Best Cheap Car Insurance Quotes for Drivers Under 21 in Alaska

Buying budget car insurance is confusing at best, and determining which companies have the most affordable insurance rates for drivers under 21 will involve even more perseverance. Policy rates will more than likely be significantly higher than the average rate in Alaska because of the higher likelihood of claims that goes along with offering coverage for minors, but reasonably-priced insurance should be obtainable with some perseverence. Each insurer has a proprietary formula to set their prices, so to begin we’ll rank the most affordable insurance companies in Alaska.

Cheap Insurance Rates for Minors

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Umialik generally has some of the lowest car insurance rates in Alaska at around $901 a year. USAA, State Farm, Progressive, and GEICO also are some of the lowest-priced Alaska car insurance companies.

As shown in the table above, if you currently buy coverage from USAA and switched to Umialik, you might realize annual savings of in the neighborhood of $38. Customers with State Farm may save as much as $94 a year, and Progressive policyholders might reduce rates by $359 a year.

If you want to find out if you’re overpaying, click here to get a free quote or visit any of the companies below.

Bear in mind that those prices are averaged for all types of insureds and vehicles and are not factoring in a rate increase for drivers under 21. So the auto insurance company that fits your situation best may not even be included in the chart above. That’s why you need to quote rates from as many companies as possible using your own driver and vehicle profiles.

One of the many things used to establish the annual cost of car insurance is where your residence is in Alaska. Cities with larger populations like Anchorage, Fairbanks, and Palmer likely pay more, whereas areas with less people or fewer weather incidents benefit from having to pay less for coverage.

The information below displays the most expensive areas in Alaska for drivers under 21 to buy an auto insurance policy in.

Rate quotes are comparative as the specific area where the vehicle is garaged can increase or decrease prices greatly.

The chart below illustrates how your deductible choice can increase or decrease yearly insurance costs when quoting cheap insurance for drivers under 21. The costs are based on a married female driver, full physical damage coverage, and no policy discounts are applied.

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A 50-year-old driver could save $184 a year by changing their physical damage coverage from a $100 deductible to a $500 deductible, or save $280 by changing to a $1,000 deductible. Young drivers, like the Age 20 chart data, could potentially save $462 every year just by choosing larger deductibles. If you do raise deductibles, it will now be necessary to have enough funds in savings to enable you to cover the extra out-of-pocket expense, which is the main inconvenience of larger deductibles.

Cost comparison with and without full coverage

Finding the best cheap auto insurance for drivers under 21 in Alaska is probably important to the majority of drivers, and one of the best ways to find cheap insurance is to only buy liability coverage. The information below shows the difference between insurance prices with and without full coverage. The price estimates are based on no violations or accidents, $100 deductibles, single marital status, and no discounts are applied.

google.charts.setOnLoadCallback(drawFclqcibChart);function drawFclqcibChart() {var data = google.visualization.arrayToDataTable([[‘Age of Insured’, ‘Full Coverage with $100 Deductibles’, ‘Liability Only’],[‘Age 20’, 2675,829],[‘Age 30’, 1397,459],[‘Age 40’, 1383,427],[‘Age 50’, 1255,399],[‘Age 60’, 1215,393],[‘Age 70’, 1469,523]]);var options = {title: ‘Savings of Only Insuring for Liability’,titleTextStyle: {color: ‘#333’,fontSize: 17,bold: true},width: ‘100%’,height: 500,’chartArea’: {left:100,top:50,’width’: ‘100%’, ‘height’: ‘70%’},legend: {position: ‘bottom’},colors: [‘#6791b9′,’#98bee2’],hAxis: {title: ‘Annual Auto Insurance Cost for Average Vehicle in Alaska’,minValue: 0,format: ‘$###,###’},vAxis: {title: ‘Age of Insured’}};var formatter = new google.visualization.NumberFormat({fractionDigits: 0,prefix: ‘$’});formatter.format(data,1);formatter.format(data,2);var chart = new google.visualization.BarChart(document.getElementById(‘qcibfcl’));chart.draw(data, options);}

If the expense is averaged for all age categories, physical damage coverage on your policy costs $1,566 per year more than just buying liability insurance. Lot’s of drivers question if buying full coverage is worth the expense. There is no exact formula for excluding comprehensive and collision coverage on your policy, but there is a broad guideline. If the yearly cost of full coverage is more than 10% of any settlement you would receive from your insurance company, then it might be time to consider dropping full coverage.

For example, let’s say your vehicle’s replacement value is $5,500 and you have $1,000 full coverage deductibles. If your vehicle is destroyed, the most you would receive is $4,500 after the policy deductible has been paid. If you are paying more than $450 a year to have full coverage, then it’s probably a good time to buy liability coverage only.

There are some cases where eliminating full coverage is not advised. If you still have a loan on your vehicle, you have to keep full coverage in order to prevent your loan from defaulting. Also, if your finances do not allow you to purchase a different vehicle in case of an accident, you should not remove full coverage.

Find the best cheap auto insurance for drivers under 21 in Alaska

Here are a few thrifty ideas that can help you buy the cheapest coverage.

• Safer vehicles cost less to insure
• Do not waste money insuring older vehicles for full coverage
• Save money by obeying traffic laws and keeping a clean driving record
• Clean up your credit
• Increase physical damage deductibles
• Avoid preventable accidents
• Shop your coverage around for the best deal

The last idea is highly important, as was discussed in the prior article. Insurance rates can be changed at any time, so drivers shouldn’t be resistant to change insurance companies if a better deal can be had.

Loyalty to a specific company is fine, but it’s not recommended if that dedication is costing potentially thousands of dollars a year. If you have a few minutes, now is a great time to shop around to find cheaper car insurance for drivers under 21.