insure logo

Why you can trust Insure.com

quality icon

Quality Verified

At Insure.com, we are committed to providing the timely, accurate and expert information consumers need to make smart insurance decisions. All our content is written and reviewed by industry professionals and insurance experts. Our team carefully vets our rate data to ensure we only provide reliable and up-to-date insurance pricing. We follow the highest editorial standards. Our content is based solely on objective research and data gathering. We maintain strict editorial independence to ensure unbiased coverage of the insurance industry.

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.

Key Takeaways

  • Full coverage car insurance in Louisville is $2,359, higher than the national average of $1,895. 
  • The cheapest car insurance company for a full coverage policy in Louisville is Auto-Owners.
  • Full coverage car insurance in Kentucky costs an average of $2,228, which is less than the average Louisville driver faces.

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

CompanyAverage annual rates for state minimumAverage annual rates for full coverage
Kentucky Farm Bureau$505$2,163
USAA$663$1,983
Auto-Owners$716$1,949
Travelers$719$1,956
Geico$725$2,236
State Farm$772$2,604
Shelter Insurance$920$2,196
Progressive$941$3,165
Allstate$1,114$3,395
FarmersNA$4,081

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. 

CompanyAverage monthly rates for state minimum Average monthly rates for full coverage
Kentucky Farm Bureau$42$180
USAA$55$165
Auto-Owners$60$162
Geico$60$186
Travelers$60$163
State Farm$64$217
Shelter Insurance$77$183
Progressive$78$264
Allstate$93$283
Allstate$93$283
FarmersNA$340

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.

CityFull-coverage cost
Chicago$1,930
Dallas$2,278
Houston$2,317
Los Angeles$3,149
New York$2,600
Philadelphia$2,782
Phoenix$2,251
San Antonio$2,181
San Diego$2,324
San Jose$2,406
Las Vegas$2,594
Baltimore$2,345
Boston$2,103
Charlotte$,1824
Columbus$1,597
Denver$2,337
Detroit$2,987
El Paso$2,112
Fort Worth$2,030
Indianapolis$1,627
Jacksonville$2,692
Memphis$2,161
Nashville$1,708
Oklahoma City$2,373
Portland$2,033
San Francisco$2,777
Seattle$1,910
Washington$2,157
Louisville$2,359

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

Coverage levelAverage annual rates
State minimum coverage$776
Full coverage$2,359

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 67% after an accident. If you are caught speeding, that ticket could push your car insurance rates up by an average of  33%. DUIs also lead to higher costs, with an average rate increase of 129% and bad credit drives rates up 107%. 

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

Violation% increase
At-Fault Accident67%
Bad Credit107%
DUI129%
Speeding33%

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.

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

AgeState minimum coverageFull coverage
18$2,197$6,289
25$934$2,894
40$776$2,359
65$740$2,226

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 

ZIP codeAverage annual rate for full coverage
40220$1,982
40245$2,032
40223$2,078
40222$2,095
40241$2,099
40204$2,122
40217$2,163
40291$2,217
40293$2,238
40205$2,290

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

ZIP codeAverage annual rate for full coverage
40211$2,699
40212$2,684
40210$2,675
40209$2,641
40202$2,591
40214$2,532
40216$2,531
40203$2,523
40215$2,518
40292$2,504

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. 

Resources & Methodology

Sources:

Census Bureau “Louisville” Accessed January 2024. 

Insurance Information Institute. “What determines the price of an auto insurance policy.” Accessed January 2024.

City of Louisville. “Regulations.” Accessed January 2024. 

City of Louisville. “Move Louisville.” Accessed January 2024. 

Kentucky.gov. “Kentucky Driver Manual.”  Accessed January 2024. 

Drive.ky.gov. “Mandatory Insurance.” Accessed January 2024. 

Methodology

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.

author image
Sarah Sharkey
Contributing Researcher

 
|
  

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.