The words “cheap” and “insurance” really shouldn’t be used together, specifically when trying to find the best coverage prices for drivers with good credit. Because it’s not cheap, let’s introduce you to some of the factors that help determine auto insurance rates, and find out if we can help you cut the cost of your next policy.
The vehicle you are seeking coverage for is one of the primary factors in finding cheap car insurance for drivers with good credit. Vehicles with limited speed and performance, a great safety record, or a track record of few liability claims will cost substantially less to insure than higher performance models. The next list outlines car insurance premiums for the more affordable automobiles to insure.
| Make, Model, and Trim Level | Estimated Cost for Full Coverage |
|---|---|
| Honda Accord EX 4-Dr Sedan | $1,354 |
| Ford Escape XLS 4WD | $1,485 |
| Honda CR-V EX-L 2WD | $1,522 |
| Chevrolet Malibu Hybrid | $1,606 |
| Toyota Tacoma Double Cab TRD Off-Road Package 4WD | $1,637 |
| Dodge Ram 3500 Crew Cab Laramie 2WD | $1,647 |
| Hyundai Elantra SE Touring Station Wagon | $1,653 |
| Honda Odyssey EX-L | $1,693 |
| Nissan Altima 2.5 S 4-Dr Sedan | $1,698 |
| Toyota Prius | $1,695 |
| Chevrolet Impala LS | $1,721 |
| Ford Explorer XLT AWD | $1,724 |
| Jeep Wrangler Unlimited Sahara 4WD 4-Dr | $1,740 |
| Volkswagen Jetta SE 2.5 Station Wagon | $1,748 |
| Dodge Ram Quad Cab SLT 4WD | $1,753 |
| Ford F-150 Lariat Crew Cab Platinum 4WD | $1,759 |
| Chevrolet Silverado LS Extended Cab 4WD | $1,758 |
| Start a Quote Go | |
Prices based on single male driver age 40, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Alaska minimum liability limits. Discounts applied include safe-driver, multi-policy, homeowner, claim-free, and multi-vehicle. Rates do not factor in vehicle garaging location which can modify coverage prices substantially.
Based upon these rates, you can expect models like the Honda Accord, Ford Escape, Honda CR-V, and Chevrolet Malibu are most likely to be some of the cheaper vehicles to insure for financially responsible drivers.
For financially responsible drivers, one of the big criteria that determine the annual cost of car insurance is where you call home in Anchorage. Cities with larger populations or higher claim trends likely pay more, whereas areas with less congestion have the benefit of cheaper car insurance.
The following table rates the most costly cities in Alaska for drivers with good credit to purchase auto insurance in. Anchorage ranks #6 with a yearly cost of $1,256 for the average insurance policy, which is approximately $105 monthly.
| Rank | City | Premium Per Year |
|---|---|---|
| 1 | Meadow Lakes | $1,304 |
| 2 | College | $1,282 |
| 3 | Wasilla | $1,278 |
| 4 | Fairbanks | $1,272 |
| 5 | Palmer | $1,265 |
| 6 | Anchorage | $1,256 |
| 7 | Sterling | $1,226 |
| 8 | Nikiski | $1,202 |
| 9 | Kodiak | $1,191 |
| 10 | Kenai | $1,190 |
| 11 | Homer | $1,190 |
| 12 | Ketchikan | $1,024 |
| 13 | Sitka | $997 |
| 14 | Juneau | $969 |
| Start a Quote Go | ||
Table data uses comparative as zip code location can alter coverage prices significantly.
Car insurance companies ranked
Insuring your vehicle with the highest-rated auto insurance provider is hard considering how many different companies insure vehicles in Alaska. The ranking data listed below can help you pick which providers to look at shopping prices with.
The ratings below are only comprised of insurance companies that insure vehicles in the majority of U.S. states, so companies that focus mainly on Alaska business are not included in these rankings. To compare price quotes and find the cheapest rates for drivers with good credit, click this link.
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
Cost difference between full coverage and liability
Paying less for car insurance is important to most vehicle owners, and one of the fastest ways to buy cheap insurance for drivers with good credit is to only buy liability coverage. The diagram below illustrates the difference between annual premium costs with full physical damage coverage compared to only buying the minimum liability limits required in Alaska. The data is based on no accidents, no driving violations, $500 deductibles, drivers are not married, and no discounts are factored in.
If averaged for all ages, full coverage costs an additional $1,288 per year over having just liability coverage. At some point, about every driver wonders if full coverage is worth the money. There is no written rule for dropping physical damage coverage on your policy, but there is a general guideline you can use. If the yearly cost of comp and collision coverage is 10% or more of the settlement you would receive from your company, then it could be time to drop full coverage.
For example, let’s pretend your vehicle’s book value is $8,500 and you have $1,000 deductibles. If your vehicle is destroyed, the most your company would pay you is $7,500 after the policy deductible has been paid. If you are paying more than $750 a year for your policy with full coverage, then it may be the right time to buy liability only.
The example below highlights how deductible choice can impact insurance prices when searching for cheap insurance for drivers with good credit. The prices are based on a single female driver, comprehensive and collision coverage, and no discounts are applied.
In the chart above, a 40-year-old driver could save $300 a year by increasing from a $100 deductible up to a $500 deductible, or save $454 by selecting a $1,000 deductible. Even younger insureds, such as the 20-year-old chart data, could drop their prices $768 annually by choosing a larger deductible amount.
When increasing deductibles, it will be important to have emergency funds available to satisfy the extra out-of-pocket expense, which is the one inconvenience of using high deductibles.
Shop around and save
Anchorage car insurance rates are calculated based on many things that can increase your annual premium. Simply getting older, buying a home instead of renting, or getting a reckless driving citation may prompt premium changes that can make some companies cheaper than competitors. Not only may your risk profile change, but insurance companies file new Alaska auto insurance rates as often as every quarter in order to offset underwriting gains or losses. Heavy losses can cause increased rates, while lower claim expenses may result in lower-cost Anchorage car insurance rates.
As an example, the bar chart below shows which companies have the cheapest car insurance in Anchorage, AK for a 45-year-old male driver with no accidents or violations, and a good credit rating. If we estimate rates based on his personal risk profile, Umialik may offer the most affordable car insurance rates in Anchorage at $1,170 a year. This is $373 less than the average rate paid by Alaska drivers of $1,543. USAA, State Farm, Progressive, and GEICO are the rest of the cheapest Anchorage, AK auto insurance companies.
Now we will pretend the driver from the first example a couple of claims, less-than-perfect credit, and a few traffic violations. Because each company has a unique formula to establish rates, analyzing rate quotes may now present a different list of affordable Anchorage car insurance companies as shown below.
USAA now has the best auto insurance rate in Anchorage with State Farm, Umialik, Progressive, and Safeco also being competitive. This illustrates why it is important to shop around with many companies when trying to get the best car insurance rates for drivers with good credit. Auto insurance prices are influenced by many different factors and can change substantially, so the best company two years ago may now be one of the more expensive options.