The make and model of vehicle requiring insurance is one of the largest factors when looking for cheaper car insurance for low income drivers. Vehicles with high performance, poor passenger safety features, or a history of substantial liability claims will cost substantially more to insure than more modest models.
The next list illustrates insurance prices for a handful of the most cost-effective automobiles to buy coverage for.
| Vehicle Make and Model | Estimated Cost for Full Coverage |
|---|---|
| Honda Accord LX 4-Dr Sedan | $862 |
| Ford Escape XLT 2WD | $944 |
| Toyota Prius | $954 |
| Honda CR-V LX 2WD | $975 |
| Toyota RAV4 Sport 2WD | $1,021 |
| Toyota Camry LE | $1,027 |
| Jeep Grand Cherokee Laredo 2WD | $1,021 |
| Volkswagen Jetta S 2.5 Station Wagon | $1,029 |
| Toyota Corolla LE | $1,077 |
| Hyundai Elantra SE 4-Dr Sedan | $1,086 |
| Nissan Rogue S 2WD | $1,092 |
| Chevrolet Malibu LTZ | $1,096 |
| Chevrolet Silverado 2500HD LT Crew Cab 4WD | $1,105 |
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Data based on single male driver age 50, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Kentucky minimum liability limits. Discounts applied include multi-policy, homeowner, claim-free, safe-driver, and multi-vehicle. Price information does not factor in your specific Lexington, KY location which can change premiums noticeably.
Based upon the rates shown, you can infer that vehicles like the Honda Accord, Ford Escape, Toyota Prius, and Honda CR-V are most likely to be some of the most economical vehicles to insure for poor drivers.
For poor drivers, one of the more important considerations that aid in calculating the amount you pay each year for auto insurance is where you live in Lexington. Areas with more people or more claims are more likely to have higher rates, whereas areas with less people or fewer weather incidents have the gratification of cheaper auto insurance rates.
The table below rates the most costly cities in Kentucky for low income drivers in which to buy car insurance. Lexington comes in at #16 having an annual price of $1,499 for the average insured, which is about $125 per month.
| Rank | City | Average Per Year |
|---|---|---|
| 1 | Louisville | $2,154 |
| 2 | Frankfort | $1,795 |
| 3 | Ashland | $1,724 |
| 4 | Jeffersontown | $1,668 |
| 5 | Saint Matthews | $1,660 |
| 6 | Radcliff | $1,638 |
| 7 | Madisonville | $1,616 |
| 8 | Murray | $1,613 |
| 9 | Paducah | $1,599 |
| 10 | Elizabethtown | $1,563 |
| 11 | Winchester | $1,563 |
| 12 | Danville | $1,549 |
| 13 | Georgetown | $1,536 |
| 14 | Hopkinsville | $1,523 |
| 15 | Covington | $1,517 |
| 16 | Lexington | $1,499 |
| 17 | Henderson | $1,495 |
| 18 | Independence | $1,480 |
| 19 | Richmond | $1,475 |
| 20 | Erlanger | $1,463 |
| 21 | Bowling Green | $1,461 |
| 22 | Nicholasville | $1,459 |
| 23 | Fort Thomas | $1,455 |
| 24 | Florence | $1,441 |
| 25 | Owensboro | $1,376 |
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Information shown are approximated as the garaging address in Lexington can alter auto insurance rates significantly.
Locating cost effective car insurance is not most people’s favorite thing to do, and determining which company quotes the cheapest auto insurance rates for low income drivers will require a little more work.
Each auto insurance company uses their own method for setting prices, so first let’s look at the rankings for the overall cheapest auto insurance companies in Lexington.
Find the Cheapest Car Insurance in Kentucky
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | Cincinnati Insurance | $1,126 |
| 2 | Kentucky Farm Bureau | $1,128 |
| 3 | USAA | $1,211 |
| 4 | Auto-Owners | $1,357 |
| 5 | Motorists Mutual | $1,553 |
| 6 | Grange Mutual | $1,609 |
| 7 | Travelers | $1,614 |
| 8 | State Farm | $1,812 |
| 9 | Westfield | $1,888 |
| 10 | Safe Auto | $1,991 |
| 11 | Progressive | $2,056 |
| 12 | Nationwide | $2,085 |
| 13 | Electric | $2,160 |
| 14 | State Auto | $2,166 |
| 15 | GEICO | $2,341 |
| 16 | Encompass | $2,382 |
| 17 | Safeco | $2,763 |
| 18 | MetLife | $3,053 |
| 19 | Shelter | $3,135 |
| 20 | Liberty Mutual | $3,634 |
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Cincinnati Insurance normally has some of the best car insurance rates in Lexington at around $1,126 each year. This is $1,017 less than the average rate paid by Kentucky drivers of $2,143. Kentucky Farm Bureau, USAA, Auto-Owners, and Motorists Mutual would also be considered some of the lowest-priced Lexington, KY insurance companies.
