What Auto Insurance is Cheapest for Used Cars in Lexington?

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You have probably watched the catchy advertisements from auto insurance companies like Progressive, Allstate, and Liberty Mutual that promise dirt cheap rates, so you just need to pick the company with the catchiest ad, right?

Regrettably, it's not quite that easy, as there are a lot of unknown elements like how experienced of a driver you are, whether you are married or single, and the amount of coverage you want. If you keep reading, we will teach you about some of these factors and educate you enough to have a good start in finding the cheapest car insurance in Kentucky.

The make and model of vehicle you are seeking coverage for is probably the largest consideration when comparison shopping for the best cheap coverage for used cars. Vehicles with limited speed and performance, excellent safety ratings, or a positive history of liability claims will cost much less to insure than high performance models.

The information below features insurance prices for a handful of the most economical automobiles to insure.

Cheapest Vehicles to Insure in Lexington, KY
Vehicle Make and Model Estimated Cost for Full Coverage
Honda CR-V EX-L 2WD $954
Chevrolet Silverado LS Regular Cab 4WD $1,026
Ford Escape XLT 2WD $1,057
Honda Civic DX 4-Dr Sedan $1,087
Jeep Wrangler Unlimited Sport 2WD 4-Dr $1,118
Ford F-150 FX4 Super Cab 4WD $1,129
Toyota Prius $1,135
Ford Edge Sport 2WD $1,168
Dodge Grand Caravan SE $1,187
GMC Sierra SLE Crew Cab 4WD $1,197
Nissan Rogue S 2WD $1,187
Chevrolet Silverado 2500HD LTZ Crew Cab 4WD $1,192
Honda Odyssey EX $1,216
Chevrolet Impala LS $1,226
Jeep Grand Cherokee Laredo 2WD $1,244
Toyota RAV4 Sport 4WD $1,250
Volkswagen Jetta S 4-Dr Sedan $1,244
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Cost estimates assume single male driver age 40, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Kentucky minimum liability limits. Discounts applied include homeowner, multi-vehicle, multi-policy, safe-driver, and claim-free. Price estimates do not factor in specific location information which can revise premium rates greatly.

Based upon the table data, vehicles like the Honda CR-V, Chevrolet Silverado, Ford Escape, and Honda Civic will be the most affordable vehicles to insure for pre-owned vehicles.

Figuring out which company quotes the best auto insurance rates for used cars may require a bit more work in order to find coverage that fits your budget.

Each auto insurance company has their own unique process for setting prices, so let's take a look at the auto insurance companies that tend to be cheaper in Lexington.

Cheap Insurance Rates for Used Cars

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Rankings for the cheapest car insurance companies in Kentucky
Rank Company Cost Per Year
1 Cincinnati Insurance $1,082
2 Kentucky Farm Bureau $1,163
3 USAA $1,175
4 Auto-Owners $1,357
5 Grange Mutual $1,561
6 Motorists Mutual $1,601
7 Travelers $1,663
8 State Farm $1,793
9 Westfield $1,888
10 Safe Auto $1,972
11 Nationwide $2,024
12 Progressive $2,056
13 Electric $2,076
14 State Auto $2,232
15 Encompass $2,358
16 GEICO $2,365
17 Safeco $2,709
18 MetLife $3,177
19 Shelter $3,231
20 Liberty Mutual $3,634
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Cincinnati Insurance normally has some of the lowest car insurance rates in Lexington at around $1,082 each year. This is $1,061 less than the average premium paid by Kentucky drivers of $2,143. Kentucky Farm Bureau, USAA, Auto-Owners, and Grange Mutual are also some of the cheapest Lexington, KY auto insurance companies.

In the above rates, if you are a policyholder with Auto-Owners and switched to Kentucky Farm Bureau, you could earn an annual savings of in the neighborhood of $194. Customers with Grange Mutual might save as much as $398 a year, and Motorists Mutual customers might lower prices by up to $438 a year.

Be aware that those policy rates are averages across all ages of drivers and types of vehicles and do not factor in a specific vehicle garaging location for used cars. So the company that fits your needs best may not even be in the top 21 companies shown above. That underscores the importance of why you need to get quotes using your own driver and vehicle profiles.

One of the many criteria that aid in calculating auto insurance rates is where you live in Lexington. More densely populated places tend to pay more, whereas areas that tend to be more rural can boast about having cheaper rates.

The table below sorts the most costly cities in Kentucky for used cars to buy an auto insurance policy in. Lexington comes in at #16 with a yearly cost of $1,499 for the average insurance policy, which is approximately $125 per month.

