Deciphering which company quotes the cheapest auto insurance rates for low income drivers will involve a bit more effort than just getting one or two price quotes. Each company uses a slightly different approach for determining rates, so let’s examine the most budget-friendly auto insurance companies in Anchorage.
Keep in mind that Anchorage auto insurance rates are influenced by many factors which can significantly increase or decrease the price you pay. Improving your credit rating, increasing deductibles, or getting a speeding ticket may generate price changes that can cause some rates to be much cheaper than others.
Find the Cheapest Auto Insurance in Alaska
| Rank | Company | Cost Per Year |
|---|---|---|
| 1 | Umialik | $865 |
| 2 | USAA | $957 |
| 3 | State Farm | $965 |
| 4 | Progressive | $1,247 |
| 5 | GEICO | $1,943 |
| 6 | Allstate | $2,303 |
| 7 | Safeco | $2,526 |
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Umialik normally has some of the most affordable car insurance rates in Anchorage at around $865 per year. This is $678 less than the average rate paid by Alaska drivers of $1,543. USAA, State Farm, Progressive, and GEICO also make the cut as some of the lowest-priced Anchorage, AK insurance companies.
As depicted above, if you currently have a policy with GEICO and switched to USAA, you might realize yearly savings of in the neighborhood of $986. Policyholders with Allstate might save as much as $1,346 a year, and Safeco insureds might cut rates by $1,569 a year.
To find out how your current rates compare, click here to begin a quote or click several companies below for low rates.
Remember that these policy rates are averaged for all types of drivers and the different vehicles they drive and and are not figured with an exact vehicle garaging location for low income drivers. So the car insurance company that is best suited for you may not even be in the list above. That helps illustrate why you need to get car insurance quotes using your own specific driver and vehicle information.
For poor drivers, one of the largest things that are used to help calculate auto insurance rates is where you choose to live. More populated areas tend to have more expensive auto insurance rates, whereas areas with less people or fewer weather incidents receive better rates.
The illustration below ranks the priciest cities in Alaska for low income drivers to buy auto insurance in. Anchorage ranks #5 with an annual cost of $1,269 on average, which is about $106 per month.
| Rank | City | Premium Per Year |
|---|---|---|
| 1 | Meadow Lakes | $1,304 |
| 2 | Palmer | $1,304 |
| 3 | Fairbanks | $1,284 |
| 4 | College | $1,282 |
| 5 | Anchorage | $1,269 |
| 6 | Wasilla | $1,240 |
| 7 | Kenai | $1,238 |
| 8 | Nikiski | $1,226 |
| 9 | Sterling | $1,226 |
| 10 | Homer | $1,190 |
| 11 | Kodiak | $1,155 |
| 12 | Ketchikan | $1,066 |
| 13 | Juneau | $969 |
| 14 | Sitka | $957 |
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Rates are comparative as the vehicle garaging location can lower or raise insurance rates significantly.
The vehicle you are insuring is probably the largest consideration when consumers are trying to find affordable car insurance for low income drivers. Vehicles with lots of horsepower, poor passenger safety features, or a track record of large liability claims will cost more to insure than safer models. The next table ranks insurance premiums for a number of the most economical automobiles to buy coverage for.
