The vehicle model you are buying coverage for is one of the primary factors when quoting the most affordable car insurance for college graduates. Vehicles with lower performance, an excellent safety record, or a low likelihood of liability claims will cost much less to insure than higher performance models.
The list below shows insurance costs for a selection of the cheaper vehicles to insure in Alaska.
|Make and Model||Estimated Cost for Full Coverage|
|Honda Accord EX 4-Dr Sedan||$1,325|
|Ford Escape XLS 4WD||$1,330|
|Honda CR-V LX 2WD||$1,452|
|Volkswagen Jetta LE 4-Dr Sedan||$1,572|
|Chevrolet Malibu LT||$1,603|
|Hyundai Elantra Blue 4-Dr Sedan||$1,629|
|Dodge Grand Caravan CV||$1,631|
|Nissan Rogue SL 2WD||$1,683|
|GMC Sierra SLT Extended Cab 4WD||$1,689|
|Ford Explorer XLT 4WD||$1,694|
|Toyota Tacoma 4WD||$1,689|
|Jeep Grand Cherokee Laredo 4WD||$1,725|
|Honda Odyssey EX W/Rear Entertainment||$1,733|
|Dodge Ram 3500 Crew Cab Laramie 2WD||$1,759|
|Toyota RAV4 Sport 2WD||$1,772|
|Chevrolet Impala LT||$1,779|
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Data 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, safe-driver, claim-free, multi-policy, and multi-vehicle. Premium amounts do not factor in specific location which can influence premium rates greatly.
Looking at the numbers, you can figure that models like the Honda Accord, Ford Escape, Honda CR-V, Toyota Prius, and Volkswagen Jetta will definitely be the cheaper vehicles to insure for college grads.
Trying to buy low-priced insurance is challenging, and figuring out which companies have the cheapest car insurance rates for college graduates will involve even more work. Every insurance company has a unique formula to set premium rates, so we need to take a look at the lowest cost car insurance companies in Anchorage, AK.
It’s a good idea to be aware that Alaska car insurance rates are calculated based on many things that can increase your annual premium. Simply getting older, buying a home, or getting a ticket for running a stop sign can trigger price changes that can make some companies cheaper than competitors.
Best Insurance Companies for Grads
|Rank||Company||Cost Per Year|
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Umialik may have some of the most affordable car insurance rates in Anchorage at around $901 per year. USAA, State Farm, Progressive, and GEICO are also some of the cheapest Anchorage, AK auto insurance companies.
As shown above, if you buy coverage from Progressive and switched to USAA, you could see a yearly price reduction of in the vicinity of $303. Policyholders with GEICO might save as much as $1,005 a year, and Allstate policyholders might cut rates by $1,370 a year.
Bear in mind that those premiums are averaged across all drivers and vehicles in Alaska and do not take into consideration a specific zip code for college graduates. So the car insurance company that fits you best may not even be in the list above. That affirms the importance of why you need to compare rates from as many companies as possible using your own individual information.
Types of discounts on Anchorage insurance rates
Insurance companies that offer cheap quotes for college graduates may additionally offer rate discounts that can reduce rates by as much as 30% if you qualify for them. Larger car insurance companies and a partial list of their discounts are shown below.
- GEICO may offer discounts for military active duty, driver training, daytime running lights, multi-policy, anti-theft, federal employee, and anti-lock brakes.
- USAA may have discounts that include new vehicle, military installation, good student, family discount, vehicle storage, multi-policy, and loyalty savings.
- Progressive policyholders can earn discounts including homeowner, multi-vehicle, continuous coverage, online quote discount, online signing, and good student.
- American Family may include discounts for mySafetyValet, good driver, TimeAway discount, Steer into Savings, multi-vehicle, early bird, and accident-free.
- Esurance includes discounts for DriveSense, anti-theft, paid-in-full, homeowner, online quote, and multi-policy.
- Farmers Insurance offers discounts including early shopping, bundle discounts, switch companies, good student, business and professional, and youthful driver.
- State Farm has savings for multiple policy, accident-free, good driver, Drive Safe & Save, Steer Clear safe driver discount, and anti-theft.
The example below visualizes the comparison of auto insurance rates with and without discounts applied to the premium. The rate quotes are based on a female driver, a clean driving record, no claims, Alaska state minimum liability limits, full coverage, and $250 deductibles.
The first bar for each age group shows the price with no discounts. The second bar shows the rates with multiple policy, homeowner, vehicle safety, anti-theft, marriage, and accident-free discounts applied. When discounts are factored in, theamount saved on car insurance for college graduates is 27% or $413.
Does it make sense to buy full coverage?
Paying a lower price for car insurance is the goal of the majority of vehicle owners, and one easy way to find cheaper insurance for college graduates is to only buy liability insurance. The chart below shows the difference between car insurance costs with full physical damage coverage compared to only buying liability only. The rates are based on no claims or violations, $500 deductibles, drivers are not married, and no additional discounts are factored in.
Averaged for all age groups, physical damage insurance costs an extra $1,744 per year more than just buying liability insurance. Many drivers will wonder if you should buy full coverage. There is no definitive rule of when to exclude full coverage, but there is a general school of thought. If the annual cost of comprehensive and collision coverage is more than 10% of the replacement cost minus the deductible, then it could be time to drop full coverage.
For example, let’s assume your vehicle’s claim settlement value is $3,000 and you have $1,000 policy deductibles. If your vehicle is damaged in an accident, the most you would receive is $2,000 after you pay the deductible. If you are currently paying more than $200 a year for physical damage coverage, then you may want to consider only buying liability coverage.
Why are you paying too much for Anchorage car insurance?
Alaska car insurance rates are impacted by many factors that can increase the policy price. Simply improving your credit, increasing liability limits, or getting a DUI can trigger rate changes resulting in some companies being affordable when they were higher priced.
Not only may your situation change, but insurance companies change their prices as often as every quarter to help ensure profitability. Heavier than normal losses can result in rate hikes, while a lower level of claims may produce cheaper Anchorage car insurance rates.
The graph below compares the cheapest car insurance in Anchorage, AK for a 35-year-old female driver with no prior claims, no tickets, and a decent credit rating. If we estimate rates based on her personal risk profile, Umialik has the lowest car insurance rates in Anchorage at $1,135 annually. This is $408 less than the average rate paid by Alaska drivers of $1,543. USAA, State Farm, Progressive, and GEICO are the rest of the best Anchorage, AK auto insurance companies.
The next chart shows rates after we give the driver from the above example a couple of claims, poor credit, and a speeding ticket. Since every car insurance company has a unique approach for determining rates in each state, analyzing rates will most likely result in a substantially altered list of affordable Anchorage car insurance companies as shown below.
USAA now has the best price on car insurance in Anchorage, AK with State Farm, Umialik, Progressive, and Safeco completing the list. This example illustrates why it is critical to shop around with many companies to get the cheapest car insurance quotes for college graduates. Auto insurance prices are determined by many factors and change dramatically, so the best company two years ago may now be costing you a lot of money.