You have probably seen the catchy advertisements from companies like The General and Farmers that say if you switch you’ll get the cheapest price, so you should just pick one at random, right?
It’s not quite that easy, unfortunately, as there are a ton of unknown elements such as whether you are male or female, if you have a lapse in coverage, if you have a spouse, and if you need full coverage or just liability. We are going to cover some of these criteria and will hopefully give the reader some help in finding cheaper rates.
For new drivers, one of the largest criteria that determine car insurance rates is where you live. Areas with increased crime or more people tend to have more expensive auto insurance rates, whereas more rural areas benefit from lower rates.
The next table lists the highest-priced areas in Kentucky for 16 year olds in which to buy car insurance. Lexington is ranked at #20 with a yearly cost of $1,454 for the average insured, which is around $121 each month.
|Rank||City||Premium Per Year|
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Premium amounts are estimated as zip code location can alter prices considerably.
The make and model of vehicle on the policy is probably the most important factor when comparison shopping for cheap insurance for 16 year olds. Vehicles with higher performance, a lack of modern safety features, or high incidents of liability claims will cost quite a bit more to insure than more economical and safe models. The information below illustrates car insurance costs for the more affordable automobiles to buy coverage for.
|Vehicle Make and Model||Estimated Cost for Full Coverage|
|Ford Escape XLS 4WD||$4,055|
|Honda Accord EX 4-Dr Sedan||$4,062|
|Honda CR-V EX-L 4WD||$4,094|
|Ford F-150 XLT Regular Cab 4WD||$4,560|
|Dodge Grand Caravan SE||$4,570|
|Ford Explorer Eddie Bauer 2WD||$4,560|
|Volkswagen Jetta 2.0T Station Wagon||$4,631|
|Ford Edge SE AWD||$4,769|
|Chevrolet Impala LS||$4,777|
|Toyota Camry LE||$4,808|
|Toyota RAV4 4WD||$4,814|
|Chevrolet Equinox LS 2WD||$4,808|
|Toyota Tacoma Double Cab TRD Sport Package 4WD||$4,846|
|Hyundai Elantra Blue 4-Dr Sedan||$5,019|
|Ford Focus SEL 4-Dr Sedan||$5,026|
|Honda Civic LX-S 4-Dr Sedan||$5,019|
|Honda Odyssey EX-L||$5,058|
|GMC Sierra SLT Extended Cab 2WD||$5,097|
|Jeep Grand Cherokee SRT-8 4WD||$5,105|
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Cost estimates assume single male driver age 16, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Kentucky minimum liability limits. Discounts applied include claim-free, and safe-driver. Premium amounts do not factor in your specific Lexington, KY location which can revise auto insurance rates greatly.
By looking at the data, we can infer that makes and models like the Ford Escape, Honda Accord, Honda CR-V, Toyota Prius, and Ford F-150 are most likely going to be the more affordable vehicles to insure for new drivers. Rates will tend to be more expensive just due to the fact that there is more claim risk for 16 year olds, but generally speaking those vehicles will probably have the least expensive rates compared to other types of vehicles.
Full coverage versus liability only rates
Paying less for auto insurance is probably important to the majority of people, and one way to reduce the cost of insurance for 16 year olds is to buy liability only. The information below illustrates the difference between insurance costs with and without physical damage coverage. The premiums are based on no claims or violations, $100 deductibles, drivers are single, and no discounts are applied to the premium.
If we average the cost for all age groups, full coverage costs an additional $1,873 per year more than insuring for liability only. That is a big expense that brings up the question if it’s a good idea to buy full coverage. There is no definitive guideline to drop physical damage coverage, but there is a broad guideline. If the annual cost of your full coverage insurance is more than around 10% of the settlement you would receive from your company, then you might consider buying liability only.
Reckless driving habits raise Lexington auto insurance rates
The easiest method to receive affordable auto insurance premiums in Kentucky for new drivers is to pay attention while driving and maintain a clean driving record. The illustration below demonstrates how citations and fender-benders raise auto insurance rates for each different age category. Data assumes a married male driver, comp and collision included, $500 deductibles, and no policy discounts are applied.
The data charted above shows the average cost of car insurance in Lexington per year with a clean driving record and no accidents is $1,315. Get written up for two speeding tickets and the average cost hikes up to $1,806, an increase of $491 each year. Now add one accident along with the two speeding tickets and the 12-month cost of auto insurance for 16 year olds goes up to an average of $2,302. That’s an increase of $988, or $82 per month, just for not maintaining a clean driving record!
Picking the top insurer is hard considering how many different companies sell coverage in Lexington. The company rank data shown below may help you analyze which coverage providers you want to consider when insurance shopping for 16 year olds.
The rankings below are only comprised of large, nationwide insurance companies, so companies that only write business in Kentucky or surrounding areas will not be included in these rankings. If you wish to compare rates from these and other companies in Kentucky, follow this link.
|Company||Value||Customer Service||Claims||Customer Satisfaction||A.M Best Rating||Overall Score|
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Data Source: Insure.com Best Car Insurance Companies