The words “cheap” and “auto insurance” probably shouldn’t be used together, especially when shopping around for the best car insurance rates for 18 year olds. Because of the high cost, let’s introduce you to some of the things that impact car insurance premiums, and find out if we can help you take the sting out of your next policy.
Buying cheap car insurance is not the easiest thing to do, and deciding which company offers the best insurance rates for 18 year olds requires a bit more work.
Every insurance company has a proprietary method for determining rates, so we need to take a look at the insurance companies with the most affordable rates in Louisville.
Best Insurance Companies for Teens
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | Cincinnati Insurance | $1,126 |
| 2 | Kentucky Farm Bureau | $1,163 |
| 3 | USAA | $1,223 |
| 4 | Auto-Owners | $1,371 |
| 5 | Grange Mutual | $1,561 |
| 6 | Motorists Mutual | $1,569 |
| 7 | Travelers | $1,614 |
| 8 | Westfield | $1,814 |
| 9 | State Farm | $1,867 |
| 10 | Safe Auto | $1,991 |
| 11 | Progressive | $2,077 |
| 12 | Nationwide | $2,085 |
| 13 | Electric | $2,139 |
| 14 | State Auto | $2,188 |
| 15 | Encompass | $2,358 |
| 16 | GEICO | $2,365 |
| 17 | Safeco | $2,681 |
| 18 | Shelter | $3,135 |
| 19 | MetLife | $3,146 |
| 20 | Liberty Mutual | $3,598 |
| Find Your Rate Go | ||
Cincinnati Insurance has some of the cheapest car insurance rates in Louisville at around $1,126 a year. Kentucky Farm Bureau, USAA, Auto-Owners, and Grange Mutual would also make the list of some of the cheaper Louisville, KY auto insurance companies.
In the rate table above, if you are insured with Auto-Owners and switched to Kentucky Farm Bureau, you could see an annual premium reduction of about $208. Drivers with Grange Mutual could save as much as $398 a year, and Motorists Mutual insureds might reduce rates by $406 a year.
To see how much you can save, click here to begin a quote or visit several of the following companies.
Understand that those premiums are averaged across all types of insureds and vehicles and are not factoring in a specific zip code for 18 year olds. So the car insurance company that fits your needs best may not even be in the top 21 companies in the list above. That points out the importance of why you need to get quotes using your own driver information and specific vehicle type.
For teen drivers, one of the more important considerations that determine the amount you pay for auto insurance is where you normally keep your vehicle in Louisville. Areas with more people or higher crime rates are more likely to have higher rates, whereas areas with lower crime rates and fewer weather claims have the gratification of cheaper auto insurance rates.
The next table lists the most costly cities in Kentucky for 18 year olds in which to buy car insurance. Louisville is ranked at #1 with an annual premium of $2,090 for car insurance, which is about $174 per month.
| Rank | City | Average Per Year |
|---|---|---|
| 1 | Louisville | $2,090 |
| 2 | Jeffersontown | $1,736 |
| 3 | Frankfort | $1,725 |
| 4 | Saint Matthews | $1,711 |
| 5 | Ashland | $1,656 |
| 6 | Radcliff | $1,638 |
| 7 | Paducah | $1,631 |
| 8 | Madisonville | $1,616 |
| 9 | Murray | $1,565 |
| 10 | Elizabethtown | $1,547 |
| 11 | Danville | $1,534 |
| 12 | Winchester | $1,517 |
| 13 | Georgetown | $1,506 |
| 14 | Henderson | $1,495 |
| 15 | Hopkinsville | $1,493 |
| 16 | Covington | $1,487 |
| 17 | Independence | $1,480 |
| 18 | Erlanger | $1,478 |
| 19 | Richmond | $1,475 |
| 20 | Nicholasville | $1,474 |
| Find Cheaper Rates Go | ||
Annual rates are estimated as the specific area where the vehicle is garaged can alter coverage rates noticeably.
The make and model of vehicle you are seeking coverage for is one of the primary factors that determines whether or not you can buy cheaper car insurance for 18 year olds. Vehicles with reasonable performance levels, excellent safety ratings, or low incidents of liability claims will cost much less to insure than higher performance models.
