How Much Does Auto Insurance Cost for Young Drivers in Alaska?

The type of vehicle requiring coverage is probably the most important factor in finding the cheapest car insurance for young drivers. Vehicles with higher performance, a lack of safety features, or a high likelihood of having liability claims will cost substantially more to insure than more economical and safe models.

The tables below outlines car insurance premiums for a number of the cheapest automobiles to insure.

Data assumes single female driver age 16, no speeding tickets, no at-fault accidents, $1000 deductibles, and Alaska minimum liability limits. Discounts applied include safe-driver, and claim-free. Rate information does not factor in the specific area where the vehicle is garaged which can increase or decrease rates considerably.

Price data assumes single female driver age 16, no speeding tickets, no at-fault accidents, $1000 deductibles, and Alaska minimum liability limits. Discounts applied include safe-driver, and claim-free. Rates do not factor in specific garaging location which can alter coverage prices considerably.

Data variables include single female driver age 16, no speeding tickets, no at-fault accidents, $1000 deductibles, and Alaska minimum liability limits. Discounts applied include safe-driver, and claim-free. Estimates do not factor in vehicle garaging location which can impact rates considerably.

Deciding which company offers the cheapest auto insurance rates for young drivers requires a little more work in order to find the best price. Every car insurance company has a proprietary method to establish rates, so let’s take a look at the most competitive auto insurance companies in Alaska.

Best Car Insurance Prices for Teens

Start Your Free Quote

Umialik generally has some of the most affordable car insurance rates in Alaska at around $874 each year. USAA, State Farm, Progressive, and GEICO would also make the list of some of the lowest-priced Alaska auto insurance companies.

In the above example, if you currently have coverage with State Farm and switched to Umialik, you could earn a yearly price reduction of in the neighborhood of $91. Policyholders with Progressive may save as much as $386 a year, and GEICO customers might reduce rates by $1,088 a year.

These prices are averaged across all drivers and vehicles and and are not figured with a rate increase for young drivers. So the auto insurance company that can offer you the best rate may not even be featured in the above rate chart. That’s why you need to get auto insurance quotes using your own specific driver and vehicle information.

Does full coverage make sense?

Finding cheap auto insurance for young drivers in Alaska is important to most vehicle owners, and a great way to buy cheaper insurance is to buy only liability coverage. The example below illustrates the comparison of car insurance costs with and without physical damage coverage. The premium estimates are based on no violations or claims, $1,000 deductibles, drivers are not married, and no other discounts are factored in.

As an overall average, physical damage insurance costs $1,243 per year over and above liability only. At some point, about every driver wonders if paying for full coverage is a waste of money. There is no clear-cut rule for dropping physical damage coverage on your policy, but there is a guideline you can use. If the annual cost of having full coverage is more than around 10% of the settlement you would receive from your company, then it may be the right time to buy liability only.

For example, let’s say your vehicle’s replacement cost is $10,500 and you have $1,000 full coverage deductibles. If your vehicle is destroyed, you would only receive $9,500 after paying your policy deductible. If premiums are more than $950 a year for full coverage, then you might consider buying liability only.

Is State Farm, Allstate, Geico, or Progressive cheaper?

When comparing auto insurance for youthful drivers in Alaska, four companies you’ll want quotes from are State Farm, Allstate, Geico, and Progressive. They all offer a unique set of features, discounts, and options that you can choose from. The following table ranks pricing and service ratings, as well as optional policy coverages that policyholders can buy.