching for the cheapest car insurance for inexperienced drivers. Let’s introduce you to some of the factors the can have a considerable influence on insurance rates, and figure out some ideas to reduce the price of the next policy you buy.
Buying affordable insurance is not always easy, and determining which companies have the most affordable insurance rates for inexperienced drivers requires more quotes for comparison.
Each insurance company has a different formula to set their prices, so we’ll go over the overall cheapest insurance companies in Kentucky.
Best Car Insurance Prices for Newbies
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | Cincinnati Insurance | $1,082 |
| 2 | Kentucky Farm Bureau | $1,128 |
| 3 | USAA | $1,211 |
| 4 | Auto-Owners | $1,399 |
| 5 | Motorists Mutual | $1,553 |
| 6 | Grange Mutual | $1,561 |
| 7 | Travelers | $1,631 |
| 8 | State Farm | $1,867 |
| 9 | Westfield | $1,888 |
| 10 | Safe Auto | $1,913 |
| 11 | Progressive | $2,077 |
| 12 | Nationwide | $2,085 |
| 13 | Electric | $2,097 |
| 14 | State Auto | $2,254 |
| 15 | Encompass | $2,358 |
| 16 | GEICO | $2,365 |
| 17 | Safeco | $2,763 |
| 18 | Shelter | $3,167 |
| 19 | MetLife | $3,177 |
| 20 | Liberty Mutual | $3,634 |
| View More Rates Go | ||
Cincinnati Insurance normally has some of the lowest car insurance rates in Louisville at around $1,082 a year. Kentucky Farm Bureau, USAA, Auto-Owners, and Motorists Mutual also are some of the cheapest Louisville, KY car insurance companies.
As the example above demonstrates, if you currently buy coverage from USAA and switched to Cincinnati Insurance, you could see a yearly price reduction of about $129. Customers with Auto-Owners might save as much as $317 a year, and Motorists Mutual policyholders might reduce rates by $471 a year.
Be aware that those premium estimates are averages for all types of insureds and vehicles and and are not figured with a specific vehicle garaging location for inexperienced drivers. So the car insurance company that fits you best may not even be in the top 21 companies in the list above. That illustrates why you need to quote rates from many companies using your own driver data and vehicle information.
The vehicle model requiring coverage is one of the largest factors when quoting low-priced car insurance for inexperienced drivers. Vehicles with limited top-end speed, modern passenger safety features, or a track record of few liability claims will cost significantly less to insure than fast, unsafe models.
The data below illustrates insurance prices for a number of the most affordable vehicles to buy insurance for.
| Make and Model | Estimated Cost for Full Coverage |
|---|---|
| Honda CR-V EX 2WD | $1,912 |
| Ford Escape XLT 4WD | $1,957 |
| Honda Accord LX-P 4-Dr Sedan | $1,972 |
| Chevrolet Malibu LS | $2,067 |
| Jeep Wrangler Unlimited Sport 2WD 4-Dr | $2,091 |
| Dodge Grand Caravan SXT | $2,106 |
| Toyota Prius | $2,124 |
| Hyundai Elantra Blue 4-Dr Sedan | $2,139 |
| GMC Sierra SL Crew Cab 4WD | $2,216 |
| Toyota Tacoma 4WD | $2,222 |
| Ford F-150 Lariat King Ranch 4WD | $2,255 |
| Chevrolet Equinox LS 2WD | $2,261 |
| Ford Explorer Eddie Bauer 4WD | $2,306 |
| Chevrolet Impala LT | $2,329 |
| Toyota RAV4 4WD | $2,338 |
| Honda Odyssey EX-L W/Navigation | $2,386 |
| Dodge Ram 2500 Crew Cab SLT 4WD | $2,404 |
| Honda Civic DX 2-Dr Coupe | $2,425 |
| Toyota Corolla XRS | $2,431 |
| Volkswagen Jetta SEL 4-Dr Sedan | $2,437 |
| Toyota Camry SE | $2,437 |
| Ford Edge Sport 2WD | $2,446 |
| Nissan Altima Hybrid 4-Dr Sedan | $2,490 |
| Start Your Quote Go | |
Data assumes single male driver age 30, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Kentucky minimum liability limits. Discounts applied include multi-vehicle, safe-driver, multi-policy, claim-free, and homeowner. Rates do not factor in specific zip code location which can change prices noticeably.
Based on these rates, we can conclude that vehicles like the Honda CR-V, Ford Escape, Honda Accord, Chevrolet Malibu, and Jeep Wrangler should be the most affordable vehicles to insure for new drivers.
Cost difference between full coverage and liability
Saving money when shopping for insurance is the goal of most vehicle owners, and a great way to buy cheap insurance for inexperienced drivers is to not buy full coverage. The example below illustrates the difference between auto insurance costs with liability coverage only compared to full coverage. Data assumes no claims or driving citations, $500 deductibles, drivers are not married, and no policy discounts are applied.
Averaged for all age groups, physical damage coverage costs $1,541 per year more than just buying liability insurance. At some point, every insured wonders when is it safe to stop buying full coverage. There is no written rule of when to eliminate comprehensive and collision coverage on your policy, but there is a broad guideline. If the yearly cost for physical damage coverage is more than 10% of replacement cost minus your deductible, then you might want to consider buying only liability coverage.
There are some situations where buying only liability insurance is not a good idea. If you haven’t satisfied your loan, you must maintain physical damage coverage as part of the loan requirements. Also, if your savings is not enough to buy a different vehicle in the event your current vehicle is totaled, you should not opt for liability only.
Insurance rates are higher with tickets and accidents
The best way to find low insurance rates in Louisville for new drivers is to drive safe and avoid accidents and violations. The chart below shows how speeding tickets and at-fault collisions impact insurance premiums for each age group. The prices are based on a married female driver, comprehensive and collision coverage, $100 deductibles, and no discounts are applied.
In the example above, the average cost of an auto insurance policy per year with a clean driving record and no accidents is $1,446. Factor in two speeding tickets and the average cost surges to $2,058, an increase of $612 each year. Now include two accidents along with the two speeding tickets and the yearly cost of insurance for inexperienced drivers jumps again to an average of $4,230. That’s an increase of $2,784, or $232 per month, just for a couple of infractions!
The illustration below illustrates how your choice of deductibles can impact yearly insurance costs when trying to find cheap insurance for inexperienced drivers. The information is based on a single female driver, full coverage, and no discounts are taken into consideration.
As shown above, a 50-year-old driver could cut expenses by $352 a year by changing from a $100 deductible up to a $500 deductible, or save $528 by selecting a $1,000 deductible. Even younger drivers, like the Age 20 chart data, could potentially save $898 each year by choosing a larger deductible amount.
When raising deductibles, it is a good idea to have enough in a savings account to satisfy the extra out-of-pocket expense, which deters some people from using high deductibles.
How to find the cheapest insurance for inexperienced drivers
The list below summarizes some of the recommended penny-pinching solutions that can help Louisville drivers quote lower-cost coverage.
- Earn discounts for being claim-free
- Do not pay for comprehensive and collision coverage on older vehicles
- Serious violations like DUI or reckless driving can increase rates dramatically
- Accidents can significantly increase rates
- Raise comprehensive and collision coverage deductibles
- Compare rates once a year for cheaper prices
The last tip is especially significant, as was pointed out in this article. Insurance prices in Louisville adjust often, so drivers shouldn’t hesitate to buy from a different company if a lower price can be found. Loyalty to a specific company is fine, but it’s not recommended if that devotion results in you overpaying hundreds of dollars year after year. If you have a few minutes, now is a great time to compare rates to find cheaper auto insurance for inexperienced drivers.