You have probably watched the captivating ads from auto insurance companies like Nationwide and Progressive claiming huge savings. So you should just pick the company with the catchiest ad, right?
Unfortunately, it’s just not that easy, as there are a ton of unknown elements like the crime level of your neighborhood, how high your deductibles should be, and if you have a coverage lapse. This article will detail these things and also should give you a good beginning to your quest for cheaper car insurance in Kentucky.
The make and model of vehicle that is being insured is a significant factor when comparison shopping for cheaper auto insurance for a school permit. Vehicles with more horsepower, poor safety features, or an increased likelihood of liability claims will cost substantially more to insure than more economical and safe models. The table below illustrates insurance prices for a handful of the most budget-friendly vehicles to buy coverage for.
| Vehicle Insured | Estimated Cost for Full Coverage |
|---|---|
| Honda CR-V LX 4WD | $7,029 |
| Ford Escape Limited 2WD | $7,100 |
| Toyota Prius | $7,633 |
| Ford F-150 FX2 Super Cab 2WD | $7,877 |
| Volkswagen Jetta SE 2.5 Station Wagon | $8,094 |
| Ford Focus S 4-Dr Sedan | $8,264 |
| Ford Edge Limited 2WD | $8,272 |
| Toyota RAV4 4WD | $8,335 |
| GMC Sierra SLE Crew Cab 2WD | $8,344 |
| Chevrolet Equinox LT 2WD | $8,335 |
| Chevrolet Silverado LT Extended Cab 4WD | $8,340 |
| Chevrolet Malibu LS | $8,335 |
| Dodge Grand Caravan Crew | $8,409 |
| Ford Explorer Eddie Bauer 4WD | $8,418 |
| Toyota Tacoma Double Cab TRD Off-Road Package 4WD | $8,409 |
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Price data assumes single male driver age 17, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Kentucky minimum liability limits. Discounts applied include claim-free, and safe-driver. Prices do not factor in specific zip code location which can influence premium rates significantly.
By looking at the data, we can conclude that vehicles like the Honda CR-V, Ford Escape, Toyota Prius, and Ford F-150 are most likely to be a few of the cheapest vehicles to insure for a learners permit. The price for car insurance will be more expensive because of the fact that there is more risk for a school permit, but overall those models will probably have the lowest insurance prices that you’ll find.
One of the more important things that are looked at to determine car insurance rates is where you keep your car in Louisville. Regions with larger populations or more claims tend to have higher rates, whereas areas with lower vehicle theft rates and fewer weather claims have the gratification of cheaper auto insurance rates.
The next table shows the priciest cities in Kentucky for a school permit to buy auto insurance in. Louisville is ranked #1 with an annual premium of $2,154 for the average policyholder, which is approximately $180 monthly.
| Rank | City | Annual Rate |
|---|---|---|
| 1 | Louisville | $2,154 |
| 2 | Frankfort | $1,795 |
| 3 | Ashland | $1,724 |
| 4 | Jeffersontown | $1,668 |
| 5 | Saint Matthews | $1,643 |
| 6 | Paducah | $1,631 |
| 7 | Murray | $1,613 |
| 8 | Radcliff | $1,606 |
| 9 | Danville | $1,596 |
| 10 | Elizabethtown | $1,595 |
| 11 | Madisonville | $1,568 |
| 12 | Winchester | $1,547 |
| 13 | Richmond | $1,535 |
| 14 | Covington | $1,532 |
| 15 | Nicholasville | $1,504 |
| 16 | Lexington | $1,499 |
| 17 | Henderson | $1,495 |
| 18 | Hopkinsville | $1,493 |
| 19 | Georgetown | $1,491 |
| 20 | Florence | $1,471 |
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Information shown are approximated as the specific garaging location can affect coverage rates considerably.
The chart below highlights how deductible selection can increase or decrease annual premium costs when researching cheap insurance for a school permit. The premiums are based on a married female driver, full coverage, and no discounts are applied to the premium.
The data above shows that a 30-year-old driver could lower rates by $362 a year by switching their comprehensive and collision coverages from a $100 deductible up to a $500 deductible, or save $546 by choosing a $1,000 deductible. Even younger insureds, such as the Age 20 example, have the ability to save as much as $770 or more by choosing larger deductibles on their policy. When increasing deductibles, it is necessary to have enough funds in savings to allow you to cover the extra out-of-pocket expense, which is the one inconvenience of using high deductibles.
Do you need full coverage?
Paying a lower price for auto insurance is the goal of the majority of people, and one of the easiest ways to reduce the cost of insurance for a school permit is to not buy full coverage. The illustration below illustrates the comparison of insurance costs when comparing full coverage to liability only. The rate quotes are based on no violations or accidents, $250 deductibles, single status, and no discounts are applied to the premium.
If we average the cost for all age groups, physical damage coverage on your policy costs $2,293 per year more than insuring for liability only. That amount may make you wonder if it’s a good idea to buy full coverage. There is no specific rule for eliminating physical damage coverage on your policy, but there is a guideline you can consider. If the yearly cost for physical damage coverage is about 10% or more of replacement cost minus your deductible, then you might want to think about dropping full coverage.
For example, let’s pretend your vehicle’s book value is $6,000 and you have $1,000 physical damage deductibles. If your vehicle is damaged in an accident, the most your company will settle for is $5,000 after paying your deductible. If you are currently paying more than $500 a year for your policy with full coverage, then you might want to think about dropping full coverage.
There are some situations where dropping full coverage is not a good idea. If you still have a loan on your vehicle, you must maintain physical damage coverage in order to prevent the bank from purchasing higher-priced coverage. Also, if you can’t afford to buy a different vehicle in the even your car is totaled, you should not drop full coverage.
How to find more affordable insurance for a school permit
It is possible to find better rates, and here are a few penny-pinching suggestions that can help Kentucky drivers find cheap coverage.
- Full coverage may not be needed on older vehicles
- Bundle home and auto and earn a discount
- Try to not file small claims
- Remain accident-free and save
- Vehicles with good safety ratings have lower liability rates
- Keep your driving record clean
- Compare quotes from other companies often
That last tip is especially vital, as was pointed out in the prior article. Prices charged by companies in Louisville vary considerably, so you should be ready to buy from a different company if you can find a cheaper rate. Having brand loyalty is commendable, but we do not recommend it if that loyalty results in overpaying several hundred dollars every year. It only take a few minutes to compare rates to find cheaper insurance for a school permit.