The make and model of vehicle you are insuring is a significant factor when shopping for low-cost car insurance for drivers under 25. Vehicles with reasonable performance levels, excellent safety ratings, or a low likelihood of liability claims will cost substantially less to insure than fast, unsafe models. The list below showcases car insurance prices for the cheaper automobiles to buy coverage for.
|Make and Model||Estimated Cost for Full Coverage|
|Ford Escape XLS 4WD||$3,427|
|Honda CR-V EX-L 2WD||$3,479|
|Dodge Grand Caravan CV||$3,813|
|Jeep Wrangler Rubicon 4WD 2-Dr||$3,822|
|Ford Edge SE AWD||$4,018|
|Ford Focus SE 4-Dr Sedan||$4,024|
|Volkswagen Jetta LE 4-Dr Sedan||$4,070|
|Chevrolet Malibu Hybrid||$4,077|
|Ford Fusion S 4-Dr Sedan||$4,070|
|Toyota RAV4 Limited 4WD||$4,078|
|Toyota Tacoma Double Cab 4WD||$4,119|
|Ford F-150 Lariat Super Cab 2WD||$4,129|
|Ford Explorer Limited AWD||$4,119|
|Hyundai Elantra Blue 4-Dr Sedan||$4,272|
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Price data assumes single male driver age 20, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Alaska minimum liability limits. Discounts applied include safe-driver, and claim-free. Price estimates do not factor in your specific Anchorage, AK location which can influence price quotes considerably.
Based upon the rates shown, you can presume that cars like the Ford Escape, Honda CR-V, Toyota Prius, Dodge Grand Caravan, and Jeep Wrangler are likely to be some of the more affordable vehicles to insure for drivers age 25 and younger. Auto insurance rates will be more expensive because of the fact that there is more claim exposure for drivers under 25, but in general those models will tend to have the best rates possible.
One of the more important components that are used to help calculate car insurance rates is where you choose to live. Cities with more crime and/or more people tend to pay more, whereas areas with lower crime rates and fewer weather claims profit from lower rates.
The illustration below rates the highest-priced areas in Alaska for drivers under 25 in which to purchase auto insurance. Anchorage shows up at #5 with the annual price of $1,256 for coverage, which is about $105 monthly.
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Premium costs are estimated as vehicle location can affect auto insurance rates noticeably.
The example below shows how choosing a deductible can raise or lower insurance premiums when searching for cheap insurance for drivers under 25. The information is based on a married male driver, full coverage, and no other discounts are factored in.
As shown above, a 30-year-old driver could reduce rates by $282 a year by increasing from a $100 deductible to a $500 deductible, or save $426 by using a $1,000 deductible. Even younger insureds, like the age 20 example, could drop their prices $860 or more just by choosing larger deductibles. When raising deductibles, it is necessary to have enough spare savings to offset the extra out-of-pocket expense, which is the one disadvantage of using larger deductibles.
Comparison of full coverage and liability-only policies
Finding cheaper insurance is important to the majority of vehicle owners, and one good way to lower the cost of insurance for drivers under 25 is to only pay for liability coverage. The diagram below shows the comparison of car insurance costs with full physical damage coverage compared to only buying liability only. The price estimates are based on no claims or driving citations, $1,000 deductibles, drivers are single, and no policy discounts are applied.
As an average for all age groups, full coverage on your policy costs an extra $1,243 per year more than carrying just liability coverage. At some point, almost every driver questions if it’s a good idea to buy full coverage. There is no definitive formula to delete physical damage coverage, but there is a guideline you can use. If the annual cost of your full coverage insurance is more than about 10% of replacement cost minus your deductible, then you may need to consider dropping full coverage.
For example, let’s pretend your vehicle’s replacement cost is $7,500 and you have $1,000 physical damage deductibles. If your vehicle is totaled, the most your company would pay you is $6,500 after paying your deductible. If you are currently paying more than $650 a year for your policy with full coverage, then you may need to consider dropping full coverage.
There are some scenarios where eliminating full coverage is not financially feasible. If you still have a loan on your vehicle, you must maintain physical damage coverage as part of the loan conditions. Also, if your savings is not enough to buy a different vehicle in the event your current vehicle is totaled, you should keep full coverage.
How to find budget-friendly car insurance for drivers under 25
It’s not impossible to find cheaper rates, and here are a few penny-pinching solutions that can help Alaska drivers get cheaper auto insurance.
- Claim-free drivers earn discounts
- Do not insure for full coverage
- Raise comprehensive and collision coverage deductibles
- Avoid accidents and claims
- Do not get traffic citations
- Check for cheaper rates once a year
The last item on the list is extraordinarily valuable, as was affirmed in the article above. Prices charged by car insurance companies in Anchorage vary greatly, so you should be ready to switch to a new company if you can find a cheaper rate. Brand loyalty is not necessarily bad, but is isn’t recommended if your bullheadedness ends up costing you thousands of dollars over several years. Take a few minutes and compare prices and find cheaper auto insurance for drivers under 25.
The auto insurance agents in Anchorage shown below can help you determine which policy is best, as some drivers wish to have professional advice when comparing insurance rates for drivers under 25. It’s not always simple to find the cheapest car insurance policy, so a professional agent can add peace of mind knowing your policy gives you sufficient protection if you have a claim.
To find an auto insurance agency nearest to you, click the button link following the list or click here to compare rates now.
- Marsh Mc Lennan Agency
1031 W 4th Ave #400 – Anchorage, AK 99501 – (907) 276-5617
- The Wilson Agency
3000 A St #400 – Anchorage, AK 99503 – (907) 277-1616
- Dave Strike – State Farm Insurance Agent
2213 E Tudor Rd #54 – Anchorage, AK 99507 – (907) 562-2721
- Tim Graham – State Farm Insurance Agent
1417 W Northern Lights Blvd A – Anchorage, AK 99503 – (907) 561-4000
- Integrity Insurance Agency
1505 W 34th Ave – Anchorage, AK 99503 – (844) 878-0258