You have seen the catchy commercials from car insurance companies like Farmers, GEICO, and State Farm guaranteeing enormous savings. So drivers should just pick the company with the best ad, right?
It’s just not that simple, as there are a whole slew of unknown aspects like how experienced of a driver you are, if you are a man or woman, if you have any driving citations, and your annual mileage driven, that all have an effect on the price of a policy. The information below covers the best ways to avoid overpriced car insurance and will give you a good start in finding the cheapest insurance in Kentucky.
Deciphering which companies quote the best auto insurance rates for drivers under 25 requires a bit more work in order to find the best price. Each auto insurance company has their own formula for establishing rates, so we need to take a look at the lowest cost auto insurance companies in Louisville, KY.
Find the Best Cheap Insurance for Young Drivers
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | Cincinnati Insurance | $1,082 |
| 2 | Kentucky Farm Bureau | $1,139 |
| 3 | USAA | $1,187 |
| 4 | Auto-Owners | $1,413 |
| 5 | Grange Mutual | $1,577 |
| 6 | Motorists Mutual | $1,617 |
| 7 | Travelers | $1,663 |
| 8 | Westfield | $1,832 |
| 9 | State Farm | $1,867 |
| 10 | Safe Auto | $1,991 |
| 11 | Progressive | $2,056 |
| 12 | Electric | $2,076 |
| 13 | Nationwide | $2,085 |
| 14 | State Auto | $2,254 |
| 15 | Encompass | $2,312 |
| 16 | GEICO | $2,437 |
| 17 | Safeco | $2,791 |
| 18 | Shelter | $3,135 |
| 19 | MetLife | $3,146 |
| 20 | Liberty Mutual | $3,634 |
| Compare Rates Now Go | ||
Cincinnati Insurance generally has some of the best car insurance rates in Louisville at around $1,082 per year. This is $1,061 less than the average price paid by Kentucky drivers of $2,143. Kentucky Farm Bureau, USAA, Auto-Owners, and Grange Mutual also are some of the cheapest Louisville, KY insurance companies.
As the example above demonstrates, if you currently have a policy with Kentucky Farm Bureau and switched to Cincinnati Insurance, you could earn yearly savings of in the neighborhood of $57. Customers with USAA might save as much as $105 a year, and Auto-Owners policyholders might see rate reductions of $331 a year.
To compare your rates to other Kentucky insurance companies, click here to start your custom quote or quote prices from the following companies.
Be aware that those rates are averages for all drivers and vehicles in Kentucky and do not factor in a specific location for drivers under 25. So the company that can offer you the lowest price may not even be in the top 21 companies in the list above. That’s why you need to compare as many prices as possible using your own driver and vehicle profiles.
The vehicle requiring coverage is one of the largest considerations that determines whether or not you can buy economical coverage for drivers under 25. Vehicles with limited top-end speed, advanced safety features, or a low likelihood of liability claims will cost significantly less to insure than high performance models. The next list estimates coverage prices for a number of the cheaper vehicles to insure in Kentucky.
| Insured Vehicle | Estimated Cost for Full Coverage |
|---|---|
| Ford Escape XLS 4WD | $4,467 |
| Honda CR-V LX 2WD | $4,473 |
| Ford F-150 XL Regular Cab 2WD | $4,573 |
| Volkswagen Jetta S 2.5 Station Wagon | $4,863 |
| Ford Edge SE 2WD | $4,908 |
| Toyota Prius | $4,931 |
| Ford Focus S 4-Dr Sedan | $5,239 |
| Chevrolet Equinox LT AWD | $5,304 |
| Toyota Camry LE | $5,310 |
| Toyota Tacoma Double Cab 4WD | $5,304 |
| Toyota RAV4 Limited 2WD | $5,311 |
| GMC Sierra SLE Regular Cab 2WD | $5,304 |
| Dodge Grand Caravan Hero | $5,311 |
| Chevrolet Malibu LS | $5,304 |
| Ford Explorer Eddie Bauer 4WD | $5,373 |
| Hyundai Elantra Blue 4-Dr Sedan | $5,571 |
| Toyota Corolla XLE | $5,636 |
| Honda Odyssey EX-L W/Rear Entertainment | $5,641 |
| Chevrolet Impala LTZ | $5,636 |
| Kia Optima LX | $5,686 |
| Chevrolet Silverado LT Regular Cab 2WD | $5,696 |
| Nissan Rogue S AWD | $5,686 |
| Jeep Wrangler Unlimited Sahara 4WD 4-Dr | $5,701 |
| Compare Rates Now Go | |
Price data assumes 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. Premium costs do not factor in specific garaging location which can influence auto insurance rates substantially.
