Determining which company has the cheapest car insurance rates in Anchorage may require a tad more effort in order to find the best policy.
Each auto insurer has their own unique process for filing rates in each state, so let’s look at the rankings for the overall cheapest car insurance companies in Alaska.
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | Umialik | $901 |
| 2 | USAA | $939 |
| 3 | State Farm | $975 |
| 4 | Progressive | $1,223 |
| 5 | GEICO | $1,943 |
| 6 | Allstate | $2,303 |
| 7 | Safeco | $2,526 |
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Umialik may offer some of the lowest car insurance rates in Anchorage at around $901 per year. USAA, State Farm, Progressive, and GEICO also are some of the cheapest Anchorage, AK car insurance companies.
In this example, if you currently have coverage with Progressive and switched to USAA, you may realize an annual premium reduction of in the vicinity of $284. Policyholders with GEICO might save as much as $1,004 a year, and Allstate insureds might reduce prices by as much as $1,364 a year.
Remember that these policy rates are averages for all drivers and vehicles in Alaska and and are not figured with a specific location in Anchorage. So the auto insurance company that can offer you the best price may not even be in the list above. That affirms the importance of why you need to get quotes using your own individual information.
For drivers in Anchorage, one of the largest things that aid in calculating the annual cost of car insurance is where you live in Anchorage. Regions with larger populations or more claims tend to have more expensive car insurance rates, whereas less populated areas have the gratification of cheaper auto insurance rates.
The following table shows the highest-priced places in Alaska in which to purchase auto insurance. Anchorage comes in at #2 with an annual rate of $1,256 for car insurance, which is around $105 per month.
| Rank | City | Premium Per Year |
|---|---|---|
| 1 | Palmer | $1,304 |
| 2 | Anchorage | $1,256 |
| 3 | Meadow Lakes | $1,252 |
| 4 | Sterling | $1,238 |
| 5 | Kenai | $1,238 |
| 6 | Fairbanks | $1,234 |
| 7 | College | $1,232 |
| 8 | Wasilla | $1,228 |
| 9 | Homer | $1,226 |
| 10 | Kodiak | $1,203 |
| 11 | Nikiski | $1,190 |
| 12 | Ketchikan | $1,035 |
| 13 | Sitka | $987 |
| 14 | Juneau | $969 |
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Rate information is approximated as specific location information can decrease or increase premium rates substantially.
Are you paying too much for car insurance in Anchorage?
Alaska car insurance rates are based on many factors which can significantly increase or decrease the policy premium. Improving your credit rating, buying a home instead of renting, or getting a speeding ticket may prompt premium changes that can make some companies cheaper than competitors. Also, insurers file new Alaska car insurance rates as often as every three months in order to remain profitable. Heavy losses may cause price increases, while a better claims history can produce cheaper Anchorage car insurance rates.
To illustrate this example, the data below shows which companies have the cheapest car insurance in Anchorage, AK for a 40-year-old female driver with no accidents or violations, and a good credit history. If we estimate prices based on her current situation, Umialik offers the most affordable car insurance rates in Anchorage at $1,231 per year. This is $312 less than the average rate paid by Alaska drivers of $1,543. USAA, State Farm, Progressive, and GEICO are the remainder of the most affordable Anchorage, AK auto insurance companies.
In this example, we will give the driver in the first example a chargeable accident, a lower credit score, and an imperfect driving record. Because each company uses their own formula for determining prices, comparing prices could result in a different list of the cheapest car insurance companies in Anchorage as shown below.
USAA now has the lowest car insurance rate in Anchorage with State Farm, Umialik, Progressive, and Safeco now being in the top five. This example proves why Anchorage drivers need to compare many different companies when trying to find cheap auto insurance rates in Anchorage.
Prices consist of many things and change frequently, so the cheapest option the last time you checked may now be costing you a lot of money.
The type of vehicle you are seeking coverage for is a large consideration that determines if you can find the lowest-priced car insurance in Anchorage. Vehicles with lots of horsepower, poor safety ratings, or a track record of large liability claims will cost significantly more to insure than safer, lower-performance models.
