For teen drivers, one of the largest components that are looked at to determine the cost of insurance is where you live in Anchorage. Areas with increased crime or more people tend to have more expensive auto insurance rates, whereas areas with lower crime rates and fewer weather claims have the benefit of cheaper car insurance.
The next table shows the highest-priced places in Alaska for 17 year olds in which to purchase auto insurance. Anchorage shows up at #1 with the annual price of $1,295 for the average insured, which is approximately $108 each month.
|Rank||City||Premium Per Year|
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Rate quotes are comparative as the specific garaging location can lower or raise insurance rates significantly.
The make and model of vehicle requiring coverage is one of the primary factors that determines whether or not you can buy the most affordable car insurance for 17 year olds. Vehicles with higher performance, poor passenger safety features, or a high likelihood of having liability claims will cost more to insure than more economical and safe models.
The table below ranks car insurance premiums for some of the cheaper automobiles to insure.
|Make, Model, and Trim Level||Estimated Cost for Full Coverage|
|Ford Escape XLS 4WD||$5,359|
|Honda CR-V EX-L 4WD||$5,416|
|Dodge Grand Caravan SE||$6,009|
|Toyota Tacoma 4WD||$6,018|
|Jeep Wrangler Rubicon 4WD 2-Dr||$6,009|
|Ford F-150 XL Crew Cab 4WD||$6,066|
|Ford Edge Limited 2WD||$6,302|
|GMC Sierra SLE Regular Cab 2WD||$6,359|
|Chevrolet Malibu LS||$6,369|
|Jeep Grand Cherokee Laredo 2WD||$6,359|
|Toyota RAV4 Sport 2WD||$6,365|
|Ford Explorer Limited AWD||$6,416|
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Data based on single male driver age 17, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Alaska minimum liability limits. Discounts applied include claim-free, and safe-driver. Rate information does not factor in the specific area where the vehicle is garaged which can change coverage rates significantly.
By looking at the data, you can assume that vehicles like the Ford Escape, Honda CR-V, Toyota Prius, Dodge Grand Caravan, and Toyota Tacoma are going to be a few of the most economical vehicles to insure for teen drivers. The price for car insurance will be more expensive just because there is more inherent risk for 17 year olds, but generally speaking those models will probably have the lowest insurance prices possible.
Driving violations and accidents
The obvious way to earn the cheapest insurance prices in Anchorage for teen drivers is to be a careful driver and not receive tickets or have accidents. The illustration below illustrates how violations and at-fault claims can influence insurance costs for each age group. The premiums assume a married female driver, comp and collision included, $250 deductibles, and no policy discounts are applied.
The data charted above shows the average cost of car insurance in Alaska per year with a clean driving record and no accidents is $1,225. Get one speeding ticket and the average cost hikes up to $1,424, an increase of $200 each year. Now add two accidents along with the one speeding ticket and the yearly cost of insurance for 17 year olds jumps again to an average of $3,085. That’s an increase of $1,860, or $155 per month, just for not maintaining a clean driving record!
Full coverage rates compared to liability-only
Finding the cheapest insurance is important to the majority of people, and one of the fastest ways to find cheap insurance for 17 year olds is to buy liability only. The diagram below illustrates the difference between car insurance costs with and without physical damage coverage, medical payments, and uninsured/under-insured motorist coverage. The premiums assume a clean driving record, no at-fault accidents, $100 deductibles, drivers are single, and no other discounts are factored in.
As an overall average, full coverage on your policy costs an extra $1,566 per year over and above liability coverage. That is a big expense that brings up the question if buying full coverage is worth the expense. There is no clear-cut rule for phasing out physical damage coverage, but there is a general guideline you can use. If the annual cost of your full coverage insurance is about 10% or more of the replacement cost minus the deductible, then you might want to consider buying only liability coverage.
For example, let’s pretend your vehicle’s replacement cost is $4,000 and you have $1,000 physical damage deductibles. If your vehicle is damaged in an accident, the most your company would pay you is $3,000 after paying your policy deductible. If you are paying in excess of $300 annually to have full coverage, then it might be time to consider dropping full coverage.
There are some conditions where only buying liability is not a good plan. If you haven’t paid off your loan, you have to maintain full coverage in order to prevent the bank from purchasing higher-priced coverage. Also, if you cannot afford to purchase a different vehicle in the event your current vehicle is totaled, you should not eliminate full coverage.
Types of discounts on Anchorage insurance rates
Insurance companies that provide policies for 17 year olds may additionally offer rate discounts that could lower prices by 25% or more if you meet certain criteria. A list of insurance companies and a partial list of their discounts include:
- State Farm may have discounts that include multiple autos, student away at school, passive restraint, good student, Drive Safe & Save, and driver’s education.
- Esurance offers premium reductions for paid-in-full, renters, homeowner, good driver, online shopper, and multi-policy.
- Progressive offers discounts including multi-vehicle, continuous coverage, homeowner, good student, online signing, and online quote discount.
- Liberty Mutual has savings for safety features, hybrid vehicle, new move discount, multi-car, new graduate, exclusive group savings, and teen driver discount.
- Auto-Owners Insurance may include discounts for air bags, student away at school, paid in full, group or association, anti-theft, company car, and anti-lock brakes.
- GEICO offers discounts for air bags, multi-vehicle, seat belt use, good student, driver training, daytime running lights, and membership and employees.
The example below shows the difference between insurance prices with and without some available policy discounts. The information is based on a female driver, no claims, a clean driving record, Alaska state minimum liability limits, comprehensive and collision coverage, and $500 deductibles. The first bar for each age group shows the price with no discounts. The second bar shows the rates with paid-in-full, anti-theft, passive restraint, continuous coverage, vehicle safety, and paperless filing discounts applied. When drivers qualify for the discounts, the average amount saved each year on insurance for 17 year olds is 28% or $427.
Ideas to find low-cost car insurance for 17 year olds
The list below summarizes a few money-saving ideas that can help Anchorage drivers buy cheaper coverage.
- Bundle car and home insurance and save money
- Choose a safer vehicle and pay lower rates
- Do not get traffic tickets
- If possible, pay for small claims out-of-pocket
- Save money by insuring older vehicles for liability only
- Prevent rate increases by staying accident-free
- Shop around for lower rates once a year
The final tip is especially crucial, as we stressed in the prior information. Rates can be modified anytime, so don’t be tentative to switch carriers if a lower-cost policy is available.
Having brand loyalty is commendable, but it’s not a good idea if that loyalty results in overpaying a fortune every year. In just a few minutes you could shop around to find cheaper auto insurance for 17 year olds in Anchorage.
The insurance agencies listed below can help you determine which policy fits your needs best, since some people prefer to have a professional recommendation when shopping for cheaper insurance for teen drivers. It can be time-consuming to find the best coverage yourself, so agents can provide you comfort knowing your coverage gives you adequate coverage when you need it most. To find an agent near you, click the button at the bottom.
- Allstate Insurance: Katrina J. Cain
540 Karluk St – Anchorage, AK 99501 – (907) 274-2886
- Allstate Insurance: Babette Miller
3304 Spenard Rd – Anchorage, AK 99503 – (907) 561-7671
- Conrad-Houston Insurance
507 W Northern Lights Blvd – Anchorage, AK 99503 – (907) 276-7667