UPDATED: Mar 13, 2020
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Car Insurance in Anchorage, AK
In the market for auto insurance in Anchorage, AK? At AutoInsuranceEZ.com, you can get the cheapest insurance rates where you live. To acquire free car insurance quotes from the very best providers today, type your zip code into the quote box on this page.
Anchorage is a fairly young city; it won’t even be celebrating its 100th birthday until the year 2015. But despite its relative youth, more than 300,000 people call it home. Contrary to popular belief, Anchorage doesn’t experience the extreme seasonal changes that most of the state is known for (aside from a few very short days in December).
- Fun fact: Did you know that Anchorage is #1 on the list of “Top 101 cities with largest percentage of females working in industry: Mining (population 50,000+)? Learn more about Anchorage.
Auto Insurance Coverage Requirements in Alaska
All Alaska motorists must meet the following insurance requirements in order to drive legally:
| Coverage | Requirements | Most Common |
| Bodily Injury Liability | 50,000/100,000 | 100,000/300,000 |
| Property Damage Liability | 25,000 | 50,000 |
| Uninsured Motorist Bodily Injury | Not required | 50,000/0130,000 |
| Medical Payments | Not required | 5,000 |
| Collision | Not required | 500 deductible |
| Comprehensive | Not required | 100 deductible |
But don’t forget: Liability coverage is extremely limited. Your provider will only pay out on claims if you are found at-fault in an accident. Under any other circumstances, you will be financially responsible for damages. But there are ways to get adequate coverage at affordably low rates. For more information on cheap Alaska car insurance, click here.
The state average for Alaska drivers is currently around $129 per month, in some areas. For Anchorage, however, the monthly average is around $46/mo*. You too can get similar discounts with the right provider.
State Farm is offering some of the lowest rates currently in Anchorage. But remember that not everything is about getting the lowest rate. There are other factors, such as customer service and ease of claims, which can influence which provider you go with.
Auto insurance companies evaluate several factors when calculating insurance quotes, including driving violations, accident claims, occupation, driving distance to work, and business use of the vehicle. Also keep in mind that premiums differ from carrier to carrier. To verify you’re still paying the most affordable rate, compare cheap Anchorage auto insurance quotes online.
Major Car Insurance Factors in Anchorage
Insurance companies take several factors into account when crafting an auto insurance policy. Unfortunately, many of these factors are difficult or impossible to change, such as your age or where you live. Other factors your car insurance company may consider include:
Your Zip Code
Where you park your car each night will have a major impact on your auto insurance rate. Generally, car insurance is cheaper in rural areas because fewer cars means a smaller chance that you will get into a collision with another vehicle. The population of Anchorage is 300,950 and the median household income is $79,045.
Automotive Accidents
Unfortunately, fatal accident statistics are much higher in Anchorage than in almost any other city within the state of Alaska. These higher accident rates might be partially responsible for the higher average automotive insurance rates in Anchorage.
Auto Thefts in Anchorage
Finding cheap auto insurance can be difficult if you are at risk for auto theft. Certain popular vehicle models are attractive to thieves, as well as vehicles which are parked often in large cities. The total number of stolen vehicles in Anchorage was 869 in 2013. If you want to protect yourself from auto theft in Anchorage, consider adding some Comprehensive coverage to your automobile insurance policy. It may cost more each month, but it might end up being cheaper than replacing your car.
Your Credit Score
Most major providers will charge you more per month if you have a poor credit score. In Alaska, there are local specialty providers – Umialik especially – who will offer lower rates for drivers with poor credit. However, in general, you can expect to pay more for a low credit score (or less for a stellar credit history).
Your Age
Statistics show that the younger you are, the more dangerous you are behind the wheel. To offset the risk of a possible accident, most teenage drivers are expected to pay much higher rates than their older adult counterparts. However, young motorists can save money with Good Student or Drivers Ed discounts.
Your Driving Record
Do you have a fairly clean driving record? If so, then you can expect to pay substantially lower monthly rates for your automotive insurance. If you do have a minor violation or two, your rate will go up – but you may be able to reduce your premium with “Accident Forgiveness” and other similar discounts.
Your Vehicle
You can get by with less coverage if you’re driving an economical car. But with luxury vehicles, you’re going to require more comprehensive coverage, which will yield higher monthly premiums. But there are ways to get discounts, even on luxury coverage.
Minor Car Insurance Factors in Anchorage
Individually, not many of the factors below will have an earth-shattering effect on your monthly bill. But they can cause a major shift when they are all calculated together:
Your Marital Status
If you are part of a married couple, there’s good news: you can save money on your automotive insurance policies if you bundle them together. As individuals, however, you won’t save very much being married vs. being single.
Your Gender
Many automobile insurance providers are naturally gravitating away from charging wildly different rates for male and female drivers. Many providers don’t charge different rates at all based on gender alone. Those who do charge no more than a 1-2% difference – and whether that difference punishes males or females depends wholly on the insurance provider.
Your Driving Distance to Work
For the typical Anchorage commuter, the average drive time runs just under 19 minutes. Many drivers choose to carpool to work (more than 12%), but most motorists still drive their own vehicle to work.
Whether you drive a few thousand miles each year for pleasure, or tens of thousands of miles to and from work or school, these factors will only alter your monthly rate by 2-3%. The real price difference comes with business vehicles. If you have your automobile registered for business, you can expect to pay around 10-11% more per month for it.
Your Coverage and Deductibles
To increase your coverage without breaking the bank, talk to your insurance provider about raising your deductible. This will lower your monthly rates, while making coverage more affordable. Of course, it will also make repairs and costs more expensive if you ever have to file a claim.
Education in Anchorage, AK
Forget about a fancy job or a high-paying salary – the best way to get discounts on automobile insurance is to obtain a higher education. The average driver in Anchorage has at least a high school diploma, while a good number of drivers also have at least made an attempt to go to college for one year or longer. Many have a full bachelor’s degree.
To help save you money on your Anchorage car insurance, you might want to consider furthering your education. Statistics show that the more educated you are, the cheaper your auto insurance will be. The city is home to two major universities, one public (the University of Alaska Anchorage) and one private (Alaska Pacific University).
Finding affordable auto insurance can be a hassle. There’s a lot of information you need to consider and, figuring out how insurance companies evaluate your potential risk can be complicated. But don’t let the wrong insurance company talk you into purchasing the wrong policy.
How We Conducted Our Car Insurance Analysis
*We calculated our average rate based on the following metrics: a married, 34 year old male with good credit, a 12-month history of maintaining auto insurance, a clean driving record, who owns his own home. Miles driven annually were based on the national average. The average rate was also calculated based on a financed 2015 Honda Accord with a pre-installed anti-theft device.
Sources:
Alaska Department of Financial Institutions
Department of Highway Safety and Motor Vehicles
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