Shopping around for cheap car insurance is tough enough, and finding out which company offers the most affordable car insurance rates for drivers with a bad driving record will require additional perseverance.
Each company uses their own calculation for setting rates, so we need to take a look at the lowest cost car insurance companies in Anchorage, AK. Keep in mind that Alaska car insurance rates are impacted by many factors that will increase or decrease your annual premium. That is why consumers need to take the time to spend some time comparing rates when trying to find cheap car insurance quotes for drivers with a bad driving record. Auto insurance prices are influenced by many factors and can change substantially, so the cheapest option two years ago may now be priced much higher than other options.
Cheap Insurance Rates for Imperfect Drivers
Umialik has some of the best car insurance rates in Anchorage at around $901 each year. USAA, State Farm, Progressive, and GEICO would also be considered some of the best Anchorage, AK auto insurance companies.
As shown above, if you buy coverage from Progressive and switched to Umialik, you could earn a yearly savings of in the neighborhood of $346. Policyholders with GEICO might save as much as $1,061 a year, and Allstate customers might reduce prices by as much as $1,426 a year.
Remember that these premiums are averaged across all types of insureds and vehicles and and are not figured with a specific location for drivers with a bad driving record. So the auto insurance company that is most affordable for your situation may not even be in the list above. That underscores the importance of why you need to get car insurance quotes using your own specific driver and vehicle information.
One of the more important factors that are looked at to determine the price you pay for insurance is the neighborhood you call home in Anchorage. Cities with larger populations or higher claim trends tend to pay slightly more, whereas areas with lower vehicle theft rates and fewer weather claims profit from lower rates.
The following table ranks the most costly cities in Alaska for drivers with a bad driving record to buy auto insurance in. Anchorage shows up at #1 with the annual price of $1,295 for coverage, which is around $108 monthly.
| Rank | City | Premium Per Year |
|---|---|---|
| 1 | Anchorage | $1,295 |
| 2 | Wasilla | $1,278 |
| 3 | College | $1,270 |
| 4 | Palmer | $1,265 |
| 5 | Meadow Lakes | $1,265 |
| 6 | Fairbanks | $1,234 |
| 7 | Homer | $1,202 |
| 8 | Nikiski | $1,202 |
| 9 | Sterling | $1,190 |
| 10 | Kenai | $1,190 |
| 11 | Kodiak | $1,155 |
| 12 | Ketchikan | $1,055 |
| 13 | Sitka | $987 |
| 14 | Juneau | $969 |
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Table data uses estimated as the garaging address in Anchorage can impact prices greatly.
How much more does full coverage cost?
Paying less for car insurance is probably important to most drivers, and one good way to buy cheaper insurance for drivers with a bad driving record is to not buy comprehensive and collision coverage. The information below illustrates the difference between insurance costs with liability coverage only compared to full coverage. The costs are based on no accidents or driving violations, $1,000 deductibles, single marital status, and no discounts are applied.
As an overall average, comp and collision coverage costs $1,530 per year more than just buying liability insurance. That is a large expense which might make you wonder when is it safe to stop buying full coverage. There is no exact rule to stop paying for physical damage coverage, but there is a general school of thought. If the yearly cost for physical damage coverage is more than around 10% of the vehicle’s replacement cost less your deductible, then it may be the right time to buy liability only.
There are some cases where eliminating full coverage is not a good plan. If you still owe money on your vehicle, you have to keep full coverage in order to prevent the bank from purchasing higher-priced coverage. Also, if you don’t have enough money to buy a different vehicle if your current one is damaged, you should maintain full coverage.
Which car insurance company is best in Alaska?
Picking a high-quality car insurance provider is difficult considering how many companies sell coverage in Alaska. The information in the lists below could help you choose which car insurance providers you want to consider to insure your vehicles. The ratings below are only comprised of large insurance companies, so smaller companies are not factored into this list.
Top 10 Large Auto Insurance Providers Overall in Anchorage
- USAA
- American Family
- State Farm
- The Hartford
- AAA Insurance
- GEICO
- The General
- Progressive
- Allstate
- Liberty Mutual
Top 10 Large Auto Insurance Providers in Anchorage Ranked by A.M. Best Rating
- USAA – A++
- State Farm – A++
- GEICO – A++
- Esurance – A+
- Allstate – A+
- Progressive – A+
- The Hartford – A+
- The General – A-
- AAA Insurance – A
- Liberty Mutual – A
You are probably paying too much for car insurance
Anchorage, AK car insurance rates are influenced by many factors which can significantly increase or decrease the price you pay. Simply having a birthday, increasing deductibles, or getting a ticket for running a stop sign can trigger rate changes resulting in some companies being cheaper than others. Also, auto insurance companies modify pricing as often as every three months in order to maintain liquidity for claims. A period of increased losses may cause higher prices, while a profitable period may cause lower-priced Anchorage car insurance rates.
To illustrate this example, the chart below shows which company has the cheapest car insurance in Anchorage, AK for a 45-year-old male driver with no prior accidents, a clean driving record, and a good credit history. If we look at prices based on his current rating profile, Umialik might offer the most affordable car insurance rates in Anchorage at $1,158 annually. This is $385 less than the average rate paid by Alaska drivers of $1,543. USAA, State Farm, Progressive, and GEICO are the rest of the best Anchorage, AK auto insurance companies.
In this example, we will give the driver from the first example a claim, bad credit, and a stop sign violation. Due to the fact that every auto insurer uses their own formula to determining premium rates, analyzing rate quotes may now show a completely different list of companies as shown below.
USAA now has the cheapest insurance rate in Anchorage with State Farm, Umialik, Progressive, and Safeco also having competitive pricing. This shows why it is crucial to compare rates when trying to get cheap car insurance rates for drivers with a bad driving record.
Insurance rates are influenced by many factors and change dramatically, so the cheapest company two years ago may now be one of the higher cost companies.
The insurance agencies listed below are willing to help you determine which coverages are best, since lots of people like to have the advice of a professional agent when buying car insurance for bad drivers. It can be difficult to find the cheapest car insurance policy, so a professional agent can give satisfaction knowing your policy gives you decent coverage if you have a claim.
To locate an Anchorage car insurance agency using an interactive map, click the button below the list.
Allstate Insurance: Devery Prince Agency Team
401 E Fireweed Ln Ste 200 – Anchorage, AK 99503 – (907) 279-9000
Steve VanHorne – State Farm Insurance Agent
510 W Tudor Rd Ste 1 – Anchorage, AK 99503 – (907) 561-0000
State Farm Insurance Companies Agent
3900 Arctic Blvd #102 – Anchorage, AK 99503 – (907) 563-3188