Buying cost effective auto insurance is not the easiest thing to accomplish, and determining which insurers offer the cheapest insurance rates for young drivers will take a bit more work.
Every insurance company has a unique approach for determining rates, so we need to take a look at the insurance companies with the overall cheapest rates in Anchorage. Keep in mind that Anchorage insurance rates are impacted by many factors which can substantially decrease or increase the cost of a policy. Simply improving your credit score, buying a higher-value vehicle, or getting a couple of tickets may generate price changes that can cause some rates to be more expensive than competitors.
Find Cheaper Auto Insurance for Teens
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | Umialik | $874 |
| 2 | State Farm | $965 |
| 3 | USAA | $967 |
| 4 | Progressive | $1,223 |
| 5 | GEICO | $1,886 |
| 6 | Allstate | $2,374 |
| 7 | Safeco | $2,451 |
| View More Rates Go | ||
Umialik has some of the best car insurance rates in Anchorage at around $874 a year. State Farm, USAA, Progressive, and GEICO also rank well as some of the best Anchorage, AK insurance companies.
In this example, if you are currently insured with GEICO and switched to State Farm, you could realize yearly savings of upwards of $921. Alaska drivers with Allstate might save as much as $1,409 a year, and Safeco insureds might realize rate reductions of up to $1,486 a year.
If you would like to find cheaper car insurance rates, click here to get a free quote or quote prices from the following companies.
These premium estimates are averaged across all types of drivers and the different vehicles they drive and and are not calculated with a specific vehicle garaging location for young drivers. So the car insurance company that is best suited for you may not even be in the list above. That underscores the importance of why you need to get rate quotes from many companies using your own individual information.
One of the many components that determine the price you pay for insurance is where you keep your car. Cities with larger populations or higher claim trends tend to have higher auto insurance costs, whereas more rural areas have the luxury of lower rates.
The table below ranks the priciest cities in Alaska for young drivers to buy auto insurance in. Anchorage comes in at #1 with an annual rate of $1,308 for the average insurance policy, which is about $109 each month.
| Rank | City | Premium Per Year |
|---|---|---|
| 1 | Anchorage | $1,308 |
| 2 | Palmer | $1,291 |
| 3 | Fairbanks | $1,284 |
| 4 | Wasilla | $1,266 |
| 5 | Meadow Lakes | $1,252 |
| 6 | College | $1,244 |
| 7 | Homer | $1,238 |
| 8 | Kenai | $1,238 |
| 9 | Kodiak | $1,203 |
| 10 | Sterling | $1,202 |
| 11 | Nikiski | $1,202 |
| 12 | Ketchikan | $1,035 |
| 13 | Juneau | $999 |
| 14 | Sitka | $967 |
| Find the Best Rates Go | ||
Table data uses approximated as specific Anchorage garaging address can raise or lower coverage prices greatly.
Discounts on Anchorage insurance rates
Insurers that offer coverage for young drivers may have special discounts that can lower rates by as much as 25% or more if you meet specific eligibility requirements. A few of the larger companies and some of the discounts are detailed below.
- 21st Century policyholders can earn discounts including air bags, teen driver, good student, student driver, and homeowners.
- Progressive offers discounts including continuous coverage, online quote discount, online signing, multi-policy, and multi-vehicle.
- State Farm offers discounts for multiple autos, good driver, student away at school, accident-free, defensive driving training, safe vehicle, and passive restraint.
- Nationwide has discounts for business or organization, Farm Bureau membership, easy pay, good student, and family plan.
- Esurance offers premium reductions for DriveSense, safety device, Switch & Save, emergency road assistance, Pac-12 alumni, anti-theft, and online shopper.
- The Hartford may offer discounts for bundle, defensive driver, vehicle fuel type, good student, anti-theft, air bag, and driver training.
The information below illustrates the difference between auto insurance rates with and without discounts being applied to the rates. The premium estimates are based on a male driver, no violations or accidents, Alaska state minimum liability limits, full physical damage coverage, and $1,000 deductibles.
The first bar for each age group shows insurance cost with no discounts. The second bar shows the rates with anti-theft, continuous coverage, paperless filing, vehicle safety, paid-in-full, and passive restraint discounts applied. When drivers qualify for the discounts, the average savings per year on insurance for young drivers is 28% or $424.
Full coverage rates compared to liability-only
Finding the cheapest insurance should be important to the majority of drivers, and one of the quickest ways to buy cheap insurance for young drivers is to not insure for full coverage. The chart below illustrates the comparison of car insurance costs with full coverage compared to only the Alaska minimum liability coverage. The data is based on no violations or claims, $500 deductibles, marital status is single, and no other discounts are factored in.
Averaged for all age groups, full coverage on your policy costs $1,288 per year over and above liability only. That brings up the question if buying full coverage is a waste of money. There is no set guideline of when to stop paying for physical damage insurance, but there is a general guideline. If the yearly cost for physical damage coverage is more than 10% of the settlement you would receive from your company, then you might want to think about dropping full coverage.
For example, let’s say your vehicle’s claim settlement value is $9,000 and you have $1,000 full coverage deductibles. If your vehicle is severely damaged, 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 comprehensive and collision coverage, then you may want to consider only buying liability coverage.
Why it’s important to shop around
Anchorage, AK insurance rates are impacted by many things which can significantly increase or decrease the price of coverage. Simply having a birthday, having a teenage driver, or getting a ticket for running a stop sign can trigger price changes that can cause some rates to be more affordable than before.
And not only may your rating factors change, but auto insurance companies amend pricing without warning to adjust for gains or losses. A period of increased losses can cause a rate increase, while lower claims can result in lower-cost Anchorage car insurance rates.
For instance, the chart below analyzes the cheapest car insurance in Anchorage, AK for a 40-year-old male driver with no accidents or violations, and a good credit rating. If we estimate rates based on his current situation, Umialik has the lowest car insurance rates in Anchorage at $1,192 each year. This is $351 less than the average policy premium paid by Alaska drivers of $1,543. USAA, State Farm, Progressive, and GEICO are the remaining cheapest Anchorage, AK auto insurance companies.
In this example, we will give the driver from above a claim, a lower credit rating, and a few traffic violations. Due to the fact that every auto insurer uses their own calculation to establish rates, analyzing rate quotes may result in a new list of affordable Anchorage car insurance companies as shown below.
USAA now has the best price on car insurance in Anchorage with State Farm, Umialik, Progressive, and Safeco now rounding out the top five. This example demonstrates why consumers need to spend some time comparing rates when trying to find affordable car insurance rates for young drivers. Prices are influenced by many things and change dramatically, so the best price six months ago may now be wasting a lot of money.