As shown above, if you are a customer of Auto-Owners and switched to Cincinnati Insurance, you might realize a yearly price reduction of around $231. Drivers with Motorists Mutual might save as much as $427 a year, and Grange Mutual insureds might realize rate reductions of up to $483 a year.
To see how much you can save, click here to get quotes or visit several of the following companies.
Remember that these estimates are averaged for all ages of drivers and types of vehicles and and are not figured with a vehicle location for low income drivers. So the insurer that is best suited for you may not even be in the top 21 companies shown above. That points out the importance of why you need to get auto insurance quotes using your own specific driver and vehicle information.
Get discounts on Lexington car insurance rates
Auto insurance companies that offer coverage for low income drivers could also offer premium discounts that may potentially lower prices by as much as 40% or more if you meet the requirements. Large auto insurance companies and a summarized list of policyholder discounts can be read below.
- GEICO may offer discounts for emergency military deployment, good student, anti-lock brakes, seat belt use, federal employee, and driver training.
- MetLife policyholders can earn discounts including accident-free, defensive driver, good student, claim-free, multi-policy, good driver
- Progressive discounts include homeowner, good student, online signing, continuous coverage, multi-vehicle, multi-policy, and online quote discount.
- Travelers has savings for save driver, continuous insurance, home ownership, hybrid/electric vehicle, multi-policy, driver training, and student away at school.
- SAFECO may have discounts that include anti-lock brakes, anti-theft, safe driver, bundle discounts, and teen safety rewards.
- AAA offers premium reductions for education and occupation, multi-policy, anti-theft, pay-in-full, and good student.
The information below shows the comparison of insurance costs with and without some available policy discounts. The premium estimates are based on a female driver, no claims, a clean driving record, Kentucky state minimum liability limits, comp and collision included, and $250 deductibles.
The first bar for each age group shows premium with no discounts. The second shows the rates with safe-driver, multiple vehicle, anti-theft, passive restraint, claim-free, and marriage discounts applied. When discounts are applied, theaverage amount saved on auto insurance for low income drivers is 28% or $605.
The information below shows how choosing a deductible can impact insurance premiums when searching for cheap insurance for low income drivers. The data is based on a married female driver, comp and collision included, and no policy discounts are applied.
The data above shows that a 30-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 selecting a $1,000 deductible. Even younger insureds, such as the 20-year-old example, could lower their rates $744 or even more just by using higher deductibles.
When raising deductibles, it will be important to have plenty of discretionary funds to enable you to pay the extra out-of-pocket expense, which is the one shortcoming of high deductibles.
Violations and accidents raise rates
A great way to receive affordable auto insurance prices in Lexington for poor drivers is to drive attentively and not receive tickets or have accidents. The diagram below highlights how speeding tickets and at-fault claims can affect premium costs for each different age category. The premium estimates are based on a single male driver, full coverage, $1,000 deductibles, and no policy discounts are applied.
In the prior example, the average cost of car insurance in Lexington per year with no accidents and a clean driving record is $1,374. Get two speeding tickets and the average cost rises to $1,806, an increase of $433 each year. Now add in one accident along with the two speeding tickets and the annual cost of auto insurance for low income drivers jumps again to an average of $2,246. That’s an increase of $872, or $73 per month, just for not driving carefully!
Here’s why you should compare rates often
Lexington auto insurance rates are determined by lots of factors which can significantly increase or decrease the price you have to pay for coverage. Improving your credit rating, becoming a homeowner, or getting a speeding ticket can trigger rate changes that can cause some rates to be more affordable than others.
Not only may things change on your end, but car insurance companies file new rates at least once a year to adjust for unexpected claims or profits. Higher than usual claims can cause increased rates, while profitable underwriting can produce lower-cost Lexington car insurance rates.
For example, the chart below analyzes the cheapest car insurance in Lexington, KY for a 45-year-old female driver with a good driving record, no prior claims, and solid credit. If we look at prices based on her current rating profile, Cincinnati Insurance may have the most affordable car insurance rates in Lexington at $1,132 a year. This is $1,011 less than the average policy premium paid by Kentucky drivers of $2,143. Kentucky Farm Bureau, USAA, Auto-Owners, and Motorists Mutual are the remaining best Lexington, KY auto insurance companies.
In the next rate comparison, we’ll give the driver in the first chart a claim or two, a lower credit rating, and a stop sign violation. Due to the fact that each insurance company uses their own formula for determining rates in each state, getting updated rate quotes will most likely result in a significantly different list of cheap Lexington auto insurance companies as shown below.
Kentucky Farm Bureau now has the cheapest rate in Lexington, KY with Travelers, USAA, State Farm, and Westfield also being competitive. This example shows why it is critical to compare many different companies when trying to find the most affordable auto insurance rates for low income drivers. Prices are influenced by many different factors and change frequently, so the most economical option the last time you shopped around may now be priced much higher than other options.