How Much is Car Insurance for Inexperienced Drivers in Anchorage?

The vehicle model needing coverage is one of the primary factors in finding economical coverage for inexperienced drivers. Vehicles with higher performance characteristics, poor safety features, or a track record of large liability claims will cost significantly more to insure than more economical and safe models.

The information below estimates auto insurance rates for a handful of the most budget-friendly vehicles to insure in Alaska.

Cheapest Vehicles to Insure in Anchorage, AK
Vehicle Estimated Cost for Full Coverage
Toyota Prius $1,441
Ford F-150 XLT Crew Cab 2WD $1,462
Ford Explorer XLT 2WD $1,472
Honda Odyssey EX W/Rear Entertainment $1,511
Chevrolet Equinox LT 2WD $1,543
Volkswagen Jetta S 4-Dr Sedan $1,553
Ford Focus SEL 4-Dr Sedan $1,592
Nissan Altima 2.5 S 4-Dr Sedan $1,623
Honda CR-V EX 4WD $1,638
Jeep Grand Cherokee SRT-8 4WD $1,651
Toyota Corolla XRS $1,660
Honda Civic GX 4-Dr Sedan $1,703
Chevrolet Impala LS $1,734
Ford Escape Limited 4WD $1,740
Hyundai Sonata Limited 4-Dr Sedan $1,765
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Price data assumes single female driver age 50, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Alaska minimum liability limits. Discounts applied include claim-free, multi-policy, safe-driver, multi-vehicle, and homeowner. Information does not factor in vehicle garaging location which can decrease or increase rates noticeably.

By looking at the data, makes and models like the Toyota Prius, Ford F-150, Ford Explorer, Honda Odyssey, and Chevrolet Equinox will be some of the more affordable vehicles to insure for new drivers.

Deciding which insurers offer the lowest-priced car insurance rates for inexperienced drivers may require a little more effort in order to find the most economical policy.

Every insurance provider uses their own formula to set their prices, so to begin we’ll rank the most budget-friendly car insurance companies in Alaska. It’s important that you understand Anchorage car insurance rates are determined by lots of factors that may substantially change the price you pay for coverage. Improving your credit score, increasing deductibles, or getting into an accident can produce rate changes that can cause some rates to be more affordable than the competition.

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Rankings for the cheapest car insurance companies in Alaska
Rank Company Cost Per Year
1 Umialik $874
2 USAA $939
3 State Farm $975
4 Progressive $1,223
5 GEICO $1,886
6 Allstate $2,303
7 Safeco $2,501
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Umialik offers some of the most affordable car insurance rates in Anchorage at around $874 per year. This is $669 less than the average premium paid by Alaska drivers of $1,543. USAA, State Farm, Progressive, and GEICO also are some of the cheapest Anchorage, AK car insurance companies.

In the above example, if you are insured with USAA and switched to Umialik, you might realize annual savings of in the neighborhood of $65. Policyholders with State Farm may save as much as $101 a year, and Progressive customers might see rate reductions of $349 a year.

Bear in mind that those estimates are averages for all insureds and vehicles and do not take into consideration a specific location for inexperienced drivers. So the insurer that can offer the best rates for your situation may not even be in the list above. That emphasizes why you need to get rate quotes from many companies using your own individual information.

One of the more important considerations that are looked at to determine auto insurance rates is your zip code in Anchorage. Areas with a lot of weather claims or more people tend to have higher auto insurance costs, whereas areas with fewer weather claims and lower vehicle theft rates benefit from lower coverage costs.

The following table lists the most expensive areas in Alaska for inexperienced drivers to buy an auto insurance policy in. Anchorage is ranked #3 with the yearly price of $1,295 for the average insured, which is approximately $108 per month.

How much does auto insurance cost in Anchorage?
Rank City Annual Premium
1 Meadow Lakes $1,304
2 Palmer $1,304
3 Anchorage $1,295
4 Fairbanks $1,246
5 Wasilla $1,240
6 Homer $1,238
7 College $1,232
8 Kenai $1,226
9 Sterling $1,202
10 Nikiski $1,190
11 Kodiak $1,167
12 Ketchikan $1,035
13 Juneau $1,009
14 Sitka $987
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Rate quotes are approximated as the garaging address in Anchorage can modify coverage prices greatly.

How much more does full coverage cost?

Buying cheaper car insurance is the goal of the majority of vehicle owners, and one common way to buy cheap insurance for inexperienced drivers is to not buy full coverage. The example below illustrates the comparison of premium costs with full physical damage coverage compared to only buying liability only. The premium estimates are based on no driving violations, no at-fault accidents, $100 deductibles, drivers are not married, and no discounts are taken into consideration.

On average, physical damage insurance costs $1,566 per year more than carrying just liability coverage. At some point, almost every driver questions if buying full coverage is a good investment. There is no definitive formula of when to phase out physical damage coverage, but there is a general school of thought. If the annual cost of comprehensive and collision coverage is 10% or more of replacement cost minus your deductible, then you might want to consider buying only liability coverage.

There are some conditions where removing full coverage is not recommended. If you still owe a portion of the original loan, you have to maintain full coverage in order to prevent your loan from defaulting. Also, if you don’t have enough money to buy a different vehicle if your current one is in an accident, you should not opt for liability only.

Drive safe and save

The obvious way to find affordable car insurance premiums in Anchorage for new drivers is to drive attentively and avoid tickets and accidents. The diagram below illustrates how speeding tickets and fender-benders drive up annual premium costs for different age groups. The rate quotes are based on a single female driver, full coverage, $100 deductibles, and no discounts are factored in.

In the prior example, the average cost of auto insurance in Anchorage per year with a clean driving record and no accidents is $1,485. Get two speeding tickets and the average cost jumps to $1,995, an increase of $510 each year. Now include one accident along with the two speeding tickets and the 12-month cost of car insurance for inexperienced drivers jumps again to an average of $2,505. That’s an increase of $1,020, or $85 per month, just for not driving attentively!

The illustration below illustrates how your deductible choice can increase or decrease premium costs when trying to find cheap insurance for inexperienced drivers. The prices are based on a single male driver, full coverage, and no policy discounts are applied.

The chart above illustrates that a 30-year-old driver could save $342 a year by changing their physical damage coverage from a $100 deductible up to a $500 deductible, or save $512 by selecting a $1,000 deductible. Even younger insureds, like the 20-year-old, could roll back prices $1,010 annually by selecting a higher deductible.

When using a larger deductible, it will be necessary to have enough funds in savings to satisfy the extra out-of-pocket expense, which is the one inconvenience of using high deductibles.

The agents shown below can probably help you decide which coverage fits your budget, as some drivers have questions and prefer to get help from a professional when buying car insurance for new drivers. It can be complicated to find the cheapest rates, so a professional agent can provide satisfaction knowing your coverage gives you sufficient coverage at claim time. To find an Anchorage insurance agency closest to you, click the link at the bottom or click here to compare price quotes now.

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

The Wilson Agency
3000 A St #400Anchorage, AK 99503(907) 277-1616

State Farm Insurance
Anchorage, AK 99508Anchorage, AK 99508(907) 333-6575

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