Who Has the Cheapest Auto Insurance Rates for a 20 Year Old Male in Anchorage?

One of the more important things that help determine auto insurance rates is where your car is garaged in Anchorage. Areas with more people or more claims tend to pay more, whereas areas with lower vehicle theft rates and fewer weather claims get the luxury of paying less.

The information below lists the most expensive cities in Alaska for 20 year old guys in which to buy car insurance. Anchorage is listed at #1 with the annual price of $1,308 for the average policy, which is approximately $109 each month.

How much is car insurance in Anchorage?
Rank City Annual Premium
1 Anchorage $1,308
2 Meadow Lakes $1,291
3 Palmer $1,252
4 College $1,244
5 Fairbanks $1,234
6 Wasilla $1,228
7 Sterling $1,226
8 Kodiak $1,191
9 Nikiski $1,190
10 Homer $1,190
11 Kenai $1,190
12 Ketchikan $1,035
13 Juneau $979
14 Sitka $957
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Information shown are approximated as the garaging address in Anchorage can change insurance rates significantly.

Finding budget insurance is confusing at best, and deciding which companies offer the cheapest auto insurance rates for 20 year old guys will involve a little more work. Each auto insurance company has a proprietary method for filing rates in each state, so let’s take a look at the lowest cost auto insurance companies in Anchorage.

It’s a good idea to know that Anchorage auto insurance rates are impacted by many factors that will increase or decrease the cost of a policy. Price variation is why consumers need to take the time to compare lots of rates when trying to get the cheapest car insurance rates for 20 year old guys. Insurance prices consist of many factors and change substantially, so the best price when you last compared rates may now be quite expensive.

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Cheapest Alaska auto insurance companies
Rank Company Cost Per Year
1 Umialik $874
2 USAA $957
3 State Farm $1,005
4 Progressive $1,223
5 GEICO $1,943
6 Allstate $2,327
7 Safeco $2,451
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Umialik may offer some of the lowest car insurance rates in Anchorage at around $874 annually. USAA, State Farm, Progressive, and GEICO also qualify as some of the cheapest Anchorage, AK insurance companies.

As depicted above, if you are currently insured with GEICO and switched to USAA, you may see savings of upwards of $986. Alaska drivers with Allstate could save as much as $1,370 a year, and Safeco policyholders might realize rate reductions of up to $1,494 a year.

Remember that these estimates are averages across all types of insureds and vehicles and and are not figured with a specific zip code for 20 year old guys. So the auto insurance company that is best suited for you may not even be in the list above. That affirms the importance of why you need to quote rates from as many companies as possible using your own driver data and vehicle information.

Cost of full coverage in Anchorage

Saving money on auto insurance is probably important to most drivers, and one way to buy cheap insurance for 20 year old guys is to buy liability only. The diagram below illustrates the comparison of car insurance costs with and without physical damage coverage, medical payments, and uninsured/under-insured motorist coverage. The premium estimates are based on a clean driving record, no claims, $250 deductibles, marital status is single, and no discounts are applied.

As an overall average, physical damage insurance costs an extra $1,915 per year over and above liability only. A very common question is if buying full coverage is a good investment. There is no exact formula for phasing out physical damage insurance, but there is a guideline you can use. If the yearly cost for physical damage coverage is more than 10% of replacement cost minus your deductible, then it may be the right time to buy liability only.

For example, let’s say your vehicle’s claim settlement value is $9,500 and you have $1,000 policy deductibles. If your vehicle is damaged in an accident, the most your company will settle for is $8,500 after paying your deductible. If you are paying in excess of $850 annually for comprehensive and collision coverage, then it might be time to buy liability only.

There are some conditions where dropping physical damage coverage is not a good idea. If you still owe a portion of the original loan, you must maintain physical damage coverage to protect the lienholder’s interest. Also, if your emergency fund is not enough to purchase a different vehicle in case of an accident, you should keep full coverage.

Bad driving habits will cost you more

The best way to get affordable auto insurance rates in Alaska for young men is to drive safely and have a clean driving record. The diagram below illustrates how traffic citations and at-fault accidents impact premium costs for each age group. The rates are based on a married male driver, full coverage, $100 deductibles, and no discounts are applied.

In the previous example, the average cost of auto insurance per year with no violations or accidents is $1,820. Get written up for two speeding tickets and the average cost hikes up to $2,519, an increase of $700 each year. Now add in two accidents along with the two speeding tickets and the 12-month cost of auto insurance for 20 year old guys increases to an average of $4,982. That’s an increase of $3,163, or $264 per month, just for not driving safely!

The example below highlights how deductible selection can impact premium costs when getting quotes for cheap insurance for 20 year old guys. The premiums are based on a single male driver, full physical damage coverage, and no additional discounts are factored in.

A 40-year-old driver could pocket $226 a year by changing from a $100 deductible to a $500 deductible, or save $338 by using a $1,000 deductible. Even younger drivers, such as the 20-year-old example, could potentially save as much as $732 each year just by choosing higher deductibles when buying full coverage.

If you do decide to increase your deductibles, it is important to have enough in a savings account to be able to cover the extra out-of-pocket expense, which is the main disadvantage of using high deductibles.

You may be paying too much for car insurance

Anchorage, AK auto insurance rates are determined by lots of factors that will increase or decrease the cost of your policy. Getting older, getting married, or getting a driving violation can cause premium changes that can cause some rates to be affordable when they were higher priced.

Additionally, companies change their prices every year or even multiple times each year in order to maintain liquidity for claims. An extended period of higher than normal claims can cause price increases, while a lower level of claims may cause cheaper Anchorage car insurance rates.

As an example, the graph below shows the cheapest car insurance in Anchorage, AK for a 30-year-old female driver with a clean driving record, no accidents, and good credit. When comparing rates based on her current situation, Umialik may offer the best car insurance rates in Anchorage at $1,110 each year. This is $433 less than the average price paid by Alaska drivers of $1,543. USAA, State Farm, Progressive, and GEICO are also included in the best Anchorage, AK auto insurance companies.

The example below compares rates after we give the driver from the first set of rates an accident surcharge, bad credit, and an imperfect driving record. Due to the fact that each insurance company has their own formula to determining premium rates, comparing rates may now present a different set of the cheapest Anchorage car insurance companies as shown below.

USAA now has the cheapest auto insurance in Anchorage, AK with State Farm, Umialik, Progressive, and Safeco now being in the top five. This demonstrates why consumers need to compare rates when trying to get cheap insurance quotes for 20 year old guys.

Car insurance prices consist of many risk factors and change dramatically, so the cheapest rate the last time you compared rates may now be quite expensive.