The words “cheap” and “auto insurance” probably shouldn’t be used in the same sentence, especially when you are searching for the best price on coverage for drivers with good credit. To save some money, let’s teach you some of the factors that help determine insurance prices, and see if we can help you reduce the cost of your next policy.
The make and model of vehicle driven is one of the largest factors when trying to find cheaper insurance for drivers with good credit. Vehicles with lots of horsepower, poor safety ratings, or an increased likelihood of liability claims will cost significantly more to insure than safer, lower-performance models. The next table shows insurance rates for a selection of the cheapest vehicles to buy coverage for.
| Vehicle Make and Model | Estimated Cost for Full Coverage |
|---|---|
| Ford Escape XLS 4WD | $829 |
| Hyundai Elantra SE Touring Station Wagon | $900 |
| Ford F-150 XL Crew Cab 2WD | $927 |
| Honda CR-V LX 2WD | $933 |
| Toyota Camry LE | $980 |
| Dodge Grand Caravan Hero | $989 |
| Toyota Tacoma Double Cab 4WD | $999 |
| Toyota Prius | $1,005 |
| Ford Focus SES 4-Dr Sedan | $1,013 |
| Honda Civic EX 4-Dr Sedan | $1,018 |
| Jeep Wrangler Sahara 4WD 2-Dr | $1,013 |
| GMC Sierra SL Crew Cab 2WD | $1,050 |
| Ford Fusion SEL 4-Dr Sedan | $1,059 |
| Volkswagen Jetta SE 4-Dr Sedan | $1,050 |
| Chevrolet Silverado LTZ Extended Cab 4WD | $1,056 |
| Chevrolet Malibu Hybrid | $1,071 |
| Chevrolet Impala LT | $1,080 |
| Dodge Ram Crew Cab ST 2WD | $1,071 |
| Ford Explorer Limited 2WD | $1,091 |
| Toyota RAV4 Sport 4WD | $1,101 |
| Nissan Rogue SL AWD | $1,103 |
| Ford F-350 XL Super Cab 2WD | $1,114 |
| Honda Accord EX-L 2-Dr Coupe | $1,122 |
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Premium data assumes 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, safe-driver, claim-free, and multi-policy. Rates do not factor in vehicle garaging location which can revise premium rates considerably.
Based upon these rates, you can conclude that models like the Ford Escape, Hyundai Elantra, Ford F-150, Honda CR-V, and Toyota Camry should be the most budget-friendly vehicles to insure for financially responsible drivers.
One of the more important criteria that are looked at to determine the price you pay for insurance is where you keep your car. Regions with larger populations or more claims likely pay more, whereas more rural areas benefit from having to pay less for coverage.
The table below shows the highest-priced areas in Kentucky for drivers with good credit to purchase a policy in. Lexington is ranked at #21 with the annual price of $1,454 for the average insured, which is around $121 each month.
| Rank | City | Premium Per Year |
|---|---|---|
| 1 | Louisville | $2,090 |
| 2 | Frankfort | $1,742 |
| 3 | Ashland | $1,724 |
| 4 | Jeffersontown | $1,719 |
| 5 | Saint Matthews | $1,643 |
| 6 | Radcliff | $1,638 |
| 7 | Madisonville | $1,600 |
| 8 | Murray | $1,597 |
| 9 | Paducah | $1,583 |
| 10 | Danville | $1,581 |
| 11 | Elizabethtown | $1,563 |
| 12 | Henderson | $1,557 |
| 13 | Covington | $1,532 |
| 14 | Winchester | $1,517 |
| 15 | Georgetown | $1,506 |
| 16 | Independence | $1,480 |
| 17 | Hopkinsville | $1,478 |
| 18 | Richmond | $1,475 |
| 19 | Bowling Green | $1,461 |
| 20 | Nicholasville | $1,459 |
| 21 | Lexington | $1,454 |
| 22 | Florence | $1,441 |
| 23 | Fort Thomas | $1,440 |
| 24 | Owensboro | $1,432 |
| 25 | Erlanger | $1,420 |
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Premium amounts are estimated as the garaging address in Lexington can lower or raise insurance rates significantly.
Cost comparison with and without full coverage
Finding cheaper insurance is important to most people, and one of the quickest ways to lower the cost of insurance for drivers with good credit is to not pay for full coverage. The chart below compares yearly insurance costs with and without physical damage coverage. The premium estimates are based on no violations or accidents, $100 deductibles, drivers are not married, and no discounts are applied.
