Kentucky is the 9th most expensive auto insurance state in the United States. As of December 2013, the average annual insurance rate in Kentucky is $1725. This is significantly higher than the national average. Considering that the auto insurance rates are already high in this state, let us consider the effect of accidents on the auto insurance premium in Kentucky.
According to data released by the National Highway Traffic Safety Administration (NHTSA), there were 720 fatalities in Kentucky in 2011, and in 2012 this number increased to 746. Of the 720 deaths in 2011, 172 (i.e., 24%) were alcohol impaired driving fatalities, and 168 of the 746 were alcohol impaired fatalities in 2012. High accident rates in an area usually drive up insurance rates in the area, because insurance companies manage costs by increasing premiums.
In Kentucky, your premium could go up to $2070 per year on a multi-car policy or up to $2415 per year for a single-car policy, if your insurance company is one of the many that follow the Insurance Services Office’s (ISO) standard of raising premiums. If your accident was merely a fender bender, there are chances that your insurance company might forgive you your one blunder. However, if you were involved in an accident – or worse, if you have caused an accident – that entailed major property damage or serious medical injuries, your rates are likely to shoot up to $2588 or $3450.
The table below shows the impact of accidents on insurance premiums in Kentucky –
| City | Average Annual Insurance Premium ($) | Average annual insurance premium after one accident ($) | Average annual insurance premium after two accidents ($) |
|---|---|---|---|
| Covington | 1,230 | 1,515 | 2,260 |
| Owensboro | 1,245 | 1,533 | 2,287 |
| Lexington | 1,285 | 1,583 | 2,361 |
| Frankfort | 1,293 | 1,592 | 2,376 |
| Paducah | 1395 | 1718 | 2563 |
| Elizabethtown | 1,420 | 1,749 | 2609 |
| Danville | 1,434 | 1,766 | 2,635 |
| Bardstown | 1,505 | 1,854 | 2,765 |
| Bowling Green | 1,622 | 1,998 | 2,980 |
| Louisville | 1,736 | 2,138 | 3,190 |
In the zip codes where the auto insurance premium rates are high, accidents are likely to hit you harder in terms of insurance premiums. Multiple crashes on your driving record where you were at fault for the accident might result in your insurance carrier breaking up with you, and dropping you from coverage. While you switch to another carrier, it might be advisable to take a defensive driving course. This might help lower your premiums.