The next list illustrates car insurance premiums for some of the most cost-effective vehicles to buy coverage for.
| Vehicle Insured | Estimated Cost for Full Coverage |
|---|---|
| Honda Accord EX 4-Dr Sedan | $6,906 |
| Ford Escape XLS 2WD | $6,912 |
| Honda CR-V EX-L 2WD | $6,982 |
| Toyota Prius | $7,522 |
| Jeep Wrangler Sahara 4WD 2-Dr | $7,734 |
| Ford Edge SEL 2WD | $8,118 |
| Nissan Altima 2.5 4-Dr Sedan | $8,195 |
| Chevrolet Impala LT | $8,202 |
| Toyota RAV4 Limited 4WD | $8,195 |
| Ford F-150 Lariat Crew Cab 2WD | $8,274 |
| Toyota Tacoma Double Cab TRD Sport Package 4WD | $8,279 |
| Dodge Grand Caravan Crew | $8,274 |
| Chevrolet Malibu LT | $8,284 |
| Start Your Quote Go | |
Prices above based on single male driver age 18, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Kentucky minimum liability limits. Discounts applied include claim-free, and safe-driver. Price estimates do not factor in zip code location which can influence price quotes significantly.
Looking at the rates, we can expect cars like the Honda Accord, Ford Escape, and Honda CR-V are most likely to be a few of the most economical vehicles to insure for teen drivers. The price of auto insurance will tend to be more expensive because there is more claim exposure for 18 year olds, but overall those makes and models will have the cheapest car insurance rates compared to other types of vehicles.
Safe drivers pay less for insurance
In a perfect world, the ideal way to maintain good insurance rates for teen drivers is to pay attention while driving and have a clean driving record. The diagram below illustrates how traffic citations and at-fault accidents influence annual premium costs for different insured age categories. The rates are based on a married female driver, comprehensive and collision coverage, $250 deductibles, and no other discounts are factored in.
In the prior example, the average cost of a car insurance policy in Kentucky per year with a clean driving record and no accidents is $1,795. Get written up for two speeding tickets and the average cost jumps to $2,555, an increase of $761 each year. Now add in two accidents along with the two speeding tickets and the 12-month cost of insurance for 18 year olds increases to an average of $5,340. That’s an increase of $3,546, or $295 per month, just for not paying attention while driving!
How to get discounts on Louisville auto insurance
Auto insurance companies that offer quotes for 18 year olds may provide special discounts that may potentially lower prices by as much as 25% or more if you are eligible. Companies and some of the premium reductions they offer are shown below.
- 21st Century may have discounts that include defensive driver, automatic seat belts, air bags, good student, and 55 and older.
- Progressive has discounts for multi-policy, multi-vehicle, online quote discount, good student, and continuous coverage.
- State Farm may offer discounts for defensive driving training, passive restraint, Drive Safe & Save, safe vehicle, accident-free, good student, and driver’s education.
- Nationwide has savings for anti-theft, easy pay, family plan, multi-policy, and business or organization.
- Esurance offers discounts including anti-lock brakes, safety device, claim free, multi-policy, renters, anti-theft, and Pac-12 alumni.
- The Hartford offers premium reductions for air bag, driver training, good student, defensive driver, anti-theft, and bundle.
The chart below compares insurance premiums with and without discounts being applied to the rates. The rate quotes are based on a male driver, no tickets, no at-fault accidents, Kentucky state minimum liability limits, comp and collision included, and $1,000 deductibles.
The first bar for each age group shows the average rate with no discounts. The second shows the rates with paid-in-full, passive restraint, continuous coverage, good student, anti-theft, and paperless filing discounts applied. When these discounts are applied, theamount saved on insurance for 18 year olds is 28% or $651.
Compare quotes and save
Louisville, KY insurance rates are impacted by many factors that will increase or decrease the cost of a policy. Simply having a birthday, buying a different home, or having an accident may generate price changes that may make certain companies more affordable than others. And not only may your rating factors change, but insurers change the rates they charge in Kentucky as often as every three months in order to be able to pay unexpected claims. Higher than normal claim frequency or severity can result in more expensive premiums, while lower claims may result in lower-cost Louisville car insurance rates.
The bar chart below shows a variety of companies that have the cheapest car insurance in Louisville, KY for a 45-year-old female driver with a good driving record, no prior claims, and solid credit. If we look at prices based on her personal risk profile, Cincinnati Insurance may offer the lowest car insurance rates in Louisville at $1,660 each year. This is $483 less than the average price paid by Kentucky drivers of $2,143. Kentucky Farm Bureau, USAA, Auto-Owners, and Grange Mutual are also on the list of the cheapest Louisville, KY auto insurance companies.
Now we will pretend the driver from the first set of rates a chargeable claim, a lower credit rating, and a speeding citation. Since each auto insurer has a different formula for determining rates in each state, analyzing rate quotes may now present a new list of cheap Louisville auto insurance companies as shown below.
Kentucky Farm Bureau now has the cheapest price in Louisville, KY with Motorists Mutual, USAA, Cincinnati Insurance, and State Farm now being in the top five. This example illustrates why it is critical to take the time to shop around when trying to find the most budget-friendly car insurance rates for 18 year olds. Car insurance prices are made up of many risk factors and change substantially, so the cheapest option the last time you checked may now be quite expensive.