Lexington, KY Car Insurance
How much does car insurance cost in Lexington?
Lexington car insurance costs an average of $1,016 for a six-month policy or $169 per month. Our 2022 data shows that the cheapest car insurance company in Lexington is Auto-Owners with average rates at $602 for a six-month policy.
Lexington drivers enjoy less expensive premiums than the average for the state of Kentucky ($1,289 every six months) but more than the national average of $742. 36% of our Lexington customers reported they used our service because they were paying too much for their car insurance. If you feel similarly or just need help with your car insurance, read on to learn more about fair rates in Lexington based on common factors like credit score, coverage level and more.
|Car Insurance in Lexington vs. Kentucky||Avg. 6 Mo. Premium|
The cheapest car insurance companies in Lexington
Auto-Owners is the cheapest company in Lexington with rates at $602 for a six-month policy ($100 per month).
In second place is State Farm, which costs $112 per month.
Rounding out the list is Nationwide as the third-cheapest insurance company. On average, a Nationwide policy in Lexington costs $692 per six-month policy.
Are you paying too much for auto insurance?
Lexington car insurance rates by company
According to our latest data, the cheapest car insurance company in Lexington is Auto-Owners at $100 per month or $602 for a six-month policy. The second cheapest is State Farm with six-month policies at $670 per month.
Learn more about top-rated car insurance companies based on The Zebra's Customer Satisfaction Survey.
Cheapest car insurance companies in Lexington, KY
Dynamic auto insurance data methodology
Methodology: The auto insurance rates displayed above and throughout this page are dynamic, meaning the data will refresh when the most recent information is made available. Rates are based on a sample driver profile — a 30-year-old single male driver with a Honda Accord and full coverage. This profile was adjusted based on common pricing factors used by major car insurance companies, like age, coverage level, driving record and others.
Shop around for the best rates
The only way to know which company is the cheapest coverage for you is to compare. Our comparison will do the leg work for you. Enter your ZIP code to see rates from Progressive, Allstate, State Farm and Nationwide (+ other top companies) to find the best and cheapest car insurance in Lexington.
Average car insurance in Lexington by rating factor
Rating factors are details about you that determine what a fair car insurance rate looks like. Common rating factors include age, driving history, credit score, and location. Most companies use the same rating factors to price out premiums, some factors may weigh more heavily with certain companies than others.
It's important to realize that since some rating factors can change with time, so can the best insurance company for you. This is why it's a good idea to get a new quote from time to time to make sure you're always getting the best rate possible for your circumstances.
Q: I didn't have an accident — Why is my insurance going up?
A: End-of-year earnings (revenue of premiums versus the cost of paying insureds’ claims) is also a major rating factor for how much you will pay for car insurance in Lexington. Even if you’ve had no claims with your insurance company, you could still be paying more with a particular insurance company because the price of doing business has increased in Lexington.
Auto insurance premiums by age in Lexington
Age as a rating factor probably carries the most importance in car insurance. This is because insurance companies use data to determine how likely drivers are to get into accidents, and unfortunately, teen drivers have a higher accident rate than any other age group — as a result, they are strapped with the highest premiums. In Lexington, the difference in rates paid by teens and drivers in their 20s is 135%, the highest such difference between any two age groups.
While this sounds like a lot, the bottom line is that insurance companies are in the business of risk management. By charging higher rates for teens, they are able to offset the cost of paying claims.
Cheapest car insurance companies for teen drivers in Lexington, KY
Auto insurance premiums for minimum coverage in Lexington
The level of coverage you need for your vehicle also determines how much you will pay in premiums. According to our data, 41% of drivers in Lexington have the state minimum coverage. While this is all that is legally required to have, the state minimum coverage limits can leave you underinsured.
Tacking on collision and comprehensive coverage (the combination known as "full coverage") can increase rates dramatically, but is often required by banks for financed or leased vehicles. These coverages come with a deductible, which can also impact rates depending on your choice. The higher deductible you choose, the lower rates you will see.
Also worth considering are add-ons like roadside assistance or uninsured motorist coverage that can protect you against drivers who do not carry auto insurance coverage. While they can add to your overall car insurance premiums, experts at The Zebra still recommend carrying such coverage options, as they can go a long way in protecting both you and your vehicle.
