Why is My Vehicle Insurance So High?

Vehicle insurance rates have sharply increased over time for several reasons. One of them is that Kentuckians are so good at causing accidents that injure and kill people. They cause claims, which insurance companies want to cover with improved revenue through higher rates.

WalletHub reports that, on average, state drivers pay about $4,834 per year for full coverage and $1,692 annually for minimum coverage. The national averages are much lower, with around $2,000 annually for full coverage and about $700 for minimum coverage.  

Kentucky car insurance is expensive, according to WalletHub, because we have higher than the national average in traffic fatalities (1.36 deaths per 100 million miles driven, while the national average is 1.1). Nationwide, NPR reports that auto insurance costs increased more than 19% during the year ending in August. That’s about five times the overall inflation rate of 3.7%.

We are Driving More and More Recklessly

Compared to the COVID-19 pandemic, we drive more miles, there are more accidents, and more insurance claims and payouts. There were 709 fatal crashes in 2020 in Kentucky and 612 in 2014.

Repairs are More Expensive

Modern vehicles cost more to repair and replace because of additional technology and features. The National Association of Insurance Commissioners estimates that the average vehicle repair cost was around 8% higher in 2018 compared to 2014.

Many Kentucky Drivers are Uninsured

As insurance costs increase, more people are willing to risk getting caught breaking the law and going without it to save money. These drivers shift the costs of accidents from them to those with insurance. If they get into an accident, the other party will probably rely on their uninsured/underinsured coverage to pay for the damage.

Kentucky Healthcare is More Expensive

Car insurance companies pay for damage to vehicles and medical bills of those injured in accidents. Kentucky healthcare spending goes up an average of 6.2% annually, far higher than the overall inflation rate.

More Severe Weather Results in More Claims

In Kentucky, severe weather events are increasingly common. These weather events can result in more accidents, deaths, injuries, body damage, and needed repairs. This can be due to vehicles losing control on wet or icy roads and hail, fire, and flood damage. 

Factors Impacting You

In addition to these broader trends, many things can influence your vehicle insurance premium:

• You have moving violations on your record, like speeding, running red lights or stop signs, been convicted of driving while intoxicated, or caused accidents in the past
• You’ll pay higher rates if you’re younger than 25 because you’re more likely to be involved in an accident. On average, coverage for a 16-year-old driver is almost four times higher than for someone who’s 25
• You live in a more urban area. As the population increases, so does the number of accidents. There’s more property crime and more claims per capita. The state’s most expensive locations are Corbin, London, and Louisville
• Your driving pattern may result in a higher risk for accidents. You have a long commute or drive through higher-risk areas
• You have a bad credit score, so your premium can be much higher than those with excellent credit
• You’ve made claims in the recent past, and insurers fear that will continue. Given the cost of a repair, your deductible, and the risk of higher premiums in the future, paying out-of-pocket may be a better choice

Insurance companies view these risks differently, so how much of an impact they’ll have varies.

Get Cheaper Car Insurance

You can be proactive and drive safely and defensively. Getting tickets and causing accidents will push your rates higher. If it’s a big enough problem, an insurance carrier may not want to cover you.

Speeding, which may lead to going through stop signs and lights, is a significant cause of accidents. Driving while intoxicated or fatigued is another big accident cause. When driving, think about how what you’re doing (or not doing) can impact your insurance costs.

Shop around for coverage. If your policy coverage is ending, contact other insurers online or over the phone. You may find a company aggressively writing new policies in your area. How companies judge risks differs. Your current insurer may have a bigger problem with your speeding ticket than another.

Consider what coverage you’re buying and at what cost. What are your limits and deductibles? Ensure you’re getting a good value, but don’t be penny-wise and pound-foolish when deciding what to pay for and how much to spend.

Have Questions About Vehicle Insurance?

We represent victims of vehicle accidents. We deal with insurance policies and companies all the time. If you have questions about vehicle coverage or need an experienced attorney after being injured in a vehicle accident, call The Fleck Firm for a free consultation at (270) 446-7000.  We can discuss the accident, your injuries, the law, and your best options to proceed. Insurance companies have lawyers. You should have one, too.