The words “bargain” and “insurance” really shouldn’t be used together, especially when you are searching for the best car insurance for 19 year olds. Because of the high cost, let’s open your eyes to some situations that have an impact on auto insurance rates, and find out if you can shave a little off the next policy you buy.
For teenage drivers, one of the largest criteria that determine auto insurance rates is where your car is garaged. Regions with larger populations or more claims tend to pay more, whereas areas with less crime or weather claims profit from lower rates.
The illustration below ranks the most expensive cities in Alaska for 19 year olds in which to purchase auto insurance. Anchorage ranks #1 with a yearly premium of $1,295 for the average insurance policy, which is around $108 monthly.
| Rank | City | Annual Premium |
|---|---|---|
| 1 | Anchorage | $1,295 |
| 2 | Meadow Lakes | $1,291 |
| 3 | Wasilla | $1,278 |
| 4 | College | $1,270 |
| 5 | Palmer | $1,265 |
| 6 | Homer | $1,238 |
| 7 | Fairbanks | $1,234 |
| 8 | Kenai | $1,226 |
| 9 | Kodiak | $1,191 |
| 10 | Sterling | $1,190 |
| 11 | Nikiski | $1,190 |
| 12 | Ketchikan | $1,055 |
| 13 | Juneau | $979 |
| 14 | Sitka | $967 |
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Table data uses comparative as specific Anchorage zip code can increase or decrease premiums greatly.
Comparing rates for reasonably-priced insurance is not easy, and figuring out which company offers the cheapest auto insurance rates for 19 year olds will require even more perseverance. Each auto insurance company has a unique formula for setting rates, so first we will examine the most affordable auto insurance companies in Alaska.
Keep in mind that Anchorage, AK auto insurance rates are based on many factors that can increase the cost of coverage. This is why it is crucial to perform an extensive rate comparison when trying to find the most economical car insurance quotes for 19 year olds. Insurance rates can be determined by many things and change dramatically, so the most economical company when you last compared rates may now be one of the higher cost companies.
Cheap Insurance Rates for Teens
Umialik quotes some of the most affordable car insurance rates in Anchorage at around $865 annually. This is $678 less than the average policy premium paid by Alaska drivers of $1,543. USAA, State Farm, Progressive, and GEICO also make the cut as some of the cheapest Anchorage, AK insurance companies.
As the rates illustrate above, if you are insured with Progressive and switched to Umialik, you may see yearly savings of in the neighborhood of $345. Customers with GEICO could save as much as $1,097 a year, and Allstate policyholders might reduce rates by $1,438 a year.
If you want to see how much you could save, click here to start a quote or visit any of the companies below.
Be aware that those premiums are averaged for all drivers and vehicles in Alaska and and are not calculated with an exact location for 19 year olds. So the auto insurance company that fits your situation best may not even be in the list above. That affirms the importance of why you need to quote rates from many companies using your own driver and vehicle profiles.
The car, truck, or SUV needing coverage is one of the largest considerations in finding cheaper coverage for 19 year olds. Vehicles with limited speed and performance, advanced safety features, or low incidents of liability claims will cost less to insure than higher performance models.
The data below features insurance rates for a handful of the cheapest vehicles to insure.
| Make and Model | Estimated Cost for Full Coverage |
|---|---|
| Honda CR-V LX 4WD | $4,632 |
| Ford Escape XLT 4WD | $4,691 |
| Toyota Prius | $5,073 |
| Honda Odyssey LX | $5,116 |
| Ford F-150 XLT Regular Cab 4WD | $5,175 |
| Volkswagen Jetta 2.0T Station Wagon | $5,397 |
| Ford Focus S 4-Dr Sedan | $5,439 |
| Chevrolet Impala LS | $5,448 |
| Toyota RAV4 Limited 2WD | $5,498 |
| Chevrolet Malibu LS | $5,507 |
| Toyota Camry LE | $5,498 |
| Dodge Grand Caravan Hero | $5,503 |
| Toyota Tacoma Double Cab 4WD | $5,557 |
| Ford Explorer Limited AWD | $5,564 |
| Jeep Wrangler Unlimited Sport 2WD 4-Dr | $5,602 |
| Nissan Altima 2.5 S 4-Dr Sedan | $5,821 |
| Toyota Corolla S | $5,827 |
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Premium data assumes single male driver age 19, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Alaska minimum liability limits. Discounts applied include safe-driver, and claim-free. Information does not factor in specific garaging location which can influence coverage rates significantly.
