For people with poor credit, one of the largest considerations that are looked at to help calculate the price you pay for insurance is your address in Anchorage. Areas with increased crime or more people tend to have higher auto insurance costs, whereas less populated areas receive better rates.
The information below shows the priciest cities in Alaska for drivers with bad credit to buy car insurance in. Anchorage makes the list at #4 with an annual cost of $1,269 for coverage, which is about $106 each month.
| Rank | City | Annual Premium |
|---|---|---|
| 1 | Palmer | $1,291 |
| 2 | Meadow Lakes | $1,291 |
| 3 | College | $1,282 |
| 4 | Anchorage | $1,269 |
| 5 | Homer | $1,238 |
| 6 | Kenai | $1,238 |
| 7 | Fairbanks | $1,234 |
| 8 | Wasilla | $1,228 |
| 9 | Nikiski | $1,226 |
| 10 | Sterling | $1,202 |
| 11 | Kodiak | $1,191 |
| 12 | Ketchikan | $1,055 |
| 13 | Sitka | $987 |
| 14 | Juneau | $979 |
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Premium costs are estimated as the specific zip code location can change premium rates substantially.
The car, truck, or SUV that needs insurance is probably the most important factor when trying to find the most affordable insurance for drivers with bad credit. Vehicles with higher performance characteristics, poor safety features, or a history of substantial liability claims will cost quite a bit more to insure than safer models. The next list features coverage prices for the more affordable vehicles to insure.
| Vehicle Insured | Estimated Cost for Full Coverage |
|---|---|
| Honda CR-V EX 2WD | $1,360 |
| Honda Odyssey EX | $1,577 |
| Ford Escape XLT 4WD | $1,587 |
| Chevrolet Equinox LS AWD | $1,608 |
| Hyundai Elantra SE 4-Dr Sedan | $1,693 |
| Nissan Altima 2.5 S 4-Dr Sedan | $1,701 |
| Ford F-150 STX Super Cab 2WD | $1,709 |
| Ford Fusion Sport 4-Dr Sedan | $1,722 |
| GMC Sierra SLT Extended Cab 2WD | $1,731 |
| Ford Edge SE AWD | $1,807 |
| GMC Sierra 2500HD SLT Crew Cab 4WD | $1,817 |
| Ford F-250 XL Crew Cab 2WD | $1,836 |
| Chevrolet Malibu Hybrid | $1,841 |
| Toyota Prius | $1,852 |
| Dodge Grand Caravan CV | $1,865 |
| Jeep Wrangler Rubicon 4WD 2-Dr | $1,872 |
| Honda Civic LX-S 4-Dr Sedan | $1,902 |
| Ford Focus SE 4-Dr Sedan | $1,931 |
| Chevrolet Impala LTZ | $1,937 |
| Toyota RAV4 Limited 2WD | $1,971 |
| Chevrolet Silverado 2500HD LT Crew Cab 4WD | $1,976 |
| Jeep Grand Cherokee Laredo 4WD | $1,971 |
| Volkswagen Jetta SE 4-Dr Sedan | $1,980 |
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Above prices assume single female driver age 50, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Alaska minimum liability limits. Discounts applied include multi-vehicle, homeowner, safe-driver, claim-free, and multi-policy. Rate quotes do not factor in vehicle garaging location which can revise insurance rates greatly.
Looking at the rates, you can infer that vehicles like the Honda CR-V, Honda Odyssey, and Ford Escape are most likely going to be a few of the less-costly vehicles to insure for people with poor credit. The price for car insurance will trend higher because of the fact that there is more liability exposure for drivers with bad credit, but in general those makes and models will probably have the lowest prices available.
Determining which company quotes the cheapest car insurance rates for drivers with bad credit involves a little more effort than just getting one or two price quotes. Every auto insurer has a different process for determining prices, so let’s take a look at the most budget-friendly car insurance companies in Alaska.
Find the Cheapest Car Insurance with Bad Credit
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | Umialik | $901 |
| 2 | USAA | $939 |
| 3 | State Farm | $975 |
| 4 | Progressive | $1,260 |
| 5 | GEICO | $1,943 |
| 6 | Allstate | $2,397 |
| 7 | Safeco | $2,426 |
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Umialik quotes some of the cheapest car insurance rates in Anchorage at around $901 per year. This is $642 less than the average premium paid by Alaska drivers of $1,543. USAA, State Farm, Progressive, and GEICO would also make the list of some of the most economical Anchorage, AK insurance companies.
