Deciphering which company quotes the best car insurance rates for high school students may require a bit more effort in order to find the lowest price. Each insurer has a unique formula for setting rates, so let’s take a look at the car insurance companies with the most affordable rates in Anchorage, AK.
It’s important that you understand Anchorage, AK car insurance rates are calculated based on many things which can significantly increase or decrease the price of coverage. Simply having a birthday, having a claim, or getting a ticket for careless driving may cause policy rate changes that can cause some rates to be cheaper than others.
Best Car Insurance Prices for Students
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| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | Umialik | $892 |
| 2 | USAA | $957 |
| 3 | State Farm | $965 |
| 4 | Progressive | $1,210 |
| 5 | GEICO | $1,905 |
| 6 | Allstate | $2,327 |
| 7 | Safeco | $2,426 |
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Umialik generally has some of the most affordable car insurance rates in Anchorage at around $892 annually. This is $651 less than the average premium paid by Alaska drivers of $1,543. USAA, State Farm, Progressive, and GEICO would also be considered some of the best Anchorage, AK insurance companies.
As the example above demonstrates, if you are a policyholder with GEICO and switched to USAA, you may see an annual premium reduction of in the neighborhood of $948. Insureds with Allstate might save as much as $1,370 a year, and Safeco policyholders might see rate reductions of $1,469 a year.
Understand that those policy prices are averaged across all drivers and vehicles in Alaska and do not factor in a specific location for high school students. So the company that is most affordable for your situation may not even be in the list above. That points out the importance of why you need to get quotes using your own individual information.
The type of vehicle needing coverage is one of the main factors that determines whether or not you can buy economical insurance for high school students. Vehicles with economical engines, a plethora of safety features, or a low likelihood of having liability claims will cost quite a bit less to insure than high performance models. The table below outlines car insurance rates for the cheapest automobiles to buy coverage for.
| Insured Vehicle | Estimated Cost for Full Coverage |
|---|---|
| Honda CR-V EX 4WD | $4,982 |
| Ford Escape Limited 4WD | $5,294 |
| Toyota Prius | $5,344 |
| Chevrolet Impala LS | $5,808 |
| Honda Odyssey EX | $5,814 |
| Ford Focus SE 4-Dr Sedan | $5,808 |
| Chevrolet Malibu LS | $5,856 |
| Toyota RAV4 Limited 2WD | $5,864 |
| Chevrolet Equinox LS AWD | $5,856 |
| Ford F-150 SVT Raptor Super Cab 4WD | $5,905 |
| Ford Explorer Eddie Bauer AWD | $5,915 |
| Dodge Grand Caravan Crew | $5,905 |
| Honda Civic VP 4-Dr Sedan | $6,121 |
| Hyundai Elantra Blue 4-Dr Sedan | $6,129 |
| Toyota Corolla XLE | $6,168 |
| Ford Edge Sport 2WD | $6,175 |
| Toyota Tacoma X-Runner 2WD | $6,168 |
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Data assumes single female 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. Estimates do not factor in specific location information which can raise or lower premium rates greatly.
Looking at the rates, makes and models like the Honda CR-V, Ford Escape, Toyota Prius, and Chevrolet Impala are a few of the most economical vehicles to insure for teenagers. Rates will tend to be higher just because there is more exposure for high school students, but generally speaking those specific models will most likely have the least expensive rates compared to other types of vehicles.
One of the many considerations that are looked at to help calculate auto insurance rates is where you live in Anchorage. More densely populated places tend to have more expensive auto insurance rates, whereas areas with less people or fewer weather incidents have the enjoyment of a little cheaper coverage.
The next table shows the highest-priced areas in Alaska for high school students in which to purchase auto insurance. Anchorage comes in at #2 with an annual premium of $1,295 for car insurance, which is around $108 per month.
| Rank | City | Annual Premium |
|---|---|---|
| 1 | Meadow Lakes | $1,304 |
| 2 | Anchorage | $1,295 |
| 3 | Palmer | $1,291 |
| 4 | College | $1,270 |
| 5 | Wasilla | $1,266 |
| 6 | Homer | $1,238 |
| 7 | Kenai | $1,238 |
| 8 | Fairbanks | $1,234 |
| 9 | Sterling | $1,226 |
| 10 | Nikiski | $1,226 |
| 11 | Kodiak | $1,167 |
| 12 | Ketchikan | $1,035 |
| 13 | Juneau | $1,009 |
| 14 | Sitka | $997 |
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Prices are approximated as the specific geographic location can affect rates noticeably.
