Cheapest GMC Sierra Insurance in Anchorage

It’s hard to believe, but a large majority of insurance policyholders kept their coverage with the same insurance company for well over three years, and approximately 38% of consumers have never even shopped around for cheaper coverage. Consumers in Alaska can save approximately 35% each year, but they mistakenly think it’s difficult to go online and compare rates.

If saving money is your primary concern, then the best way to quote cheaper auto insurance rates in Anchorage is to start doing an annual price comparison from insurance carriers who sell insurance in Alaska. Drivers can shop around by following these steps.

• Step 1: Take a little time to learn about what coverages are included in your policy and the things you can change to prevent expensive coverage. Many policy risk factors that drive up the price like high-risk driving behaviors and a not-so-good credit history can be rectified by making minor changes to your lifestyle.
• Step 2: Compare rates from independent agents, exclusive agents, and direct companies. Exclusive and direct companies can provide rates from one company like GEICO or Allstate, while agents who are independent can provide rate quotes from multiple companies.
• Step 3: Compare the quotes to your existing coverage to see if you can save by switching companies. If you find better rates, ensure coverage does not lapse between policies.
• Step 4: Give notification to your current company of your decision to cancel the current policy and submit a down payment along with a completed application for your new coverage. Once received, put the new proof of insurance paperwork along with your vehicle registration.

The most important part of this process is to try to compare the same coverage limits and deductibles on every quote request and and to get quotes from as many companies as possible. Doing this ensures a fair rate comparison and and a good selection of different prices.

Lowering your insurance rates is actually easier than you may think. The only thing you need to do is spend a few minutes comparing rate quotes provided by online insurance companies.

The following companies can provide quotes in Alaska. If your goal is to find the best cheap auto insurance in Anchorage, we recommend you visit two to three different companies to get the best price comparison.

Coverage statistics and figures

The coverage information shown below covers estimates of prices for GMC Sierra models. Being more informed about how prices are formulated can aid in making smart choices when purchasing an insurance policy.

Prices based on single female driver age 50, no speeding tickets, no at-fault accidents, $100 deductibles, and Alaska minimum liability limits. Discounts applied include multi-vehicle, safe-driver, claim-free, homeowner, and multi-policy. Information does not factor in zip code location which can change prices greatly.

Policy deductibles

One common question asked by Anchorage drivers is what deductibles to buy. The data tables below may aid in understanding the difference in cost of buying low and high comp and collision deductibles. The first data table uses a $100 deductible for physical damage and the second rate table uses a $500 deductible.

Prices above based on married male driver age 30, no speeding tickets, no at-fault accidents, and Alaska minimum liability limits. Discounts applied include multi-policy, homeowner, safe-driver, multi-vehicle, and claim-free. Price information does not factor in the specific area where the vehicle is garaged which can influence coverage prices noticeably.

Based on this data, using a $100 deductible will cost in the ballpark of $21 more each month or $252 every year than opting for the higher $500 deductible. Since the policyholder would be required to pay $400 more if you file a claim with a $500 deductible as compared to a $100 deductible, if you normally average at least 19 months between claims, you would come out ahead if you choose a higher deductible.

The illustration below shows how choosing a deductible and can increase or decrease GMC Sierra annual premium costs for each age group. The information is based on a single male driver, comprehensive and collision coverage, and no other discounts are factored in.

Cautious drivers save money

The example below illustrates how violations and at-fault fender-benders increase GMC Sierra insurance costs for different age categories. The costs are based on a married male driver, full coverage, $100 deductibles, and no discounts are applied to the premium.

Cost difference between full coverage and liability

The diagram below visualizes the comparison of GMC Sierra insurance costs with full physical damage coverage compared to only buying liability only. Data assumes no claims or driving violations, $1,000 deductibles, single marital status, and no policy discounts are applied.

Should you pay for full coverage or liability only?

There is no clear-cut rule that works best for making the decision to drop physical damage coverage, but there is a general guideline. If the annual cost of having full coverage is about 10% or more of the vehicle’s replacement cost less your deductible, then it could be time to drop full coverage.

For example, let’s pretend your GMC Sierra book value 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 paying the physical damage deductible. If it’s costing in excess of $700 annually for full coverage, then you might consider buying liability only.

There are a few cases where dropping full coverage is not advised. If you still have a lienholder on your title, you must maintain physical damage coverage as part of the loan conditions. Also, if you cannot afford to purchase a different vehicle if your current one is totaled, you should not opt for liability only.

