The words “affordable” and “insurance” really shouldn’t be used in the same sentence, specifically when looking for the best coverage prices for used cars. In an attempt to save some money, let’s teach you some things that have an effect on car insurance premiums, and find a way to take a little off the next policy you buy.
The make and model of vehicle to be insured is a significant factor that determines whether or not you find the best cheap auto insurance for used cars. Vehicles with lower performance, an excellent safety record, or a low likelihood of liability claims will cost substantially less to insure than adrenaline junky models.
The next table shows insurance premiums for a handful of the most budget-friendly automobiles to buy coverage for.
| Vehicle Insured | Estimated Cost for Full Coverage |
|---|---|
| Ford Escape XLS 4WD | $1,354 |
| Hyundai Elantra SE Touring Station Wagon | $1,472 |
| Honda CR-V LX 4WD | $1,486 |
| Dodge Grand Caravan SE | $1,520 |
| Toyota RAV4 Sport 4WD | $1,606 |
| Ford Explorer Limited 4WD | $1,638 |
| Toyota Prius | $1,654 |
| Jeep Wrangler Unlimited Sport Islander Package 4WD 4-Dr | $1,661 |
| Toyota Tacoma X-Runner 2WD | $1,693 |
| Chevrolet Impala LTZ | $1,700 |
| Honda Civic DX 4-Dr Sedan | $1,722 |
| GMC Sierra SLE Crew Cab 2WD | $1,724 |
| Chevrolet Equinox LTZ 2WD | $1,729 |
| Ford F-150 Lariat King Ranch 2WD | $1,724 |
| Nissan Altima 3.5 SR 4-Dr Sedan | $1,731 |
| Jeep Grand Cherokee Laredo 4WD | $1,758 |
| Ford Edge SEL AWD | $1,769 |
| Chevrolet Malibu Hybrid | $1,808 |
| Toyota Camry LE | $1,815 |
| Nissan Rogue SL AWD | $1,808 |
| Kia Optima EX | $1,840 |
| Honda Odyssey EX-L W/Navigation | $1,853 |
| Chevrolet Silverado LTZ Crew Cab 4WD | $1,887 |
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Data rating is based on single male driver age 50, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Alaska minimum liability limits. Discounts applied include safe-driver, claim-free, homeowner, multi-vehicle, and multi-policy. Rates do not factor in Anchorage, AK location which can affect coverage rates substantially.
Based upon these rates, we can tell that makes and models like the Ford Escape, Hyundai Elantra, Honda CR-V, Dodge Grand Caravan, and Toyota RAV4 are going to be some of the most budget-friendly vehicles to insure for pre-owned vehicles.
For pre-owned vehicles, one of the more important components that are used to help calculate auto insurance rates is where your car is garaged in Anchorage. Areas with more people or higher crime rates tend to have higher rates, whereas more rural areas benefit from lower coverage costs.
The next table ranks the most expensive cities in Alaska for used cars to purchase a policy in. Anchorage comes in at #3 with a yearly cost of $1,269 for car insurance, which is around $106 per month.
| Rank | City | Premium Per Year |
|---|---|---|
| 1 | Meadow Lakes | $1,291 |
| 2 | College | $1,270 |
| 3 | Anchorage | $1,269 |
| 4 | Palmer | $1,265 |
| 5 | Sterling | $1,238 |
| 6 | Fairbanks | $1,234 |
| 7 | Wasilla | $1,228 |
| 8 | Nikiski | $1,202 |
| 9 | Kodiak | $1,191 |
| 10 | Kenai | $1,190 |
| 11 | Homer | $1,190 |
| 12 | Ketchikan | $1,024 |
| 13 | Juneau | $999 |
| 14 | Sitka | $967 |
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Rate quotes are approximated as the specific garaging location can modify coverage rates greatly.
Accidents and violations increase rates
In a perfect world, the ideal way to earn cheap insurance premiums in Anchorage for pre-owned vehicles is to be a good driver and avoid accidents and violations. The diagram below shows how speeding tickets and at-fault claims can influence insurance rates for each different age category. The costs are based on a single male driver, comprehensive and collision coverage, $250 deductibles, and no discounts are taken into consideration.
In the prior example, the average cost of auto insurance per year with no accidents or violations is $1,434. Get one speeding ticket and the average cost increases to $1,615, an increase of $181 each year. Now add two accidents along with the one speeding ticket and the 12-month cost of insurance for used cars goes up to an average of $3,176. That’s an increase of $1,741, or $145 per month, just for being a little careless behind the wheel!
Rate difference between full and liability-only coverage
Lowering the price of insurance is probably important to most vehicle owners, and one easy way to lower the cost of insurance for used cars is to not buy full coverage. The diagram below illustrates the difference between insurance prices with full physical damage coverage compared to only buying the minimum liability limits required in Alaska. The price estimates are based on no claims or driving citations, $500 deductibles, drivers are not married, and no additional discounts are factored in.
If we average all the age groups together, comprehensive and collision coverage on your policy costs an additional $1,744 per year over liability only. A very common question is if paying for full coverage is a waste of money. There is no clear-cut rule for eliminating comp and collision coverage, but there is a broad 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 consider buying liability only.
The diagram below shows how choosing a deductible can increase or decrease insurance prices when trying to find cheap insurance for used cars. The information is based on a single female driver, comprehensive and collision coverage, and no policy discounts are applied.
A 30-year-old driver could save $336 a year by increasing from a $100 deductible to a $500 deductible, or save $504 by changing to a $1,000 deductible. Even younger insureds, like the Age 20 category, could roll back prices as much as $750 each year by selecting a higher deductible. If you make the decision to raise deductibles, it will be necessary to have plenty of discretionary funds to allow you to cover the extra out-of-pocket expense that deters many people from opting for higher deductibles.
Can you find cheaper Anchorage car insurance?
Anchorage, AK insurance rates are impacted by many factors which can significantly increase or decrease the policy premium. Simply turning a year older, getting divorced, or getting into an accident may prompt premium changes that can make some companies more affordable than competitors.
In addition, companies modify rates as often as every quarter to help ensure profitability. An unexpected high level of claims can result in higher prices, while lower claim levels can produce lower-cost Anchorage car insurance rates.
To illustrate this point, the chart below shows which company has the cheapest car insurance in Anchorage, AK for a 40-year-old female driver with a clear driving record, no claims, and a decent credit rating. When comparing rates based on her personal risk profile, Umialik might offer the cheapest car insurance rates in Anchorage at $1,136 each year. This is $407 less than the average price paid by Alaska drivers of $1,543. USAA, State Farm, Progressive, and GEICO are also included in the cheapest Anchorage, AK auto insurance companies.
The next chart shows rates after we give the driver from the first set of rates a chargeable accident, a lower credit rating, and a few traffic violations. Because each company has a unique formula for establishing rates, comparing quotes may now show a different list of the cheapest Anchorage car insurance companies as shown below.
USAA now has the cheapest insurance rate in Anchorage, AK with State Farm, Umialik, Progressive, and Safeco now rounding out the top five. This illustrates why Anchorage drivers need to take the time to shop around when trying to find the best auto insurance quotes for used cars. Insurance prices are calculated by many factors and can change without notice, so the best option the last time you compared rates may now not even be in the top five.