The words “low-priced” and “insurance” really should not be used together, specifically when you are searching for the best car insurance for retired military. In an attempt to save some money, let’s learn about a few of the factors that influence car insurance rates, and figure out some ways to lower the cost of the next policy you buy.
The make and model of vehicle you are buying coverage for is one of the largest considerations when comparing quotes for the cheapest auto insurance for retired military. Vehicles with limited top-end speed, modern passenger safety features, or a track record of few liability claims will cost significantly less to insure than higher performance models. The next table shows auto insurance prices for a number of the cheapest automobiles to insure.
| Vehicle Insured | Estimated Cost for Full Coverage |
|---|---|
| Honda CR-V EX-L 2WD | $1,353 |
| Honda Accord EX 4-Dr Sedan | $1,452 |
| Ford Escape XLT 4WD | $1,488 |
| Chevrolet Impala LS | $1,543 |
| Chevrolet Malibu Hybrid | $1,572 |
| Chevrolet Equinox LT 2WD | $1,580 |
| Ford Explorer Limited 2WD | $1,603 |
| Ford F-150 FX2 2WD | $1,611 |
| Toyota Prius | $1,660 |
| Hyundai Sonata GLS 4-Dr Sedan | $1,683 |
| Ford Fusion SEL 4-Dr Sedan | $1,689 |
| Toyota Tacoma 4WD | $1,698 |
| GMC Sierra 3500HD SLT Extended Cab 2WD | $1,717 |
| Toyota RAV4 Limited 4WD | $1,725 |
| Ford Focus SE 4-Dr Sedan | $1,733 |
| Volkswagen Jetta S 4-Dr Sedan | $1,772 |
| Toyota Camry LE | $1,782 |
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Data assumes single male driver age 30, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Alaska minimum liability limits. Discounts applied include multi-vehicle, safe-driver, claim-free, homeowner, and multi-policy. Information does not factor in specific zip code location which can increase or decrease price quotes considerably.
Looking at the data, you can infer that vehicles like the Honda CR-V, Honda Accord, Ford Escape, and Chevrolet Impala are most likely to be the more affordable vehicles to insure for veterans.
Deciding which company quotes the cheapest auto insurance rates for retired military involves a tad more effort than just comparing a company or two. Every insurance company uses a little different formula for establishing rates, so let’s take a look at the lowest cost auto insurance companies in Anchorage, AK.
Best Car Insurance Prices for Vets
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| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | Umialik | $901 |
| 2 | USAA | $957 |
| 3 | State Farm | $965 |
| 4 | Progressive | $1,210 |
| 5 | GEICO | $1,962 |
| 6 | Allstate | $2,327 |
| 7 | Safeco | $2,526 |
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Umialik normally has some of the most affordable car insurance rates in Anchorage at around $901 each year. USAA, State Farm, Progressive, and GEICO would also be considered some of the cheapest Anchorage, AK car insurance companies.
As illustrated above, if you have coverage with Progressive and switched to USAA, you could see an annual savings of in the neighborhood of $253. Policyholders with GEICO may save as much as $1,005 a year, and Allstate customers might see rate reductions of $1,370 a year.
It’s important to note that these prices are averaged for all types of drivers and the different vehicles they drive and and are not figured with a specific vehicle garaging location for retired military. So the company that has the cheapest price for you may not even be in the list above. That’s why you need to get auto insurance quotes using your own driver and vehicle profiles.
For veterans, one of the largest factors that help determine auto insurance rates is where you keep your car in Anchorage. Areas with high crime rates or more dense population tend to pay more, whereas areas that tend to be more rural benefit from having to pay less for coverage.
