One of the more important things that are looked at to determine the price you pay for insurance is where you call home. Areas with high crime rates or more dense population are more likely to pay higher prices, whereas areas with lower crime rates and fewer weather claims benefit from lower coverage costs.
The information below rates the highest-priced areas in Kentucky for college students in which to purchase auto insurance. Louisville shows up at #1 with a yearly cost of $2,154 for car insurance, which is about $180 monthly.
| Rank | City | Average Per Year |
|---|---|---|
| 1 | Louisville | $2,154 |
| 2 | Jeffersontown | $1,736 |
| 3 | Frankfort | $1,725 |
| 4 | Saint Matthews | $1,660 |
| 5 | Ashland | $1,656 |
| 6 | Paducah | $1,647 |
| 7 | Murray | $1,613 |
| 8 | Elizabethtown | $1,611 |
| 9 | Madisonville | $1,600 |
| 10 | Danville | $1,596 |
| 11 | Radcliff | $1,590 |
| 12 | Georgetown | $1,551 |
| 13 | Winchester | $1,547 |
| 14 | Henderson | $1,541 |
| 15 | Richmond | $1,535 |
| 16 | Lexington | $1,499 |
| 17 | Hopkinsville | $1,493 |
| 18 | Florence | $1,485 |
| 19 | Independence | $1,480 |
| 20 | Erlanger | $1,478 |
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Rate quotes are comparative as the specific area where the vehicle is garaged can affect coverage rates greatly.
Trying to find low-cost auto insurance is tough enough, and figuring out which company has the cheapest auto insurance rates for college students will involve even more work. Every insurance provider has a proprietary method to set policy rates, so we’ll take a look at the most competitive auto insurance companies in Louisville, KY.
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| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | Cincinnati Insurance | $1,082 |
| 2 | Kentucky Farm Bureau | $1,163 |
| 3 | USAA | $1,223 |
| 4 | Auto-Owners | $1,413 |
| 5 | Motorists Mutual | $1,601 |
| 6 | Grange Mutual | $1,625 |
| 7 | Travelers | $1,631 |
| 8 | Westfield | $1,814 |
| 9 | State Farm | $1,848 |
| 10 | Safe Auto | $1,991 |
| 11 | Nationwide | $2,064 |
| 12 | Electric | $2,097 |
| 13 | Progressive | $2,119 |
| 14 | State Auto | $2,254 |
| 15 | Encompass | $2,382 |
| 16 | GEICO | $2,413 |
| 17 | Safeco | $2,763 |
| 18 | MetLife | $3,053 |
| 19 | Shelter | $3,135 |
| 20 | Liberty Mutual | $3,634 |
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Cincinnati Insurance has some of the most affordable car insurance rates in Louisville at around $1,082 each year. This is $1,061 less than the average premium paid by Kentucky drivers of $2,143. Kentucky Farm Bureau, USAA, Auto-Owners, and Motorists Mutual are also some of the cheapest Louisville, KY insurance companies.
As the rates illustrate above, if you are currently insured with Kentucky Farm Bureau and switched to Cincinnati Insurance, you might realize annual savings of in the vicinity of $81. Insureds with USAA could save as much as $141 a year, and Auto-Owners policyholders might lower prices by up to $331 a year.
These policy prices are averaged across all types of drivers and the different vehicles they drive and do not take into consideration an exact vehicle garaging location for college students. So the car insurance company that fits you best may not even be in the top 21 companies in the list above. That affirms the importance of why you need to get car insurance quotes using your own specific driver information and vehicle.
Difference between full coverage and liability only rates
Buying cheaper auto insurance is the goal of most drivers, and one common way to reduce the cost of insurance for college students is to not buy comprehensive and collision coverage. The illustration below illustrates the comparison of insurance costs with and without physical damage coverage, medical payments, and uninsured/under-insured motorist coverage. The premiums assume no violations or claims, $100 deductibles, drivers are single, and no other discounts are factored in.
If averaged out across all ages, physical damage coverage on your policy costs $1,873 per year over having just liability coverage. Lot’s of drivers question if you should buy full coverage at all. There is no specific rule of when to exclude comp and collision coverage, but there is a general convention. If the yearly cost of comp and collision coverage is more than about 10% of any settlement you would receive from your insurance company, then it might be time to buy liability only.
Discount Louisville car insurance rates
Auto insurance companies that provide policies for college students may have special discounts that can lower rates by 35% or more if you qualify for them. Companies and some of their more popular discounts can be found below.
- GEICO may have discounts that include driver training, anti-theft, good student, federal employee, multi-policy, and defensive driver.
- Travelers has savings for hybrid/electric vehicle, student away at school, payment discounts, save driver, multi-car, good student, and IntelliDrive.
- Farm Bureau may include discounts for 55 and retired, multi-vehicle, safe driver, good student, driver training, renewal discount, and youthful driver.
- Liberty Mutual offers discounts including teen driver discount, multi-car, multi-policy, exclusive group savings, new vehicle discount, hybrid vehicle, and new move discount.
- American Family policyholders can earn discounts including good driver, air bags, defensive driver, multi-vehicle, TimeAway discount, and Steer into Savings.
- Progressive has discounts for online quote discount, multi-policy, multi-vehicle, online signing, and continuous coverage.
The chart below compares yearly insurance costs with and without policy discounts. The price estimates are based on a male driver, no violations or claims, Kentucky state minimum liability limits, comprehensive and collision coverage, and $1,000 deductibles.
The first bar for each age group shows the average annual price with no discounts. The second shows the rates with paid-in-full, continuous coverage, good student, anti-theft, vehicle safety, and passive restraint discounts applied. When these discounts are applied, theamount saved on auto insurance for college students is 19% or $262.
The information below demonstrates how deductible levels can affect insurance costs when trying to find cheap insurance for college students. The price estimates are based on a married male driver, full physical damage coverage, and no discounts are taken into consideration.
A 50-year-old driver could reduce rates by $316 a year by changing from a $100 deductible to a $500 deductible, or save $478 by using a $1,000 deductible. Younger drivers, like the 20-year-old, can save as much as $1,060 every year by using higher deductibles when buying full coverage. When insureds make the decision to increase the deductibles on their policy, it is necessary to have plenty of money set aside to offset the extra out-of-pocket expense, which deters some people from using high deductibles.
How to find low-cost insurance for college students
Below you’ll find some of the better money-saving ideas that can help Louisville drivers quote low-cost coverage.
- Buy a safer vehicle
- Avoid getting tickets or violations
- Increase physical damage deductibles
- Maintaining good credit helps earn cheaper rates
- Being accident-free can lower rates significantly
- Do not pay for full coverage on older vehicles
- Compare prices frequently to find the best deal
The last item on the list is certainly necessary, as we discussed in this write-up. Insurance rates in Louisville fluctuate considerably, so drivers shouldn’t hesitate to change insurance companies if a better deal can be had.
Many drivers tend to have loyalty to a certain company, but it’s not recommended if that devotion results in you overpaying several hundred dollars every year. In just a few minutes you could compare rates to find cheaper car insurance for college students.