Q: Can I lower my car insurance coverage?
A: Possibly — if your vehicle is paid off.
In an analysis of our data, 59% of drivers in Lexington have owned vehicles. If you are not leasing or financing your vehicle, you should consider if dropping comprehensive or collision coverage is right for you. We recommend getting the actual cash value of your vehicle via Kelley Blue Book or another reputable source. The general rule of thumb is if your vehicle is worth less than $4,000, you probably don't need collision coverage. Bear in mind, however, that dropping these coverages means that you will have to pay for any repairs out of your own pocket.
Cheapest car insurance companies for minimum coverage in Lexington, KY
- Minimum: State liability coverage only
- Basic: State liability + collision and comprehensive (full) coverage
- Better: Better liability limits at 50/100/50. Full coverage included with towing and rental car benefits. May include additional personal medical benefits and uninsured/underinsured motorist coverage.
- Best: Best liability limits at 100/300/50. Full coverage included with better towing and rental car benefits and better personal medical benefits and increased uninsured/underinsured coverage.
Most of our customers in Lexington opt for the basic level of coverage, but this may not be the best option for everyone. While we understand state minimum coverage is a budget-friendly solution, it does leave you at risk for damages that exceed your liability limits. Kentucky's 25/50/25 liability limits provide coverage for damage you cause up to $25,000 per person in bodily injury, $50,000 per accident in bodily injury and $25,000 for property damage. While this may be sufficient for most standard car accidents, it might not be for bodily injury claims or multi-vehicle accidents.
Learn more about insurance laws in Kentucky.
Lexington car insurance rates by credit score
Credit score is still a rating factor in car insurance in most states, including Kentucky. While this practice has been banned in some states, credit score is still a rating factor in insurance for a few reasons. Traditionally, data has suggested that drivers with lower credit scores are more likely to file claims, have lapses, and engage in otherwise risky behavior. Because of this historical association, the poorer your credit, the more you'll pay in car insurance premiums.
In fact, Lexington drivers with poor credit (300-579) pay 118% more than drivers with excellent credit (800-850). Our data tells us most drivers in Lexington have an "average (580-679)" credit score. In 2023, Auto-Owners is the cheapest option for Lexington drivers for this credit range.
Cheapest car insurance companies for bad credit in Lexington, KY
Auto insurance rates with an at-fault accident
At-fault accidents and other collisions are the most common, and often the most expensive, types of insurance claims. In fact, 2022 data shows that an at-fault accident raised the average car insurance rates in Lexington from $169 to $244 per month. State Farm is the cheapest company in Lexington after an accident.
Though it may be difficult, the best way to keep your car insurance rates low is by avoiding accidents and keeping your driving record clean. Any tickets, citations, or charges like DUIs will increase your premiums dramatically. These infractions will stay on your record for three to five years.
Cheapest car insurance companies after an at-fault accident in Lexington, KY
Lexington car insurance rates by violation
Below you can see how much different violations and claims will increase your rate in Lexington.
Car insurance rate increases after violations and citations in Lexington, KY
|Accident/Violation||Avg. 6 Mo. Premium||% Rate Increase||$ Rate Increase|
|One Med/PIP claim||$1,023||1%||$7|
|Two Med/PIP claims||$1,063||5%||$47|
|One comp claim||$1,096||8%||$81|
|Failure to wear a seat belt||$1,116||10%||$100|
|Driving without lights||$1,116||10%||$100|
|Child safety restraint||$1,119||10%||$103|
|Failure to show documents||$1,132||12%||$117|
|Two comp claims||$1,140||12%||$124|
|Driving with expired registration||$1,204||19%||$189|
|Cell phone violation||$1,216||20%||$200|
|Speeding in school zone||$1,220||20%||$204|
|Speeding 6 - 10 MPH over limit||$1,220||20%||$204|
|Driving too slowly||$1,220||20%||$204|
|Texting while driving||$1,221||20%||$205|
|Speeding 11 - 15 MPH over limit||$1,223||20%||$207|
|Failure to yield||$1,225||21%||$209|
|Speeding 16 - 20 MPH over limit||$1,227||21%||$211|
|Failure to stop at a red light||$1,227||21%||$212|
|Following too closely||$1,241||22%||$225|
|Wrong way/wrong lane||$1,241||22%||$225|
|Speeding 21 - 25 MPH over limit||$1,247||23%||$231|
|Passing school bus||$1,287||27%||$271|
|At-fault accident - less than $1000||$1,290||27%||$274|
|In 65 MPH zone||$1,367||35%||$351|
|Operating a vehicle without permission||$1,408||39%||$393|
|At-fault accident - greater than $2000||$1,465||44%||$449|
|At-fault accident - $1000-$2000||$1,465||44%||$449|
|Refusal to submit to a chemical test||$2,039||101%||$1,024|
|Leaving scene of an accident/hit and run||$2,074||104%||$1,059|
|Driving with a suspended license||$2,083||105%||$1,067|
Why is car insurance in Lexington so expensive?
