Kentucky is a state with a rather bad reputation for fatal accidents involving cars. In fact, the rate of collisions in KY is far higher (15% higher) than the whole of the USA. Owing to this, the car insurance Kentucky has to offer you might be at a higher rate than the rest of the country. This doesn’t mean you should give up hope, though. Getting car insurance quotes in Kentucky is an essential part of figuring out the best way to save money while insuring yourself and your ride. With less than one hour of work, you might find over $500 worth of savings.
Some of the cheapest car insurance in KY include the premiums from State Farm and GEICO, both of which are under $600 a year for the minimum coverage required by the state law in KY. They differ by a matter of a few dollars, and there are extra features included in the coverage too. However, you should also remember that the quotes for auto insurance in KY are very dependent on yourself when you apply.
Insurance companies all over the country use specialized formulae to determine your premiums. They use variables such as your risk of getting in an accident based on your age, address, and more. The type of vehicle you own is also counted, along with your history as a driver and your income too. Because of the sheer number of factors affecting your premium, you can never use someone else’s premium rates to estimate your own. The best way to find the best insurance policy and company in Kentucky for your family and you is to request quotes from at least five different car insurance companies in the state.
How to Get a Car Insurance Quotes in KY
Getting a quote from a car insurance company isn’t hard anymore. You don’t even have to go to the company physically. Most companies today (especially the larger ones) have a website with an online quote estimate service. If you have all of your details about yourself and your vehicle on hand, you should be able to get a quote in about ten minutes. In some situations, you may have to call in to get your quote, which should add another ten minutes to your time.
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There aren’t many insurance agencies that ask you to call in and talk to an agent anymore. Major Kentucky car insurance providers like GEICO or State Farm have online tools for just this purpose. One of the best parts about an online quote from a company is that you can see every little detail of what you will be paying for. All the add-ons on the policy are shown on the quote, which means you can remove those that you don’t need. For example, if you don’t plan on driving anywhere near wooded parts of the state, you may not need the deer collision protection add-on on the policy.
Cheapest Car Insurance in Kentucky
Two specialized insurance company rating sites were used to determine the best and cheapest insurance companies in Kentucky. One of these was JD Power, which rates the quality of service of the companies among other things. The second was AM Best, which rates the security of each company in the financial sense. The highest rated companies on the latter will always pay your insurance out in full without flaking out on you or delaying without reason.
These picks for cheap auto insurance in KY were selected based on the minimum state mandated coverage, for an address in Louisville. State Farm Insurance was the cheapest, at $550 per year, while GEICO was a few dollars more at $589. There was a big difference between GEICO and Allstate Insurance, though, with the latter’s policy costing a cool $950 a year. Nationwide Insurance came right after at $964. The most expensive was Progressive Insurance, which charged $1032 a year for the minimum coverage. Learn more about the average car insurance rates here.
Price Optimization Could be Impacting Your Rates in Kentucky
You might think that, over time, your car insurance company is going to start rewarding your continued business with them. After all, most other companies in the country have loyalty programs. You will probably be expecting awesome discounts and cuts in your rates as time goes by. You won’t get any of this. In car insurance, it is an entirely different game altogether. Instead of price cuts, you get small hikes in the price of your insurance premiums.
This is a process called price optimization. It is a very unethical procedure used by most of the larger insurance companies to raise your premiums without forcing you to leave. They do this by analyzing your activity on online shopping sites, social media, and your browsing history too. Yes, it feels very invasive. That’s because it is. If your car insurance company feels like you are highly unlikely to shop around for a new insurance provider when their premiums increase, they will lift your prices.
You can stop it, of course. Price optimization is something you can fight against by using the same algorithm they use to raise your prices. Every year or two, get online and start looking into the premiums and policies at other insurance companies in Kentucky. Request quotes from them whenever you feel like it. Each time you do, your own insurance company will see it flagged on their systems, marking you as a flight risk. This will make them less likely to raise your rates, because they don’t want to lose your business.
The worst part about price optimization is that it is not illegal in the state of Kentucky. While 15 out of the 50 states have criminalized and banned the practice, Kentucky has not. While the possibility of future regulation against it is in the air, you are on your own for the time being. Take action to stop your insurance company from taking advantage of your continued loyalty. That’s why we highly recommend comparing insurance companies if you want to get the cheapest car insurance possible.
The Minimum Coverage Required in Kentucky
When looking for cheap car insurance in KY, you have to keep in mind that there is a minimum required coverage amount. This insurance policy has to contain at least $25000 per person involved in the collision, $50,000 for overall injuries sustained in the crash, and $10,000 for property damage coverage. Kentucky is a state that uses no fault law. This means that you pay your own expenses regardless of who caused the accident. Because of this, an additional $10,000 in personal injury coverage is needed. An insurance company will refer to this plan as 25/50/10 10PIP.
Now, the state minimum coverage requires no personal property insurance during a collision. All the repair costs of your vehicle and other costs are yours to cover regardless of the accident’s severity. Insurance premiums in Kentucky are relatively low when you think about them in terms of the minimum required by the state. However, if you get into a collision you’re going to find that the true cost of the policy lies in what it covers. In a normal accident where one person is disabled due to the crash, you will have to pay an average of about $70,000.
Since the state insurance minimum covers $25000, you would have to pay the remaining $45000 out of your own pocket. This could lead to a draining of your savings and possible bankruptcy. If, however, you choose to get a higher plan at the insurance company, you save a lot more money in the long run because you will be fully covered during any accident. The additional cost of a higher plan will be about $200 extra a year. A higher plan is sometimes referred to as full coverage auto insurance, click this link to learn more.
The Penalties for Driving Uninsured in Kentucky
Kentucky is a state where having car insurance is not an option. If you drive, you must have insurance with at least the minimum coverage. Unlike states like SC, you can’t be a registered uninsured driver. If you are caught driving without insurance, the penalties can be very harsh. A fine of about $1000 is completely normal, as is a jail term of 90 days. You could also have your license and registration suspended. The worst part? You get flagged by insurance companies and will have a harder time getting insured for a cheap rate.
One thing you have to be aware about is the new state laws. If you got insurance, registered your car, and then cancelled your insurance coverage, you will be tracked by the state. If your vehicle is registered but has been uninsured for over two months, you will actually receive a letter from the state DMV telling you to insure your vehicle before the registration is cancelled. This means that you will HAVE to get insured, regardless of whether you are pulled over or not.
Looking for cheap car insurance in KY can be hard because the average premium is about 5% higher than the national average. However, this increased rate is justified when you consider the fact that the state has 15% higher fatal accident rates than the rest of the country too. As long as you do your research and avoid price optimization, cheap auto insurance in KY won’t be an elusive goal.