How much does car insurance cost in Lexington, KY?
Rank City Average Per Year
1 Louisville $2,112
2 Frankfort $1,725
3 Ashland $1,724
4 Jeffersontown $1,668
5 Saint Matthews $1,660
6 Madisonville $1,616
7 Radcliff $1,590
8 Paducah $1,583
9 Henderson $1,557
10 Murray $1,549
11 Elizabethtown $1,547
12 Winchester $1,547
13 Hopkinsville $1,538
14 Richmond $1,535
15 Danville $1,534
16 Lexington $1,499
17 Georgetown $1,491
18 Covington $1,487
19 Bowling Green $1,476
20 Florence $1,471
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Annual rates are approximated as specific Lexington garaging address can influence auto insurance rates considerably.

Comparison of full coverage and liability-only policies

Finding cheaper auto insurance should be important to most vehicle owners, and a great way to reduce the cost of insurance for used cars is to not insure for full coverage. The example below illustrates the comparison of auto insurance rates with full physical damage coverage compared to only buying the minimum liability limits required in Kentucky. The prices are based on no claims or driving violations, $250 deductibles, drivers are single, and no additional discounts are factored in.

If we average all the age groups together, physical damage coverage costs $2,333 per year over and above liability coverage. Many of you may wonder if it's worth it to buy full coverage. There is no definitive formula of when to phase out full coverage, but there is a broad guideline. If the annual cost of having full coverage is 10% or more of the vehicle's replacement cost less your deductible, then it may be the right time to buy liability only.

For example, let's say your vehicle's book value is $3,000 and you have $1,000 physical damage deductibles. If your vehicle is destroyed, the most you would receive is $2,000 after paying your deductible. If you are paying over $200 a year for physical damage coverage, the it may be a good time to stop paying for full coverage.

The illustration below shows how choosing a deductible can raise or lower insurance prices when trying to find cheap insurance for used cars. The rates are based on a single female driver, comp and collision included, and no additional discounts are factored in.

The data above shows that a 40-year-old driver could pocket $352 a year by changing their physical damage coverage from a $100 deductible up to a $500 deductible, or save $528 by using a $1,000 deductible. Even younger drivers, like the 20-year-old example, could shave $898 or even more by using higher deductibles when buying full coverage.

If you do make the decision to raise your deductibles, it will be necessary to have enough savings to enable you to pay the extra out-of-pocket expense, which is the main disadvantage of using high deductibles.

Discounts on Lexington insurance

Discounts on auto insurance for used carsInsurance providers that offer cheap quotes for used cars could also offer policy discounts that could lower prices by as much as 40% or more if you can meet the requirements. A list of auto insurance companies and a selection of discounts are:

The example below illustrates the comparison of car insurance costs with and without discounts. Data assumes a female driver, no violations or claims, Kentucky state minimum liability limits, comp and collision included, and $100 deductibles. The first bar for each age group shows insurance cost with no discounts. The lower bar shows the rates with defensive driving course, accident-free, multiple vehicle, marriage, claim-free, and anti-theft discounts applied. When discounts are applied, theaverage yearly reduction on auto insurance for used cars is 28% or $658.

Your low-price policy may be costing you money

Kentucky auto insurance rates are influenced by many factors that can increase the cost of coverage. Simply having a birthday, moving to a different location, or getting caught speeding can trigger changes in premium resulting in some companies being more affordable than the competition. Not only may your risk profile change, but auto insurance companies change premium rates every year or even multiple times each year to ensure their profitability. Higher than normal claim frequency or severity can cause more expensive premiums, while profitable underwriting may produce lower-cost Lexington car insurance rates.

To help illustrate this point, the chart below demonstrates which company has the cheapest car insurance in Lexington, KY for a 30-year-old male driver with a clear driving record, no claims, and a good credit history. If we estimate prices based on his current rating profile, Cincinnati Insurance may have the best car insurance rates in Lexington at $1,191 per year. This is $952 less than the average policy premium paid by Kentucky drivers of $2,143. Kentucky Farm Bureau, USAA, Auto-Owners, and Motorists Mutual are also on the list of the best Lexington, KY auto insurance companies.

Now let's give the driver in the first example an at-fault accident, bad credit, and a speeding ticket. Since each auto insurance company has a different formula for filing rates in each state, comparing quotes may now result in a slightly different list of the cheapest Lexington car insurance companies as shown below.

Kentucky Farm Bureau now has the cheapest insurance rate in Lexington, KY with Travelers, USAA, State Farm, and Westfield completing the list. This example demonstrates why it is critical to shop around when trying to find the cheapest insurance quotes for used cars. Prices can be determined by many factors and can decrease or increase without notice, so the most economical company three years ago may now be wasting a lot of money.