According to data pulled from Quadrant Information Services, car insurance in Lexington costs an average of $656 for minimum coverage and $1,662 for full coverage annually, which is close to the national average. If you are a motorist in Lexington, Geico and State Farm have some of the best coverage options and most affordable rates, according to our research.
There were 15,191 car accidents reported in Lexington in 2018, so if you live there or are planning to move to the area, you will probably want to consider getting sufficient car insurance coverage to protect yourself financially. When choosing an insurance provider, it is important to consider the cost, but do not forget other factors such as the company’s financial stability, coverage options and discounts offered, customer reviews, third-party ratings, and overall reputation in the industry.
- While USAA offers an affordable average annual full coverage car insurance rate of $1,344 and receives high marks from J.D. Power, it is only available to the military and their immediate families.
- Geico and State Farm are the cheapest car insurance companies in Lexington on our list, with an average annual cost for full coverage car insurance at $1,182 and $1,107, respectively.
- Lexington motorists pay an average of $656 for minimum and $1,662 for full coverage car insurance annually.
Best car insurance companies in Lexington
Bankrate’s picks for the best car insurance companies in Lexington are Geico, Kentucky Farm Bureau, USAA and Grange. In addition to low rates, these companies also have excellent financial strength, good third-party ratings, generous savings opportunities and flexible coverage options. While we found these companies to be solid options, keep in mind that there may be other carriers in the area that are right for you, so it’s always a good idea to shop around and compare providers.
|Insurance company||J.D. Power score||Average annual premium for minimum coverage||Average annual premium for full coverage|
|Geico||857 / 1,000||$382||$1,188|
|Kentucky Farm Bureau||851 / 1,000||$398||$1,458|
|USAA||909 / 1,000||$400||$1,344|
Quadrant Information Services, 2021
Geico is one of the cheapest car insurance companies in Lexington, according to our research. The average driver pays $1,188 annually for a full coverage policy, which is $474 less than the citywide average rate. Geico offers a variety of discounts, with savings for good students, safe drivers, military personnel, going on emergency deployment, federal employees and more. Geico’s coverage options are somewhat limited so it tends to be better for drivers who only need a basic policy.
Learn more: Geico Insurance Review
Kentucky Farm Bureau
Kentucky Farm Bureau is known for its customer service and friendly agents. The company offers all the standard coverages, plus rental car reimbursement and towing and labor coverage. In addition to low premiums, the company has special savings for good students, taking a driver training course, being a safe driver, insuring multiple vehicles and having certain safety features in your vehicle.
USAA is one of the most well-known insurance companies for military personnel. You must be an active duty, retired service member or eligible family member in order to qualify for coverage. Drivers who are eligible for USAA can get low rates, highly-rated customer service and great discounts, including savings for good students, good drivers, garaging your vehicle on a military base, being a loyal customer and driving under a certain mileage each year. On average, drivers save over $700 per year when they switch to USAA.
Learn more: USAA Insurance Review
Grange is a solid choice in Lexington, Kentucky. The company offers an impressive lineup of endorsements, like pet coverage, mobile device coverage, full glass repair, gap insurance, OEM coverage, roadside assistance and more. In addition, drivers can save money by taking advantage of discounts for paying in full, being a good student, being a student away at school and enrolling in the OnTrack telematics safe driver program.
Learn more: Grange Insurance Review
Cheapest car insurance in Lexington
The average cost of car insurance in Lexington is significantly cheaper than the average rate in Kentucky, $2,128 per year for a full coverage auto insurance policy and $748 per year for a minimum coverage policy. By comparison, the average cost of car insurance in the United States is $1,674 per year for full coverage and $565 per year for minimum coverage.
Car insurance premiums in Lexington vary by company. The following table looks at the cheapest car insurance rates in Lexington from the most popular carriers based on market share:
|Insurance company||Average annual premium for minimum coverage||Average annual premium for full coverage|
Every cheap car insurance company in Lexington has its pros and cons. For example, Geico and State Farm offer limited coverage options. USAA is highly-rated, but it has eligibility requirements that restrict access for many individuals. Progressive’s policies can be expensive, but drivers get access to lots of great online tools and discounts.
In terms of customer satisfaction, these five providers all ranked differently by J.D. Power in its 2021 auto insurance study. State Farm and USAA are the only two providers that ranked above the regional average of 847, although USAA is technically ineligible for ranking due to its eligibility restrictions. Nationwide, Allstate and Progressive all rank slightly below the regional average in the study. On the other hand, all five providers have excellent financial strength ratings from AM Best.
Lexington insurance requirements
Car insurance in Lexington is required for drivers who own a vehicle that is registered in Kentucky. The minimum car insurance requirement is represented as 25/50/25, which includes the following personal liability insurance coverages:
- $25,000 in bodily injury coverage per person
- $50,000 in bodily injury coverage per accident
- $25,000 in property damage coverage per accident
Minimum coverage insurance policies are generally the cheapest option available. However, there is no guarantee that a minimum coverage policy will cover the full cost of an accident. Additionally, liability-only insurance does not include any protection for your vehicle.
Most insurance experts recommend that drivers purchase more coverage than legally required. Adding comprehensive and collision car insurance coverage could help mitigate your financial and legal risk if you cause an accident. And if you lease or finance your vehicle, your lender will likely require you to carry full coverage insurance until your loan is paid off.
Car insurance discounts in Lexington
Drivers who are looking for cheap car insurance in Kentucky may be able to take advantage of discounts to get a lower rate. Here are some of the car insurance discounts available in Lexington:
- Multi-vehicle discount: Drivers who insure multiple vehicles on their car insurance policy can often qualify for a discount.
- Vehicle safety equipment discount: If your car has safety features, like an anti-theft system or anti-lock brakes, ask your insurance provider about special savings.
- Pay in full discount: Drivers who pay their annual premium in one lump sum, rather than in monthly installments, can usually save money on their policy.
- Good student discount: Many insurance companies have rewards for good students who maintain a minimum GPA in school.
Frequently asked questions
What is the best car insurance company?
Car insurance is personalized, so the best car insurance company is different for every driver. For some drivers, State Farm might be their best option, and for others, USAA might be a better choice. As you are shopping for car insurance, look for providers that have what you need in terms of coverage, endorsements, discounts, digital tools, etc.
How much does car insurance in Lexington cost?
In Lexington, the average driver pays $1,662 per year for full coverage insurance and $656 per year for minimum coverage insurance. However, you might pay more or less than the citywide average rate based on personal factors like your age, credit score, the type of car you drive, the car’s mileage and more.
How much car insurance do I need in Lexington?
Per Kentucky state law, drivers in Lexington must carry at least 25/50/25 personal liability insurance. However, upgrading to a full coverage policy may sometimes be a smart investment. Insurance companies often recommend that drivers increase their policy’s limits for added protection in the event of an at-fault accident.
Bankrate utilizes Quadrant Information Services to analyze rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on a 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:
- $100,000 bodily injury liability per person
- $300,000 bodily injury liability per accident
- $50,000 property damage liability per accident
- $100,000 uninsured motorist bodily injury per person
- $300,000 uninsured motorist bodily injury per accident
- $500 collision deductible
- $500 comprehensive deductible
To determine minimum coverage limits, Bankrate used minimum coverages that meet each state’s requirements. Our sample drivers own a 2018 Honda Accord, commute five days a week and drive 12,000 miles annually.
These are sample rates and should be used for comparative purposes only. Your quotes may be different.