Based upon the rates shown, models like the Ford Escape, Honda CR-V, and Ford F-150 will definitely be some of the less-costly vehicles to insure for drivers age 25 and younger. Rates will tend to be higher because of the fact that there is more claim exposure for drivers under 25, but overall those makes and models will tend to have the lowest insurance prices compared to all other vehicles.
One of the more important things that are looked at to help calculate car insurance rates is where your residence is. Areas with more people or more claims tend to have more expensive auto insurance rates, whereas areas that tend to be more rural benefit from lower prices.
The following table lists the most expensive places in Kentucky for drivers under 25 to purchase car insurance in. Louisville is ranked #1 with a yearly premium of $2,112 for coverage, which is about $176 monthly.
| Rank | City | Annual Premium |
|---|---|---|
| 1 | Louisville | $2,112 |
| 2 | Frankfort | $1,795 |
| 3 | Ashland | $1,707 |
| 4 | Jeffersontown | $1,685 |
| 5 | Radcliff | $1,654 |
| 6 | Saint Matthews | $1,643 |
| 7 | Paducah | $1,631 |
| 8 | Madisonville | $1,600 |
| 9 | Elizabethtown | $1,563 |
| 10 | Winchester | $1,563 |
| 11 | Murray | $1,549 |
| 12 | Danville | $1,549 |
| 13 | Richmond | $1,535 |
| 14 | Covington | $1,532 |
| 15 | Henderson | $1,511 |
| 16 | Nicholasville | $1,504 |
| 17 | Georgetown | $1,491 |
| 18 | Florence | $1,485 |
| 19 | Erlanger | $1,478 |
| 20 | Hopkinsville | $1,478 |
| Find Cheaper Rates Go | ||
Premium costs are approximated as the garaging address in Louisville can modify auto insurance rates substantially.
The information below demonstrates how deductible levels can increase or decrease insurance costs when getting quotes for cheap insurance for drivers under 25. The costs are based on a single female driver, comprehensive and collision coverage, and no policy discounts are applied.
A 30-year-old driver could save $414 a year by switching from a $100 deductible to a $500 deductible, or save $622 by switching to a $1,000 deductible. Even younger drivers, like the Age 20 chart data, could lower their rates $920 or even more by selecting a higher deductible. When raising deductibles, it is important to have additional savings on hand to offset the extra out-of-pocket expense that deters many people from opting for higher deductibles.
Difference between full coverage and liability only rates
Saving money when shopping for auto insurance should be important to most people, and one good way to pay lower rates for insurance for drivers under 25 is to not buy comprehensive and collision coverage. The information below illustrates the difference between insurance premiums with full physical damage coverage compared to only buying liability only. The premium estimates are based on no violations or accidents, $500 deductibles, marital status is single, and no discounts are applied to the premium.
If we average the cost for ages 20 through 70, full coverage on your policy costs $1,541 per year over and above liability only. Many of you may wonder if you should buy full coverage. There is no written rule to stop paying for physical damage coverage on your policy, but there is a broad guideline. If the annual cost of your full coverage insurance is more than 10% of any settlement you would receive from your insurance company, then you might want to think about dropping full coverage.
