How Much Does Car Insurance Cost for Business Use in Alaska?

For using your car for business, one of the big things used to calculate the cost of insurance is where you call home in Alaska. Cities with larger populations or higher claims like Anchorage, Meadow Lakes, and College tend to have higher auto insurance costs, whereas areas with lower crime rates and fewer weather claims have the benefit of cheaper auto insurance prices.

The next table shows the most costly cities in Alaska for business use in which to purchase auto insurance.

Premium costs are approximated as the specific Alaska residence address can modify prices significantly.

Finding good, low-cost car insurance is confusing at best, and deciding which companies quote the cheapest insurance rates for business use will involve a bit more work. Rates should be a little bit pricier than the average price in Alaska attributed to the potential for more claims related to offering insurance for using your car for business, but economical coverage may be possible if you shop around. Every insurance company has a different formula for setting prices, so let’s begin by examining the most competitive insurance companies in Alaska.

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Umialik may offer some of the most affordable car insurance rates in Alaska at around $874 per year. USAA, State Farm, Progressive, and GEICO also are some of the best Alaska car insurance companies.

In this example, if you currently have a policy with State Farm and switched to Umialik, you could earn annual savings of about $121. Customers with Progressive may save as much as $373 a year, and GEICO insureds might reduce prices by as much as $1,031 a year.

Be aware that those prices are averaged across all insureds and vehicles and and are not figured with a rate increase for business use. So the car insurance company that can offer you the best rate may not even be shown in the rate chart shown above. That illustrates why you need to quote rates from as many companies as possible using your own personalized driver profile and vehicle information.

The make and model of vehicle that is being insured is a large consideration when looking for cheap car insurance for business use in Alaska. Vehicles with limited speed and performance, a plethora of safety features, or a track record of few liability claims will cost quite a bit less to insure than fast, unsafe models. The next list illustrates coverage costs for a number of the most budget-friendly vehicles to buy insurance for.

Table data assumes single female driver age 40, no speeding tickets, no at-fault accidents, $1,000 deductibles, and Alaska minimum liability limits. Discounts applied include safe-driver, multi-vehicle, multi-policy, homeowner, and claim-free. Rates do not factor in specific location which can lower or raise coverage rates considerably.

Based on these rates, we can assume that makes and models like the Ford Escape, Hyundai Elantra, and Honda Odyssey are the more affordable vehicles to insure for using your car for business. Auto insurance rates will tend to be more expensive anyway just due to the fact that there is more exposure for business use, but generally speaking those particular models will tend to have the lowest insurance prices available.

Discounts on Alaska auto insurance

Auto insurance companies that offer cheap car insurance for business use in Alaska may also give you policy discounts that could reduce prices by as much as 40% or more if you meet specific criteria. The best insurance companies and their possible discounts include:

The diagram below visualizes the comparison of car insurance rates with and without discounts applied to the policy premium. The premiums assume a male driver, no claims or violations, Alaska state minimum liability limits, full coverage, and $250 deductibles. The first bar for each age group shows the price with no discounts. The second shows the rates with passive restraint, defensive driving course, safe-driver, claim-free, homeowner, and multiple policy discounts applied. In this example, the average savings per year on insurance for business use is 13% or $203.

google.charts.setOnLoadCallback(drawDiscqcibChart);function drawDiscqcibChart() {var data = google.visualization.arrayToDataTable([[‘Age of Insured’, ‘Male Driver No Discounts’, ‘Male Driver with Discounts’],[‘Age 20’, 2439,1761],[‘Age 30’, 1285,935],[‘Age 40’, 1265,919],[‘Age 50’, 1149,839],[‘Age 60’, 1113,809],[‘Age 70’, 1355,977]]);var options = {title: ‘Insurance Premium Comparison for Business Use’,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’,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(‘qcibdisc’));chart.draw(data, options);}

