The words “bargain” and “auto insurance” probably shouldn’t be used in the same sentence, in particular when searching for the best price on coverage for business use. In an attempt to save some money, let’s get started by showing you some of the factors that have an impact on auto insurance rates, and figure out some ways to lower the cost of the next policy you buy.
For using your car for business, one of the more important factors that are looked at to determine the price you pay for insurance is where you call home. Cities with larger populations will most likely have higher rates, whereas areas with less congestion have the benefit of cheaper car insurance.
The information below lists the priciest cities in Kentucky for business use in which to purchase auto insurance. Lexington comes in at #17 with an annual cost of $1,514 on average, which is about $126 per month.
Rank | City | Annual Rate |
---|---|---|
1 | Louisville | $2,090 |
2 | Frankfort | $1,742 |
3 | Ashland | $1,707 |
4 | Jeffersontown | $1,668 |
5 | Radcliff | $1,654 |
6 | Saint Matthews | $1,643 |
7 | Madisonville | $1,616 |
8 | Paducah | $1,583 |
9 | Danville | $1,581 |
10 | Murray | $1,549 |
11 | Elizabethtown | $1,547 |
12 | Henderson | $1,541 |
13 | Hopkinsville | $1,538 |
14 | Georgetown | $1,536 |
15 | Richmond | $1,520 |
16 | Covington | $1,517 |
17 | Lexington | $1,514 |
18 | Winchester | $1,501 |
19 | Erlanger | $1,478 |
20 | Bowling Green | $1,476 |
21 | Florence | $1,471 |
22 | Nicholasville | $1,459 |
23 | Fort Thomas | $1,440 |
24 | Independence | $1,436 |
25 | Owensboro | $1,432 |
Compare Prices Now Go |
Rates are comparative as the garaging address in Lexington can modify coverage rates significantly.
Finding out which companies quote the most affordable auto insurance rates for business use will take more time in order to find the best policy. Every insurance provider has their own guidelines to establish rates, so let’s examine the lowest cost auto insurance companies in Lexington, KY.
Find Cheaper Auto Insurance for Business Use
Rank | Company | Cost Per Year |
---|---|---|
1 | Cincinnati Insurance | $1,093 |
2 | Kentucky Farm Bureau | $1,128 |
3 | USAA | $1,223 |
4 | Auto-Owners | $1,357 |
5 | Motorists Mutual | $1,601 |
6 | Grange Mutual | $1,609 |
7 | Travelers | $1,631 |
8 | State Farm | $1,793 |
9 | Westfield | $1,888 |
10 | Safe Auto | $1,932 |
11 | Nationwide | $2,064 |
12 | Electric | $2,097 |
13 | Progressive | $2,119 |
14 | State Auto | $2,166 |
15 | Encompass | $2,358 |
16 | GEICO | $2,365 |
17 | Safeco | $2,681 |
18 | MetLife | $3,084 |
19 | Shelter | $3,135 |
20 | Liberty Mutual | $3,708 |
Get a Custom Quote Go |
Cincinnati Insurance quotes some of the cheapest car insurance rates in Lexington at around $1,093 a year. Kentucky Farm Bureau, USAA, Auto-Owners, and Motorists Mutual also make the cut as some of the cheapest Lexington, KY auto insurance companies.
As shown in the table above, if you are currently insured with Kentucky Farm Bureau and switched to Cincinnati Insurance, you may see an annual premium reduction of upwards of $35. Policyholders with USAA may save as much as $130 a year, and Auto-Owners insureds might reduce prices by as much as $264 a year.
These premiums are averages for all drivers and vehicles and do not factor in a specific vehicle garaging location for business use. So the insurer that fits your needs best may not even be in the top 21 companies in the list above. That is why you need to compare rates from multiple companies using your own specific driver and vehicle information.
Finding a highly-rated company can be challenging considering how many different companies insure vehicles in Lexington. The ranking information displayed below can help you decide which providers to look at when comparing rate quotes. These ratings are for the largest companies in America, so companies that focus mainly on Kentucky business are not factored into these rankings.
Top 10 Major Auto Insurance Companies in Lexington Ranked by Customer Service
- USAA
- Travelers
- AAA Insurance
- Nationwide
- Safeco Insurance
- Progressive
- State Farm
- The Hartford
- The General
- Esurance
Do you need full coverage?
