You have probably watched the captivating ads from auto insurance companies like Progressive, Farmers, and GEICO promising big savings. So drivers should just pick the one with the catchiest commercial, right?
Regrettably, it’s not quite that easy, as there are a whole bunch of unknown aspects such as if you are married or single, whether or not your vehicle has good safety ratings, where you live, and what coverage limits you need, that all impact the cost of coverage. The information below will cover the types of things that cause high car insurance rates and also should give you a good beginning to your quest for cheaper car insurance in Kentucky.
The vehicle requiring coverage is probably the biggest factor that determines whether or not you find the best auto insurance for drivers under 21. Vehicles with lower acceleration and performance, good safety features, or a positive history of liability claims will cost less to insure than high performance models.
The next table features coverage costs for a handful of the most affordable vehicles to insure.
| Make, Model, and Trim Level | Estimated Cost for Full Coverage |
|---|---|
| Honda Accord EX 4-Dr Sedan | $4,665 |
| Honda CR-V LX 4WD | $4,670 |
| Ford Escape Limited 4WD | $5,080 |
| Toyota Prius | $5,149 |
| Ford Explorer XLT 4WD | $5,192 |
| Chevrolet Impala LS | $5,467 |
| Ford Edge SE AWD | $5,472 |
| Ford Fusion S 4-Dr Sedan | $5,536 |
| Dodge Grand Caravan Hero | $5,542 |
| Chevrolet Silverado LT Extended Cab 4WD | $5,536 |
| Toyota RAV4 4WD | $5,543 |
| Toyota Tacoma Double Cab TRD Off-Road Package 4WD | $5,606 |
| Hyundai Elantra Blue 4-Dr Sedan | $5,814 |
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Data variables include single male driver age 20, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Kentucky minimum liability limits. Discounts applied include safe-driver, and claim-free. Rate quotes do not factor in specific Louisville, KY garaging location which can modify coverage prices noticeably.
By looking at the data, we can infer that vehicles like the Honda Accord, Honda CR-V, Ford Escape, and Toyota Prius will definitely be some of the less-costly vehicles to insure for minors. Car insurance rates will tend to be higher because there is more liability risk for drivers under 21, but in general those models will most likely have the lowest prices possible.
One of the many things that help determine the price you pay for insurance is your zip code in Louisville. Areas with more people or higher crime rates tend to have higher rates, whereas less populated areas have the luxury of lower rates.
The illustration below rates the highest-priced places in Kentucky for drivers under 21 to purchase car insurance in. Louisville comes in at #1 costing $2,090 for car insurance, which is about $174 each month.
| Rank | City | Annual Rate |
|---|---|---|
| 1 | Louisville | $2,090 |
| 2 | Frankfort | $1,742 |
| 3 | Ashland | $1,707 |
| 4 | Saint Matthews | $1,694 |
| 5 | Jeffersontown | $1,685 |
| 6 | Radcliff | $1,638 |
| 7 | Paducah | $1,631 |
| 8 | Elizabethtown | $1,611 |
| 9 | Madisonville | $1,600 |
| 10 | Murray | $1,565 |
| 11 | Henderson | $1,557 |
| 12 | Danville | $1,549 |
| 13 | Covington | $1,532 |
| 14 | Hopkinsville | $1,523 |
| 15 | Lexington | $1,514 |
| 16 | Winchester | $1,501 |
| 17 | Georgetown | $1,491 |
| 18 | Richmond | $1,490 |
| 19 | Florence | $1,485 |
| 20 | Erlanger | $1,478 |
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Rate quotes are comparative as specific location information can impact premium rates significantly.
Cost difference between full coverage and liability
Paying a lower price for car insurance is important to most drivers, and an easy way to save on the cost of insurance for drivers under 21 is to only buy liability insurance. The diagram below illustrates the comparison of premium costs when comparing full coverage to liability only. The price estimates are based on no claims, a clean driving record, $500 deductibles, drivers are single, and no discounts are applied.
If we average the cost for ages 20 through 70, comprehensive and collision coverage on your policy costs an additional $2,088 per year over having just liability coverage. That touches on the question when is it a good idea to stop buying full coverage. There is no exact formula of when to drop physical damage coverage on your policy, but there is a general guideline you can use. If the yearly cost of comp and collision coverage is more than 10% of any settlement you would receive from your insurance company, then it might be time to consider dropping full coverage.
For example, let’s say your vehicle’s replacement value is $3,000 and you have $1,000 policy deductibles. If your vehicle is totaled in an accident, the most you would receive is $2,000 after paying your deductible. If you are paying in excess of $200 annually for comprehensive and collision coverage, the it may be a good time to stop paying for full coverage.