Looking at the numbers, we can assume that cars like the Honda CR-V, Ford Escape, Toyota Prius, Honda Odyssey, and Ford F-150 are most likely going to be the most affordable vehicles to insure for teenage drivers. Auto insurance rates will tend to be higher because there is more liability exposure for 19 year olds, but overall those makes and models will probably have the cheapest auto insurance rates possible.
Full coverage rates vs. liability-only
Finding cheaper auto insurance should be important to the majority of drivers, and one good way to find cheap insurance for 19 year olds is to only buy liability insurance. The information below compares annual premium costs with and without physical damage coverage. The prices are based on a clean driving record, no claims, $500 deductibles, single marital status, and no discounts are taken into consideration.
If we average the cost for all age groups, full coverage on your policy costs an additional $1,288 per year more than just buying liability only. That proposes the question when is the right time to remove full coverage. There is no written rule for eliminating full coverage on your policy, but there is a broad guideline. If the annual cost of having full coverage is 10% or more of the settlement you would receive from your company, then it might be time to buy liability only.
For example, let’s say your vehicle’s replacement cost is $8,000 and you have $1,000 physical damage deductibles. If your vehicle is totaled, the most your company would pay you is $7,000 after the policy deductible has been paid. If you are paying in excess of $700 a year for physical damage coverage, then it’s probably a good time to buy liability coverage only.
There are some scenarios where removing full coverage is not recommended. If you still owe money on your vehicle, you have to keep full coverage as part of the loan conditions. Also, if your emergency fund is not enough to purchase a different vehicle if your current one is in an accident, you should keep full coverage on your policy.
How accidents and violations affect rates in Anchorage
The ideal way to maintain good auto insurance prices for teenage drivers is to drive safely and avoid at-fault accidents and violations. The illustration below highlights how speeding tickets and fender-benders increase insurance premiums for different ages of insureds. The price estimates are based on a married male driver, comp and collision included, $500 deductibles, and no other discounts are factored in.
The data above shows the average cost of a car insurance policy in Alaska per year with no violations or accidents is $1,100. Get two speeding tickets and the average cost rises to $1,510, an increase of $411 each year. Now include two accidents along with the two speeding tickets and the yearly cost of auto insurance for 19 year olds jumps again to an average of $3,115. That’s an increase of $2,015, or $168 per month, just for not maintaining a clean driving record!
You may be paying too much for car insurance
Anchorage auto insurance rates are determined by lots of factors which can significantly increase or decrease the cost of coverage. Simply having a birthday, increasing liability limits, or having a fender bender can trigger rate changes that can cause some rates to be more affordable than before.
Not only may things change on your end, but insurers change their prices as often as every quarter in order to offset underwriting gains or losses. A period of increased losses can cause rate increases, while profitable underwriting can cause cheaper Anchorage car insurance rates.
To illustrate this example, the bar chart below shows the company with the cheapest car insurance in Anchorage, AK for a 45-year-old male driver with no violations or accidents, and excellent credit. Based on his current risk factors, Umialik might offer the lowest car insurance rates in Anchorage at $1,156 each year. This is $387 less than the average premium paid by Alaska drivers of $1,543. USAA, State Farm, Progressive, and GEICO also make the list of the best Anchorage, AK auto insurance companies.
Let’s now give the driver in the first example some claims, bad credit, and a traffic ticket or two. Since each auto insurance company uses their own method to establish rates, getting updated rate quotes may result in a slightly different list of affordable Anchorage car insurance companies as shown below.
USAA now has the cheapest auto insurance in Anchorage, AK with State Farm, Umialik, Progressive, and Safeco also having competitive pricing. This demonstrates why Anchorage drivers need to do a thorough rate comparison when trying to find the cheapest insurance quotes for 19 year olds.
Rates are influenced by many risk factors and can change substantially, so the cheapest option when you bought your policy may now be wasting a lot of money.
How to find budget-friendly car insurance for 19 year olds
It’s not impossible to find cheaper rates, and here are some of the better penny-pinching solutions that can help Anchorage drivers get cheaper car insurance.
- Drive attentively and avoid accidents
- Home or renters coverage can save on auto insurance
- Safe vehicles generally have lower rates
- Try to pay small claims out-of-pocket
- Be a cautious driver
- Shop around for cheaper prices
The last idea is incredibly crucial, as we discussed in the article above. Prices charged by car insurance companies in Anchorage fluctuate constantly, so don’t be tentative to change to a new company if a better rate can be found. Loyalty to a specific company is fine, but is isn’t recommended if that loyalty results in overpaying money that could be used for better things. Take a few minutes and compare prices to find cheaper auto insurance for 19 year olds.