Car insurance in Louisville: Cheapest insurance and average rates

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Car insurance in Louisville costs an average of $2,359 for full coverage, or $197 per month. But some companies offer better rates than others. In 2024, Auto-Owners offers the cheapest full coverage car insurance policy at $1,949 per year.

Around 623,000 people call the Jefferson County metro area, which includes Louisville, home. The relatively high number of people contributes to congestion on the roads and pushes car insurance costs higher. 

If you live in the Derby City, car insurance will likely take a big bite out of your budget. For most drivers, seeking out the cheapest option is critical. We explore the most affordable options.

How to find the best car insurance in Louisville

If you want to find the best car insurance option in Louisville, you’ll need to shop around. When you get quotes from at least three different car insurance companies, you can compare costs to find the most affordable option for your situation. Before committing to a policy, ask the insurer if you qualify for discounts to lower your costs. 

Cheapest car insurance company in Louisville

USAA offers the cheapest car insurance coverage in Louisville, with an average annual rate of $663 for a policy that meets the state’s minimum coverage requirements. But USAA only offers coverage to individuals with qualifying military connections and their family members. For full coverage, Auto-Owners offers the cheapest coverage at $1,949 annually.

Explore the other cheap car insurance options in Louisville in the table below. 

Average annual rates from the largest U.S. insurers in Louisville

How much is car insurance in Louisville per month?

Since every driver has a unique situation, car insurance costs vary from driver to driver. But on average, Louisville drivers pay $197 per month for full-coverage car insurance. A minimum coverage car insurance policy costs an average of $65 per month. 

The table below breaks down average car insurance premiums by insurance company and coverage level. 

Monthly rates for car insurance in Louisville. 

How do rates in Louisville compare to other large cities in the U.S.?

Car insurance companies take many factors into consideration when determining your auto insurance premiums. In general, urban drivers in large cities pay more for car insurance than drivers in more rural areas. That’s because big cities tend to have higher rates of vandalism, theft, and accidents, all of which pushes car insurance costs higher. 

James Brau, professor of finance at Brigham Young University, says that the more risk the insurance company must bear, the higher the premium they must charge to stay in business and make a profit. 

“Large cities tend to present more risk to the insurance companies than rural areas. Large cities have more people, more cars and higher chances of getting in wrecks or having other damage done to vehicles,” Brau says. “As such, insurance firms must charge higher premiums in cities. Cities that are relatively more dangerous, in turn, must charge higher premiums than cities that are not as risky. Insurance companies study damage losses per metropolitan area and assign premiums depending on the number of wrecks in an area.”

See how much you can expect to pay for car insurance in several major U.S. cities in the table below.

Here’s what you need to know when driving in Louisville

Louisville drivers spend an average of less than 25 minutes each way when commuting to and from work. 

Here’s what to know about driving in Louisville for a smooth and safe experience. 

• Rush hour runs from 7:30-9 a.m. and 4-6 p.m. If possible, avoid the roads during these times. 
• While you might know where you are going, use a map app to help you skip any unnecessary traffic. 

As you navigate the city, keep these rules in mind:

• You must turn on your emergency flashers if your vehicle is disabled. 
• The speed limit in off-street parking facilities is a standardized 15 miles per hour. 
• Downtown Louisville has parking meters. Keep an eye out for posted parking restrictions.

How much car insurance do I need in Louisville?

Drivers in Louisville must carry a minimum amount of car insurance. Below is a breakdown of the state’s minimum auto insurance requirements:

• $25,000 in bodily injury per for a person involved in an accident 
• $50,000 for bodily injury for two or more people in an accident
• $25,000 in property damage coverage per accident

You’ll need an auto insurance policy with these minimum coverage requirements. But depending on your situation, you may need more insurance coverage. For example, drivers who want help repairing or replacing their own vehicle after an incident might want collision and comprehensive coverage. 

Average cost of car insurance in Louisville

Drivers in Louisville pay an average of $776 for a state minimum coverage policy. But drivers who want more financial protection pay an average of $2,359 for a full coverage policy. 

In contrast to the national average cost of $1,895 for a full coverage policy, Louisville drivers pay significantly more. The average cost of a full coverage policy in the state of Kentucky is $2,228 per year, which means drivers in Louisville also pay more than drivers around the state. 

Annual average rates in Louisville, for state minimum coverage and full coverage

How much does car insurance in Louisville cost with violations?

Car insurance costs often increase after you receive a traffic violation. You should expect to pay more for car insurance if you receive a violation in the form of a speeding ticket, at-fault accident, or DUI conviction. 

For example, Louisville drivers see their rates increase by an average of 62% after an accident. If you are caught speeding, that ticket could push your car insurance rates up by an average of 44%. DUIs also lead to higher costs, with an average rate increase of 90% and bad credit drives rates up 133%. 

See rate increases in Louisville in the table below by violation. 

Cheapest car insurance in Louisville by age

Car insurance for teens in Louisville is very expensive – the annual rate for an 18-year-old is $6,289 per year for a full coverage policy. Rates start to head down at age 25 and back up in your late 60s.

Annual rates for state minimum and full coverage car insurance in Louisville by age. 

Compare auto insurance rates in Louisville by ZIP code 

Where you live within Louisville also has an impact on your car insurance costs. In Louisville, the cheapest ZIP codes for car insurance are 40220, 40245 and 40223. In contrast, the most expensive are 40211, 40212 and 40210. 

See the tables below for the cheapest and most expensive ZIP codes in Louisville. 

Cheapest annual car insurance rates in Louisville, by ZIP code 

Most expensive annual car insurance rates in Louisville, by ZIP code 

Our recommendations: Car insurance for drivers in Louisville

On average, Louisville drivers get the cheapest coverage by purchasing a policy with USAA or Auto-Owners. But the cheapest insurer for you will vary based on the details of your unique situation. 

It’s worth noting that purchasing coverage based on pricing alone can be a mistake. A cheap policy isn’t worth much if it does not include the coverage you want and need. 

So, shop around and gather quotes from several insurance companies. This is the best way to get the coverage you need at the best price. 

A full coverage insurance policy with liability limits of 100/300/100 is the best option for most drivers. Consider increasing your liability limits as you accumulate wealth and your net worth increases. Purchasing as much car insurance as you can afford will give you peace of mind as you navigate the roads of Louisville. 

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In 2024, Insure.com commissioned Quadrant Information Services to pull rates for a 40-year-old who has a 12-mile commute and drives a 2023 Honda Accord LX 10k miles annually. The hypothetical driver has full coverage, carrying policy limits of 100/300/100 with $500 deductibles for comprehensive and collision coverages. We analyzed 51,088,003 insurance quotes from 167 companies across 34,588 ZIP codes in every state and Washington, D.C.

Sarah Sharkey

Contributing Researcher

 

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Sarah Sharkey is a personal finance writer with a master’s degree in management from the Hough School of Business at the University of Florida. She enjoys helping readers find money solutions that work. She has written for numerous personal-finance publications including Money Under 30 and The College Investor.