The illustration below ranks the most costly cities in Alaska for retired military to buy car insurance in. Anchorage is ranked #2 having an annual price of $1,295 for the average insurance policy, which is approximately $108 per month.
| Rank | City | Average Per Year |
|---|---|---|
| 1 | Meadow Lakes | $1,304 |
| 2 | Anchorage | $1,295 |
| 3 | Fairbanks | $1,284 |
| 4 | Palmer | $1,265 |
| 5 | Wasilla | $1,240 |
| 6 | Sterling | $1,238 |
| 7 | Kenai | $1,238 |
| 8 | College | $1,232 |
| 9 | Nikiski | $1,202 |
| 10 | Homer | $1,202 |
| 11 | Kodiak | $1,191 |
| 12 | Ketchikan | $1,024 |
| 13 | Juneau | $1,009 |
| 14 | Sitka | $957 |
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Prices are approximated as specific Anchorage garaging address can change coverage prices considerably.
The information below demonstrates how deductibles can influence insurance premiums when trying to find cheap insurance for retired military. The rates are based on a married female driver, comprehensive and collision coverage, and no other discounts are factored in.
A 40-year-old driver could reduce rates by $222 a year by changing their physical damage coverage from a $100 deductible to a $500 deductible, or save $336 by switching to a $1,000 deductible. Even younger insureds, like the 20-year-old, could roll back prices $552 every year just by using higher deductibles. When insureds make the decision to increase the deductibles on their policy, it will be necessary to have plenty of discretionary funds to enable you to pay the extra out-of-pocket expense that is associated with using high deductibles.
Get discount Anchorage auto insurance
Car insurance companies that offer coverage for retired military could also offer rate discounts that can lower rates by as much as 25% or more if you qualify. A list of companies and their offered discounts include:
- State Farm policyholders can earn discounts including good student, accident-free, Drive Safe & Save, good driver, and multiple autos.
- GEICO may offer discounts for emergency military deployment, defensive driver, air bags, five-year accident-free, multi-vehicle, membership and employees, and anti-lock brakes.
- Liberty Mutual offers premium reductions for new move discount, exclusive group savings, new graduate, multi-car, and teen driver discount.
- The Hartford offers discounts including anti-theft, bundle, defensive driver, vehicle fuel type, good student, and air bag.
- MetLife may include discounts for good student, claim-free, accident-free, defensive driver, good driver, multi-policy
- Progressive has discounts for continuous coverage, multi-vehicle, online signing, online quote discount, homeowner, and multi-policy.
The diagram below compares auto insurance rates with and without policy discounts. The prices are based on a female driver, no driving violations, no at-fault accidents, Alaska state minimum liability limits, full physical damage coverage, and $500 deductibles.
The first bar for each age group shows the average annual price with no discounts. The lower bar shows the rates with accident-free, claim-free, passive restraint, defensive driving course, homeowner, and marriage discounts applied. When drivers qualify for the discounts, theaverage amount saved on auto insurance for retired military is 28% or $459.
Liability-only versus full coverage
Reducing the cost of auto insurance is probably important to the majority of drivers, and an easy way to reduce the cost of insurance for retired military is to only buy liability coverage. The chart below illustrates the comparison of insurance premiums with full coverage and liability only. The rate quotes are based on no tickets, no at-fault accidents, $100 deductibles, marital status is single, and no additional discounts are factored in.
If we average all the age groups together, physical damage coverage costs $1,566 per year over liability only. That may make you wonder if paying for full coverage is worth it. There is no exact rule for dropping full coverage, but there is a general guideline. If the annual cost of having full coverage is more than around 10% of any settlement you would receive from your insurance company, then it’s probably a good time to buy liability coverage only.
For example, let’s pretend your vehicle’s settlement value is $9,000 and you have $1,000 full coverage deductibles. If your vehicle is damaged in an accident, the most your company would pay you is $8,000 after paying your policy deductible. If you are paying in excess of $800 annually for full coverage, then you may need to consider dropping full coverage.
There are a few situations where buying only liability insurance is not advised. If you still have a loan on your vehicle, you are required to maintain full coverage in order to prevent the bank from purchasing higher-priced coverage. Also, if your savings is not enough to buy a different vehicle in the event your current vehicle is totaled, you should not drop full coverage.