The words “low-cost” and “auto insurance” really don’t belong together, especially when looking for the cheapest coverage for drivers with bad credit. Because it’s not cheap, let’s go over a few of the factors the can have a considerable influence on car insurance rates, and come up with some ways to take a little off your next policy.
One of the many criteria that aid in calculating the annual cost of car insurance is where your car is garaged in Lexington. Regions with larger populations or more claims will most likely pay more, whereas areas with less crime or weather claims get the luxury of paying less.
The information below lists the most expensive cities in Kentucky for drivers with bad credit to purchase car insurance in. Lexington is ranked #17 costing $1,514 for coverage, which is around $126 monthly.
| Rank | City | Annual Rate |
|---|---|---|
| 1 | Louisville | $2,176 |
| 2 | Frankfort | $1,795 |
| 3 | Jeffersontown | $1,736 |
| 4 | Ashland | $1,673 |
| 5 | Saint Matthews | $1,643 |
| 6 | Radcliff | $1,638 |
| 7 | Elizabethtown | $1,611 |
| 8 | Paducah | $1,599 |
| 9 | Danville | $1,581 |
| 10 | Murray | $1,565 |
| 11 | Madisonville | $1,552 |
| 12 | Georgetown | $1,551 |
| 13 | Henderson | $1,541 |
| 14 | Richmond | $1,535 |
| 15 | Covington | $1,532 |
| 16 | Winchester | $1,517 |
| 17 | Lexington | $1,514 |
| 18 | Florence | $1,485 |
| 19 | Hopkinsville | $1,478 |
| 20 | Independence | $1,466 |
| Find Cheaper Rates Go | ||
Rate information is estimated as the specific garaging location can raise or lower premiums greatly.
Deciding which company quotes the best car insurance rates for drivers with bad credit may require more work in order to find the most economical policy. Each auto insurer used slightly different criteria for setting rates, so let’s rank the car insurance companies that tend to have lower prices in Kentucky.
Keep in mind that Lexington car insurance rates are impacted by many things that may substantially change the cost of your policy. Improving your credit score, adding a teenager to your policy, or getting a few speeding tickets may generate price changes that can make some companies more affordable than competitors.
Cheap Insurance Rates with Bad Credit
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | Cincinnati Insurance | $1,093 |
| 2 | Kentucky Farm Bureau | $1,128 |
| 3 | USAA | $1,187 |
| 4 | Auto-Owners | $1,413 |
| 5 | Motorists Mutual | $1,617 |
| 6 | Grange Mutual | $1,625 |
| 7 | Travelers | $1,663 |
| 8 | State Farm | $1,793 |
| 9 | Westfield | $1,832 |
| 10 | Safe Auto | $1,932 |
| 11 | Nationwide | $2,003 |
| 12 | Progressive | $2,077 |
| 13 | Electric | $2,160 |
| 14 | State Auto | $2,166 |
| 15 | Encompass | $2,358 |
| 16 | GEICO | $2,365 |
| 17 | Safeco | $2,681 |
| 18 | MetLife | $3,053 |
| 19 | Shelter | $3,135 |
| 20 | Liberty Mutual | $3,598 |
| Find Your Rate Go | ||
Cincinnati Insurance generally has some of the most affordable car insurance rates in Lexington at around $1,093 per year. Kentucky Farm Bureau, USAA, Auto-Owners, and Motorists Mutual also are some of the best Lexington, KY auto insurance companies.
As shown in the table above, if you are a policyholder with Kentucky Farm Bureau and switched to Cincinnati Insurance, you might realize a yearly price reduction of around $35. Kentucky drivers with USAA may save as much as $94 a year, and Auto-Owners policyholders might see rate reductions of $320 a year.
These estimates are averaged across all drivers and vehicles and are not factoring in a vehicle location for drivers with bad credit. So the insurer that fits your situation best may not even be in the top 21 companies in the list above. That affirms the importance of why you need to quote rates from many companies using your own personal information and vehicle type.
The vehicle that is being insured is a large consideration in finding low-cost auto insurance for drivers with bad credit. Vehicles with reasonable performance levels, good crash test ratings, or a track record of few liability claims will cost substantially less to insure than high performance models.
The information below estimates auto insurance prices for the most cost-effective automobiles to insure in Kentucky.
| Vehicle Make and Model | Estimated Cost for Full Coverage |
|---|---|
| Honda CR-V LX 2WD | $1,001 |
| Hyundai Elantra GLS Touring Station Wagon | $1,011 |
| Ford F-150 XLT Regular Cab 2WD | $1,005 |
| Ford Escape XLT 2WD | $1,033 |
| Chevrolet Equinox LS AWD | $1,085 |
| Toyota Tacoma Double Cab 4WD | $1,094 |
| Toyota RAV4 Sport 4WD | $1,085 |
| Chevrolet Malibu LT | $1,106 |
| Toyota Prius | $1,113 |
| Ford Explorer XLT 4WD | $1,122 |
| Honda Odyssey EX-L W/Rear Entertainment | $1,143 |
| Toyota Corolla LE | $1,150 |
| Hyundai Sonata GLS 4-Dr Sedan | $1,163 |
| Jeep Grand Cherokee Limited 2WD | $1,165 |
| Jeep Wrangler Rubicon 4WD 2-Dr | $1,174 |
| Start Your Quote Go | |
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 safe-driver, homeowner, multi-vehicle, multi-policy, and claim-free. Price information does not factor in your specific Lexington, KY location which can modify premiums noticeably.
