Keys2Drive The AAA Guide to Teen Driver Safety
Saving on Insurance Costs

Saving on Insurance Costs

When you’re ready to hit the road alone, you’ll need insurance coverage. Kentucky requires all licensed drivers to get auto insurance, which will help pay for injuries and damage if you’re in a crash.

Saving Money on Insurance

Risk of a crash is significantly higher for young drivers, particularly during the first year of driving. So, their insurance rates usually cost more. Here are a few ways you can help your family save some money.

  • Keep your grades up. Some insurers offer lower rates for students with a “B” or higher grade average.
  • Investigate discounts. Some insurers also offer discounts for teens who complete driver’s education or defensive driving courses.
  • Drive carefully! Avoid crashes and tickets, which can cause a new driver’s insurance rates to jump. Plus, it’s the safe thing to do.
  • Don’t get your own car yet. If you won’t be the main driver for any of your family’s vehicles and can be classified as an occasional driver of one car, you could save your family hundreds of dollars.
  • If you need a car, get a sensible one. Many experts agree that mid-sized sedans are the safest choice for teens, and the cars often have the lowest rates, too.
  • Partner with your parents. Using a parent-teen driving agreement could help you avoid a crash or ticket that would increase your rates.

Insurance Requirements in Kentucky

Kentucky State MapAll Kentucky drivers are required to have insurance at the minimum levels of $25,000 per person for bodily injury, $50,000 per collision for bodily injury and $25,000 for property damage (25/50/25). Insurance companies in Kentucky determine rates based on factors such as your driving record, how long you’ve been a licensed driver, how much you drive, where you live and what you drive. 

Learn more about insurance available through AAA.