The information below outlines insurance prices for some of the most budget-friendly automobiles to insure.
| Make and Model | Estimated Cost for Full Coverage |
|---|---|
| Ford Escape XLT 2WD | $1,452 |
| Toyota Tacoma 2WD | $1,681 |
| Chevrolet Impala LT | $1,714 |
| Jeep Grand Cherokee Laredo 2WD | $1,720 |
| Chevrolet Equinox LS AWD | $1,714 |
| Dodge Grand Caravan Crew | $1,747 |
| Honda CR-V LX 2WD | $1,777 |
| Honda Accord EX 4-Dr Sedan | $1,784 |
| Jeep Wrangler Unlimited Sport Islander Package 4WD 4-Dr | $1,780 |
| Nissan Altima 2.5 S 4-Dr Sedan | $1,804 |
| Chevrolet Malibu LTZ | $1,837 |
| Toyota Prius | $1,846 |
| Ford Explorer XLT 2WD | $1,867 |
| Ford Edge SEL AWD | $1,930 |
| Toyota Camry Hybrid | $1,963 |
| Hyundai Elantra Blue 4-Dr Sedan | $2,034 |
| Ford Focus S 4-Dr Sedan | $2,058 |
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Above prices assume single female driver age 30, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Alaska minimum liability limits. Discounts applied include homeowner, claim-free, multi-policy, multi-vehicle, and safe-driver. Premium costs do not factor in specific zip code location which can revise rates substantially.
Based upon the rates shown, makes and models like the Ford Escape, Toyota Tacoma, Chevrolet Impala, and Jeep Grand Cherokee are likely to be the cheaper vehicles to insure for drivers in Anchorage.
Reckless driving habits raise Anchorage insurance rates
The obvious way to obtain the most affordable insurance premiums in Anchorage for drivers in Anchorage is to drive safely and avoid accidents and traffic citations. The chart below shows how violations and accidents can affect insurance rates for different categories of driver ages. The information is based on a single female driver, full physical damage coverage, $500 deductibles, and no discounts are applied to the premium.
In the previous chart, the average cost of auto insurance in Anchorage per year with no violations or accidents is $1,659. Receive one speeding ticket and the average cost rises to $1,881, an increase of $223 each year. Now add in two accidents along with the one speeding ticket and the 12-month cost of insurance in Anchorage jumps again to an average of $3,866. That’s an increase of $2,208, or $184 per month, just for being a less-than-perfect driver!
The illustration below highlights how deductible choice can affect insurance costs when getting quotes for cheap insurance in Anchorage. The premiums are based on a married male driver, comp and collision included, and no other discounts are factored in.
A 40-year-old driver could reduce rates by $254 a year by switching the physical damage coverage from a $100 deductible up to a $500 deductible, or save $386 by switching to a $1,000 deductible. Even younger insureds, like the 20-year-old example, could reduce their rates up to $860 or more by using higher deductibles when buying full coverage. When raising deductibles, it is essential to have emergency funds available to cover the extra out-of-pocket expense that comes with higher deductibles.
How to find economical insurance in Anchorage
The list below shows some thrifty ideas that can help you find lower-cost auto insurance.
- Higher deductibles save money
- Safer vehicles cost less to insure
- Avoid accidents and claims
- Tickets and violations raise rates
- Drivers with good credit ratings often pay less
- Do not pay for full coverage if not needed
- Shop your coverage around for the best deal
The last idea is especially critical, as we pointed out in the article above. Insurance rates fluctuate considerably, so drivers shouldn’t be reluctant to buy from a different company if a lower price can be found. Brand loyalty is great, but it’s not a good idea if that dedication is costing thousands of dollars over the life of your policy. If you have a few minutes, now is a great time to compare prices and find cheaper insurance in Anchorage in Anchorage.
The insurance agents in Anchorage listed below can help you determine which coverages are best, as many people would rather have a professional recommendation when shopping around for cheaper insurance for drivers in Anchorage. It can be challenging to find the cheapest rates, and using a licensed agent can bring satisfaction knowing you have adequate coverage if you have an accident or claim. To locate an agency by location nearest to you, click the link after the list or click here to compare prices now.
- Allstate Insurance: Devery Prince Agency Team
401 E Fireweed Ln Ste 200 – Anchorage, AK 99503 – (907) 279-9000 - State Farm: Amy Jones
111 W 6th Ave – Anchorage, AK 99501 – (907) 274-2060 - State Farm Insurance
Anchorage, AK 99508 – Anchorage, AK 99508 – (907) 333-6575