Full coverage or liability only
Saving money on car insurance should be important to the majority of drivers, and one great way to buy cheaper insurance for high school students is to buy liability only. The example below shows the comparison of insurance premiums with and without full coverage. The premiums are based on a clean driving record, no claims, $1,000 deductibles, single status, and no other discounts are factored in.
Averaged out for all age groups, full coverage costs an extra $1,550 per year more than just buying liability insurance. That may make you wonder if buying full coverage is a good investment. There is no written rule to drop full coverage on your policy, but there is a guideline you can use. If the annual cost of having full coverage is more than about 10% of the vehicle’s replacement cost less your deductible, then you may need to consider dropping full coverage.
Bad driving habits will cost you more
One of the best ways to score the cheapest car insurance rates for teenagers is to drive attentively and avoid traffic citations and accidents. The information below illustrates how violations and at-fault fender-benders can increase car insurance costs for each age group. The rate quotes are based on a married male driver, full coverage, $100 deductibles, and no discounts are applied to the premium.
In the previous chart, the average cost of auto insurance per year with no accidents or violations is $1,784. Receive two speeding tickets and the average cost rises to $2,471, an increase of $687 each year. Now throw in one accident along with the two speeding tickets and the 12-month cost of car insurance for high school students increases to an average of $3,173. That’s an increase of $1,389, or $116 per month, just for a couple of infractions!
Get discounts on Anchorage car insurance
Car insurance companies that offer coverage for high school students may also give you policy discounts that could reduce prices by as much as 40% or more if you qualify for them. Large car insurance companies and the discounts they provide are outlined below.
- GEICO may offer discounts for federal employee, anti-lock brakes, anti-theft, multi-vehicle, emergency military deployment, air bags, and military active duty.
- Mercury Insurance includes discounts for age of vehicle, professional/association, type of vehicle, low natural disaster claims, and accident-free.
- Farmers Insurance offers premium reductions for teen driver, switch companies, multi-car, homeowner, distant student, and good student.
- Auto-Owners Insurance policyholders can earn discounts including paid in full, group or association, safe vehicle, anti-lock brakes, and multiple vehicles.
- Liberty Mutual has discounts for teen driver discount, good student, preferred payment discount, multi-car, exclusive group savings, new move discount, and multi-policy.
- SAFECO discounts include safe driver, teen safety rewards, multi-car, teen safe driver, accident prevention training, drive less, and bundle discounts.
- Progressive has savings for online quote discount, continuous coverage, multi-policy, multi-vehicle, and homeowner.
- USAA offers discounts including family discount, multi-policy, safe driver, loyalty savings, multi-vehicle, military installation, and vehicle storage.
The chart below illustrates the comparison of yearly insurance costs with and without some available policy discounts. The costs are based on a male driver, a clean driving record, no at-fault accidents, Alaska state minimum liability limits, comprehensive and collision coverage, and $500 deductibles.
The first bar for each age group shows insurance cost with no discounts. The second shows the rates with paid-in-full, good student, anti-theft, vehicle safety, continuous coverage, and passive restraint discounts applied. In this example, theaverage amount saved on car insurance for high school students is 28% or $615.
How to find economical insurance for high school students
The list below shows some penny-pinching suggestions that can help drivers buy more affordable car insurance.
- Increase deductibles to save money
- Do not pay for comprehensive and collision coverage on older vehicles
- Discounts for being claim-free can be substantial
- Drive safe vehicles
- Better credit scores save money
- Save money by insuring your home and auto with the same company
- Compare prices frequently to find the best deal
That last idea is extremely critical, as we hit on in the prior article. Car insurance prices fluctuate constantly, so drivers shouldn’t be resistant to buy from a new company if you can save money. Having a favorite company is fine, but we do not recommend it if that inflexibility results in costing you several hundred dollars every year. Take a few minutes and shop around to find cheaper car insurance for high school students in Anchorage.