Who Has the Cheapest Auto Insurance Rates for First-time Drivers in Louisville?

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The words "affordable" and "insurance" probably shouldn't be used in the same sentence, in particular when looking for the cheapest car insurance for first-time drivers. Let's familiarize you with a few of the factors that influence auto insurance premiums, and figure out some ways to take the sting out of the next policy you buy.

Establishing which insurers offer the most affordable insurance rates for first-time drivers calls for a tad more effort in order to find the most economical policy.

Each insurer has a unique formula for determining rates, so we need to take a look at the most affordable insurance companies in Kentucky. It's a good idea to know that Kentucky insurance rates are impacted by many things that will increase or decrease the cost of your policy. Turning one year older, having a teen driver, or getting a driving violation may cause policy rate changes resulting in some companies being more affordable than before.

Best Car Insurance Prices for Inexperienced Drivers

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Cheapest Kentucky car insurance ranked by price
Rank Company Cost Per Year
1 Cincinnati Insurance $1,093
2 Kentucky Farm Bureau $1,139
3 USAA $1,223
4 Auto-Owners $1,371
5 Motorists Mutual $1,569
6 Grange Mutual $1,625
7 Travelers $1,631
8 State Farm $1,812
9 Westfield $1,870
10 Safe Auto $1,972
11 Nationwide $2,003
12 Electric $2,097
13 Progressive $2,140
14 State Auto $2,232
15 Encompass $2,358
16 GEICO $2,413
17 Safeco $2,709
18 MetLife $3,177
19 Shelter $3,263
20 Liberty Mutual $3,744
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Cincinnati Insurance generally has some of the cheapest car insurance rates in Louisville at around $1,093 annually. Kentucky Farm Bureau, USAA, Auto-Owners, and Motorists Mutual would also make the list of some of the cheapest Louisville, KY auto insurance companies.

As shown in the rates above, if you are currently insured with Auto-Owners and switched to Kentucky Farm Bureau, you might see a yearly savings of in the vicinity of $232. Customers with Motorists Mutual could save as much as $430 a year, and Grange Mutual policyholders might lower prices by $486 a year.

To get a quick, customized rate comparison, click here to start a quote or visit any of the companies below.

It's important to note that these premium estimates are averages across all insureds and vehicles and and are not calculated with an exact zip code location for first-time drivers. So the company that has the cheapest rates for you may not even be in the list above. That helps illustrate why you need to compare prices as often as possible using your own driver and vehicle profiles.

The vehicle model on the policy is a large consideration when comparing affordable coverage for first-time drivers. Vehicles with lower performance, modern passenger safety features, or a low likelihood of liability claims will cost less to insure than adrenaline junky models. The list below ranks car insurance prices for the most economical automobiles to insure in Kentucky.

Cheapest Vehicles to Insure in Louisville, KY
Vehicle Estimated Cost for Full Coverage
Honda CR-V LX 2WD $6,753
Ford Escape Limited 2WD $6,821
Jeep Wrangler Sport 4WD 2-Dr $7,091
Toyota Prius $7,312
Ford F-150 FX2 Super Cab 2WD $7,585
Ford Explorer XLT 2WD $7,590
Toyota Tacoma 4WD $7,585
Ford Edge SEL AWD $7,945
Ford Focus SE 4-Dr Sedan $7,950
Volkswagen Jetta LE 4-Dr Sedan $8,012
Chevrolet Impala LT $8,017
Toyota RAV4 Sport 4WD $8,012
Chevrolet Silverado LT Extended Cab 4WD $8,022
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Data rating is based on single female driver age 17, 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 Louisville, KY garaging location which can influence auto insurance rates greatly.

Based upon the table data, we can expect models like the Honda CR-V, Ford Escape, Jeep Wrangler, Toyota Prius, and Ford F-150 are going to be the most budget-friendly vehicles to insure for new drivers. Auto insurance rates will tend to be higher just because there is more claim exposure for first-time drivers, but in general those specific models will tend to have the lowest insurance rates possible.

One of the many factors that are used to help calculate the amount you pay each year for auto insurance is where you live. Cities with larger populations are more likely to pay higher prices, whereas more rural areas receive better rates.

