How Much Does Auto Insurance Cost for a Company Car in Alaska?

When shopping for cheaper insurance for your employer’s vehicle, one of the many criteria that play a part in determining auto insurance rates is where you keep your car in Alaska. Densely populated urban areas like Meadow Lakes, Fairbanks, and Palmer tend to have more expensive auto insurance rates, whereas areas with less crime or weather claims get the luxury of paying less.

The table below ranks the most costly cities in Alaska for a company car to purchase auto insurance in.

Prices are estimated as specific Alaska zip code can raise or lower price quotes noticeably.

Buying budget car insurance is not most people’s favorite thing to do, and finding out which company offers the most affordable car insurance rates for a company car requires even more perseverance. Every auto insurer has a proprietary formula for determining rates, so first we will examine the most competitive car insurance companies in Alaska.

It’s important to understand that Alaska car insurance rates are influenced by many factors which can substantially decrease or increase the cost of having a policy. This price fluctuation is why drivers need to perform an extensive rate comparison when trying to get affordable auto insurance rates for a company car. Insurance prices are determined by many factors and can change substantially, so the best price the last time you shopped your coverage around may now be one of the more expensive options.

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Umialik may have some of the most affordable car insurance rates in Alaska at around $901 per year. USAA, State Farm, Progressive, and GEICO would also be considered some of the more affordable Alaska insurance companies.

As the rates illustrate above, if you have coverage with Progressive and switched to USAA, you might achieve an annual premium reduction of in the vicinity of $294. Alaska drivers with GEICO may save as much as $976 a year, and Allstate insureds might see rate reductions of $1,445 a year.

It’s important to note that these estimates are averaged across all ages of drivers and types of vehicles and and are not figured with a rate decrease for a company car. So the insurer that fits your situation best may not even be included in the chart above. That illustrates why you need to get rate quotes from many companies using your own personalized driver profile and vehicle information.

The chart below illustrates how choosing a deductible can increase or decrease insurance costs when searching for cheap insurance for a company car. The premium estimates are based on a single male driver, full coverage, and no policy discounts are applied.

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In the chart above, a 30-year-old driver could reduce rates by $342 a year by switching their comprehensive and collision coverages from a $100 deductible to a $500 deductible, or save $512 by selecting a $1,000 deductible. Even younger insureds, like the 20-year-old example, can cut up to $1,010 or even more by selecting a higher deductible.

If you make the decision to raise deductibles, it is a good idea to have enough savings to allow you to pay the extra out-of-pocket expense. That is the one disadvantage of using higher deductibles.

Cheap insurance quotes for your employer’s vehicle

Drivers have many ways to find lower-cost car insurance in Alaska, but the most frequently used are from an independent agent, an exclusive agency like Allstate or Auto-Owners, or direct either online or via phone.

They all follow the same basic process, but it’s important to understand the differences in how they work.

Independent agents have contracts with many companies and can do rate comparisons with each one. Independent agents do not sell for just one brand and can give you a larger rate selection, which may give you a better chance of saving money. If you are not satisfied with one company, you can get a different policy which prevents you from having to switch agents.

An exclusive ageny is ‘exlusive’ to a single insurance company, for example Allstate and Liberty Mutual agents. These agents usually cannot quote prices from more than just one company, so they have to upsell other benefits.

Consumers who buy car insurance direct skip local insurance agents and instead buy direct from companies such as Geico or Esurance. Buying car insurance direct can be good for consumers who do not have a need for a risk management assessment and have a decent understanding of how their policy works.

Which method is best for finding cheap car insurance for a company car in Alaska? Most people assume that shopping direct yields the cheapest rates since there isn’t an agent involved, but unfortunately, it’s not that simple. We could also assume that going through an independent agent guarantees the lowest rates because you have more choices, but that assumption is also not necessarily accurate. In a lot of cases, exclusive agencies have really good rates that are the lowest in Alaska.

Since car insurance rates vary so much, the best way to buy the cheapest coverage is to compare rate quotes from as many companies as possible. If you want to save money, get price quotes all three ways in order to have the best selection to choose from. For a list of companies with cheap rates in Alaska, click here to view.