What Auto Insurance is Cheapest for 16 Year Olds in Anchorage?

The type of vehicle you are insuring is probably the largest consideration when shopping for the most affordable insurance for 16 year olds. Vehicles with high performance, a lack of modern safety features, or a history of substantial liability claims will cost more to insure than more modest models. The list below presents coverage prices for a selection of the cheaper vehicles to insure in Alaska.

Cheapest Vehicles to Insure in Anchorage, AK
Make and Model Estimated Cost for Full Coverage
Honda Accord LX 4-Dr Sedan $6,005
Hyundai Elantra GLS Touring Station Wagon $6,012
Honda CR-V LX 4WD $6,005
Ford Escape Limited 2WD $6,063
Ford F-150 XL Regular Cab 2WD $6,331
Toyota Prius $6,491
Dodge Grand Caravan SE $6,756
Chevrolet Impala LS $7,068
Toyota Tacoma 2WD $7,075
Honda Odyssey EX $7,068
Chevrolet Equinox LS AWD $7,126
Volkswagen Jetta S 4-Dr Sedan $7,136
Toyota RAV4 Sport 4WD $7,126
Ford Explorer Limited 2WD $7,184
Chevrolet Malibu LT $7,192
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Price data assumes single male driver age 16, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Alaska minimum liability limits. Discounts applied include safe-driver, and claim-free. Rates do not factor in vehicle location which can lower or raise prices greatly.

Based on these rates, you can conclude that makes and models like the Honda Accord, Hyundai Elantra, and Honda CR-V are likely to be some of the more affordable vehicles to insure for new drivers. The price for car insurance will be more costly just due to the fact that there is a higher risk for 16 year olds, but generally speaking those particular vehicles will most likely have the lowest insurance prices that you’ll find.

Deciding which companies quote the lowest-priced auto insurance rates for 16 year olds calls for a little more effort in order to find a policy that fits your budget. Every auto insurer has a unique approach to set their prices, so let’s take a look at the most affordable auto insurance companies in Alaska.

Keep in mind that Anchorage auto insurance rates are impacted by many factors that control the cost of having a policy. Simply having a birthday, moving across town, or getting a few speeding tickets can trigger price changes that can cause some rates to be affordable when they were higher priced.

Cheapest Insurance Rates for Teens

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Cheapest Alaska car insurance ranked by price
Rank Company Cost Per Year
1 Umialik $892
2 USAA $967
3 State Farm $995
4 Progressive $1,210
5 GEICO $1,905
6 Allstate $2,397
7 Safeco $2,526
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Umialik normally has some of the most affordable car insurance rates in Anchorage at around $892 a year. This is $651 less than the average premium paid by Alaska drivers of $1,543. USAA, State Farm, Progressive, and GEICO also make the cut as some of the most economical Anchorage, AK insurance companies.

As shown in the rates above, if you have coverage with Progressive and switched to Umialik, you could realize savings of roughly $318. Customers with GEICO might save as much as $1,013 a year, and Allstate policyholders might cut rates by $1,505 a year.

These policy prices are averages across all drivers and vehicles in Alaska and and are not figured with a vehicle location for 16 year olds. So the car insurance company that is best for you may not even be in the list above. That is why you need to get car insurance quotes using your own personalized driver profile and vehicle information.

Impact of violations and accidents on rates

A great way to snag good auto insurance rates in Anchorage for new drivers is to drive safe and maintain a clean driving record. The diagram below highlights how speeding tickets and accident claims can affect insurance rates for each different age category. The rates are based on a single female driver, comprehensive and collision coverage, $250 deductibles, and no discounts are factored in.

The data charted above shows the average cost of auto insurance in Anchorage per year with no violations or accidents is $1,503. Add in two speeding tickets and the average cost surges to $2,020, an increase of $517 each year. Then add in two accidents along with the two speeding tickets and the 12-month cost of auto insurance for 16 year olds increases to an average of $3,842. That’s an increase of $2,339, or $195 per month, just for being a little careless behind the wheel!

Difference between liability only and full coverage rates

Saving money on auto insurance is the goal of the majority of people, and an effective way to buy cheaper insurance for 16 year olds is to not pay for full coverage. The diagram below compares car insurance costs when comparing full coverage to liability only. The data is based on no accidents, no driving violations, $250 deductibles, drivers are not married, and no additional discounts are factored in.

Averaged for all age groups, physical damage coverage costs an extra $1,434 per year more than buying just liability insurance. That amount may make you wonder if buying full coverage is a good investment. There isn’t a written rule to drop comprehensive and collision coverage on your policy, but there is a guideline you can use. If the yearly cost of full coverage is more than 10% of the vehicle’s replacement cost less your deductible, then you might consider buying liability only.

Why it’s important to shop around

Anchorage, AK auto insurance rates are determined by lots of factors that may substantially change the price you pay for coverage. Simply having a birthday, buying a new vehicle, or getting a ticket for careless driving can trigger price changes that can make some companies cheaper than competitors. Not only may your risk profile change, but companies modify rates as often as every quarter in order to be able to pay unexpected claims. A period of higher than normal claims may cause higher priced premiums, while a lower level of claims may result in more affordable Anchorage car insurance rates.

To help illustrate this point, the chart below shows which companies have the cheapest car insurance in Anchorage, AK for a 45-year-old male driver with a good driving record, no prior claims, and good financial standing. When comparing rates based on his current rating profile, Umialik may have the lowest car insurance rates in Anchorage at $1,170 per year. This is $373 less than the average policy premium paid by Alaska drivers of $1,543. USAA, State Farm, Progressive, and GEICO are also on the list of the most affordable Anchorage, AK auto insurance companies.

The chart below compares rates after we give the driver from the above example some claims, a little lower credit rating, and an imperfect driving record. Because each insurer has a unique approach for determining prices, getting updated rate quotes could now result in a different list of the cheapest Anchorage car insurance companies as shown below.

USAA now has the lowest price on auto insurance in Anchorage, AK with State Farm, Umialik, Progressive, and Safeco completing the list. This example shows why it is critical to shop around to find the most economical insurance quotes for 16 year olds.

Car insurance prices can be determined by many risk factors and can increase or decrease at any time, so the most economical company the last time you shopped around may now be priced much higher than other options.

The agencies below can provide answers to your questions and help you determine which insurance coverage will be best for you, as some people have coverage questions and would like to have the advice of a professional agent when trying to find the best insurance rates for 16 year olds. It can be challenging to find the cheapest rate yourself, so getting advice from a licensed Alaska insurance agent can provide peace of mind knowing your policy gives you sufficient coverage for your assets.

To find an Anchorage insurance agent in your neighborhood, click the button following the list.

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