What Auto Insurance is Cheapest for First-time Drivers in Anchorage?

Determining which companies quote the most affordable insurance rates for first-time drivers may require a bit more effort in order to find the best policy.

Each auto insurance company has their own formula for establishing rates, so we’ll go over the insurance companies with the overall best prices in Anchorage, AK. It’s important to know that Alaska insurance rates are based on many factors that will increase or decrease your annual premium. Improving your credit rating, buying another vehicle, or having a fender bender may generate price changes that can cause some rates to be cheaper than competitors.

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Alaska auto insurance company rankings
Rank Company Cost Per Year
1 Umialik $865
2 USAA $957
3 State Farm $995
4 Progressive $1,210
5 GEICO $1,886
6 Allstate $2,303
7 Safeco $2,451
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Umialik normally has some of the lowest car insurance rates in Anchorage at around $865 per year. USAA, State Farm, Progressive, and GEICO are also some of the cheapest Anchorage, AK car insurance companies.

As shown above, if you currently have a policy with Progressive and switched to Umialik, you could realize a yearly savings of upwards of $345. Policyholders with GEICO may save as much as $1,021 a year, and Allstate insureds might realize rate reductions of up to $1,438 a year.

To find the cheapest coverage for you, click here to start your free quote or visit several of the following companies.

Bear in mind that those premium estimates are averages for all types of drivers and the different vehicles they drive and do not factor in a specific vehicle garaging location for first-time drivers. So the insurer that has the cheapest price for you may not even be in the list above. That underscores the importance of why you need to compare rates from as many companies as possible using your own driver data and vehicle information.

The make and model of vehicle that needs insurance is a large consideration when shopping for the most affordable auto insurance for first-time drivers. Vehicles with reasonable performance levels, a great safety record, or low incidents of liability claims will cost less to insure than adrenaline junky models. The next list shows car insurance rates for a number of the most affordable automobiles to insure in Alaska.

Cheapest Vehicles to Insure in Anchorage, AK
Insured Vehicle Estimated Cost for Full Coverage
Ford Escape XLS 4WD $4,716
Honda CR-V EX-L 4WD $4,762
Toyota Prius $5,106
Ford Edge SE 2WD $5,252
Jeep Wrangler Sport Islander Package 4WD 2-Dr $5,258
Ford F-150 XL Regular Cab 4WD $5,299
Volkswagen Jetta 2.0T Station Wagon $5,404
Honda Odyssey EX W/Rear Entertainment $5,550
Ford Focus SE 4-Dr Sedan $5,560
Toyota RAV4 Limited 2WD $5,596
Chevrolet Equinox LT AWD $5,602
Jeep Grand Cherokee Laredo 4WD $5,596
Nissan Altima 2.5 4-Dr Sedan $5,605
Chevrolet Impala LT $5,596
Toyota Tacoma Double Cab TRD Off-Road Package 4WD $5,642
Dodge Grand Caravan SXT $5,652
Chevrolet Malibu LT $5,642
Ford Explorer Limited 2WD $5,652
Toyota Corolla S $5,894
Hyundai Elantra GLS 4-Dr Sedan $5,901
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Data based on single female 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. Premium costs do not factor in vehicle location which can affect prices considerably.

Based on these rates, we can infer that makes and models like the Ford Escape, Honda CR-V, Toyota Prius, and Ford Edge are some of the cheapest vehicles to insure for new drivers. Car insurance rates will be more costly because of the fact that there is a higher risk for first-time drivers, but in general those models will have the cheapest rates that you’ll find.

One of the more important factors that determine the amount you pay each year for auto insurance is where you normally keep your vehicle in Anchorage. More populated areas likely pay more, whereas areas with less crime or weather claims tend to receive cheaper rates.

The illustration below ranks the most expensive areas in Alaska for first-time drivers to purchase car insurance in. Anchorage makes the list at #5 with a yearly premium of $1,256 for car insurance, which is about $105 each month.

How much does auto insurance cost in Anchorage?
Rank City Premium Per Year
1 Meadow Lakes $1,304
2 Palmer $1,304
3 Fairbanks $1,284
4 Wasilla $1,266
5 Anchorage $1,256
6 Kenai $1,238
7 College $1,232
8 Nikiski $1,226
9 Sterling $1,226
10 Homer $1,202
11 Kodiak $1,155
12 Ketchikan $1,035
13 Juneau $969
14 Sitka $957
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Rate information is comparative as specific location information can lower or raise rates significantly.