Saving money when shopping for auto insurance is important to the majority of people, and one of the fastest ways to pay lower rates for insurance for business use is to buy only liability coverage. The example below shows the difference between insurance costs with full physical damage coverage and with liability coverage only. The data is based on no claims or driving violations, $500 deductibles, single status, and no policy discounts are applied.
If we average all the age groups together, comprehensive and collision coverage on your policy costs $2,088 per year more than carrying just liability coverage. That is a large expense which might make you wonder if paying for full coverage is worth it. There is no definitive guideline of when to drop physical damage insurance, but there is a general school of thought. If the annual cost of coverage is more than around 10% of the replacement cost minus the deductible, then you may need to consider dropping full coverage.
For example, let’s assume your vehicle’s claim settlement value is $8,500 and you have $1,000 deductibles. If your vehicle is totaled in an accident, the most you would get paid by your company is $7,500 after paying your policy deductible. If it’s costing in excess of $750 a year for physical damage coverage, then you may need to consider dropping full coverage.
There are some scenarios where only buying liability is not a good idea. If you haven’t paid off your loan, you have to carry full coverage as part of the loan conditions. Also, if you can’t afford to buy a different vehicle in the even your car is totaled, you should keep full coverage.
Shop around and save
Kentucky auto insurance rates are determined by lots of factors which can significantly increase or decrease the policy premium. Improving your credit score, getting married, or getting a speeding ticket may prompt premium changes that can cause some rates to be affordable when they were higher priced.
In addition to those changes, insurance companies modify rates at least once a year to adjust for gains or losses. A period of higher than normal claims may result in increased policy costs, while lower claim expenses can produce lower-priced Lexington car insurance rates.
For instance, the graph below shows the companies that have the cheapest car insurance in Lexington, KY for a 45-year-old male driver with a clean driving record, no accidents, and good credit. If we estimate prices based on his current rating profile, Cincinnati Insurance may have the best car insurance rates in Lexington at $1,178 a year. This is $965 less than the average policy premium paid by Kentucky drivers of $2,143. Kentucky Farm Bureau, USAA, Auto-Owners, and Motorists Mutual are the rest of the most affordable Lexington, KY auto insurance companies.
Now we will give the driver from the first example a chargeable claim, a little lower credit rating, and a couple of points charged on his driving record. Since every car insurance company uses their own formula for determining rates, comparing prices most likely will result in a different list of companies as shown below.
Travelers now has the best insurance rate in Lexington with Kentucky Farm Bureau, USAA, Westfield, and State Farm also having competitive pricing. This demonstrates why it is so important to compare many different companies to find affordable car insurance quotes for business use. Insurance rates are determined by many factors and can change substantially, so the lowest-price company the last time you shopped around may now be wasting a lot of money.
How to find cheaper car insurance for business use
Here are some thrifty suggestions that can help drivers quote cheap auto insurance.
- Do not get tickets or violations
- At-fault accidents will increase rates
- On older vehicles, drop full coverage
- Increase your physical damage deductibles
- Drive safe vehicles
- Improve your credit
- Compare rates and switch if you can find a better deal
The last suggestion is remarkably vital, as we pointed out in the prior information. Insurance prices fluctuate constantly, so don’t hesitate to switch to a new company if you find a better deal. Having brand loyalty is commendable, but it’s not recommended if that inflexibility results in costing you a small fortune year after year. In just a few minutes you could shop around to find cheaper insurance for business use in Lexington.
The auto insurance agents in Lexington shown below can answer your questions and help you decide which auto insurance coverages would be the best in your situation, since lots of drivers aren’t clear which coverage they need and would like to get help from a professional when comparing insurance rates for business use. It’s not always simple to find the best rates on your own, and getting professional guidance from a licensed agent can give satisfaction knowing your coverage gives you adequate protection in the event of a claim. To find an auto insurance agency in your neighborhood, click the button after the list.
- Cambridge Insurance
2300 Regency Road – Lexington, KY 40503 – (859) 252-0381 - Bill Rea – State Farm Insurance Agent
138 E Reynolds Rd #102 – Lexington, KY 40517 – (859) 273-7373 - Joe Daugherty – State Farm Insurance Agent
651 Perimeter Dr Ste 204 – Lexington, KY 40517 – (859) 269-4990 - Jeff Briggs – State Farm Insurance Agent
449 Lewis Hargett Cir #150 – Lexington, KY 40503 – (859) 273-8512 - Stewart Perry – State Farm Insurance Agent
2128 Nicholasville Rd – Lexington, KY 40503 – (859) 277-7195