The words “bargain” and “auto insurance” really shouldn’t be used in the same sentence, specifically when shopping around for the best car insurance for low mileage drivers. To help control this cost, let’s introduce you to some of the factors that help determine car insurance premiums, and come up with some ideas to take the sting out of your next policy.
One of the many components that determine the amount you pay for auto insurance is where you keep your car. Cities with larger populations or higher claim trends tend to have higher auto insurance costs, whereas areas with lower vehicle theft rates and fewer weather claims profit from lower rates.
The information below rates the priciest cities in Alaska for low mileage drivers to buy auto insurance in. Anchorage comes in at #4 with a yearly premium of $1,269 for the average policy, which is approximately $106 per month.
| Rank | City | Average Per Year |
|---|---|---|
| 1 | Palmer | $1,304 |
| 2 | Fairbanks | $1,284 |
| 3 | Wasilla | $1,278 |
| 4 | Anchorage | $1,269 |
| 5 | Meadow Lakes | $1,252 |
| 6 | College | $1,244 |
| 7 | Nikiski | $1,202 |
| 8 | Homer | $1,202 |
| 9 | Sterling | $1,202 |
| 10 | Kenai | $1,202 |
| 11 | Kodiak | $1,167 |
| 12 | Ketchikan | $1,066 |
| 13 | Juneau | $979 |
| 14 | Sitka | $957 |
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Prices are estimated as vehicle location can increase or decrease coverage prices considerably.
The car, truck, or SUV on the policy is probably the most important factor when trying to find the cheapest coverage for low mileage drivers. Vehicles with lower performance, modern passenger safety features, or a low likelihood of having liability claims will cost much less to insure than high performance models. The list below illustrates insurance prices for a selection of the more affordable automobiles to insure.
| Vehicle Insured | Estimated Cost for Full Coverage |
|---|---|
| Honda CR-V LX 2WD | $1,441 |
| Ford Escape Limited 2WD | $1,471 |
| Nissan Altima 2.5 4-Dr Sedan | $1,487 |
| Ford Focus SES 4-Dr Sedan | $1,535 |
| Honda Accord EX 4-Dr Sedan | $1,540 |
| Chevrolet Impala LTZ | $1,563 |
| Toyota Prius | $1,594 |
| Toyota Corolla XRS | $1,600 |
| Jeep Wrangler Sport Islander Package 4WD 2-Dr | $1,690 |
| Chevrolet Silverado 2500HD LTZ Crew Cab Diesel 4WD | $1,700 |
| Kia Optima EX | $1,703 |
| Toyota Camry LE | $1,706 |
| Volkswagen Jetta S 4-Dr Sedan | $1,711 |
| Ford Explorer Eddie Bauer AWD | $1,739 |
| Hyundai Elantra Blue 4-Dr Sedan | $1,764 |
| Honda Odyssey EX W/Rear Entertainment | $1,787 |
| Ford Edge Sport AWD | $1,795 |
| Chevrolet Equinox LS 2WD | $1,825 |
| Toyota RAV4 Limited 4WD | $1,835 |
| GMC Sierra SLE Regular Cab 4WD | $1,828 |
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Prices based on single female driver age 50, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Alaska minimum liability limits. Discounts applied include claim-free, multi-vehicle, multi-policy, homeowner, and safe-driver. Estimates do not factor in specific location which can modify premiums substantially.
Based on these rates, we can tell that cars like the Honda CR-V, Ford Escape, and Nissan Altima are most likely to be some of the cheapest vehicles to insure for infrequent drivers.
Types of discounts on Anchorage insurance rates
Car insurance companies that offer quotes for low mileage drivers may also offer policy discounts that could lower prices by 35% or more if you are eligible for them. A list of companies and a selection of discounts are:
- AAA offers discounts including multi-policy, pay-in-full, good student, multi-car, AAA membership discount, good driver, and anti-theft.
- Progressive may have discounts that include online quote discount, homeowner, online signing, good student, continuous coverage, multi-policy, and multi-vehicle.
- State Farm may include discounts for accident-free, Steer Clear safe driver discount, safe vehicle, Drive Safe & Save, driver’s education, multiple autos, and good driver.
- Esurance has savings for good driver, anti-theft, homeowner, online shopper, and anti-lock brakes.
- Nationwide policyholders can earn discounts including anti-theft, family plan, accident-free, defensive driving, and easy pay.
The example below shows the comparison of auto insurance rates with and without some available policy discounts. The data assumes a male driver, no accidents or driving violations, Alaska state minimum liability limits, full coverage, and $250 deductibles.
The first bar for each age group shows the average annual price with no discounts. The lower bar shows the rates with defensive driving course, multiple vehicle, claim-free, multiple policy, accident-free, and safe-driver discounts applied. When these discounts are applied to the policy premium, the average amount saved each year on car insurance for low mileage drivers is 28% or $540.
Choosing a good quality insurer can be rather challenging considering how many different companies sell coverage in Alaska. The ranking information in the next section can help you choose which providers to look at when comparing rate quotes. These rankings are for major nationwide insurance companies, so companies that have a smaller presence are not taken into consideration for this list.
| Company | Value | Customer Service | Claims | Customer Satisfaction | A.M Best Rating | Overall Score |
|---|---|---|---|---|---|---|
| USAA | 98 | 100 | 100 | 94% | A++ | 98.6 |
| American Family | 98 | 89 | 100 | 86% | A | 95.4 |
| State Farm | 88 | 93 | 96 | 90% | A++ | 92.4 |
| The Hartford | 94 | 92 | 90 | 89% | A+ | 91.7 |
| AAA Insurance | 88 | 89 | 95 | 91% | A | 91.2 |
| GEICO | 84 | 93 | 93 | 89% | A++ | 90.3 |
| The General | 89 | 91 | 89 | 88% | A- | 90 |
| Progressive | 84 | 91 | 93 | 87% | A+ | 89.5 |
| Allstate | 85 | 90 | 92 | 88% | A+ | 89.3 |
| Liberty Mutual | 84 | 87 | 93 | 88% | A | 88.5 |
| 21st Century | 85 | 86 | 87 | 88% | A | 86.7 |
| Esurance | 85 | 80 | 95 | 87% | A+ | 85.9 |
| Safeco | 85 | 85 | 85 | 86% | A | 85.8 |
| Farmers Insurance | 78 | 87 | 88 | 79% | A | 84.3 |
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Data Source: Insure.com Best Car Insurance Companies
Drive safe and save
The easiest way to receive cheap car insurance prices in Alaska for infrequent drivers is to drive attentively and maintain a clean driving record. The chart below illustrates how traffic citations and accident claims can impact car insurance costs for different age groups of insureds. The information is based on a single male driver, comp and collision included, $1,000 deductibles, and no discounts are factored in.
The data above shows the average cost of car insurance in Alaska per year with no violations or accidents is $1,243. Receive two speeding tickets and the average cost swells to $1,637, an increase of $395 each year. Now add two accidents along with the two speeding tickets and the annual cost of car insurance for low mileage drivers increases to an average of $3,217. That’s an increase of $1,974, or $165 per month, just for not being a responsible driver!