The words “low-cost” and “insurance” probably shouldn’t be used together, especially when you are shopping around for the best price on coverage for welfare recipients. In an attempt to save some money, let’s teach you a few of the things that significantly impact insurance premiums, and figure out some ways to reduce the cost of your next policy.
Shopping around for low-priced car insurance is not the easiest thing to do, and finding out which insurers offer the cheapest insurance rates for welfare recipients calls for even more perseverance. Every auto insurer has their own formula for determining rates, so let’s begin by taking a look at the lowest cost insurance companies in Lexington, KY.
Best Auto Insurance Prices in Kentucky
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | Cincinnati Insurance | $1,115 |
| 2 | Kentucky Farm Bureau | $1,174 |
| 3 | USAA | $1,187 |
| 4 | Auto-Owners | $1,399 |
| 5 | Motorists Mutual | $1,569 |
| 6 | Grange Mutual | $1,625 |
| 7 | Travelers | $1,631 |
| 8 | State Farm | $1,867 |
| 9 | Westfield | $1,888 |
| 10 | Safe Auto | $1,991 |
| 11 | Nationwide | $2,003 |
| 12 | Progressive | $2,056 |
| 13 | Electric | $2,160 |
| 14 | State Auto | $2,254 |
| 15 | GEICO | $2,341 |
| 16 | Encompass | $2,382 |
| 17 | Safeco | $2,791 |
| 18 | Shelter | $3,167 |
| 19 | MetLife | $3,177 |
| 20 | Liberty Mutual | $3,634 |
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Cincinnati Insurance quotes some of the most affordable car insurance rates in Lexington at around $1,115 per year. This is $1,028 less than the average policy premium paid by Kentucky drivers of $2,143. Kentucky Farm Bureau, USAA, Auto-Owners, and Motorists Mutual are also some of the more affordable Lexington, KY car insurance companies.
As shown in the table above, if you are currently insured with Motorists Mutual and switched to Kentucky Farm Bureau, you might see savings of approximately $395. Customers with Grange Mutual could save as much as $451 a year, and Travelers insureds might see rate reductions of $457 a year.
These premiums are averages across all drivers and vehicles in Kentucky and and are not figured with an exact vehicle garaging location for welfare recipients. So the company that is best suited for you may not even be in the top 21 companies in the list above. That illustrates why you need to quote rates from as many companies as possible using your own driver information and specific vehicle type.
The make and model of vehicle requiring insurance is one of the main factors that determines the availability of low-cost coverage for welfare recipients. Vehicles with average performance, modern passenger safety features, or a low likelihood of liability claims will cost quite a bit less to insure than adrenaline junky models.
The list below ranks car insurance rates for the most economical vehicles to buy coverage for.
| Make and Model | Estimated Cost for Full Coverage |
|---|---|
| Ford Escape Limited 2WD | $941 |
| Volkswagen Jetta SE 2.5 Station Wagon | $1,074 |
| Chevrolet Malibu Hybrid | $1,091 |
| Ford Focus SEL 4-Dr Sedan | $1,126 |
| Honda CR-V LX 4WD | $1,131 |
| Honda Accord EX 4-Dr Sedan | $1,137 |
| Toyota Tacoma X-Runner 2WD | $1,148 |
| Toyota Camry XLE | $1,154 |
| Ford F-150 STX Regular Cab 2WD | $1,161 |
| Toyota Prius | $1,165 |
| Honda Civic Hybrid 4-Dr Sedan | $1,168 |
| GMC Sierra 2500HD SLE Extended Cab 4WD | $1,177 |
| Dodge Grand Caravan CV | $1,183 |
| Ford F-350 XL Crew Cab 2WD | $1,189 |
| Chevrolet Silverado Crew Cab Hybrid 2WD | $1,224 |
| Ford Edge SEL 2WD | $1,226 |
| Nissan Rogue SL AWD | $1,231 |
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Table data assumes single female 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. Rates do not factor in your specific Lexington, KY location which can lower or raise premium rates substantially.
By looking at the data, you can expect vehicles like the Ford Escape, Volkswagen Jetta, Chevrolet Malibu, and Ford Focus are the most affordable vehicles to insure for drivers on welfare.
One of the many things that are looked at to help calculate the cost of insurance is where your residence is in Lexington. Areas with increased crime or more people tend to have more expensive car insurance rates, whereas areas with less people or fewer weather incidents receive better rates.
The illustration below rates the most expensive cities in Kentucky for welfare recipients to buy auto insurance in. Lexington makes the list at #21 with an annual premium of $1,454 for the average insured, which is around $121 each month.
| Rank | City | Annual Rate |
|---|---|---|
| 1 | Louisville | $2,090 |
| 2 | Frankfort | $1,725 |
| 3 | Jeffersontown | $1,719 |
| 4 | Saint Matthews | $1,711 |
| 5 | Ashland | $1,673 |
| 6 | Radcliff | $1,638 |
| 7 | Paducah | $1,583 |
| 8 | Madisonville | $1,568 |
| 9 | Elizabethtown | $1,563 |
| 10 | Georgetown | $1,551 |
| 11 | Murray | $1,549 |
| 12 | Henderson | $1,541 |
| 13 | Danville | $1,534 |
| 14 | Covington | $1,517 |
| 15 | Winchester | $1,501 |
| 16 | Hopkinsville | $1,478 |
| 17 | Erlanger | $1,478 |
| 18 | Richmond | $1,475 |
| 19 | Nicholasville | $1,459 |
| 20 | Fort Thomas | $1,455 |
| Find Cheaper Insurance Go | ||
Rate quotes are estimated as the specific area where the vehicle is garaged can impact coverage prices substantially.