If averaged out across all ages, comp and collision coverage costs $2,508 per year over liability only. That is a big expense that brings up the question if full coverage is worth the money. There is no exact rule for dropping full coverage on your policy, but there is a broad guideline. If the annual cost of comprehensive and collision coverage is about 10% or more of any settlement you would receive from your insurance company, then you might want to think about dropping full coverage.
For example, let’s pretend your vehicle’s replacement value is $10,000 and you have $1,000 full coverage deductibles. If your vehicle is totaled, the most your company would pay you is $9,000 after paying the physical damage deductible. If you are paying more than $900 a year to have full coverage, then you might consider buying liability only.
There are a few situations where buying only liability insurance is not recommended. If you still owe money on your vehicle, you must maintain physical damage coverage in order to keep the loan. Also, if you can’t afford to buy a different vehicle in the even your car is totaled, you should not eliminate full coverage.
Get discounts on Lexington insurance rates
Insurance providers that provide policies for drivers with good credit may additionally offer price discounts that could lower prices by 35% or more if you are eligible to receive them. A list of companies and a partial list of their discounts are shown below.
- GEICO may include discounts for seat belt use, driver training, five-year accident-free, good student, air bags, and multi-vehicle.
- MetLife has discounts for claim-free, good driver, defensive driver, multi-policy, accident-free, and good student.
- State Farm may offer discounts for student away at school, accident-free, Drive Safe & Save, anti-theft, and driver’s education.
- Progressive discounts include homeowner, multi-policy, continuous coverage, online signing, online quote discount, and multi-vehicle.
- Mercury Insurance policyholders can earn discounts including multi-policy, good student, anti-theft, annual mileage, accident-free, and age of vehicle.
- 21st Century has savings for homeowners, driver training, theft prevention, anti-lock brakes, and defensive driver.
- Allstate offers premium reductions for good payer, teenSMART discount, EZ pay plan discount, safe driver, new car, eSmart discount, and defensive driver.
The information below illustrates the difference between insurance costs with and without policy discounts. The price estimates are based on a male driver, a clean driving record, no claims, Kentucky state minimum liability limits, comprehensive and collision coverage, and $250 deductibles. The first bar for each age group shows the average rate with no discounts. The second shows the rates with passive restraint, defensive driving course, accident-free, marriage, anti-theft, and homeowner discounts applied. With discounts applied, theamount saved on insurance for drivers with good credit is 28% or $474.
Driving violations and accidents
The obvious way to earn affordable insurance prices in Kentucky for financially responsible drivers is to drive carefully and have a clean driving record. The chart below demonstrates how citations and at-fault collisions can affect insurance prices for different age groups. The price estimates are based on a single male driver, full coverage, $1,000 deductibles, and no discounts are applied to the premium.
In the previous example, the average cost of an auto insurance policy in Lexington per year with no accidents or violations is $1,829. Receive one speeding ticket and the average cost increases to $2,066, an increase of $237 each year. Then add in two accidents along with the one speeding ticket and the yearly cost of insurance for drivers with good credit goes up to an average of $4,295. That’s an increase of $2,466, or $206 per month, just for not being attentive to the road!
Here’s why price comparisons are so important
Lexington, KY insurance rates are impacted by many things that will increase or decrease the cost of coverage. Improving your credit rating, buying a home instead of renting, or getting caught speeding can trigger rate changes that can now make some companies cheaper than competitors.
Additionally, companies change premium rates multiple times each year to help ensure profitability. Significantly higher losses can result in rate hikes, while lower claim expenses may cause lower-priced Lexington car insurance rates.
For example, the chart below compares the cheapest car insurance in Lexington, KY for a 45-year-old male driver with no prior claims, no tickets, and good financial standing. If we compare prices based on his current situation, Cincinnati Insurance might quote the cheapest car insurance rates in Lexington at $1,121 each year. This is $1,022 less than the average rate paid by Kentucky drivers of $2,143. Kentucky Farm Bureau, USAA, Auto-Owners, and Motorists Mutual round out the rest of the cheapest Lexington, KY auto insurance companies.
Now we will pretend the driver from the first example an at-fault accident, a little lower credit rating, and a speeding citation. Since each company uses their own calculation to determining premium rates, getting updated rate quotes most likely will result in a different ranking of companies as shown below.
Kentucky Farm Bureau now has the cheapest price in Lexington with USAA, Travelers, State Farm, and Westfield also being competitive. This shows why Lexington drivers need to take the time to shop around when trying to get the lowest auto insurance quotes for drivers with good credit.
Prices are made up of many factors and can decrease or increase without notice, so the cheapest rate when you last compared rates may now not even be in the top five.