You have probably watched the captivating commercials from insurers like Allstate, GEICO, and Progressive that guarantee huge savings. So drivers just need to choose the one with the flashiest ad, right?
Unfortunately, it’s just not that easy, as there are a whole slew of unknown factors like your marital status, the likelihood of vehicle theft where you live, and what level of deductibles you need. This article will detail the different ways to avoid overpaying and will give you a good beginning to your quest for cheaper car insurance in Alaska.
One of the many things that are looked at to help calculate the price you pay for insurance is where you choose to live in Anchorage. Cities with more crime and/or more people are more likely to have higher rates, whereas areas with fewer weather claims and lower vehicle theft rates can boast about having cheaper rates.
The next table sorts the most costly cities in Alaska for infrequent drivers to buy car insurance in. Anchorage comes in at #4 with a yearly premium of $1,256 on average, which is about $105 monthly.
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Premium costs are approximated as specific Anchorage zip code can influence prices substantially.
Buying cheap auto insurance is not most people’s favorite thing to do, and deciding which companies offer the most affordable car insurance rates for infrequent drivers will require more quotes for comparison. Each auto insurance company uses different criteria for determining rates in each state, so first let’s look at the rankings for the most competitive car insurance companies in Alaska.
Best Insurance Companies in Alaska
|Rank||Company||Cost Per Year|
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Umialik normally has some of the most affordable car insurance rates in Anchorage at around $874 a year. This is $669 less than the average policy premium paid by Alaska drivers of $1,543. USAA, State Farm, Progressive, and GEICO would also make the list of some of the cheapest Anchorage, AK auto insurance companies.
In the above rates, if you are insured with USAA and switched to Umialik, you may see savings of approximately $83. Alaska drivers with State Farm might save as much as $91 a year, and Progressive customers might cut rates by $373 a year.
It’s important to note that these policy prices are averages across all insureds and vehicles and and are not figured with an exact location for infrequent drivers. So the car insurance company that can offer the best rates for your situation may not even be in the list above. That point stresses why you need to compare rates from multiple companies using your own individual information.
The vehicle requiring insurance is a large consideration in finding the best insurance for infrequent drivers. Vehicles with high performance features, poor crash test ratings, or a history of substantial liability claims will cost quite a bit more to insure than safer models. The next list shows coverage rates for some of the more affordable automobiles to buy insurance for.
|Make, Model, and Trim Level||Estimated Cost for Full Coverage|
|Hyundai Elantra GLS Touring Station Wagon||$1,581|
|Honda CR-V EX-L 4WD||$1,670|
|Jeep Wrangler Sport 4WD 2-Dr||$1,702|
|Toyota Camry LE||$1,708|
|Toyota RAV4 2WD||$1,716|
|Ford Escape Limited 4WD||$1,721|
|Dodge Grand Caravan SE||$1,767|
|Chevrolet Silverado LT Regular Cab||$1,830|
|Honda Odyssey Touring||$1,832|
|GMC Sierra SLE Crew Cab 2WD||$1,838|
|Chevrolet Malibu LTZ||$1,832|
|Ford Fusion Sport 4-Dr Sedan||$1,838|
|Ford Explorer Eddie Bauer 2WD||$1,835|
|Dodge Ram Crew Cab ST 4WD||$1,862|
|Chevrolet Impala LT||$1,870|
|Chevrolet Silverado 2500HD LTZ Crew Cab Diesel 4WD||$1,957|
|Toyota Tacoma Double Cab 4WD||$1,968|
|Toyota Corolla LE||$1,973|
|Hyundai Sonata GLS 4-Dr Sedan||$2,000|
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Data rating is based on single male driver age 30, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Alaska minimum liability limits. Discounts applied include homeowner, multi-policy, safe-driver, multi-vehicle, and claim-free. Premium costs do not factor in specific garaging location which can increase or decrease prices significantly.
Looking at the data, you can conclude that vehicles like the Hyundai Elantra, Toyota Prius, Honda CR-V, and Jeep Wrangler are likely to be the most affordable vehicles to insure for low mileage drivers.
