The words “cheap” and “insurance” really don’t belong together, in particular when you are searching for the cheapest car insurance for high risk drivers. To help control this cost, let’s take a look at some things that determine car insurance prices, and come up with some ideas to lower the price of the next policy you buy.
Finding out which insurers offer the cheapest car insurance rates for high risk drivers will involve a bit more work than just quoting one company’s rates.
Each insurance company has a different formula for setting prices, so we will examine the most competitive car insurance companies in Anchorage.
Cheapest Insurance Rates for Risky Drivers
|Rank||Company||Cost Per Year|
|View More Rates Go|
Umialik offers some of the lowest car insurance rates in Anchorage at around $874 each year. USAA, State Farm, Progressive, and GEICO are also some of the cheaper Anchorage, AK car insurance companies.
As shown above, if you currently buy coverage from State Farm and switched to Umialik, you could see annual savings of about $121. Drivers with Progressive may save as much as $386 a year, and GEICO customers might reduce rates by $1,069 a year.
Remember that these premium estimates are averages across all types of insureds and vehicles and do not take into consideration a specific zip code for high risk drivers. So the auto insurance company that fits your situation best may not even be in the list above. That’s why you need to get auto insurance quotes using your own personalized driver profile and vehicle information.
The vehicle to be insured is a large factor when comparing quotes for affordable coverage for high risk drivers. Vehicles with limited top-end speed, a great safety record, or a low likelihood of having liability claims will cost much less to insure than adrenaline junky models.
The next list shows coverage prices for a number of the more affordable vehicles to buy coverage for.
|Make, Model, and Trim Level||Estimated Cost for Full Coverage|
|Honda CR-V LX 4WD||$4,710|
|Ford Escape XLT 2WD||$4,856|
|Honda Accord EX 4-Dr Sedan||$4,907|
|Ford Explorer XLT 2WD||$5,327|
|Ford F-150 XLT Crew Cab 2WD||$5,486|
|Dodge Grand Caravan CV||$5,556|
|Volkswagen Jetta S 4-Dr Sedan||$5,582|
|Chevrolet Malibu LT||$5,633|
|Ford Edge Limited 2WD||$5,745|
|Chevrolet Equinox LS 2WD||$5,807|
|Toyota RAV4 Limited 2WD||$5,813|
|Chevrolet Impala LT||$5,807|
|Ford Focus SES 4-Dr Sedan||$5,960|
|Toyota Tacoma X-Runner 2WD||$6,017|
|Compare Cheap Rates Go|
Table data represents single male driver age 40, two speeding tickets, two at-fault accidents, $1,000 deductibles, and Alaska minimum liability limits. Discounts applied include homeowner, multi-vehicle, and multi-policy. Price estimates do not factor in vehicle garaging location which can decrease or increase prices considerably.
Based on these rates, we can presume that vehicles like the Honda CR-V, Ford Escape, Honda Accord, and Toyota Prius should be a few of the most economical vehicles to insure for high risk drivers. Auto insurance rates will tend to be more expensive anyway just due to the fact that there is more liability risk for high risk drivers, but in general those makes and models will tend to have the best rates compared to other types of vehicles.
One of the many components that aid in calculating the price you pay for insurance is where you keep your vehicle. Cities with more crime and/or more people tend to have higher auto insurance costs, whereas areas with fewer weather claims and lower vehicle theft rates have the benefit of cheaper car insurance.
The illustration below sorts the most expensive places in Alaska for high risk drivers to buy car insurance in. Anchorage comes in at #2 with an annual cost of $1,269 on average, which is around $106 per month.
|Rank||City||Premium Per Year|
|Find Cheaper Insurance Go|
Rate information is estimated as the garaging address in Anchorage can raise or lower prices greatly.
Liability rates compared to full coverage
Saving money when shopping for car insurance is the goal of most people, and a good way to pay less for insurance for high risk drivers is to not insure for full coverage. The example below illustrates the difference between insurance costs with full coverage compared to only the Alaska minimum liability coverage. The costs are based on a clean driving record, no claims, $1,000 deductibles, drivers are single, and no discounts are applied to the premium.
As an average, physical damage coverage costs $1,550 per year more than just buying liability only. At some point, almost every driver questions when is it a good idea to stop buying full coverage. There is no set rule of when to drop comprehensive and collision coverage on your policy, but there is a general guideline. If the annual cost of comprehensive and collision coverage is about 10% or more of the settlement you would receive from your company, then it might be time to consider dropping full coverage.
