Wouldn’t it be nice if we could just tell you the single company that has the cheapest coverage for teenagers? It’s not quite that easy, unfortunately, as there are a lot of unknown aspects like the area you live in, your gender, and how safe your vehicle is. This article will detail the causes of high insurance rates and also should give you a good start in finding the cheapest car insurance in Anchorage.
The type of vehicle requiring coverage is a large consideration that determines the availability of the best insurance for teenagers. Vehicles with lower performance, modern passenger safety features, or a positive history of liability claims will cost less to insure than fast, unsafe models.
The table below estimates car insurance costs for some of the cheaper vehicles to insure in Alaska.
| Vehicle | Estimated Cost for Full Coverage |
|---|---|
| Honda Accord LX-P 4-Dr Sedan | $5,335 |
| Hyundai Elantra GLS Touring Station Wagon | $5,343 |
| Honda CR-V EX-L 4WD | $5,392 |
| Ford Escape Limited 4WD | $5,742 |
| Toyota Prius | $5,797 |
| Ford Edge SE 2WD | $5,926 |
| Ford F-150 XL Super Cab 2WD | $5,934 |
| Volkswagen Jetta 2.0T Station Wagon | $6,146 |
| Ford Focus S 4-Dr Sedan | $6,276 |
| Jeep Grand Cherokee Laredo 2WD | $6,333 |
| Chevrolet Malibu LS | $6,342 |
| Toyota RAV4 4WD | $6,333 |
| Toyota Camry LE | $6,342 |
| Ford Explorer Limited 4WD | $6,388 |
| Dodge Grand Caravan Crew | $6,395 |
| Toyota Tacoma Double Cab TRD Off-Road Package 4WD | $6,388 |
| Chevrolet Impala LTZ | $6,683 |
| Honda Odyssey EX-L | $6,692 |
| Toyota Corolla XLE | $6,683 |
| GMC Sierra SL Crew Cab 4WD | $6,738 |
| Nissan Altima 3.5 SR 4-Dr Sedan | $6,745 |
| Honda Civic Hybrid 4-Dr Sedan | $6,738 |
| GMC Sierra 2500HD SLE Crew Cab 4WD | $6,747 |
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Above prices assume single male driver age 17, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Alaska minimum liability limits. Discounts applied include safe-driver, and claim-free. Table data does not factor in specific location information which can alter prices substantially.
Based upon the rates shown, we can assume that cars like the Honda Accord, Hyundai Elantra, and Honda CR-V are likely to be the cheapest vehicles to insure for teen drivers. The price for an auto insurance policy will be more costly just due to the fact that there is more liability exposure for teenagers, but in general those models will probably have the lowest insurance rates available.
For teen drivers, one of the big considerations that help determine auto insurance rates is where you call home. Areas with more people or more claims tend to have more expensive car insurance rates, whereas areas that tend to be more rural have the gratification of cheaper auto insurance rates.
The information below rates the highest-priced places in Alaska for teenagers to purchase car insurance in. Anchorage shows up at #3 with a yearly premium of $1,269 for coverage, which is around $106 per month.
| Rank | City | Annual Rate |
|---|---|---|
| 1 | Meadow Lakes | $1,291 |
| 2 | Fairbanks | $1,284 |
| 3 | Anchorage | $1,269 |
| 4 | Palmer | $1,265 |
| 5 | College | $1,244 |
| 6 | Wasilla | $1,228 |
| 7 | Homer | $1,226 |
| 8 | Nikiski | $1,202 |
| 9 | Sterling | $1,190 |
| 10 | Kenai | $1,190 |
| 11 | Kodiak | $1,167 |
| 12 | Ketchikan | $1,024 |
| 13 | Juneau | $1,009 |
| 14 | Sitka | $997 |
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Rate quotes are approximated as zip code location can raise or lower insurance rates significantly.
Establishing which companies quote the best auto insurance rates for teenagers will require a little more effort in order to find the lowest price quote. Each auto insurance company uses their own formula to determine premium rates, so let’s examine the most competitive auto insurance companies in Anchorage.
It’s important to understand that Anchorage auto insurance rates are calculated based on many things that will increase or decrease the price you have to pay. Getting older, buying a home instead of renting, or getting a few speeding tickets can trigger changes in premium that can cause some rates to be more affordable than the competition.
Find Cheaper Auto Insurance for Teens
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | Umialik | $901 |
| 2 | USAA | $929 |
| 3 | State Farm | $975 |
| 4 | Progressive | $1,247 |
| 5 | GEICO | $1,962 |
| 6 | Allstate | $2,397 |
| 7 | Safeco | $2,451 |
| Quote Your Rates Go | ||
Umialik quotes some of the best car insurance rates in Anchorage at around $901 a year. USAA, State Farm, Progressive, and GEICO also are some of the more affordable Anchorage, AK insurance companies.
In the above rates, if you currently have coverage with State Farm and switched to Umialik, you might realize yearly savings of in the vicinity of $74. Drivers with Progressive could save as much as $346 a year, and GEICO policyholders might realize rate reductions of up to $1,061 a year.
To find out how much you can save, click here to get a free quote or quote rates from the companies below.