Discount Anchorage insurance

Save on insurance for new drivers in AnchorageInsurers that offer cheap quotes for first-time drivers may provide policy discounts that could potentially reduce rates by as much as 25% or more if you are eligible to receive them. The best insurance companies and a selection of discounts include:

The example below illustrates the difference between car insurance rates with and without discounts applied to the policy rates. The rates are based on a female driver, no claims or violations, Alaska state minimum liability limits, full physical damage coverage, and $500 deductibles.

The first bar for each age group shows insurance cost with no discounts. The second bar shows the rates with good student, continuous coverage, paid-in-full, paperless filing, anti-theft, and vehicle safety discounts applied. With discounts applied, the average amount saved each year on insurance for first-time drivers is 28% or $574.

The example below shows how choosing a deductible can change insurance costs when trying to find cheap insurance for first-time drivers. The costs are based on a married female driver, full physical damage coverage, and no discounts are applied.

The chart above illustrates that a 30-year-old driver could cut expenses by $218 a year by switching from a $100 deductible up to a $500 deductible, or save $326 by switching to a $1,000 deductible. Even younger drivers, like the 20-year-old example, could lower their rates $462 annually just by using higher deductibles. If you make the decision to raise deductibles, it will now be necessary to have additional funds squirreled away to allow you to cover the extra out-of-pocket expense. That is the one disadvantage of using higher deductibles.

Anchorage car insurance rates

Anchorage insurance rates are determined by lots of factors that will increase or decrease the price of coverage. Simply turning a year older, buying higher coverage limits, or getting a speeding ticket can trigger rate changes that can cause some rates to be cheaper than competitors.

And not only may your rating factors change, but companies change their prices as often as every three months in order to protect their financial rating. Higher than usual claims may cause more expensive prices, while a better loss history can result in lower-priced Anchorage car insurance rates.

To illustrate this example, the graph below shows the company with the cheapest car insurance in Anchorage, AK for a 40-year-old male driver with no accidents, a clean driving record, and great credit. When quoting prices based on his personal risk profile, Umialik may offer the cheapest car insurance rates in Anchorage at $1,155 a year. This is $388 less than the average price paid by Alaska drivers of $1,543. USAA, State Farm, Progressive, and GEICO are also on the list of the cheapest Anchorage, AK auto insurance companies.

In this example, we will give the driver from the first rate comparison an accident surcharge, poor credit, and a speeding ticket. Since each insurance company has a proprietary formula for determining rates in each state, getting updated rate quotes may now show a significantly different list of affordable Anchorage car insurance companies as shown below.

USAA now has the cheapest car insurance in Anchorage with State Farm, Umialik, Progressive, and Safeco now being in the top five. This demonstrates why Anchorage drivers need to spend some time comparing rates to get the best car insurance quotes for first-time drivers.

Rates are made up of many different factors and change substantially, so the lowest-price company when you last compared rates may now be costing you a lot of money.

How to find more affordable car insurance for first-time drivers

It’s not impossible to find cheaper rates, and here are some thrifty ideas that can help you buy lower-cost car insurance.

That last idea is especially crucial, as we pointed out in the prior information. Insurance prices fluctuate considerably, so you should be ready to switch to a new company if a better deal can be had. We understand brand loyalty, but it’s not recommended if that loyalty results in overpaying major coinage every year. It takes less than five minutes to shop around and find cheaper insurance for first-time drivers in Anchorage.

If you prefer to have a consultation when shopping for the best coverage for first-time drivers, the insurance agencies below can aid you in deciding which coverage meets your needs best.

To locate an Anchorage car insurance agency closest to you, click the button link following the list or click here to compare prices now.

State Farm: Amy Jones
111 W 6th AveAnchorage, AK 99501(907) 274-2060

Insurance Group Of Alaska
505 W Northern Lights Blvd #216Anchorage, AK 99503(907) 276-9600

Gary Annis – State Farm Insurance Agent
3330 C St #101Anchorage, AK 99503(907) 563-1960

Allstate Insurance: Stanley Tebow
8201 Old Seward Hwy aAnchorage, AK 99518(907) 344-3301

Allstate Insurance: Roy Briley
1577 C St Ste 102Anchorage, AK 99501(907) 297-2900

More Anchorage, AK insurance agents