For example, let’s assume your vehicle’s replacement value is $4,000 and you have $1,000 physical damage deductibles. If your vehicle is totaled in an accident, you would only receive $3,000 after the policy deductible has been paid. If premium cost is more than $300 a year to have full coverage, then you may need to consider dropping full coverage.
The information below highlights how deductible choice can change premium costs when trying to find cheap insurance for high risk drivers. The premium estimates are based on a married male driver, comprehensive and collision coverage, and no discounts are factored in.
In the chart above, a 50-year-old driver could reduce rates by $254 a year by switching the physical damage coverage from a $100 deductible to a $500 deductible, or save $386 by selecting a $1,000 deductible. Youthful drivers, like the 20-year-old, can cut as much as $860 each year by using higher deductibles when buying full coverage. If you do decide to increase your deductibles, it will be important to have emergency funds available to satisfy the extra out-of-pocket expense, which is the one disadvantage of using larger deductibles.
How to get discounts on Anchorage car insurance rates
Auto insurance companies that offer quotes for high risk drivers may provide special discounts that could reduce prices by 30% or more if you meet specific eligibility requirements. Companies and their possible discounts are included below.
- State Farm offers premium reductions for defensive driving training, student away at school, safe vehicle, multiple policy, Drive Safe & Save, and accident-free.
- Farmers Insurance policyholders can earn discounts including early shopping, good student, teen driver, homeowner, business and professional, and multi-car.
- Progressive may offer discounts for online quote discount, continuous coverage, multi-policy, online signing, and homeowner.
- GEICO has savings for federal employee, membership and employees, five-year accident-free, multi-vehicle, seat belt use, and good student.
- Auto-Owners Insurance includes discounts for group or association, company car, paperless, multi-policy, mature driver, and paid in full.
- The Hartford may include discounts for air bag, good student, bundle, anti-theft, and vehicle fuel type.
- Farm Bureau offers discounts for 55 and retired, renewal discount, driver training, good student, multi-policy, multi-vehicle, and youthful driver.
- USAA may have discounts that include driver training, multi-vehicle, good student, family discount, vehicle storage, and loyalty savings.
The information below shows the comparison of insurance costs with and without discounts. The premiums are based on a male driver, one speeding ticket and two accidents, Alaska state minimum liability limits, comp and collision included, and $250 deductibles.
The first bar for each age group shows the average rate with no discounts. The second bar shows the rates with paperless filing, multiple vehicle, paid-in-full, homeowner, marriage, and anti-theft discounts applied. When discounts are applied, the average amount saved each year on car insurance for high risk drivers is 28% or $904.
Tips to find the cheapest auto insurance for high risk drivers
The list below summarizes a few thrifty solutions that can help you locate cheap coverage.
- At-fault accidents will increase rates
- Raise your physical damage coverage deductibles
- Ensure your driving record is clean
- Vehicles with good safety ratings have lower liability rates
- Full coverage is expensive so only insure older vehicles for liability only
- Better credit scores save money
- Keep rates low by shopping around frequently
That last idea is remarkably significant, as was noted in this piece. Prices charged by auto insurers in Anchorage vary greatly, so don’t be unwilling to switch carriers if a more affordable price is available. Staying with the same company for years is fine, but it isn’t a good idea if your bullheadedness ends up costing you several hundred dollars every year. Now is a great time to compare prices to find cheaper car insurance for high risk drivers.
The professional agents shown below can most likely help you determine which policy fits your needs best, since some people have coverage questions and would like to have a little guidance when shopping around for cheaper insurance for high risk drivers. It can be time-consuming to find the best policy yourself, so insurance agents can give satisfaction knowing your policy gives you adequate protection.
To find an agent close to where you live, click the button at the bottom.
Allstate Insurance: Stanley Tebow
8201 Old Seward Hwy a – Anchorage, AK 99518 – (907) 344-3301
Curt Green, Jr. – State Farm Insurance Agent
836 E 15th Ave #1 – Anchorage, AK 99501 – (907) 272-2812
Allstate Insurance: M. Diane Johnson
4045 Lake Otis Pkwy Ste 206 – Anchorage, AK 99508 – (907) 569-6900
Horace Mann Insurance Co
7926 Old Seward Hwy – Anchorage, AK 99518 – (907) 561-1393
Gary Annis – State Farm Insurance Agent
3330 C St #101 – Anchorage, AK 99503 – (907) 563-1960