There are some circumstances where eliminating full coverage is not a good idea. If you still have a loan on your vehicle, you must maintain physical damage coverage to protect the lienholder’s interest in the vehicle. Also, if your finances do not allow you to purchase a different vehicle if your current one is in an accident, you should not buy liability only.
Discounts on Louisville insurance
Insurance companies that provide coverage for drivers under 21 could also offer discounts that could reduce prices by as much as 30% if you can meet the requirements. A few of the larger companies and their possible discounts are shown below.
- American Family offers premium reductions for Steer into Savings, mySafetyValet, multi-vehicle, good driver, early bird, accident-free, and defensive driver.
- State Farm has discounts for accident-free, defensive driving training, anti-theft, Steer Clear safe driver discount, passive restraint, safe vehicle, and multiple policy.
- 21st Century policyholders can earn discounts including homeowners, student driver, air bags, anti-lock brakes, early bird, theft prevention, and defensive driver.
- Travelers may offer discounts for home ownership, payment discounts, new car, multi-policy, early quote, and multi-car.
- GEICO discounts include good student, federal employee, five-year accident-free, multi-policy, seat belt use, and emergency military deployment.
The diagram below shows the difference between yearly insurance costs with and without discounts applied to the rates. The data is based on a male driver, no violations or claims, Kentucky state minimum liability limits, full coverage, and $500 deductibles.
The first bar for each age group shows the average annual price with no discounts. The lower bar shows the rates with passive restraint, continuous coverage, vehicle safety, paid-in-full, anti-theft, and good student discounts applied. When drivers take advantage of discounts, theamount saved on car insurance for drivers under 21 is 19% or $288.
Why you are probably overpaying for car insurance
Kentucky car insurance rates are impacted by many things that may substantially change the price of coverage. Getting older, buying a new vehicle, or getting a DUI can produce rate changes that can now make some companies cheaper than before.
In addition, companies file new rates multiple times each year to adjust for gains or losses. Significantly higher claims can cause higher prices, while a better loss history may cause lower-priced Louisville car insurance rates.
The bar chart below analyzes the cheapest car insurance in Louisville, KY for a 30-year-old male driver with no prior accidents, a clean driving record, and solid credit. When quoting prices based on his current situation, Cincinnati Insurance quotes the lowest car insurance rates in Louisville at $1,702 each year. This is $441 less than the average premium paid by Kentucky drivers of $2,143. Kentucky Farm Bureau, USAA, Auto-Owners, and Motorists Mutual are the remainder of the best Louisville, KY auto insurance companies.
In this example, we will give the driver from the first rate comparison a chargeable accident, less-than-perfect credit, and a speeding citation. Since every insurance provider has a different process to determining premium rates, comparing insurance quotes may now result in a different list of the cheapest companies as shown below.
Kentucky Farm Bureau now has the lowest price on auto insurance in Louisville, KY with Travelers, USAA, State Farm, and Westfield completing the list. This example shows why drivers need to compare many different companies when trying to get the cheapest car insurance quotes for drivers under 21.
Prices are determined by many risk factors and change substantially, so the cheapest option the last time you checked may now not even be in the top five.
The agents listed below are willing to help you make a decision which policy fits your needs best, since many people would rather have a little guidance when shopping around for cheaper insurance for drivers under 21. It can be challenging to find the best coverage yourself, and agents can add comfort knowing your policy gives you suitable coverage if you ever need to use it. To find a Louisville insurance agency near you, click the button at the bottom.
- Dick Watts Insurance
12200 Shelbyville Rd #112 – Louisville, KY 40243 – (502) 245-3625 - Tom Kanaly – State Farm Insurance Agent
6608 Bardstown Rd a – Louisville, KY 40291 – (502) 231-2350 - Matt Miller – State Farm Insurance Agent
8321 Preston Hwy – Louisville, KY 40219 – (502) 964-6288
View map of Louisville, KY insurance agents
Ideas to find more affordable insurance for drivers under 21
The list below summarizes some of the recommended penny-pinching ideas that can help Kentucky drivers buy more affordable auto insurance.
- Prevent rate increases by staying accident-free
- Pay less by remaining claim-free
- Don’t waste money on full coverage for older vehicles
- Buying your home and auto policies from the same company can earn a discount
- Drive a car with a high safety rating
- Serious violations like DUI or careless driving can make car insurance unaffordable
- Compare rates regularly and switch companies to save money
The last tip is particularly crucial, as we stressed in the prior information. Prices charged by auto insurers change frequently, so drivers shouldn’t hesitate to buy a policy from a new company if a more affordable price is available. We understand brand loyalty, but it isn’t a good idea if that devotion results in you overpaying a considerable chunk of change every month. It takes less than five minutes to compare rates to find cheaper car insurance for drivers under 21 in Louisville.