As the example above demonstrates, if you have coverage with USAA and switched to Umialik, you might realize savings of roughly $38. Alaska drivers with State Farm might save as much as $74 a year, and Progressive policyholders might realize rate reductions of up to $359 a year.
Be aware that those premium estimates are averaged for all drivers and vehicles and do not take into consideration a specific location for drivers with bad credit. So the insurer that can offer you the best price may not even be in the list above. That points out the importance of why you need to compare rates from multiple companies using your own driver and vehicle profiles.
Tickets and at-fault accidents raise rates
One of the best ways to receive the most affordable car insurance prices in Anchorage for people with poor credit is to be an attentive driver and avoid tickets and accidents. The example below shows how traffic citations and at-fault accidents influence insurance costs for each age group. The price estimates are based on a single male driver, full physical damage coverage, $100 deductibles, and no discounts are taken into consideration.
In the chart above, the average cost of auto insurance in Alaska per year with a clean driving record and no accidents is $1,566. Factor in two speeding tickets and the average cost surges to $2,075, an increase of $510 each year. Next add two accidents along with the two speeding tickets and the yearly cost of car insurance for drivers with bad credit increases to an average of $3,884. That’s an increase of $2,318, or $193 per month, just for not being more responsible behind the wheel!
How to find a good Anchorage car insurance company
Selecting a high-quality auto insurance company can be challenging considering how many companies provide coverage in Anchorage. The rank data displayed below can help you choose which providers to look at when trying find the best insurance for drivers with bad credit. These rankings are only made up of the companies with a significant amount of written premium nationwide, so smaller companies will not be included in these rankings.
| 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
Get discount Anchorage insurance rates
Auto insurance companies that offer coverage for drivers with bad credit may have price discounts that could reduce prices by as much as 35% or more if you are eligible for them. A list of companies and some of the premium reductions they offer are outlined below.
- State Farm may offer discounts for accident-free, multiple policy, defensive driving training, Steer Clear safe driver discount, student away at school, Drive Safe & Save, and good student.
- Esurance offers discounts including Switch & Save, renters, online shopper, good student, multi-car, and paid-in-full.
- Progressive may include discounts for multi-vehicle, good student, continuous coverage, multi-policy, and online signing.
- Liberty Mutual includes discounts for multi-car, preferred payment discount, multi-policy, safety features, new vehicle discount, exclusive group savings, and teen driver discount.
- Auto-Owners Insurance offers discounts for good student, teen driver, safe vehicle, paperless, and safe driver.
- GEICO policyholders can earn discounts including multi-policy, anti-theft, multi-vehicle, military active duty, defensive driver, emergency military deployment, and membership and employees.
The information below compares insurance premiums with and without discounts applied to the policy premium. The premiums are based on a male driver, no violations or accidents, Alaska state minimum liability limits, full physical damage coverage, and $500 deductibles. The first bar for each age group shows the price with no discounts. The lower bar shows the rates with safe-driver, accident-free, homeowner, vehicle safety, claim-free, and anti-theft discounts applied. When drivers take advantage of discounts, theaverage amount saved on car insurance for drivers with bad credit is 28% or $356.
The benefit of shopping around
Anchorage, AK car insurance rates are impacted by many factors that will increase or decrease the price of your policy. Simply improving your credit, increasing liability limits, or getting a ticket for running a stop sign can trigger price changes that can cause some rates to be cheaper than competitors.
Not only may things change on your end, but insurers file new Alaska auto insurance rates at least once a year to adjust for heavy claims or excess profits. An extended period of higher than normal claims may result in more expensive prices, while lower claim levels may cause lower-cost Anchorage car insurance rates.
As an 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 prior claims, no tickets, and a good credit rating. When quoting prices based on his personal risk profile, Umialik has the lowest car insurance rates in Anchorage at $1,145 each year. This is $398 less than the average policy premium paid by Alaska drivers of $1,543. USAA, State Farm, Progressive, and GEICO are also on the list of the top five cheapest Anchorage, AK auto insurance companies.
The example below compares rates after we give the driver in the first example some claims, a lower credit score, and a stop sign violation. Since every car insurance company uses their own calculation to determining premium rates, comparing rates may now present a different ranking of the cheapest Anchorage car insurance companies as shown below.
USAA now has the lowest price on auto insurance in Anchorage, AK with State Farm, Umialik, Progressive, and Safeco also having competitive pricing. This example demonstrates why it is critical to shop around to get the most affordable insurance rates for drivers with bad credit. Prices are influenced by many different factors and change frequently, so the best company the last time you checked may now cost much more than other companies.