Why are Kentucky car insurance rates so high?

Drivers in Lexington say they've noticed the hit insurance premiums have taken on their bank accounts. According to a study done by the website CarInsuranceQuotes.com, Kentuckians spend about four and a half percent of their incomes on car insurance. That's the third-highest in the nation.

"Price of insurance is outrageous!" said Tabatha Raglin.

I can definitely say it's a little bit higher than what I thought it was, " said Tyler Johnson.

Insurance agents say there are several factors at play including frequent severe weather.

"I think the biggest is your wind and hail claims. You know, trees falling on cars, most of them when that happens, you've got a total loss," said Ryan Huff.

Huff works for a Lexington insurance company and says Kentucky has the eighth-highest rate of uninsured drivers.

"It's a twenty percent chance that you'll get hit by an uninsured motorist out on the road. Unfortunately, we all have to pay for those that don't have insurance," said Huff.

He also says Kentucky is one of thirteen so-called "no-fault" states, meaning damage has to be above a certain monetary threshold, sometimes as much as ten-thousand dollars, before the insurance company will pay.

"A lot of people will go out and get attorneys to push it way above that so that they're not responsible. When you start to see claims get pushed up like that, somebody's got to pay for those claims," said Huff.

The good news for Kentucky drivers is that it could be worse. Michigan topped the list. The report says drivers there spend eight percent of their income on insurance.


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