Irresponsible driving raises your rates

The easiest way to receive cheap car insurance for business use in Alaska is to be a good driver and not get tickets or have accidents. The example below illustrates how traffic citations and at-fault collisions can affect insurance costs for different categories of driver ages. The prices are based on a single female driver, full coverage, $500 deductibles, and no additional discounts are factored in.

google.charts.setOnLoadCallback(drawVioqcibChart);function drawVioqcibChart() {var data = google.visualization.arrayToDataTable([[‘Age of Insured’, ‘No Violations or Accidents’, ‘One Speeding Ticket and No Accidents’, ‘One Speeding Ticket and One Accident’],[‘Age 20’, 1815,1979,2431],[‘Age 30’, 1243,1409,1859],[‘Age 40’, 1159,1323,1777],[‘Age 50’, 1013,1179,1631],[‘Age 60’, 983,1147,1601],[‘Age 70’, 1149,1313,1765]]);var options = {title: ‘Accidents, Violations, and Alaska Insurance Prices’,titleTextStyle: {color: ‘#333’, fontSize: 17, bold: true},width: ‘100%’,height: 600,’chartArea’: {left:100,top:50,’width’: ‘100%’, ‘height’: ‘70%’},legend: {position: ‘bottom’,textStyle: {fontSize: 12}},colors:[‘#b2da64′,’#eed355′,’#e39e71’],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);formatter.format(data,3);var chart = new google.visualization.BarChart(document.getElementById(‘qcibvio’));chart.draw(data, options);}

In the previous example, the average cost of auto insurance in Alaska per year with no accidents or violations is $1,227. Factor in one speeding ticket and the average cost jumps to $1,392, an increase of $165 each year. Now add one accident along with the one speeding ticket and the 12-month cost of insurance for business use goes up to an average of $1,844. That’s an increase of $617, or $51 per month, just for not paying attention while driving!

Best cheap insurance quotes for using your car for business

Drivers have a lot of different ways to shop around for insurance in Alaska, but the three most common ways are using an independent insurance agent, an exclusive agency like Allstate or Liberty Mutual, or direct either online or via phone.

All three ways can provide insurance quotes, but each is different in how they price policies.

Independent agents can place your business with multiple companies and can compare rates with each one. They have the ability to provide multiple price quotes, which may give you improved chances of finding a lower rate. If premiums increase, the business is moved internally which prevents you from having to switch agents.

An exclusive agent is only able to give prices for a single company, a couple examples are a State Farm or Farmers agent. They usually cannot provide rate quotes from other companies, so you will not be able to compare other companys’ rates.

The last way is buying direct, which means you skip local insurance agents and buy buying direct from a company like Progressive or Esurance. Buying direct can be a good choice for families who do not have complex finances and have knowledge of the exclusions of a policy.

So what is the best way to find cheap car insurance for business use in Alaska? Most people would assume that buying direct saves the most money since there is no middleman, but that does not always hold true. It would also be easy to say using an independent agent is the best way since they have access to many companies, but again, that’s not accurate. In the right set of circumstances, exclusive agents have coverage prices that are the cheapest.

Since insurance prices vary so much, the guaranteed way to get the cheapest rates is to obtain price quotes and compare them. In a perfect world, youll get price quotes from all three in order to find the best price. A great place to start is our list of online companies offering discounts: click here to view.

How to find low-cost car insurance for business use

Below you’ll find some of the better penny-pinching ideas that can help you quote more affordable coverage.

• Pay for smaller claims out-of-pocket
• Higher deductibles mean lower rates
• Buying home and auto insurance together can earn discounts
• Clean up your credit
• Staying accident-free helps keep rates low
• Serious violations like DUI or careless driving can make car insurance unaffordable
• Compare rates often to find the best deal

That last tip is certainly vital, as we pointed out in the prior article. Prices fluctuate considerably, so don’t be afraid to buy a different policy if a lower price can be found. Brand loyalty is not necessarily bad, but we do not recommend it if that loyalty ends up costing potentially thousands of dollars a year. In just a couple of minutes you could compare prices to find cheaper car insurance for business use.