Who Has Affordable Auto Insurance for Low Mileage Drivers in Lexington?

The words “bargain” and “insurance” really shouldn’t be used together, specifically when trying to find the best insurance rates for low mileage drivers. Because of the high cost, let’s familiarize you with some things that have an effect on auto insurance rates, and come up with some ways to cut the cost of your next policy.

One of the more important factors that are used to help calculate the amount you pay for auto insurance is where you normally keep your vehicle in Lexington. More populated areas will most likely pay more, whereas more rural areas have the benefit of cheaper car insurance.

The next table rates the most expensive areas in Kentucky for low mileage drivers to buy car insurance in. Lexington ranks #21 having an annual price of $1,454 for the average insured, which is about $121 each month.

Rate information is estimated as the garaging address in Lexington can affect coverage rates greatly.

Finding out which companies offer the most affordable car insurance rates for low mileage drivers involves a little more sweat than just quoting one company’s rates. Every insurance provider uses a little different formula for determining rates in each state, so let’s rank the car insurance companies with the overall best prices in Lexington.

It’s important to know that Lexington, KY car insurance rates are calculated based on many things that control your annual premium. Improving your credit score, adding a teenager to your policy, or having an at-fault accident can cause premium changes that can make some companies cheaper in comparison to the competition.

Best Insurance Companies in Kentucky

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Cincinnati Insurance may offer some of the most affordable car insurance rates in Lexington at around $1,093 per year. This is $1,050 less than the average rate paid by Kentucky drivers of $2,143. Kentucky Farm Bureau, USAA, Auto-Owners, and Motorists Mutual also qualify as some of the best Lexington, KY car insurance companies.

In the above rates, if you currently buy coverage from Kentucky Farm Bureau and switched to Cincinnati Insurance, you might see an annual savings of in the neighborhood of $46. Insureds with USAA may save as much as $94 a year, and Auto-Owners customers might cut rates by $278 a year.

To find out how your current rates compare, click here to start your free quote or visit any of the companies below.

Remember that these estimates are averaged for all drivers and vehicles and and are not figured with a specific vehicle garaging location for low mileage drivers. So the company that fits you best may not even be in the list above. That is why you need to compare prices as often as possible using your own personal information and vehicle type.

How accidents and tickets impact rates in Lexington

The easiest method to maintain the cheapest car insurance premiums for infrequent drivers is to drive safe and avoid accidents and traffic citations. The chart below shows how traffic citations and at-fault accidents influence insurance costs for different ages of insureds. The information is based on a married female driver, comprehensive and collision coverage, $250 deductibles, and no discounts are applied to the premium.

The data above shows the average cost of car insurance per year with no accidents and a clean driving record is $1,759. Add in two speeding tickets and the average cost increases to $2,506, an increase of $747 each year. Now add in one accident along with the two speeding tickets and the 12-month cost of car insurance for low mileage drivers increases to an average of $3,268. That’s an increase of $1,509, or $126 per month, just for being a careless driver!

Get discount Lexington auto insurance rates

Insurers that provide coverage for low mileage drivers may additionally offer special discounts that could reduce prices by as much as 30% if you meet specific criteria. A few of the larger companies and a selection of discounts can be found below.

• AAA includes discounts for good student, education and occupation, good driver, multi-car, pay-in-full, AAA membership discount, and anti-theft.
• Progressive offers premium reductions for online quote discount, good student, continuous coverage, homeowner, and multi-policy.
• State Farm policyholders can earn discounts including good student, multiple autos, defensive driving training, driver’s education, passive restraint, good driver, and Steer Clear safe driver discount.
• Esurance offers discounts for online shopper, paid-in-full, DriveSense, renters, Pac-12 alumni, and homeowner.
• Nationwide discounts include accident-free, easy pay, good student, family plan, defensive driving, and multi-policy.

The example below visualizes the comparison of premium costs with and without discounts applied. The rate quotes are based on a male driver, no violations or accidents, Kentucky state minimum liability limits, full physical damage coverage, and $250 deductibles.

The first bar for each age group shows premium with no discounts. The second shows the rates with homeowner, accident-free, anti-theft, multiple vehicle, marriage, and claim-free discounts applied. With discounts applied, theaverage amount saved on car insurance for low mileage drivers is 28% or $649.

Should you buy full coverage?

Saving money when shopping for car insurance is probably important to most people, and one common way to buy cheaper insurance for low mileage drivers is to not buy full coverage. The example below shows the comparison of yearly insurance costs with full physical damage coverage compared to only buying the minimum liability limits required in Kentucky. The data is based on no claims or violations, $100 deductibles, single marital status, and no discounts are applied.

If the expense is averaged for all age categories, full coverage costs $1,873 per year more than insuring for liability only. That is a large expense and it proposes the question if buying full coverage is worth the expense. There isn’t a steadfast formula of when to drop physical damage insurance, but there is a general guideline you can use. If the annual cost of coverage is more than 10% of the settlement you would receive from your company, then you might want to consider buying only liability coverage.

For example, let’s say your vehicle’s claim settlement value is $6,500 and you have $1,000 full coverage deductibles. If your vehicle is severely damaged, the most you would receive is $5,500 after paying your deductible. If you are currently paying more than $550 annually to have full coverage, then it may be the right time to buy liability only.

Why are you paying too much for car insurance?

Lexington, KY car insurance rates are calculated based on many things which can substantially change the policy premium. Improving your credit score, buying a new vehicle, or having a fender bender may cause policy rate changes that can cause some rates to be cheaper than competitors. In addition, companies amend pricing as often as every quarter to adjust for unexpected claims or profits. Larger than normal claims may cause higher rates, while a lower level of claims may produce lower-cost Lexington car insurance rates.

To illustrate this point, the bar chart below shows rates for the cheapest car insurance in Lexington, KY for a 35-year-old male driver with no prior accidents, a clean driving record, and a good credit rating. When quoting prices based on his current risk factors, Cincinnati Insurance may offer the most affordable car insurance rates in Lexington at $1,143 a year. This is $1,000 less than the average price 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.

In the next rate comparison, we’ll give the driver from above an accident surcharge, less-than-perfect credit, and a few blemishes on his driving record. Due to the fact that each insurance company has their own unique process for determining prices, comparing rates may now result in a slightly different list of affordable Lexington car insurance companies as shown below.

Travelers now has the lowest car insurance rate in Lexington, KY with Kentucky Farm Bureau, USAA, State Farm, and Auto-Owners now being in the top five. This example shows why consumers need to compare many different companies when trying to find the cheapest insurance quotes for low mileage drivers.

Insurance rates can be determined by many factors and can decrease or increase without notice, so the most economical company when you last compared rates may now be one of the higher cost companies.

The Lexington car insurance agencies listed below can probably help you decide which insurance coverage will be best for you, since some people have coverage questions and would like to have some advice when comparing insurance rates for infrequent drivers. It can be complicated to find the cheapest car insurance policy, so a professional agent can provide you peace of mind knowing your coverage gives you decent coverage if you have a claim. To locate a Lexington auto insurance agent close to you, click the button at the bottom of the list.

View map of Lexington, KY insurance agents