| Vehicle | Estimated Cost for Full Coverage |
|---|---|
| Honda CR-V EX-L 4WD | $1,444 |
| Toyota RAV4 Sport 4WD | $1,674 |
| Chevrolet Malibu LS | $1,679 |
| Ford Fusion S 4-Dr Sedan | $1,674 |
| Ford Escape Limited 4WD | $1,685 |
| Toyota Tacoma Double Cab TRD Sport Package 4WD | $1,706 |
| Hyundai Elantra SE Touring Station Wagon | $1,725 |
| Toyota Prius | $1,765 |
| Toyota Corolla XRS | $1,795 |
| Jeep Grand Cherokee Limited 4WD | $1,801 |
| Ford F-150 Lariat Crew Cab Harley 4WD | $1,827 |
| GMC Sierra SLE Crew Cab 2WD | $1,832 |
| Volkswagen Jetta SE 2.5 Station Wagon | $1,853 |
| Dodge Grand Caravan Hero | $1,883 |
| Ford Explorer Limited 4WD | $1,923 |
| Ford Focus SES 4-Dr Sedan | $1,928 |
| Nissan Altima 2.5 S 4-Dr Sedan | $1,931 |
| Dodge Ram 2500 Mega Cab SLT 4WD | $1,947 |
| Chevrolet Equinox LTZ AWD | $1,966 |
| Toyota Camry XLE | $1,971 |
| Chevrolet Impala LTZ | $1,976 |
| Ford Edge Sport AWD | $1,971 |
| Ford F-350 XLT Super Cab 2WD | $2,003 |
| Compare Cheap Rates Go | |
Premium data assumes single male driver age 40, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Alaska minimum liability limits. Discounts applied include safe-driver, homeowner, claim-free, multi-vehicle, and multi-policy. Price information does not factor in specific zip code location which can raise or lower premiums considerably.
Based upon the table data, you can infer that vehicles like the Honda CR-V, Toyota RAV4, and Chevrolet Malibu should be some of the most budget-friendly vehicles to insure for poor drivers.
The information below shows how choosing a deductible can influence premium costs when searching for cheap insurance for low income drivers. The premiums are based on a single male driver, comprehensive and collision coverage, and no additional discounts are factored in.
As shown above, a 30-year-old driver could cut expenses by $342 a year by changing from a $100 deductible to a $500 deductible, or save $512 by using a $1,000 deductible. Even younger insureds, such as the Age 20 example, could drop their prices as much as $1,010 or more just by choosing larger deductibles. When increasing deductibles, it is a good idea to have additional funds in a savings account to satisfy the extra out-of-pocket expense associated with higher deductibles.
Responsible drivers pay cheaper auto insurance rates
One of the best ways to maintain cheap auto insurance prices in Anchorage for poor drivers is to be a careful driver and maintain a clean driving record. The chart below highlights how speeding tickets and at-fault collisions impact auto insurance rates for each age group. The information is based on a single male driver, full coverage, $250 deductibles, and no discounts are applied to the premium.
The data charted above shows the average cost of auto insurance per year with no violations or accidents is $1,585. Receive two speeding tickets and the average cost increases to $2,102, an increase of $518 each year. Then include two accidents along with the two speeding tickets and the 12-month cost of auto insurance for low income drivers jumps again to an average of $3,925. That’s an increase of $2,340, or $195 per month, just for not driving responsibly!
How to find economical insurance for low income drivers
It is possible to find better rates, and here are a few money-saving ideas that can help Anchorage drivers quote lower-cost auto insurance.
- Good credit can save money
- Buy vehicles with five-star safety ratings
- Save money by staying claim-free
- Be a safe driver
- Staying accident-free helps keep rates low
- Shop around for cheaper rates regularly
The last suggestion is very necessary, as we emphasized in the prior information. Insurance rates in Anchorage vary considerably, so don’t be hesitant to switch to a new company if a more affordable price is available. Having a favorite company is great, but it’s not recommended if that dedication is costing thousands of dollars over several years. In less than five minutes you could compare prices and find cheaper auto insurance for low income drivers.
If you aren’t clear which coverage you need and would like to get help from a professional when comparing insurance rates for poor drivers, the agents shown below are a good start to help you make a decision which auto insurance coverages would be the best in your situation.
To find an auto insurance agency closest to you, click the button below the list.
- Alaska Pacific Insurance Agency dba: APIA Insurance
912 E 15th Ave #100 – Anchorage, AK 99501 – (800) 890-5563 - Alaskan General Insurance
1400 W Benson Blvd # 500 – Anchorage, AK 99503 – (907) 297-4500 - State Farm: Todd Jackson
1330 Huffman Rd Suite E – Anchorage, AK 99515 – (907) 345-0214