The words “cheap” and “insurance” really shouldn’t be used in the same sentence, in particular when you are searching for the best car insurance for welfare recipients. Because of the high cost, let’s get started by showing you some situations that have an impact on insurance prices, and see if you can take the bite out of your next policy.
Deciding which companies have the lowest-priced car insurance rates for welfare recipients will require a bit more effort in order to find a policy that fits your budget. Every insurance company has their own unique process to set premium rates, so let’s look at the rankings for the car insurance companies with the most affordable rates in Alaska.
Lowest Insurance Price Quotes in Alaska
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | Umialik | $901 |
| 2 | USAA | $957 |
| 3 | State Farm | $995 |
| 4 | Progressive | $1,210 |
| 5 | GEICO | $1,962 |
| 6 | Allstate | $2,327 |
| 7 | Safeco | $2,526 |
| View More Rates Go | ||
Umialik quotes some of the most affordable car insurance rates in Anchorage at around $901 each year. USAA, State Farm, Progressive, and GEICO are also some of the cheaper Anchorage, AK car insurance companies.
As the example above demonstrates, if you currently have coverage with Progressive and switched to Umialik, you could see an annual savings of in the neighborhood of $309. Customers with GEICO may save as much as $1,061 a year, and Allstate customers might cut rates by $1,426 a year.
To compare your rates to other Alaska insurance companies, click here to get quotes or visit several of the following companies.
Remember that these policy prices are averaged for all drivers and vehicles and do not take into consideration an exact zip code location for welfare recipients. So the car insurance company that can offer you the lowest price may not even be in the list above. That helps illustrate why you need to get rate quotes from many companies using your own specific driver and vehicle information.
One of the many things that are looked at to help calculate the annual cost of car insurance is where your car is garaged in Anchorage. Regions with more people or even just more weather-related claims are more likely to pay higher prices, whereas areas that tend to be more rural get the luxury of paying less.
The illustration below lists the highest-priced places in Alaska for welfare recipients to buy auto insurance in. Anchorage makes the list at #2 with an annual cost of $1,295 for car insurance, which is around $108 each month.
| Rank | City | Annual Rate |
|---|---|---|
| 1 | Meadow Lakes | $1,304 |
| 2 | Anchorage | $1,295 |
| 3 | College | $1,270 |
| 4 | Palmer | $1,265 |
| 5 | Fairbanks | $1,246 |
| 6 | Wasilla | $1,240 |
| 7 | Sterling | $1,226 |
| 8 | Kenai | $1,190 |
| 9 | Nikiski | $1,190 |
| 10 | Homer | $1,190 |
| 11 | Kodiak | $1,167 |
| 12 | Ketchikan | $1,024 |
| 13 | Juneau | $999 |
| 14 | Sitka | $997 |
| Compare Rates Now Go | ||
Rates are estimated as the specific zip code location can lower or raise coverage prices significantly.
The illustration below illustrates how choosing a deductible can impact annual premium costs when getting quotes for cheap insurance for welfare recipients. The premiums assume a married male driver, comprehensive and collision coverage, and no discounts are factored in.
In the chart above, a 40-year-old driver could lower their car insurance rates by $188 a year by changing from a $100 deductible up to a $500 deductible, or save $286 by changing to a $1,000 deductible. Young drivers, like the 20-year-old example, could reduce their rates as much as $630 every year by using higher deductibles when buying full coverage. If you do make the decision to raise your deductibles, it is a good idea to have emergency funds available to offset the extra out-of-pocket expense, which is the main drawback of higher deductibles.
Careless driving habits raise Anchorage car insurance rates
In a perfect world, the ideal way to find the best car insurance prices for drivers on welfare is to drive attentively and have a clean driving record. The illustration below demonstrates how citations and at-fault claims impact insurance costs for different age categories. Data assumes a single male driver, full physical damage coverage, $500 deductibles, and no additional discounts are factored in.
In the chart above, the average cost of an auto insurance policy in Alaska per year with no accidents and a clean driving record is $1,744. Add in two speeding tickets and the average cost hikes up to $2,304, an increase of $560 each year. Now include one accident along with the two speeding tickets and the annual cost of car insurance for welfare recipients jumps again to an average of $2,870. That’s an increase of $1,126, or $94 per month, just for not being a responsible driver!
Does full coverage make sense?
Paying less for car insurance is important to most people, and a good way to find cheaper insurance for welfare recipients is to not buy full coverage. The diagram below shows the comparison of insurance prices when comparing full coverage to liability only. The prices are based on no claims, a clean driving record, $100 deductibles, drivers are single, and no other discounts are factored in.
If we average the cost for all age groups, physical damage insurance costs $2,095 per year more than insuring for liability only. Lot’s of drivers question if paying for full coverage is worth it. There is no clear-cut formula to drop full coverage, but there is a general convention. If the yearly cost for physical damage coverage is more than 10% of any settlement you would receive from your insurance company, then it’s probably a good time to buy liability coverage only.
There are a few cases where eliminating full coverage is not a good idea. If you have an outstanding loan on your vehicle, you have to carry full coverage as part of the loan conditions. Also, if you can’t afford to buy a different vehicle if your current one is totaled, you should not opt for liability only.
Low rates today, overpriced tomorrow
Anchorage, AK car insurance rates are impacted by many things that control the price you have to pay. Getting older, getting married, or getting a driving violation may generate price changes resulting in some companies being more affordable than the competition.
Additionally, companies amend pricing as often as every three months to adjust for unexpected claims or profits. Heavy losses may result in price increases, while a better claims history may produce more affordable Anchorage car insurance rates.
To illustrate this example, the bar chart below demonstrates which company has the cheapest car insurance in Anchorage, AK for a 35-year-old male driver with no prior accidents, a clean driving record, and a high credit rating. Based on his current situation, Umialik might quote the most affordable car insurance rates in Anchorage at $1,206 each year. This is $337 less than the average price paid by Alaska drivers of $1,543. USAA, State Farm, Progressive, and GEICO are the remaining cheapest Anchorage, AK auto insurance companies.
In the next rate comparison, we’ll give the driver from the first rate comparison a chargeable accident, poor credit, and an imperfect driving record. Since each auto insurance company has their own guidelines for establishing rates, comparing quotes most likely will result in a different ranking of companies as shown below.
USAA now has the best car insurance rate in Anchorage, AK with State Farm, Umialik, Progressive, and Safeco now rounding out the top five. This illustrates why it is so important to do a thorough rate comparison to get cheap car insurance rates for welfare recipients.
Insurance prices are determined by many things and can change substantially, so the cheapest rate two years ago may now be an over-priced policy.