Why is Car Insurance So Expensive in Kentucky? You May Be Surprised
March 4, 2025
Car Insurance Premiums Went Up in 2024
Over the last year, Kentuckians have experienced noticeable hikes in their car insurance premiums, and the sting doesn’t seem to be letting up. As a matter of fact, some policy holders saw over 44% increases in their monthly car insurance costs.
If you’ve noticed a rise in your insurance rates, there are a lot of factors that could be affecting how much you pay for insurance in Kentucky.
In The Article
Kentucky Accident Statistics Play a Big Role
According to WalletHub, insurance rates tend to be higher in Kentucky because of the higher-than-average traffic fatalities. As of 2024, the Kentucky drivers experienced 1.36 traffic-related deaths per 100 million miles driven, while the national average is 1.1 deaths per 100 million miles.
In addition to the higher number of traffic fatalities, Kentucky drivers are on the road even more now, causing the number of accidents to increase.
The Rising Cost of Repair
While many Americans have experienced what inflation has done in the grocery stores and at the gas pumps, the fact is, inflation is hitting everywhere, including the cost of car repair and maintenance. The cost of materials, the high-tech parts needed for newer vehicles, and the cost of labor have all contributed to higher costs for repair after accident. Insurance companies, who are all about the bottom line, realize that these costs are affecting their profit margins, and rate hikes are one way they attempt to hedge against losses.
Uninsured Motorists in Kentucky
Kentucky has a massive issue with the number of uninsured motorists. According to the Insurance Information Institute, in 2022, 18.7% of Kentucky motorists took the chance of driving without insurance. It ranked 6th in the United States for most uninsured motorists per state. It is estimated that in 2025, 13.9% of drivers in Kentucky are not insured.
Due to the high rate of uninsured motorists on Kentucky roads, insured motorists are seeing increases in their insurance premiums as yet another way for insurance companies to hedge against losses when they have to cover their clients, even when those clients are not at fault for the accident.
Healthcare Costs Are on the Rise
As with the higher cost in car repairs, Kentucky is seeing raising rates in healthcare costs. When someone is in an accident, their medical costs may include ambulance rides, emergency room fees, and hospital stay fees. With these rising prices, together with the number of uninsured motorists in Kentucky, car insurance companies are raising rates throughout the state.
Changes in Weather Patterns
Inflation isn’t the only thing affecting the rates of car insurance. Weather patterns in Kentucky are getting more severe and more chaotic. In February of 2025, parts of Kentucky saw massive flooding, severe thunderstorm warnings, tornado warnings, and snow (yes, snow!) all within a 24-hour period. Even if you’re a safe driver and can stay off the roads when conditions are bad, catastrophic flooding and severe winds can still total your vehicle. Insurance companies see this as a risk they must take when they insure your property, so they factor in the changes in weather when they decide what your premium will be.
Other Factors That Affect Your Car Insurance Premium
While there are new and updated factors that are changing car insurance rates for Kentuckians, there are a lot of other factors that insurance providers take into account when figuring how just how much to charge you.
These factors include:
- Your Age: If you are under 25 years old or older than 65 years old, you probably pay more for car insurance coverage than others. This is due to accident statistics that show drivers in these age ranges tend to be involved in more serious and fatal accidents that drivers who do not. 16-year-old drivers tend to be charged the most per year, on average.
- Your Credit: YES! Your credit score can affect what you pay in car insurance. As a matter of fact, WalletHub says, “In Kentucky, drivers with no credit pay 90% more on their premiums than drivers with excellent credit.”
- Location, Location, Location: Where you live and where you drive play a role in the cost of your car insurance. If you live in a more population-dense city, you could have higher premiums than those who live in rural areas. The most expensive places to live for car insurance holders in Kentucky are Corbin, London, and Louisville.
Though car insurance has gotten more expensive in Kentucky, some things that can help keep your rates lower are maintaining a good driving record and comparing prices of various insurance companies.