The table below lists the highest-priced areas in Kentucky for first-time drivers to buy car insurance in. Louisville ranks #1 with a yearly cost of $2,176 for coverage, which is approximately $181 monthly.

How much is car insurance in Louisville?
Rank City Annual Premium
1 Louisville $2,176
2 Frankfort $1,795
3 Saint Matthews $1,694
4 Ashland $1,673
5 Jeffersontown $1,668
6 Radcliff $1,654
7 Madisonville $1,616
8 Paducah $1,583
9 Danville $1,549
10 Murray $1,549
11 Elizabethtown $1,547
12 Richmond $1,535
13 Hopkinsville $1,523
14 Nicholasville $1,504
15 Winchester $1,501
16 Lexington $1,499
17 Henderson $1,495
18 Georgetown $1,491
19 Florence $1,485
20 Covington $1,472
21 Erlanger $1,463
22 Independence $1,422
23 Bowling Green $1,418
24 Fort Thomas $1,412
25 Owensboro $1,376
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Table data uses comparative as zip code location can increase or decrease coverage prices considerably.

Does full coverage make sense?

Reducing premiums for insurance is probably important to most drivers, and one of the fastest ways to buy cheap insurance for first-time drivers is to only buy liability coverage. The illustration below shows the comparison of insurance premiums with full coverage and liability only. The data assumes a clean driving record, no at-fault accidents, $1,000 deductibles, single status, and no discounts are applied.

As an overall average, physical damage coverage on your policy costs an extra $1,829 per year more than insuring for liability only. At some point, almost every driver questions when is the right time to remove full coverage. There isn't a steadfast formula of when to phase out comp and collision coverage, but there is a general guideline you can use. If the yearly cost for physical damage coverage is 10% or more of any settlement you would receive from your insurance company, then you may need to consider dropping full coverage.

Picking a highly-rated auto insurance company is hard considering how many choices there are in Kentucky. The ranking data below may help you decide which car insurance providers to look at when shopping insurance around for first-time drivers. These rankings are only made up of companies with a national presence, so companies that focus mainly on Kentucky business are not included in these rankings.

Top 10 Major Auto Insurance Companies Overall in Louisville

  1. Travelers
  2. USAA
  3. AAA Insurance
  4. Nationwide
  5. Allstate
  6. State Farm
  7. The Hartford
  8. Safeco Insurance
  9. Progressive
  10. American Family

Top 10 Major Auto Insurance Companies in Louisville Ranked by Value

  1. Travelers
  2. American Family
  3. AAA Insurance
  4. Safeco Insurance
  5. Progressive
  6. The Hartford
  7. Erie Insurance
  8. The General
  9. Esurance
  10. 21st Century

Why you should be shopping around

Kentucky insurance rates are calculated based on many things which can significantly increase or decrease the price of coverage. Simply having another birthday, moving across town, or getting into an accident may generate price changes resulting in some companies being cheaper in comparison to the competition.

Not only may your risk profile change, but car insurance companies change rates without warning to adjust for unexpected claims or profits. Significantly higher losses may cause rate hikes, while less frequent claims can produce lower-cost Louisville car insurance rates.

For instance, the data below shows which companies have the cheapest car insurance in Louisville, KY for a 30-year-old female driver with no prior accidents, a clean driving record, and solid credit. If we estimate prices based on her current rating profile, Cincinnati Insurance quotes the cheapest car insurance rates in Louisville at $1,678 per year. This is $465 less than the average policy premium paid by Kentucky drivers of $2,143. Kentucky Farm Bureau, USAA, Auto-Owners, and Motorists Mutual are also included in the cheapest Louisville, KY auto insurance companies.

In this next rate comparison, we will give the driver from above a claim surcharge, slightly worse credit, and a few blemishes on her driving record. Since every insurance provider has a different formula for determining rates, comparing prices may now show a different list of affordable Louisville car insurance companies as shown below.

Travelers now has the cheapest insurance rate in Louisville with USAA, Kentucky Farm Bureau, Cincinnati Insurance, and State Farm also being competitive. This example illustrates why consumers need to take the time to perform an extensive rate comparison to find affordable car insurance rates for first-time drivers. Insurance prices are influenced by many factors and can change substantially, so the best company a year ago may now not even be in the top five.