Who Has the Cheapest Car Insurance Rates in Louisville?

Louisville is one of the largest cities in Kentucky. As an urban area, residents of Louisville experience thousands of thefts each year. In 2018, 5,046 vehicles were stolen; this ranked the state at 45th, with a per capita rate of 388.96 per 100k local residents. (Louisville was combined with Jefferson County, Indiana for the theft statistics.)

Residents, 16 years old and up, who have jobs outside the home experience a mean travel time to work of 22.4 minutes. At the end of their workday, they face a similar commute on their way home. When you account for a full 5-day workweek, that’s 3.73 hours a week of driving for single-vehicle homes and 7.47 hours for two-vehicle homes. And that is without including trips to schools, grocery stores, or out for entertainment.

All of this information affects the insurance costs for residents of the city. Anytime a claim is made on someone’s vehicle insurance, the company either pays out or denies the claim and, regardless of its decision on the claim, that person’s insurance may increase, especially if the driver who filed the claim is at fault. In the same way, a cities average commute time and number of thefts per year are considered when an insurance company sets a customer’s premium.

Car insurance isn’t cheap. Whether you opt for a less expensive annual premium or completely give up some insurance options such as coverage when you are hit by an underinsured driver, you’re going to be making some amount of insurance payments because it’s the law in Kentucky— as it is in nearly every state. Look around and find a plan that fits your needs and budget.

How Much Car Insurance Coverage Do I Need in Louisville

The lowest premium you should expect to have is about $405, for a 50/100/50 annual plan.

In this state, drivers can purchase a minimal annual plan that’s enough to cover the basics. However, if they are still paying a car loan off, the lending institution may require them to purchase comprehensive insurance on top of their liability plan. This is full coverage, which, depending on what the driver selects, can cost less than $1,000 annually.

The minimum liability all drivers are required to obtain is called a 50/100/50 plan which covers another vehicle in an accident where they are at fault. Specifically, in Kentucky, these plans cover $25,000 for a single injury in the other vehicle, $50,000 for multiple injuries of the driver and any passengers who are hurt in an accident, and $10,000 for property damage. This type of insurance is required, but if you are at fault in an accident, none of your costs will be covered.

Most Expensive and Least Expensive Insurance Rates by Zip Code

Cheap Car Insurance in Louisville by Insurer

If your budget doesn’t allow for full coverage unless a lender is requiring it, then less-expensive insurance is, of course, your best option. Ask insurance companies about the minimum average annual rate for car insurance. There are plenty of nationally known insurance companies offering these plans, as well as insurance companies that operate only in Kentucky.

Use this guide to compare auto insurance quotes from the best companies.

Low Cost Auto Insurance for Bad Credit in Louisville

With bad credit, you may find yourself limited in what level of coverage you can afford. Unfortunately, Kentucky is not one of the states that doesn’t allow insurance companies to use your credit to decide your premium. This means that you’ll likely pay more for car insurance until your credit score rises. However, it’s important to note that some companies allow you to split your payments up over the insurance period so that each payment is less. You may still end up paying more overall, but you’ll be able to switch as soon as a better option comes along.

Find out the which auto insurance company has the lowest rates for poor credit drivers.

What is the Difference Between Full Coverage and Liability?

What is Liability Only Coverage?

Liability-only coverage is the cheapest option for automobile insurance. This coverage level only covers vehicles that are not at fault in an accident. Thus, if you carry liability-only coverage and cause an accident, the other driver will be covered by your policy. Any damage done to your car must be covered out of pocket, if at all.

Another way to think of liability insurance is that it protects you from claims made by another driver. Without the protection of insurance, you might be sued if you were to collide with another vehicle.

What Full Coverage Covers

Full Coverage is a commonly used term which covers more than just the damage you might cause in an accident, or the coverage you are liable for. If your policy covers your liability to another vehicle, the damage done to your vehicle (collision insurance), and any incidental damage done to your car by any non-auto elements (comprehensive coverage), then you have a policy that is indeed full coverage. If you have a new car, you may wish to cover it with such a policy, as you might want the peace of mind that any damage will be covered by insurance.

What are the Major Differences Between Full Coverage and Liability?

Liability coverage kicks in when you back up and hit a kid on a skateboard you did not see. It will also pay for a gate you run into and damage.

Collision insurance pays out when you back into a large rock at a campground, denting your pickup’s tailgate. It will pay to get the tailgate repaired.

Comprehensive coverage will pay for the repair costs when something flies out of the back of a semi-truck and you end up with a cracked windshield.

Average Annual Car Insurance Rates in Kentucky by City

Additional cities in Kentucky you can check out.


Tips to Get a Cheaper Car Insurance Rate

There are many car insurance discounts and ways to save on your policy in Louisville:

  • Avoid Accidents:

    When your record is clear of at-fault accidents, insurers see you as a better financial risk. Thus, your premiums will be lower.

  • Don’t Speed:

    If you have one or more speeding tickets, your insurance rates will be higher. This is because high speeds are associated with accidents, and if you speed you are more likely to be deemed at-fault in an accident.

  • Shop Around:

    There are at least twenty auto insurance companies currently active in Louisville. Their premium rates are spread over a wide range, so be sure to compare prices and make sure you get the best, and most affordable, policy for you.

  • Comprehensive Insurance Packages:

    Insurance companies like when you use them for more than simple auto insurance. Thus, they frequently offer packages that include homeowner’s insurance, or other policies, on the same account. When you opt for one of these comprehensive policies, the company is often able to lower your automobile premium as part of the deal.

  • Multiple Vehicles:

    Similar to purchasing a comprehensive insurance package, combining multiple vehicles on the same policy results in lower premiums. Consider this a bulk purchase for your auto insurance.

  • Military and Student Discounts:

    Sometimes insurance companies have special discounts for certain demographics, like active military or students.

Use this guide to find discounts here.

Here are Some of the Typical Factors that Affect Your Louisville KY Car Insurance Premiums

Your car insurance rate in Louisville KY is based upon many factors. You will be charged more or less on your policy based upon your age, marital status, and your number of moving violations and accidents. You will also be charged by the carrier based upon the type of vehicle you drive, whether it is paid for or not, and whether you decide that it is cost effective and prudent to have collision insurance or not. Also, insurance agency rates are highly variable, based upon the company and what area of the country you live in. Those in rural areas often pay less, while people in large, metropolitan cities often pay more. Armed with knowledge and by shopping around, you overcome some of these factors and save substantial money each year on auto insurance.

Learn how citations can affect your insurance premiums here.

Helpful Louisville, Kentucky Vehicle Resources:

Live Traffic Accidents by City

DMV (Find Locations, Vehicle Registration, Titles and Insurance Info)


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