The words “low-priced” and “insurance” really don’t belong together, specifically when comparison shopping for the cheapest auto insurance for 18 year olds. To save some money, let’s take a look at some of the factors that determine auto insurance rates, and figure out some ideas to cut the cost of the next policy you buy.
The type of vehicle that is being insured is one of the primary factors when consumers are trying to find the best coverage for 18 year olds. Vehicles with reasonable performance levels, advanced safety features, or a track record of few liability claims will cost less to insure than adrenaline junky models. The data below features car insurance rates for the cheapest automobiles to buy coverage for.
|Vehicle Insured||Estimated Cost for Full Coverage|
|Honda CR-V LX 4WD||$4,177|
|Ford Escape XLS 2WD||$4,184|
|Volkswagen Jetta S 2.5 Station Wagon||$4,506|
|Ford Explorer Eddie Bauer 2WD||$4,675|
|Dodge Grand Caravan SE||$4,685|
|Toyota RAV4 Limited 2WD||$4,957|
|Ford F-150 Lariat Crew Cab 4WD||$5,003|
|Chevrolet Malibu LT||$5,008|
|Toyota Tacoma Double Cab TRD Sport Package 4WD||$5,003|
|Jeep Wrangler Unlimited Sahara 2WD 4-Dr||$5,147|
|Hyundai Elantra Blue 4-Dr Sedan||$5,193|
|Honda Odyssey EX-L||$5,240|
|Ford Edge Limited AWD||$5,248|
|Toyota Corolla XLE||$5,240|
|Chevrolet Impala LTZ||$5,246|
|Chevrolet Equinox LTZ 2WD||$5,286|
|GMC Sierra SLT Extended Cab 2WD||$5,291|
|Jeep Grand Cherokee Limited 2WD||$5,286|
|Ford F-350 XL Crew Cab King Ranch 2WD||$5,332|
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Data variables include single female driver age 18, 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 specific location which can modify coverage rates substantially.
Based upon the rates shown, cars like the Honda CR-V, Ford Escape, and Volkswagen Jetta are likely to be a few of the less-costly vehicles to insure for teen drivers. Prices will be more expensive just due to the fact that there is more claim risk for 18 year olds, but generally speaking those models will probably have the lowest prices that you’ll find.
One of the more important factors that determine the amount you pay each year for auto insurance is where you keep your car in Anchorage. Areas with a lot of weather claims or more people tend to have more expensive car insurance rates, whereas areas that tend to be more rural benefit from lower rates.
The illustration below lists the most expensive cities in Alaska for 18 year olds to buy an auto insurance policy in. Anchorage makes the list at #1 with the annual price of $1,295 on average, which is around $108 each month.
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Information shown are approximated as the specific zip code location can affect coverage prices noticeably.
Finding decent, affordable insurance is hard enough, and finding out which companies offer the cheapest insurance rates for 18 year olds calls for even more diligence. Every insurance provider has a different process for filing rates in each state, so we need to take a look at the insurance companies with the overall best prices in Alaska.
It’s important to understand that Alaska insurance rates are based on many factors which can substantially change the price of your policy. That is why it is critical to compare rates to get affordable auto insurance rates for 18 year olds. Car insurance prices can be altered by many factors and change dramatically, so the best price the last time you compared rates may now cost much more than other companies.
Find the Cheapest Car Insurance for Teens
|Rank||Company||Cost Per Year|
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Umialik has some of the best car insurance rates in Anchorage at around $901 a year. USAA, State Farm, Progressive, and GEICO would also be considered some of the best Anchorage, AK car insurance companies.
In the above rates, if you currently have coverage with State Farm and switched to Umialik, you could see a yearly savings of in the neighborhood of $94. Policyholders with Progressive may save as much as $309 a year, and GEICO customers might lower prices by up to $1,042 a year.
To discover how much you can save, click here to begin a quote or click through to the companies below.
