How Much are Car Insurance Quotes for 16 Year Olds in Alaska?

The type of vehicle you are insuring is probably the largest consideration that determines whether or not you find cheap auto insurance for 16 year olds in Alaska. Vehicles with lots of speed or power, a lack of safety features, or a history of substantial liability claims will cost substantially more to insure than safer models.

The table below presents insurance rates for some of the more afforable vehicles to buy insurance for.

Data rating is based on single male driver age 16, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Alaska minimum liability limits. Discounts applied include safe-driver, and claim-free. Rates do not factor in specific zip code location which can change premium rates considerably.

By looking at the data, you can expect cars like the Honda Accord, Honda CR-V, Ford Escape, Chevrolet Traverse, and Subaru Forester are most likely to be a few of the most economical vehicles to insure for new drivers. Rates will tend to be higher because of the fact that there is a higher risk for 16 year olds, but generally speaking those models will most likely have the cheapest car insurance rates compared to all other vehicles.

When shopping for cheaper car insurance for new drivers, one of the many factors that is used to calculate the annual cost of car insurance is your zip code in Alaska. Densely populated urban areas like Palmer, Anchorage, and Sterling tend to pay higher rates, whereas areas with less crime or weather claims have the gratification of cheap auto insurance for 16 year olds in Alaska.

The information below shows the most expensive cities in Alaska for 16 year olds to purchase car insurance in.

Premium amounts are approximated as the specific garaging location can influence rates substantially.

Liability-only versus full coverage

Finding cheap auto insurance for 16 year olds in Alaska should be important to the majority of people, and one of the fastest ways to reduce the cost of insurance is to only buy liability insurance. The illustration below shows the comparison of insurance prices with full phyical damage coverage and with liability coverage only. The information is based on no claims or driving violations, $100 deductibles, single status, and no policy discounts are applied.

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Averaged for all ages 20 through 70, full coverage on your policy costs $1,566 per year over and above liability coverage. Many drivers will wonder if you should buy full coverage at all. There is no exact formula to drop comprehensive and collision coverage on your policy, but there is a general convention. If the annual cost of your full coverage insurance is about 10% or more of replacement cost minus your deductible, the it may be a good time to stop paying for full coverage.

For example, let’s pretend your vehicle’s replacement cost is $12,000 and you have $1,000 physical damage deductibles. If your vehicle is damaged in an accident, the most you would get paid by your company is $11,000 after the policy deductible has been paid. If premium cost is more than $1,100 annually to have full coverage, then it could be time to drop full coverage.

There are a few situations where buying only liability insurance is not a good idea. If you haven’t satisfied your loan, you must maintain physical damage coverage in order to satisfy the requirements of the loan. Also, if your emergency fund is not enough to purchase a different vehicle in case of an accident, you should not consider dropping full coverage.

Does State Farm, Geico, Progressive, or Allstate have the cheapest car insurance?

When comparing rates for car insurance for new drivers, probably the best companies to start with are State Farm, Geico, Progressive, and Allstate. All four can cover your vehicle for liability and physical damage, but each one has different optional coverages and features that shoppers can select from. The data below points out some of the different options and features that are available for customers.

How to find low-cost car insurance for 16 year olds

The list below details some of the recommended money-saving solutions that can help Alaska drivers locate the cheapest coverage.

• Save money by only buying liability coverage for older vehicles
• Try to pay small claims out-of-pocket
• Do not get into accidents
• Save money by bundling your home and auto policies
• Be a cautious driver
• Safer vehicles cost less to insure
• Keep rates low by comparing prices once a year

The final tip is remarkably vital, as we pointed out in the prior information. Prices charged by auto insurers in Alaska adjust frequently, so drivers shouldn’t be resistant to switch carriers if a lower price can be found.

Brand loyalty is great, but we do not recommend it if that loyalty ends up costing money that could be going to better use. It only take a few minutes to shop around to find cheaper insurance for 16 year olds.

Best cheap insurance quotes for new drivers

Thanks to the internet, there are a lot of ways to buy insurance in Alaska, but the most popular ways are through an independent insurance agent, an exclusive insurance agent like Liberty Mutual or State Farm, or from a direct company like Progressive. Each way is similar, but each is different in how they price policies.

Independent insurance agencies have contracts with many companies and can quote your policy with all of them. These types of agents will give you more rate choices, which can help you get the best shot at cutting your rates. If a cheaper rate is found, your agent can just switch to a different company which requires no work on your part.

A captive, or exclusive, agent is restricted to quoting rates for one insurance company, examples being Allstate and Liberty Mutual agents. This type of agents cannot provide rates from more than one company, so if rates are high, they cannot give you alternative choices.

When you buy insurance direct, you bypass a local insurance agent and instead shop direct either online or via phone. This insurance option can be a good choice for people who do not have a need for a risk management assessment and have a good understanding of how insurance works and possible exclusions.

Which method works best to buy cheap auto insurance for 16 year olds in Alaska? Our initial answer would be buying from a direct car insurance company saves the most money since there isn’t an agent involved, but unfortunately, it’s not that cut and dried. We could also assume that buying from an independent agent guarantees the lowest rates since they have access to many companies, but that is not accurate either. And sometimes, exclusive agencies have coverage prices that are impossible to beat.

Because there are so many factors that make up insurance rates, the best way to get the cheapest rates is to get as many comparison quotes as possible. Put in the effort to get price quotes from independent, exclusive, and direct to give yourself enough choices. For a list of companies offering online discounts, click here to view.