For example, let’s say your vehicle’s claim settlement value is $4,000 and you have $1,000 full coverage deductibles. If your vehicle is destroyed, the most you would get paid by your company is $3,000 after the deductible is paid. If it’s costing you more than $300 a year for comprehensive and collision coverage, then it could be time to drop full coverage.
There are a few situations where only buying liability is not a good idea. If you haven’t paid off your loan, you must maintain physical damage coverage in order to prevent your loan from defaulting. Also, if your emergency fund is not enough to purchase a different vehicle in the event your current vehicle is totaled, you should not eliminate full coverage.
The importance of shopping around
Kentucky auto insurance rates are impacted by many things which can significantly increase or decrease the cost of a policy. Simply improving your credit, increasing liability limits, or having an accident may cause policy rate changes resulting in some rates now being much cheaper than others. Not only may your risk profile change, but auto insurance companies modify pricing every year in order to remain profitable. An unexpected high level of claims can result in additional premium costs, while long-term profits can result in cheaper Louisville car insurance rates.
To help illustrate this point, the chart below shows a variety of companies that have the cheapest car insurance in Louisville, KY for a 30-year-old female driver with no accidents or violations, and good financial standing. If we estimate prices based on her personal profile, Cincinnati Insurance quotes the lowest car insurance rates in Louisville at $1,667 per year. This is $476 less than the average rate paid by Kentucky drivers of $2,143. Kentucky Farm Bureau, USAA, Auto-Owners, and Grange Mutual are the remainder of the most affordable Louisville, KY auto insurance companies.
Let’s now give the driver from the above example a chargeable accident, slightly worse credit, and a stop sign violation. Since each insurance company has a unique approach to set their prices, comparing rates may now present a different list of affordable companies as shown below.
Kentucky Farm Bureau now has the best auto insurance rate in Louisville with Travelers, USAA, State Farm, and Westfield also having competitive pricing. This shows why Kentucky drivers need to compare as many rates as possible to get the most economical insurance rates for drivers under 25. Rates are calculated by many risk factors and can change without notice, so the cheapest company a year ago may now be quite expensive.
If you aren’t sure which coverage to buy and prefer to have some advice when trying to find the best insurance rates for drivers age 25 and younger, the agencies below can answer your questions and help you decide which coverage meets your needs best.
To find a Louisville insurance agency near you, click the link after the list.
- Mary Henry – State Farm Insurance Agent
5800 Bardstown Rd – Louisville, KY 40291 – (502) 491-7797 - Braden Insurance Agency Inc.
3069 Breckenridge Ln – Louisville, KY 40220 – (502) 437-3926 - Nationwide Insurance: Lisa Spalding Sherman Insurance Agency Inc
10339 Linn Station Rd – Louisville, KY 40223 – (502) 423-1611 - Grant Insurance Agency, LLC
13000 Equity Pl #201 – Louisville, KY 40223 – (502) 254-3332 - Nationwide Insurance Ditsler Insurance Inc
1313 Lyndon Ln #102 – Louisville, KY 40222 – (502) 895-0812
View map of Louisville, KY insurance agents
Tips to find the cheapest insurance for drivers under 25
The list below shows some of the recommended money-saving solutions that can help drivers quote cheap car insurance.
- Do not get traffic tickets
- Buy a safer vehicle
- Having too many claims will increase rates substantially
- Staying accident-free helps keep rates low
- Good credit can mean cheaper rates
- Shop around for lower rates once a year
The last tip is notably significant, as we discussed in this article. Coverage prices in Louisville fluctuate constantly, so drivers shouldn’t be reluctant to buy a different policy if a cheaper price is available. Having brand loyalty is commendable, but is isn’t recommended if that devotion results in you overpaying a small fortune year after year. If you have a few minutes, shop around to find cheaper insurance for drivers under 25.