Comparing quotes for cost effective auto insurance is tough enough, and finding out which insurers offer the best car insurance rates for college students takes even more rate comparisons.
Every auto insurer uses a little different formula to determine premium rates, so we need to take a look at the car insurance companies with the most affordable rates in Alaska. It’s important to understand that Anchorage, AK car insurance rates are impacted by many things which can substantially change the policy price. Simply getting older, getting married, or getting a couple of tickets may prompt premium changes that may make certain companies more expensive than competitors.
Cheap Insurance Rates for College Students
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | Umialik | $874 |
| 2 | USAA | $967 |
| 3 | State Farm | $995 |
| 4 | Progressive | $1,260 |
| 5 | GEICO | $1,905 |
| 6 | Allstate | $2,374 |
| 7 | Safeco | $2,526 |
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Umialik offers some of the cheapest car insurance rates in Anchorage at around $874 annually. USAA, State Farm, Progressive, and GEICO would also be considered some of the cheapest Anchorage, AK auto insurance companies.
In the rate table above, if you are a policyholder with GEICO and switched to USAA, you could earn a yearly price reduction of roughly $938. Customers with Allstate could save as much as $1,407 a year, and Safeco insureds might lower prices by up to $1,559 a year.
To see if you’re overpaying, click here to start your custom quote or visit several of the following companies.
Bear in mind that those policy prices are averages across all types of insureds and vehicles and and are not calculated with an exact vehicle garaging location for college students. So the auto insurance company that fits your age and vehicle best may not even be in the list above. That’s why you need to quote rates from many companies using your own individual information.
One of the many factors that help determine the amount you pay for auto insurance is your zip code. Areas with increased crime or more people tend to have more expensive auto insurance rates, whereas areas with lower vehicle theft rates and fewer weather claims can boast about having cheaper rates.
The table below lists the highest-priced places in Alaska for college students in which to purchase auto insurance. Anchorage comes in at #3 costing $1,269 for the average insurance policy, which is about $106 each month.
| Rank | City | Premium Per Year |
|---|---|---|
| 1 | Palmer | $1,304 |
| 2 | College | $1,282 |
| 3 | Anchorage | $1,269 |
| 4 | Meadow Lakes | $1,265 |
| 5 | Fairbanks | $1,246 |
| 6 | Wasilla | $1,240 |
| 7 | Homer | $1,202 |
| 8 | Nikiski | $1,190 |
| 9 | Kenai | $1,190 |
| 10 | Sterling | $1,190 |
| 11 | Kodiak | $1,155 |
| 12 | Ketchikan | $1,055 |
| 13 | Sitka | $997 |
| 14 | Juneau | $969 |
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Annual rates are approximated as the specific garaging location can impact price quotes greatly.
The illustration below highlights how deductible selection can increase or decrease yearly insurance costs when getting quotes for cheap insurance for college students. The premium estimates are based on a single male driver, comprehensive and collision coverage, and no policy discounts are applied.
The chart above illustrates that a 30-year-old driver could save $342 a year by increasing from a $100 deductible up to a $500 deductible, or save $512 by choosing a $1,000 deductible. Young drivers, like the Age 20 category, could lower their rates $1,010 or more by choosing a higher deductible.
If you do make the decision to raise your deductibles, it will be important to have additional savings on hand to allow you to pay the extra out-of-pocket expense that comes with higher deductibles.
Accidents and violations increase rates
The best way to get good car insurance rates in Alaska for students in college is to drive carefully and avoid accidents and traffic violations. The diagram below illustrates how speeding tickets and at-fault accidents influence yearly insurance costs for different insured age categories. The costs are based on a married male driver, full coverage, $500 deductibles, and no additional discounts are factored in.
In the previous example, the average cost of a car insurance policy in Anchorage per year with no violations or accidents is $1,460. Get one speeding ticket and the average cost hikes up to $1,680, an increase of $220 each year. Now include two accidents along with the one speeding ticket and the annual cost of car insurance for college students increases to an average of $3,657. That’s an increase of $2,197, or $183 per month, just for not being a responsible driver!
Here’s why price comparisons are so important
Alaska car insurance rates are determined by lots of factors which can significantly increase or decrease the cost of a policy. Simply improving your credit, moving to a new city, or having a fender bender may generate price changes resulting in some companies being affordable when they were higher priced.
Not only may your risk profile change, but companies modify pricing at least once a year in order to be able to pay unexpected claims. A period of increased losses may result in increased rates, while profitable underwriting may produce more affordable Anchorage car insurance rates.
To illustrate this example, the chart below analyzes the cheapest car insurance in Anchorage, AK for a 30-year-old female driver with no violations or accidents, and a good credit history. Based on her current situation, Umialik might quote the best car insurance rates in Anchorage at $1,171 each year. This is $372 less than the average rate paid by Alaska drivers of $1,543. State Farm, USAA, Progressive, and GEICO are the rest of the best Anchorage, AK auto insurance companies.
The example below compares rates after we give the driver from the first set of rates an accident surcharge, slightly worse credit, and a traffic citation. Because every insurance company has their own unique process for determining rates in each state, comparing rates most likely will result in a new list of cheap Anchorage auto insurance companies as shown below.
State Farm now has the best insurance rate in Anchorage, AK with USAA, Umialik, Progressive, and Safeco now rounding out the top five. This demonstrates why drivers need to shop around with many companies when trying to find the most affordable auto insurance quotes for college students.
Insurance rates can be altered by many things and can change without notice, so the most economical option the last time you compared rates may now be priced much higher than other options.