Average car insurance rates in Lexington are less than those of the state of Kentucky, but about $400 more than the national average for a six-month policy. The increased rates in Lexington have more to do with state-wide policies and statistics than the city itself. Kentucky is a no-fault state, and no-fault states tend to have higher insurance premiums.
Read on to learn more about why car insurance is so expensive in Lexington — regardless of your driving profile.
In a no-fault state like Kentucky, drivers must use their own insurance to cover injuries sustained to the driver or any passengers in the vehicle, regardless of who is at fault. The coverage used here is personal injury protection (PIP). All drivers in the state are required to have PIP coverage, which makes rates more costly.
Kentucky has an unusually frequent rate of vehicle theft. In Lexington specifically, the rate of vehicle theft is higher than the average U.S. city. Crime and theft vary by ZIP code in any city— in Lexington, ZIP codes 40526, 40526 and 40536 are the most expensive. An increased number of cars stolen will make insurance premiums higher in that area.
Kentucky ranks 17th in the nation for the percentage of uninsured motorists that reside there. In Lexington, our data indicates that 42% of drivers are uninsured— one of the highest percentages in the state. Auto insurance companies take on more risk if there is a higher chance of a policyholder being hit by an uninsured driver. And with 42% uninsured, the risk in Lexington is higher than average.
Bundling insurance policies in Lexington
While car insurance rates in Lexington can get a bit steep, there are still ways to save on your policy. One of the most common and effective discounts offered by insurance companies is the multi-policy discount. By bundling your auto policy with another insurance product like home or renters, you may be able to save up to 10% on combined premiums. Learn more about bundling home and car insurance.
If you're shopping for a new car insurance policy with a new company, it's worth looking into what bundling another product will cost you. In many cases, you'll find it's well worth the effort.
Cheapest car insurance companies for bundling home and auto insurance in Lexington, KY
While some things may be out of your control, drivers can work to make their profiles more appealing to insurers. The best advice we offer is to shop around and compare auto insurance quotes with as many companies as possible to ensure you're getting the most affordable rate that doesn't compromise coverage and service — especially if any personal factors have changed (like moving, celebrating a birthday and improving your credit). Try as you might, some companies are just more expensive than others; don't be afraid to switch.
Find the best rates for both auto and home insurance in minutes!
Frequently asked questions
How much is car insurance in Lexington, KY?
On average, car insurance in Lexington costs $1,016 for a six-month policy. The cheapest car insurance company in Lexington is Auto-Owners.
What is the Kentucky state minimum auto insurance?
State minimum liability limits for the state of Kentucky are as follows: $25,000 per person in bodily injury, $50,000 per accident in bodily injury and $25,000 for property damage.
Is insurance cheaper in Kentucky?
Kentucky state average car insurance rates are significantly higher than the national average at $1,289. However, in Lexington, average premiums are about $250 less per policy period than the state average.
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About The Zebra
The Zebra is not an insurance company. We publish data-backed, expert-reviewed resources to help consumers make more informed insurance decisions.
- The Zebra’s insurance content is written and reviewed for accuracy by licensed insurance agents.
- The Zebra’s insurance content is not subject to review or alteration by insurance companies or partners.
- The Zebra’s editorial team operates independently of the company’s partnerships and commercialization interests, publishing unbiased information for consumer benefit.
- The auto insurance rates published on The Zebra’s pages are based on a comprehensive analysis of car insurance pricing data, evaluating more than 83 million insurance rates from across the United States.