Be aware that those premium estimates are averaged across all insureds and vehicles and are not factoring in a specific vehicle garaging location for 18 year olds. So the insurer that fits you best may not even be in the list above. That emphasizes why you need to compare rates from multiple companies using your own personal information and vehicle type.
Insurance rate increases from tickets or accidents
The ideal way to find affordable insurance rates in Alaska for teen drivers is to drive attentively and avoid accidents and traffic citations. The diagram below shows how speeding tickets and at-fault collisions can drive up insurance prices for different age groups. The information is based on a single male driver, comp and collision included, $250 deductibles, and no discounts are factored in.
The data above shows the average cost of an auto insurance policy in Alaska per year with no accidents and a clean driving record is $1,585. Factor in one speeding ticket and the average cost rises to $1,783, an increase of $199 each year. Now get two accidents along with the one speeding ticket and the annual cost of insurance for 18 year olds goes up to an average of $3,445. That’s an increase of $1,860, or $155 per month, just for not maintaining a clean driving record!
The example below highlights how deductible selection can affect annual premium costs when quoting cheap insurance for 18 year olds. The premium estimates are based on a single male driver, comp and collision included, and no additional discounts are factored in.
In the chart above, a 30-year-old driver could cut expenses by $352 a year by increasing from a $100 deductible up to a $500 deductible, or save $530 by using a $1,000 deductible. Youthful drivers, like the age 20 example, could reduce their rates up to $1,030 each year by choosing larger deductibles on their policy.
When raising deductibles, it is a good idea to have enough funds in savings to cover the extra out-of-pocket expense, which is the main drawback of higher deductibles.
Liability only or full coverage
Buying cheaper insurance is important to the majority of people, and one great way to buy cheap insurance for 18 year olds is to not buy full coverage. The chart below shows the difference between yearly insurance costs with full coverage and liability only. The premiums are based on no claims or violations, $500 deductibles, drivers are not married, and no discounts are applied to the premium.
As an overall average, comp and collision coverage costs an extra $1,288 per year more than just buying liability insurance. Many drivers may wonder if it’s a good idea to buy full coverage. There is no clear-cut rule for eliminating physical damage coverage, but there is a general convention. If the yearly cost for physical damage coverage is more than around 10% of the replacement cost of your vehicle minus the policy deductible, then it’s probably a good time to buy liability coverage only.
There are some circumstances where only buying liability is not a good idea. If you haven’t satisfied your loan, you are required to maintain full coverage as part of the loan requirements. Also, if your emergency fund is not enough to purchase a different vehicle in case of an accident, you should keep full coverage.
A good deal can quickly turn bad
Anchorage, AK insurance rates are impacted by many factors that control the cost of your policy. Simply getting older, buying another vehicle, or having an accident may generate price changes that can cause some rates to be more affordable than others. In addition to those changes, auto insurance companies change premium rates as often as every quarter to ensure their profitability. An unexpected high level of claims can result in high rates, while a profitable period may produce cheaper Anchorage car insurance rates.
As an example, the chart below demonstrates which company has the cheapest car insurance in Anchorage, AK for a 40-year-old male driver with no violations or accidents, and good financial standing. Based on his current situation, Umialik might offer the lowest car insurance rates in Anchorage at $1,155 annually. This is $388 less than the average price paid by Alaska drivers of $1,543. USAA, State Farm, Progressive, and GEICO also make the list of the cheapest Anchorage, AK auto insurance companies.
Now let’s give the driver from the first set of rates an accident claim, a lower credit score, and a traffic ticket or two. Because every insurance company has a unique formula for setting rates, comparing quotes could result in a slightly different list of cheap Anchorage auto insurance companies as shown below.
USAA now has the best auto insurance rate in Anchorage, AK with State Farm, Umialik, Progressive, and Safeco also having competitive pricing. This example proves why Anchorage drivers need to do a thorough rate comparison to find cheap insurance rates for 18 year olds.
Car insurance prices are made up of many things and can increase or decrease at any time, so the best price when you last compared rates may now not even be in the top five.