Kentucky Auto Insurance Quote

If you are going to save money on auto insurance you have to shop around and that means getting a Kentucky auto insurance quote from several different companies.

In Kentucky the average premium for auto insurance is $1,755, while the national average is $1,576. Although some drivers assume that rates are fixed by the state and insurance companies, insurance companies chose their rates differently so your rate at one company might be a lot different than at another. That is why it is important to get quotes from several companies to compare rates and hopefully save you some money.

Buying Auto Insurance

It is frustrating for good drivers to pay a lot for auto insurance, but adequate insurance coverage is a part of effective risk management. Most drivers can handle a $500 deductible if there is damage to a car, but having major repairs done for thousands of dollars is often difficult. If a car is totaled with a deductible payment still due, the driver could be forced to survive without a car. Furthermore, if a driver causes an accident and someone is injured, the medical expenses along with any damages for the lost income of the victim may leave the at fault driver financially devastated.

Liability Insurance

From the view of risk management, this is the most important coverage. While few people are deliberately negligent with another person’s property or person, when accidents happen, they can be quite expensive. Since property damage and personal injuries can result substantial expenses, the potential loss to the individual who is at fault can be quite sizable. The states with the largest level of benefits (based on state minimum coverage) still provide only $50,000 for losses suffered by any individual. Most states require less than half of that amount.

If you are looking for a Kentucky auto insurance quote, Kentucky state law requires minimum bodily injury liability limit of $25,000 per injured person up to a total of $50,000 per accident and property damage liability coverage with a minimum limit of $10,000. This basic coverage is often referred to as 25/50/10 coverage.

In order to increase liability coverage by a factor of 10, from $50,000 per individual to $500,000 per individual, only a 24% increase in premium is required.  It is only an 11% premium increase to move from $50,000 to $100,000 per individual. To move from $25,000 per person coverage to $500,000 coverage is only a 47% increase in premium compared to a 1,975% increase in coverage. Most claims are for small amounts, but one large claim can wipe out a driver’s financial security. A relatively slight increase in the cost of coverage may operate to minimize that risk.

Medical Payment Coverage

Medical payments coverage provides benefits that many health care plans do not provide: Medical payments coverage covers the medical expenses of passengers in the insured’s vehicle – a valuable benefit since these passengers may be uninsured, and the coverage can be used to replace any lost income or to pay funeral expenses on their behalf. Finally, not only does the coverage apply when an insured is in the vehicle, but it also applies when a family member of the named insured is a pedestrian or riding a bicycle. The cost of coverage is also relatively low considering the possible benefit to be received.

Physical Damage Coverage

Basic risk management comes in the picture again here. If the loss of the vehicle would create a financial problem for the insured, physical damage coverage makes sense. However, if the car is financed and is used as collateral for any loan, the lender will probably require such coverage even if the insured would not otherwise incur such an expense.

So if you are looking for a Kentucky auto insurance quote, go online and compare quotes from several different insurance companies. You are sure to one that meets your financial requirements.