For high risk drivers, one of the big components that are used to help calculate the price you pay for insurance is where you live in Lexington. Areas with increased crime or more people tend to pay slightly more, whereas areas with less people or fewer weather incidents benefit from having to pay less for coverage.
The illustration below shows the most costly cities in Kentucky for drivers requiring a SR22 to buy car insurance in. Lexington comes in at #14 with an annual rate of $1,514 for the average policyholder, which is about $126 each month.
| Rank | City | Premium Per Year |
|---|---|---|
| 1 | Louisville | $2,090 |
| 2 | Frankfort | $1,795 |
| 3 | Saint Matthews | $1,711 |
| 4 | Ashland | $1,707 |
| 5 | Jeffersontown | $1,685 |
| 6 | Radcliff | $1,654 |
| 7 | Paducah | $1,631 |
| 8 | Danville | $1,581 |
| 9 | Madisonville | $1,568 |
| 10 | Murray | $1,565 |
| 11 | Elizabethtown | $1,563 |
| 12 | Henderson | $1,557 |
| 13 | Georgetown | $1,536 |
| 14 | Lexington | $1,514 |
| 15 | Winchester | $1,501 |
| 16 | Hopkinsville | $1,493 |
| 17 | Richmond | $1,490 |
| 18 | Bowling Green | $1,476 |
| 19 | Covington | $1,472 |
| 20 | Nicholasville | $1,459 |
| 21 | Florence | $1,427 |
| 22 | Independence | $1,422 |
| 23 | Erlanger | $1,420 |
| 24 | Fort Thomas | $1,397 |
| 25 | Owensboro | $1,376 |
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Rates are comparative as the specific geographic location can modify premium rates noticeably.
Deciding which company offers the best insurance rates for drivers requiring a SR22 will involve more work than just comparing rates from one or two companies. Each company has a different process to set premium rates, so let’s take a look at the lowest cost insurance companies in Kentucky.
It’s important that you understand Lexington, KY insurance rates are determined by lots of factors which can significantly increase or decrease the price you have to pay for coverage. Getting older, increasing deductibles, or getting a DUI may prompt premium changes resulting in some rates now being cheaper than competitors.
Cheap Insurance Rates for SR22 Drivers
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | Cincinnati Insurance | $1,093 |
| 2 | Kentucky Farm Bureau | $1,174 |
| 3 | USAA | $1,211 |
| 4 | Auto-Owners | $1,371 |
| 5 | Motorists Mutual | $1,617 |
| 6 | Grange Mutual | $1,625 |
| 7 | Travelers | $1,631 |
| 8 | Westfield | $1,814 |
| 9 | State Farm | $1,848 |
| 10 | Safe Auto | $1,932 |
| 11 | Nationwide | $2,064 |
| 12 | Progressive | $2,140 |
| 13 | Electric | $2,160 |
| 14 | State Auto | $2,254 |
| 15 | Encompass | $2,358 |
| 16 | GEICO | $2,365 |
| 17 | Safeco | $2,681 |
| 18 | MetLife | $3,084 |
| 19 | Shelter | $3,167 |
| 20 | Liberty Mutual | $3,598 |
| Quote Your Rates Go | ||
Cincinnati Insurance normally has some of the cheapest car insurance rates in Lexington at around $1,093 a 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 would also be considered some of the best Lexington, KY auto insurance companies.
As the rates illustrate above, if you are a customer of Kentucky Farm Bureau and switched to Cincinnati Insurance, you might see a yearly price reduction of upwards of $81. Drivers with USAA might save as much as $118 a year, and Auto-Owners policyholders might reduce prices by as much as $278 a year.
Be aware that those rates are averaged for all drivers and vehicles and are not factoring in an exact zip code location for drivers requiring a SR22. So the insurer that fits your needs best may not even be in the top 21 companies in the list above. That affirms the importance of why you need to get car insurance quotes using your own specific driver information and vehicle.
Cost of full coverage
Paying less for insurance is the goal of most people, and one of the fastest ways to reduce the cost of insurance for drivers requiring a SR22 is to only pay for liability coverage. The diagram below illustrates the difference between car insurance costs with full physical damage coverage compared to only buying the minimum liability limits required in Kentucky. The premiums are based on no driving violations, no at-fault accidents, $500 deductibles, single marital status, and no other discounts are factored in.
Averaged out for all age groups, physical damage coverage costs $1,541 per year more than insuring for liability only. A very common question is when is it a good idea to stop buying full coverage. There is no exact rule of when to stop paying for physical damage coverage on your policy, but there is a general convention. If the annual cost of coverage is about 10% or more of any settlement you would receive from your insurance company, then you might consider buying liability only.
For example, let’s say your vehicle’s book value is $12,000 and you have $1,000 policy deductibles. If your vehicle is severely damaged, the most your company will settle for is $11,000 after you pay the deductible. If premiums are more than $1,100 a year for physical damage coverage, then you might want to think about dropping full coverage.
There are some situations where eliminating full coverage is not a good idea. If you haven’t satisfied your loan, you are required to maintain full coverage as part of the loan requirements. Also, if your emergency fund is not enough to purchase a different vehicle in case of an accident, you should keep full coverage.
Irresponsible driving raises your rates
The easiest method to snag the most affordable insurance premiums for high risk drivers is to drive carefully and avoid accidents and keep your driving record clean. The information below shows how violations and at-fault fender-benders can drive up insurance prices for different categories of driver ages. The information is based on a married male driver, comprehensive and collision coverage, $100 deductibles, and no other discounts are factored in.
The data above shows the average cost of car insurance per year with a clean driving record and no accidents is $1,601. Factor in two speeding tickets and the average cost increases to $2,213, an increase of $612 each year. Now add one accident along with the two speeding tickets and the yearly cost of insurance for drivers requiring a SR22 increases to an average of $2,826. That’s an increase of $1,225, or $102 per month, just for being a little careless behind the wheel!
You may be paying too much for car insurance
Lexington insurance rates are influenced by many factors which can substantially change the price you have to pay. Simply improving your credit, increasing deductibles, or getting into an accident may prompt premium changes that can now make some companies cheaper than competitors. Also, insurance companies amend pricing as needed in order to protect their financial rating. Significantly higher claims may result in additional premium costs, while a better loss history may produce cheaper Lexington car insurance rates.
For instance, the chart below demonstrates which company has the cheapest car insurance in Lexington, KY for a 35-year-old male driver with a good driving record, no prior claims, and solid credit. If we compare prices based on his personal risk profile, Cincinnati Insurance might quote the most affordable car insurance rates in Lexington at $1,208 per year. This is $935 less than the average premium paid by Kentucky drivers of $2,143. Kentucky Farm Bureau, USAA, Auto-Owners, and Motorists Mutual are the rest of the best Lexington, KY auto insurance companies.
Now we will give the driver in the first chart a chargeable claim, less-than-perfect credit, and a traffic citation. Because every insurance company has their own unique process to establish rates, comparing quotes most likely will result in a significantly different list of affordable Lexington car insurance companies as shown below.
Kentucky Farm Bureau now has the best car insurance rate in Lexington with Travelers, USAA, Westfield, and State Farm now rounding out the top five. This example shows why it is critical to spend some time comparing rates to find the lowest insurance quotes for drivers requiring a SR22.
Insurance rates are determined by many factors and change frequently, so the lowest-price company the last time you checked may now cost much more than other companies.