Your driving profile and needs will determine your cheapest provider. GEICO offers the cheapest minimum and full coverage auto insurance in Anchorage, Alaska. It's also the cheapest for teens, young adults, seniors and drivers with speeding tickets. USAA has the cheapest military-affiliated plans, whereas Allstate has the cheapest poor-credit policies. State Farm is cheapest for drivers with a DUI or at-fault accidents.
MoneyGeek also analyzed the best auto insurance in Anchorage for affordability and service.
Cheapest Car Insurance in Anchorage, AK
Cheapest Minimum Coverage Car Insurance in Anchorage
The most affordable auto insurance providers in Anchorage for a minimum coverage policy are:
- GEICO: $442 per year
- Allstate: $447 per year
Meanwhile, Progressive offers the most expensive minimum coverage policy in Anchorage at $730 per year. As of October 2022, the cheapest auto insurance in Alaska is offered by State Farm, highlighting how location can affect which company has the cheapest rates.
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In Alaska, minimum coverage policies only include coverage for bodily injuries and property damage with the following limits:
- $50,000 bodily injury liability per person
- $100,000 bodily injury liability per accident
- $25,000 property damage liability per accident
If you have a minimum coverage policy and cause an accident, your insurer will only pay up to $50,000 in medical expenses per victim, up to a maximum of $100,000 per accident, regardless of how many are injured. You would need to pay for any additional expenses out of pocket.
Cheapest Full Coverage Car Insurance in Anchorage
For a full coverage policy, the following auto insurance providers offer the lowest rates in Anchorage:
- GEICO: $837 per year
- State Farm: $859 per year
Progressive is the most expensive for full coverage, with average yearly premiums of $1,238. As of October 2022, although State Farm ranks second in Anchorage, it is the cheapest full coverage car insurance provider in Alaska — highlighting, once again, how location can have a significant impact on auto insurance rates.
When you choose full coverage, your plan will include both collision and comprehensive insurance in addition to liability coverage.
- Collision insurance: Pays for repairs to your vehicle if it is damaged in a collision with a stationary object or other cars.
- Comprehensive insurance: Covers the cost of repairs if your car is damaged by something other than a collision, such as a fire or a flood.
Keep in mind that the additional expense of full coverage insurance may not be worth it for older vehicles with low value.
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Cheaper insurers could pocket you hundreds of dollars per year.
Cheapest Car Insurance in Anchorage After a Driving Offense
Drivers with a violation on their record will find the cheapest rates from the following companies:
- Speeding ticket: GEICO ($956 per year)
- At-fault accident: State Farm ($1,063 per year)
- DUI: State Farm ($972 per year)
Progressive is the most expensive company for motorists with a history of at-fault accidents ($1,836) and speeding tickets ($1,636), while GEICO charges the most for drivers with a DUI record ($1,602).
Poor driving records can substantially impact car insurance rates — the cheapest company's rates for bad records typically won't be cheap relative to safe driving rates.
In general, more severe violations usually result in higher auto insurance rates. Anchorage drivers with a DUI pay an average of $322 more per year for insurance, while drivers with a ticket pay an average of $170 more. Even so, shopping around can help you find cheap car insurance for bad driving records.
Cheapest Car Insurance in Anchorage for Teens and Their Families
The following companies offer the cheapest car insurance for teens on a family policy in Anchorage:
- GEICO: $2,227 per year for female teens; $2,396 per year for male teens
- State Farm: $2,416 per year for female teens; $3,085 per year for male teens
Progressive has the most expensive policies for teens on a family plan, charging $4,525 annually for female teens and 4,952 for male teens.
Rates are often higher for male teens since they are considered riskier to insure. In Anchorage, GEICO charges male teens $169 more per year than female teens. This difference levels off in early adulthood.
Auto insurance rates for teenagers are much higher if they get an individual policy. In Anchorage, an individual policy costs an average of $1,930 more per year than a family policy. Adding a teen to a family policy will help you get the cheapest teen auto insurance.
Cheapest Car Insurance in Anchorage for Military Drivers
The following companies offer the most affordable auto insurance for military households with a full coverage policy in Anchorage:
- USAA: $549 per year
- GEICO: $837 per year
USAA and GEICO also offer the cheapest rates for minimum coverage policies at $269 and $442 per year, respectively.
How to Compare Cheap Anchorage Car Insurance Quotes Online
Getting an online quote from a car insurance company in Anchorage requires entering a lot of personal information and can take at least 15 minutes.
MoneyGeek's auto insurance calculator can quickly give you a rough estimate of your costs based on only your age, driving history, level of coverage needed and vehicle type.
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Cheapest Car Insurance in Anchorage for Young Adults
The cheapest auto insurance companies for young adults with a full coverage policy in Anchorage are:
- GEICO: $830 per year
- State Farm: $1,008 per year
Umialik Insurance charges the most at $1,605 per year. While they pay less than teens, younger drivers typically pay more for car insurance than middle-aged drivers since they have less driving experience. In Anchorage, the average annual rate for 25-year-old drivers is $214 more than the rate for 40-year-old drivers.
Cheapest Car Insurance in Anchorage for Seniors
The most affordable full coverage auto insurance for seniors in Anchorage is offered by the following providers:
- GEICO: $742 per year
- State Farm: $793 per year
The most expensive option is from Progressive, which charges $1,341 per year. Seniors in Anchorage pay $12 more per year on average for auto insurance than drivers in their 40s. Rates generally continue to increase after age 65 as driving becomes more risky.
Cheapest Car Insurance in Anchorage for Poor Credit
The cheapest auto insurance companies for drivers with bad credit in Anchorage are:
- Allstate: $1,341 per year
- GEICO: $1,594 per year
Progressive charges $1,770 for policyholders with poor credit — the most expensive rate in the city. In Anchorage, drivers with good credit pay an average of $1,011 per year, while drivers with poor credit pay about 60% more with an average annual premium of $1,623 — that's a $612 difference.
Insurance companies believe that customers with low credit scores are more likely to file claims, so they charge them higher rates. Those with bad credit can take several steps to reduce the cost of their insurance, such as bundling policies, looking for common discounts and comparing prices from several insurers. You can also work to improve your credit score over time.
Cheapest Car Insurance in Anchorage for Sports Cars
The following companies offer the cheapest full coverage auto insurance for sports car drivers in Anchorage:
- GEICO: $717 per year
- State Farm: $1,060 per year
The most expensive auto insurer for sports car owners is Progressive, which charges $1,406 annually. In Anchorage, sports car drivers pay an average of $110 — or about 11% — more per year than drivers of standard cars.
MoneyGeek used a Ford Mustang when analyzing rates for sports cars, but prices can vary by model. Luxury, electric and sports cars typically have the highest insurance costs, and this holds true in Anchorage.
Average Cost of Car Insurance in Anchorage
In Anchorage, the average annual cost of auto insurance is $1,011, which is $99 more than the average cost of auto insurance in Alaska. However, it's cheaper than the national average auto insurance cost of $1,265 per year.
These rates apply to full coverage policies with $100,000 in bodily injury liability per person, $300,000 in bodily injury liability per accident and $100,000 in property damage liability per accident.
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