If the Insight 2 is too spendy, what about a used Civic Hybrid? With requirements of
40 mpg, AC, automatic, and just mild eco-driving, I think that's about the only Honda that fits the bill.
EDIT: I'm sure the marketing geniuses at Honda would rub their hands in glee to read this. No longer do they have us aiming to the bottom end of the lineup for mileage; we've been trained to accept that you have to cough out the word "hybrid" if you want low fuel consumption.