Cost difference between full coverage and liability
Finding cheaper car insurance is the goal of most people, and one of the best ways to pay less for insurance for infrequent drivers is to not buy comprehensive and collision coverage. The information below shows the comparison of premium costs when comparing full coverage to liability only. The price estimates are based on no violations or accidents, $1,000 deductibles, single marital status, and no discounts are factored in.
Averaged for all ages 20 through 70, full coverage on your policy costs $1,530 per year over liability only. That is a significant amount which raises the question if buying full coverage is a waste of money. There isn’t a written rule to exclude physical damage insurance, but there is a general guideline you can use. If the annual cost of coverage is more than 10% of any settlement you would receive from your insurance company, then it might be time to buy liability only.
For example, let’s pretend your vehicle’s claim settlement value is $11,500 and you have $1,000 deductibles. If your vehicle is totaled in an accident, the most you would receive is $10,500 after paying your policy deductible. If premium cost is more than $1,050 a year for full coverage, then you might want to think about dropping full coverage.
There are some scenarios where dropping physical damage coverage is not advised. If you have an outstanding loan on your vehicle, you are required to maintain full coverage to protect the lienholder’s interest in the vehicle. Also, if your emergency fund is not enough to purchase a different vehicle in case of an accident, you should not drop full coverage.
How careless driving impacts Anchorage car insurance rates
In a perfect world, the ideal way to receive cheap car insurance prices in Anchorage for low mileage drivers is to be an attentive driver and avoid accidents and keep your driving record clean. The chart below shows how traffic citations and at-fault collisions can drive up auto insurance costs for each different age category. The information is based on a married female driver, comp and collision included, $1,000 deductibles, and no discounts are factored in.
In the prior example, the average cost of an auto insurance policy per year with a clean driving record and no accidents is $882. Get written up for two speeding tickets and the average cost rises to $1,242, an increase of $360 each year. Now get two accidents along with the two speeding tickets and the yearly cost of car insurance for infrequent drivers increases to an average of $2,752. That’s an increase of $1,870, or $156 per month, just for not being a responsible driver!
Picking the best insurance provider can be rather challenging considering how many companies provide coverage in Alaska. The ranking data in the lists below could help you decide which auto insurance companies you want to consider when comparing insurance rates for infrequent drivers. The rankings below are only comprised of companies who write in the majority of U.S. states, so companies that may only write in Alaska are not included in this list.
|Company||Value||Customer Service||Claims||Customer Satisfaction||A.M Best Rating||Overall Score|
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Data Source: Insure.com Best Car Insurance Companies
Why you should shop around
Alaska car insurance rates are impacted by many things that can increase the cost of a policy. Turning one year older, buying a different home, or getting a ticket for careless driving can cause premium changes that may make certain companies cheaper than competitors. In addition, auto insurance companies change rates at least once a year in order to maintain liquidity for claims. Significantly higher losses can result in higher prices, while lower claims can cause lower-priced Anchorage car insurance rates.
To illustrate this example, the data below shows the cheapest car insurance in Anchorage, AK for a 40-year-old male driver with no prior claims, no tickets, and a good credit history. If we compare prices based on his current rating profile, Umialik may have the lowest car insurance rates in Anchorage at $1,183 a year. This is $360 less than the average price paid by Alaska drivers of $1,543. USAA, State Farm, Progressive, and GEICO are also included in the cheapest Anchorage, AK auto insurance companies.
In this next rate comparison, we will give the driver from the first example an accident surcharge, bad credit, and a traffic ticket or two. Due to the fact that every auto insurer uses their own formula for determining rates, analyzing rate quotes could now result in a different list of the cheapest companies as shown below.
USAA now has the cheapest insurance rate in Anchorage, AK with State Farm, Umialik, Progressive, and Safeco also having competitive pricing. This example illustrates why it is critical to perform an extensive rate comparison to get the lowest insurance quotes for infrequent drivers.
Car insurance prices are determined by many risk factors and change dramatically, so the most affordable company when you last compared rates may now be one of the higher cost companies.