Bear in mind that those rates are averaged for all types of insureds and vehicles and do not take into consideration an exact zip code location for teenagers. So the company that is best suited for you may not even be in the list above. That emphasizes why you need to quote rates from many companies using your own driver and vehicle profiles.
Price comparison of only insuring for liability
Saving on auto insurance is probably important to the majority of drivers, and one common way to pay less for insurance for teenagers is to buy liability only. The illustration below illustrates the comparison of insurance premiums with and without physical damage coverage, medical payments, and uninsured/under-insured motorist coverage. The costs are based on no claims or driving citations, $250 deductibles, single status, and no policy discounts are applied.
If all age groups are averaged, comprehensive and collision coverage on your policy costs $1,915 per year over and above liability only. At some point, almost every driver questions if it’s worth it to buy full coverage. There isn’t a steadfast formula for excluding full coverage, but there is a guideline you can use. If the annual cost of your full coverage insurance is more than around 10% of the replacement cost minus the deductible, then you may need to consider dropping full coverage.
There are some situations where buying only liability insurance is not advised. If you still have a loan on your vehicle, you have to carry full coverage to satisfy the loan requirements. Also, if your savings is not enough to buy a different vehicle if your current one is damaged, you should not consider dropping full coverage.
Driving violations and accidents
One of the best ways to score the cheapest auto insurance premiums in Anchorage for teen drivers is to be a good driver and avoid traffic citations and accidents. The diagram below shows how traffic citations and at-fault collisions can influence insurance prices for each different age group. Data assumes a single female driver, full physical damage coverage, $100 deductibles, and no discounts are factored in.
In the chart above, the average cost of auto insurance in Anchorage per year with no accidents and a clean driving record is $1,485. Get one speeding ticket and the average cost jumps to $1,680, an increase of $195 each year. Now throw in one accident along with the one speeding ticket and the yearly cost of auto insurance for teenagers jumps again to an average of $2,234. That’s an increase of $749, or $62 per month, just for not being more responsible behind the wheel!
Get discount Anchorage insurance
Insurance companies that offer quotes for teenagers may additionally offer rate discounts that can reduce rates by 25% or more if you can meet the requirements. Larger auto insurance companies and some of the discounts are:
- State Farm policyholders can earn discounts including anti-theft, good student, passive restraint, multiple autos, student away at school, good driver, and defensive driving training.
- GEICO offers discounts for five-year accident-free, driver training, federal employee, anti-theft, and good student.
- Progressive may offer discounts for continuous coverage, good student, online signing, online quote discount, multi-policy, homeowner, and multi-vehicle.
- 21st Century may have discounts that include driver training, automatic seat belts, early bird, theft prevention, and 55 and older.
- American Family may include discounts for defensive driver, early bird, air bags, good student, accident-free, good driver, and TimeAway discount.
- The Hartford offers premium reductions for air bag, driver training, bundle, good student, anti-theft, defensive driver, and vehicle fuel type.
- AAA includes discounts for AAA membership discount, anti-theft, education and occupation, good student, multi-car, pay-in-full, and good driver.
The information below shows the difference between premium costs with and without discounts applied to the rates. The premium estimates are based on a female driver, no claims, a clean driving record, Alaska state minimum liability limits, comprehensive and collision coverage, and $1,000 deductibles. The first bar for each age group shows premium with no discounts. The second shows the rates with vehicle safety, paperless filing, continuous coverage, good student, passive restraint, and anti-theft discounts applied. When these discounts are applied to the policy premium, theamount saved on auto insurance for teenagers is 28% or $386.
How to find budget-friendly car insurance for teenagers
The list below shows some thrifty ideas that can help drivers quote more affordable coverage.
- Maintain a safe distance and avoid accidents
- Buying home and auto together can help save money
- Claim-free policyholders usually earn a discount
- Increase the comprehensive and collision deductibles on your policy
- Avoid speeding and other traffic citations and pay less
- Drivers with good credit ratings often pay less
- Shop around once a year for cheaper rates
The final tip is particularly necessary, as was stressed in this piece. Coverage rates change a lot, so drivers shouldn’t be resistant to switch to a new company if you find a better deal. Many drivers have brand loyalty and that’s fine, but is isn’t recommended if that devotion results in you overpaying potentially thousands of dollars a year. In just a couple of minutes you could shop around and find cheaper car insurance for teenagers in Anchorage.
If you aren’t clear which coverage you need and would like to have some professional guidance when shopping around for cheaper insurance for teenagers, the agencies below can provide answers to your questions and help you determine which coverage fits your budget. To find an auto insurance agency using an interactive map, click the link at the bottom.
- Gary Annis – State Farm Insurance Agent
3330 C St #101 – Anchorage, AK 99503 – (907) 563-1960 - State Farm Insurance
Anchorage, AK 99508 – Anchorage, AK 99508 – (907) 333-6575 - Umialik Insurance Company
3301 C St #300 – Anchorage, AK 99503 – (907) 338-5445 - Allstate Insurance: Stanley Tebow
8201 Old Seward Hwy a – Anchorage, AK 99518 – (907) 344-3301 - Kent S Kallander Insurance Agency Inc
1317 W Northern Lights Blvd #9 – Anchorage, AK 99503 – (907) 563-1492