Components of Your GMC Sierra Insurance Prices

Multiple criteria are part of the calculation when pricing auto insurance. Some are pretty understandable such as traffic violations, but others are less obvious like where you live or your commute time. Smart consumers have a good feel for some of the elements that help calculate your policy premiums. If you understand what positively or negatively impacts your premiums, this enables informed choices that could result in lower rates.

Where you live is a factor – Living in small towns and rural areas has it’s advantages when trying to find low car insurance rates. Residents of big cities have much more traffic and more time behind the wheel. Less people living in that area translates into fewer accidents in addition to fewer liability claims.

Buy a safe car and pay less – Vehicles with high crash test scores can get you lower premiums. These vehicles help reduce the chance of injuries in an accident and reduced instances of injuries means less money paid by your insurance company which can result in lower premiums. If your GMC Sierra has ratings of a minimum four stars on Safercar.gov you may pay a lower rate.

High credit equals lower prices – An insured’s credit rating is a large factor in calculating your auto insurance rates. Insureds that have high credit ratings tend to file fewer claims than those with worse credit. So if your credit is low, you could pay less to insure your GMC Sierra by spending a little time repairing your credit.

Always keep your auto insurance policy in force – Driving your car without having proper coverage is illegal and as a result your rates will increase for letting your insurance lapse. And not only will your rates increase, being ticketed for driving with no insurance might get you a hefty fine and possibly a revoked license. You may need to submit proof of financial responsibility or a SR-22 with the Alaska motor vehicle department.

Pay more out-of-pocket – Your deductibles tell how much you are willing to pay if you file a covered claim. Insurance for physical damage, commonly called comprehensive (or other-than-collision) and collision coverage, is used to repair damage to your car. Some coverage claims could be a windshield broken by a bird, vandalism, and damage from wind. The more money you pay before a claim is paid (deductible), the better rate you will receive.

Premiums drop with age – Older people are more cautious drivers, tend to cause fewer accidents, and tend to be get fewer driving tickets. Teen drivers are known to get distracted easily with other occupants in the car so auto insurance rates are higher.

The following chart is based on a single driver, full coverage with $1000 deductibles, and no discounts or violations.

Rates also based on gender – Statistics have proven that females tend to be a little less risky than males. That doesn’t necessarily mean that men are worse drivers. Both sexes cause fender benders in similar numbers, but males cause more damage. Men also tend to get more serious tickets such as DWI and reckless driving.

The diagram below visualizes the comparison of GMC Sierra insurance prices for male and female drivers. The rates are based on no claims, a clean driving record, comp and collision included, $500 deductibles, single marital status, and no other discounts are factored in.

Don’t skimp on liability – Your policy’s liability coverage kicks in if ever you are ruled to be at fault for personal injury or accident damage. Your policy’s liability insurance provides for a legal defense which can be incredibly expensive. This coverage is relatively inexpensive when compared to the cost of physical damage coverage, so drivers should carry high limits.

Insurance loss data for a GMC Sierra – Insurers analyze claim trends for every vehicle to help calculate a profitable premium price. Models that the data determines to have a higher amount or frequency of claims will cost more to insure.

The table below shows the historical insurance loss data for GMC Sierra vehicles. For each insurance policy coverage type, the claim amount for all vehicles averaged together is a value of 100. Numbers shown that are under 100 suggest a better than average loss history, while percentage values above 100 indicate frequent claims or a tendency for losses to be larger than average.

Why you need insurance for your GMC Sierra

Despite the high cost, auto insurance is required in Alaska but it also protects you in many ways.

• The majority of states have mandatory insurance requirements which means the state requires a minimum amount of liability in order to drive the car. In Alaska these limits are 50/100/25 which means you must have $50,000 of bodily injury coverage per person, $100,000 of bodily injury coverage per accident, and $25,000 of property damage coverage.
• If you have a loan on your Sierra, most lenders will make it mandatory that you have insurance to protect their interest in the vehicle. If you let the policy lapse, the lender will be forced to insure your GMC at a significantly higher premium and force you to reimburse them the higher price.
• Auto insurance preserves your vehicle and your assets. Insurance will pay for medical expenses for yourself as well as anyone injured by you. Liability insurance, one of your policy coverages, also pays expenses related to your legal defense if you are sued as the result of an accident. If your car is damaged in a storm or accident, comprehensive and collision coverage will cover the damage repairs after a deductible is paid.

The benefits of carrying adequate insurance more than offset the price you pay, especially for larger claims. On average, a vehicle owner in Anchorage is overpaying more than $865 each year so it’s important to compare rates at least once a year to ensure rates are inline.