Cost of full coverage in Lexington
Lowering the price of insurance should be important to most people, and a great way to lower the cost of insurance for welfare recipients is to not buy full coverage. The chart below compares yearly insurance costs with and without full coverage. The price estimates are based on a clean driving record, no at-fault accidents, $100 deductibles, single status, and no discounts are factored in.
On average, full coverage costs an additional $2,508 per year more than just buying liability only. Lot’s of drivers question if buying full coverage is worth the expense. There is no definitive formula for excluding full coverage, but there is a broad guideline. If the yearly cost of full coverage is more than around 10% of the replacement cost minus the deductible, then it might be time to consider dropping full coverage.
For example, let’s say your vehicle’s replacement cost is $9,500 and you have $1,000 deductibles. If your vehicle is severely damaged, the most you would get paid by your company is $8,500 after paying your policy deductible. If you are paying more than $850 annually for full coverage, the it may be a good time to stop paying for full coverage.
There are a few situations where buying only liability insurance is not financially feasible. If you still owe money on your vehicle, 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 if your current one is damaged, you should maintain full coverage.
Picking the top company is hard considering how many choices drivers have in Kentucky. The information shown below could help you analyze which car insurance companies you want to consider buying from.
These rankings are only made up of companies that insure vehicles across America, so smaller companies will not be included in the list. To compare price quotes and find the cheapest rates for welfare recipients, simply click here.
| 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 |
| Esurance | 86 | 90 | 94 | 90% | A+ | 89.5 |
| The General | 86 | 93 | 89 | 84% | A- | 88.2 |
| GEICO | 79 | 89 | 95 | 87% | A++ | 87.8 |
| 21st Century | 86 | 82 | 90 | 84% | A | 86.4 |
| Liberty Mutual | 79 | 87 | 95 | 78% | A | 85.3 |
| Erie Insurance | 87 | 84 | 85 | 85% | A+ | 85.3 |
| Farmers Insurance | 77 | 80 | 80 | 84% | A | 80.3 |
| Compare Rates Now Go | ||||||
Data Source: Insure.com Best Car Insurance Companies
The diagram below shows how choosing a deductible can affect insurance costs when trying to find cheap insurance for welfare recipients. The premiums assume a single male driver, full coverage, and no discounts are factored in.
The data above shows that a 50-year-old driver could lower their policy premium by $364 a year by changing their physical damage coverage from a $100 deductible up to a $500 deductible, or save $548 by selecting a $1,000 deductible. Even younger insureds, like the 20-year-old category, can cut $1,214 or even more by using a higher deductible.
When using a larger deductible, it is essential to have spare funds to pay the extra out-of-pocket expense. That is the one disadvantage of using higher deductibles.
Why are you paying too much for car insurance?
Kentucky insurance rates are impacted by many factors that will increase or decrease the price you pay. Simply getting older, increasing liability limits, or getting a DUI may cause policy rate changes that may make certain companies more affordable than the competition. Not only may things change on your end, but insurers change rates multiple times each year in order to protect their financial rating. A period of increased losses can cause rate increases, while less frequent claims may result in lower-cost Lexington car insurance rates.
The chart below shows the company with the cheapest car insurance in Lexington, KY for a 45-year-old male driver with no prior claims, no tickets, and good credit. If we look at prices based on his personal profile, Cincinnati Insurance quotes the most affordable car insurance rates in Lexington at $1,215 per year. This is $928 less than the average price paid by Kentucky drivers of $2,143. Kentucky Farm Bureau, USAA, Auto-Owners, and Grange Mutual round out the rest of the cheapest Lexington, KY auto insurance companies.
In this example, we will give the driver from above a chargeable accident, poor credit, and a few traffic violations. Since each insurance company uses their own formula for determining rates, comparing prices may now show a different set of the cheapest Lexington car insurance companies as shown below.
Kentucky Farm Bureau now has the best insurance rate in Lexington, KY with Travelers, USAA, State Farm, and Westfield also being competitive. This illustrates why it is crucial to shop around with many companies to find the best insurance rates for welfare recipients.
Insurance prices consist of many risk factors and can change substantially, so the most economical company when you last compared rates may now be quite expensive.
If you have coverage questions and would like to have some professional guidance when shopping for cheaper insurance for welfare recipients, the agents listed below are a good start to aid you in deciding which car insurance policy is best.
To find an agent by location nearest to you, click the link at the bottom.
- Kentucky Insurance Group-Joe Downs
989 Governors Ln – Lexington, KY 40513 – (859) 277-8877 - Al Torstrick Insurance Agency
343 Waller Ave #101 – Lexington, KY 40504 – (859) 233-1461 - Kentucky Farm Bureau Insurance Fayette County – Versailles Rd
1316 Versailles Rd – Lexington, KY 40504 – (859) 253-1626 - Forcht Insurance Agency
2721 Old Rosebud Rd – Lexington, KY 40509 – (859) 335-0237 - Sullivan Insurance Agency
635 N Broadway – Lexington, KY 40508 – (859) 233-1637