Who Has the Cheapest Car Insurance Rates for Drivers Under 21 in Anchorage?

Locating reasonably-priced auto insurance is confusing at best, and figuring out which companies offer the best insurance rates for drivers under 21 involves even more shopping around. Every insurance company uses different criteria to establish rates, so let’s begin by examining the most competitive insurance companies in Alaska.

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Rankings for the cheapest car insurance companies in Alaska
Rank Company Cost Per Year
1 Umialik $874
2 USAA $929
3 State Farm $1,005
4 Progressive $1,260
5 GEICO $1,962
6 Allstate $2,374
7 Safeco $2,426
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Umialik offers some of the best car insurance rates in Anchorage at around $874 annually. USAA, State Farm, Progressive, and GEICO also are some of the most economical Anchorage, AK auto insurance companies.

As shown in the rates above, if you buy coverage from Progressive and switched to USAA, you might realize an annual savings of roughly $331. Alaska drivers with GEICO may save as much as $1,033 a year, and Allstate insureds might realize rate reductions of up to $1,445 a year.

To see if your current coverage is too expensive, click here or click through to the companies below.

Be aware that those rates are averaged across all types of drivers and the different vehicles they drive and do not take into consideration a specific location for drivers under 21. So the car insurance company that can offer the best rates for your situation 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 personalized driver profile and vehicle information.

The vehicle to be insured is one of the largest factors that determines if you can find the most affordable car insurance for drivers under 21. Vehicles with limited speed and performance, modern passenger safety features, or a track record of few liability claims will cost less to insure than adrenaline junky models.

The next list showcases coverage premiums for the more affordable automobiles to buy coverage for.

Cheapest Vehicles to Insure in Anchorage, AK
Vehicle Make and Model Estimated Cost for Full Coverage
Honda Accord EX 4-Dr Sedan $4,040
Honda CR-V EX 4WD $4,090
Jeep Wrangler Sport 4WD 2-Dr $4,175
Ford Escape Limited 4WD $4,373
Hyundai Elantra SE Touring Station Wagon $4,379
Toyota Prius $4,421
Ford Explorer Eddie Bauer 2WD $4,511
Toyota Tacoma 4WD $4,519
Ford F-150 XL Crew Cab 4WD $4,558
Volkswagen Jetta SE 2.5 Station Wagon $4,704
Honda Odyssey EX $4,743
Chevrolet Impala LS $4,749
Dodge Grand Caravan Hero $4,794
Chevrolet Equinox LS 2WD $4,802
Chevrolet Malibu Hybrid $4,794
Chevrolet Silverado LT Extended Cab 4WD $4,802
Toyota RAV4 4WD $4,794
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Data based on single female driver age 19, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Alaska minimum liability limits. Discounts applied include safe-driver, and claim-free. Price information does not factor in your specific Anchorage, AK location which can decrease or increase coverage rates significantly.

By looking at the data, cars like the Honda Accord, Honda CR-V, and Jeep Wrangler should be the cheapest vehicles to insure for minors. The price for an auto insurance policy will tend to be more expensive just due to the fact that there is more liability risk for drivers under 21, but generally speaking those specific models will have the best rates that you are likely to find.

For minors, one of the big considerations that are looked at to determine the annual cost of car insurance is where you call home. Regions with more people or even just more weather-related claims will most likely pay more, whereas areas with less congestion get the luxury of paying less.

The table below lists the most expensive areas in Alaska for drivers under 21 to buy car insurance in. Anchorage comes in at #4 with the yearly price of $1,256 for the average policy, which is around $105 each month.

How much does car insurance cost in Anchorage, AK?
Rank City Annual Rate
1 Fairbanks $1,284
2 Palmer $1,265
3 Meadow Lakes $1,265
4 Anchorage $1,256
5 Nikiski $1,238
6 College $1,232
7 Wasilla $1,228
8 Homer $1,226
9 Sterling $1,202
10 Kenai $1,202
11 Kodiak $1,155
12 Ketchikan $1,035
13 Juneau $1,009
14 Sitka $967
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Premium amounts are approximated as the specific area where the vehicle is garaged can impact prices substantially.

Comparison of full coverage and liability-only policies

Paying a lower price for insurance is the goal of the majority of vehicle owners, and an easy way to pay less for insurance for drivers under 21 is to only pay for liability coverage. The illustration below compares insurance rates with and without full coverage. The information is based on no claims or driving violations, $250 deductibles, drivers are not married, and no other discounts are factored in.

Averaged for all age groups, full coverage costs an additional $1,434 per year over and above liability only. At some point, about every driver wonders if buying full coverage is a waste of money. There is no clear-cut rule to exclude physical damage coverage on your policy, but there is a guideline you can use. If the annual cost of coverage is more than 10% of the vehicle’s replacement cost less your deductible, then you may need to consider dropping full coverage.

The illustration below highlights how deductible selection can raise or lower insurance prices when researching cheap insurance for drivers under 21. The premiums assume a married male driver, comp and collision included, and no other discounts are factored in.

The data above shows that a 50-year-old driver could reduce rates by $254 a year by increasing from a $100 deductible up to a $500 deductible, or save $386 by switching to a $1,000 deductible. Even younger insureds, like the 20-year-old, could save $860 or more by choosing a larger deductible amount. If you do decide to increase your deductibles, it will be important to have plenty of discretionary funds to allow you to pay the extra out-of-pocket expense that is associated with using high deductibles.

Tips to find budget-friendly car insurance for drivers under 21

The list below details some of the recommended penny-pinching ideas that can help you locate more affordable car insurance.

The last tip in the list is incredibly important, as was affirmed in this piece. Prices vary greatly, so drivers shouldn’t be resistant to change insurance companies if a lower price can be found.

We understand brand loyalty, but it’s not a good idea if that devotion results in you overpaying potentially thousands of dollars a year. If you have a few minutes, now is a great time to shop around to find cheaper auto insurance for drivers under 21 in Anchorage.

If you aren’t sure which coverage to buy and prefer to have a professional recommendation when trying to find lower insurance rates for minors, the professional agents shown below are willing to help you decide which coverage fits your budget.

To locate an Anchorage car insurance agency close to where you live, click the button after the list or click here to compare price quotes now.

Art Dorsey – State Farm Insurance Agent
9191 Old Seward Hwy #6Anchorage, AK 99515(907) 522-1231

Conrad-Houston Insurance
507 W Northern Lights BlvdAnchorage, AK 99503(907) 276-7667

Gary Annis – State Farm Insurance Agent
3330 C St #101Anchorage, AK 99503(907) 563-1960

Allstate Insurance: Ann T. Steck-Nale
1120 Huffman Rd, Ste A21Anchorage, AK 99515(907) 333-4411

View map of Anchorage, AK insurance agents