It’s impossible to miss the catchy advertisements from car insurance companies like Nationwide, GEICO, and Farmers guaranteeing big savings, so drivers just need to pick the company with the cutest commercial, right?
It’s not that simple, unfortunately, as there are many unknowns such as your credit rating, the area where you live, the amount of liability coverage you want, and your annual mileage driven, that all factor into the price you pay. In this article, we will teach you about some of these factors and educate you enough to have a good beginning to your search for cheaper coverage.
The vehicle you are insuring is a large factor that determines the availability of the best cheap insurance for a company car. Vehicles with reasonable performance levels, good crash test ratings, or a positive history of liability claims will cost much less to insure than high performance models. The next list outlines auto insurance rates for a selection of the most economical automobiles to insure.
|Vehicle Make and Model||Estimated Cost for Full Coverage|
|Honda CR-V LX 4WD||$1,417|
|Ford F-150 XLT Regular Cab 2WD||$1,555|
|Jeep Wrangler Sahara 4WD 2-Dr||$1,587|
|Ford Escape XLS 2WD||$1,623|
|Honda Accord LX-P 4-Dr Sedan||$1,628|
|Honda Civic DX 4-Dr Sedan||$1,641|
|Jeep Grand Cherokee Laredo 2WD||$1,674|
|Ford Explorer Eddie Bauer AWD||$1,706|
|Toyota Corolla XLE||$1,760|
|Hyundai Elantra SE 4-Dr Sedan||$1,769|
|Honda Odyssey LX||$1,782|
|Ford Edge Limited 2WD||$1,882|
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Data variables include 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, multi-policy, homeowner, safe-driver, and claim-free. Price estimates do not factor in the specific area where the vehicle is garaged which can modify premiums significantly.
Based upon the table data, vehicles like the Honda CR-V, Ford F-150, Toyota Prius, and Jeep Wrangler should be some of the cheaper vehicles to insure for your employer’s vehicle.
Finding dependable, cheap car insurance is not the easiest thing to accomplish, and finding out which companies offer the lowest-priced insurance rates for a company car calls for even more diligence. Every insurance company uses a slightly different approach for setting prices, so to begin we’ll rank the insurance companies with the overall cheapest rates in Anchorage, AK.
Compare Cheap Insurance Quotes in Alaska
|Rank||Company||Cost Per Year|
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Umialik has some of the lowest 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 also qualify as some of the best Anchorage, AK insurance companies.
In this example, if you currently have coverage with GEICO and switched to USAA, you could realize savings of approximately $995. Alaska drivers with Allstate may save as much as $1,336 a year, and Safeco insureds might see rate reductions of $1,534 a year.
These estimates are averaged across all drivers and vehicles in Alaska and do not take into consideration a specific zip code for a company car. So the company that can offer you the lowest price may not even be in the list above. That points out the importance of why you need to get quotes using your own driver information and specific vehicle type.
One of the more important factors that help determine the amount you pay each year for auto insurance is the neighborhood you call home in Anchorage. Areas with more people or more claims tend to pay slightly more, whereas areas with fewer weather claims and lower vehicle theft rates get the luxury of paying less.
The following table ranks the most costly cities in Alaska for a company car in which to purchase auto insurance. Anchorage shows up at #2 with the annual price of $1,269 for coverage, which is around $106 per month.
|Rank||City||Premium Per Year|
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Price information shown is comparative as zip code location can decrease or increase coverage prices considerably.
Comparison of full coverage and liability-only policies
Reducing the cost of insurance is important to the majority of drivers, and one of the best ways to lower the cost of insurance for a company car is to only buy liability insurance. The example below illustrates the difference between car insurance costs with full physical damage coverage and with liability coverage only. The costs are based on no violations or accidents, $100 deductibles, single status, and no discounts are factored in.
As an average for all age groups, physical damage insurance costs $2,095 per year over liability only. That touches on the question if you should buy full coverage at all. There is no clear-cut rule to stop buying full coverage on your policy, but there is a general convention. If the yearly cost of comp and collision coverage is 10% or more of the vehicle’s replacement cost less your deductible, then you may need to consider dropping full coverage.
The information below illustrates how your choice of deductibles can influence insurance costs when searching for cheap insurance for a company car. The data assumes a married male driver, comp and collision included, and no additional discounts are factored in.
As shown above, a 30-year-old driver could lower rates by $282 a year by switching their comprehensive and collision coverages from a $100 deductible to a $500 deductible, or save $426 by changing to a $1,000 deductible. Younger drivers, like the 20-year-old, could lower their rates as much as $860 or more by choosing a larger deductible amount. When raising deductibles, it will now be necessary to have plenty of savings on hand to enable you to pay the extra out-of-pocket expense, which is the main inconvenience of larger deductibles.
Driving violations and accidents
The best way to receive the best insurance premiums in Alaska for your employer’s vehicle is to be a good driver and avoid getting tickets or having accidents. The illustration below demonstrates how speeding tickets and at-fault collisions impact insurance premiums for different insured age categories. The data assumes a married male driver, full physical damage coverage, $100 deductibles, and no discounts are applied to the premium.
In the previous chart, the average cost of a car insurance policy in Anchorage per year with no accidents and a clean driving record is $1,820. Get two speeding tickets and the average cost hikes up to $2,519, an increase of $700 each year. Then include two accidents along with the two speeding tickets and the yearly cost of insurance for a company car goes up to an average of $4,982. That’s an increase of $3,163, or $264 per month, just for not being more responsible behind the wheel!
Shop around and save
Anchorage insurance rates are impacted by many things that can increase the price you have to pay for coverage. Simply getting older, having a teen driver, or getting a few speeding tickets can trigger price changes that can make some companies cheaper than competitors. Not only may things change on your end, but insurers amend premium rates every year as an adjustment for underwriting gains or losses. A period of increased losses can result in more expensive prices, while long-term profits may produce cheaper Anchorage car insurance rates.
The chart below shows which company has the cheapest car insurance in Anchorage, AK for a 30-year-old male driver with no accidents or violations, and excellent credit. If we estimate rates based on his current rating profile, Umialik has the most affordable car insurance rates in Anchorage at $1,168 per year. This is $375 less than the average price paid by Alaska drivers of $1,543. USAA, State Farm, Progressive, and GEICO round out the rest of the best Anchorage, AK auto insurance companies.
In this example, we will give the driver from the above example an accident surcharge, bad credit, and a speeding citation. Due to the fact that each insurance company has a proprietary formula for setting prices, getting updated rate quotes may result in a different set of cheap Anchorage auto insurance companies as shown below.
USAA now has the best price on car insurance in Anchorage with State Farm, Umialik, Progressive, and Safeco also being competitive. This shows why drivers need to compare many different companies when trying to get cheap insurance quotes for a company car.
Rates are calculated by many factors and change dramatically, so the most economical company the last time you compared rates may now not even be in the top five.