Based upon the table data, cars like the Honda CR-V, Hyundai Elantra, and Ford F-150 are likely to be a few of the most affordable vehicles to insure for people with poor credit. Auto insurance rates will tend to be more expensive just because there is more inherent risk for drivers with bad credit, but in general those particular vehicles will have the cheapest car insurance rates that you are likely to find.
Types of discounts on Lexington auto insurance rates
Insurers that offer coverage for drivers with bad credit may have policy discounts that may potentially lower prices by 25% or more if you meet certain criteria. The best car insurance companies and some of their more popular discounts are included below.
- State Farm includes discounts for Steer Clear safe driver discount, accident-free, student away at school, defensive driving training, and anti-theft.
- GEICO has discounts for seat belt use, federal employee, emergency military deployment, membership and employees, air bags, and anti-theft.
- Progressive may offer discounts for multi-policy, good student, multi-vehicle, continuous coverage, and online signing.
- 21st Century offers premium reductions for early bird, good student, 55 and older, automatic seat belts, driver training, homeowners, and air bags.
- American Family has savings for good student, bundled insurance, Steer into Savings, early bird, and accident-free.
- The Hartford discounts include defensive driver, anti-theft, air bag, bundle, and vehicle fuel type.
- AAA offers discounts for anti-theft, multi-policy, AAA membership discount, good student, multi-car, and good driver.
The chart below visualizes the comparison of insurance rates with and without discounts. The information is based on a female driver, no tickets, no at-fault accidents, 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 bar shows the rates with safe-driver, multiple policy, vehicle safety, multiple vehicle, anti-theft, and homeowner discounts applied. When taking advantage of discounts, the average savings per year on car insurance for drivers with bad credit is 28% or $605.
Picking a highly-rated car insurance provider can be challenging considering how many different insurance companies sell coverage in Lexington. The rank data in the lists below could help you select which car insurance companies you want to consider putting your business with. These ratings are only made up of companies with a nationwide focus, so companies that may only write in Kentucky will not be included in this list.
| Company | Value | Customer Service | Claims | Customer Satisfaction | A.M Best Rating | Overall Score |
|---|---|---|---|---|---|---|
| Travelers | 93 | 98 | 99 | 88% | A++ | 95.1 |
| USAA | 83 | 99 | 100 | 91% | A++ | 94.1 |
| AAA Insurance | 91 | 95 | 92 | 90% | A | 93.3 |
| Nationwide | 85 | 95 | 97 | 89% | A+ | 92.4 |
| Allstate | 77 | 100 | 97 | 88% | A+ | 90.7 |
| State Farm | 80 | 94 | 96 | 88% | A++ | 90.6 |
| The Hartford | 88 | 93 | 91 | 87% | A+ | 90.4 |
| Safeco Insurance | 91 | 95 | 85 | 88% | A | 90.2 |
| Progressive | 88 | 94 | 83 | 88% | A+ | 90.1 |
| American Family | 91 | 86 | 95 | 83% | A | 89.7 |
| Compare Rates Now Go | ||||||
Data Source: Insure.com Best Car Insurance Companies
Can you find cheaper Lexington car insurance?
Lexington, KY car insurance rates are calculated based on many things that will increase or decrease the price you have to pay. Getting older, moving to a new city, or getting a few speeding tickets can trigger rate changes that can make some companies cheaper than competitors.
Not only that, but insurance companies file new rates as often as every three months to ensure their profitability. Higher than normal claim frequency or severity may cause high rates, while a better loss history may produce cheaper Lexington car insurance rates.
The bar chart below shows rates for the cheapest car insurance in Lexington, KY for a 40-year-old female driver with no violations or accidents, and solid credit. If we compare prices based on her current risk profile, Cincinnati Insurance offers the lowest car insurance rates in Lexington at $1,214 per year. This is $929 less than the average price paid by Kentucky drivers of $2,143. Kentucky Farm Bureau, USAA, Auto-Owners, and Grange Mutual are also included in the top five cheapest Lexington, KY auto insurance companies.
Now we will pretend the driver in the first example an at-fault accident, bad credit, and a traffic ticket or two. Since each auto insurance company uses their own method to set their prices, analyzing rates could result in a significantly different list of the cheapest companies as shown below.
Kentucky Farm Bureau now has the cheapest price in Lexington with Travelers, USAA, State Farm, and Auto-Owners now being in the top five. This shows why it is critical to compare as many rates as possible to find the most budget-friendly car insurance rates for drivers with bad credit. Car insurance prices can be determined by many things and change frequently, so the most affordable company the last time you shopped your coverage around may now be costing you a lot of money.