How Much Does Auto Insurance Cost for First-time Drivers in Alaska?

When talking about car insurance, the words cheap or affordable really shouldn’t be used anywhere in the article to describe car insurance rates. It’s just reality that cheap car insurance for first-time drivers is not always easy to find. We’ll try to make it up to you, because we will tell you how you can still get auto insurance that most people can afford.

Comparing quotes for cheap car insurance is tough enough, and deciding which companies have the best auto insurance rates for first-time drivers takes a little more work. Insurance rates will probably be quite a bit higher than the state average, with the extra cost attributed to the higher likelihood of claims associated with offering insurance for new drivers, but reasonably-priced coverage should be attainable if you thoroughly shop around. Every insurance company has a proprietary formula for establishing rates, so let’s begin by taking a look at the lowest cost auto insurance companies in Alaska.

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Umialik offers some of the best car insurance rates in Alaska at around $874 annually. USAA, State Farm, Progressive, and GEICO also make the cut as some of the lowest-priced Alaska insurance companies.

As the rates illustrate above, if you are a policyholder with GEICO and switched to USAA, you might achieve a yearly price reduction of upwards of $966. Policyholders with Allstate may save as much as $1,364 a year, and Safeco insureds might see rate reductions of $1,562 a year.

Be aware that those estimates are averages for all drivers and vehicles and and are not figured with a rate increase for first-time drivers. So the auto insurance company that can offer you the best rate may not even be included in the above rate chart. That illustrates why you need to compare prices as often as possible using your own driver and vehicle profiles.

The car, truck, or SUV driven is one of the biggest factors when comparison shopping for cheap insurance for first-time drivers in Alaska. Vehicles with reasonable performance levels, an excellent safety record, or a positive history of liability claims will cost less to insure than fast, unsafe models. The data below features car insurance costs for the most affordable vehicles to insure.

Premium data assumes single male driver age 16, no speeding tickets, no at-fault accidents, $500 deductibles, and Alaska minimum liability limits. Discounts applied include safe-driver, and claim-free. Rates do not factor in the specific area where the vehicle is garaged which can lower or raise premiums significantly.

Looking at the numbers, we can expect vehicles like the Honda Accord, Ford Escape, Hyundai Elantra, Honda CR-V, and Chevrolet Traverse will be some of the more affordable vehicles to insure for new drivers. The price for car insurance will trend higher because of the fact that there is a higher risk for first-time drivers, but in general those specific models will tend to have the least expensive rates compared to other types of vehicles.

For new drivers, one of the largest considerations that play a part in determining a rate quote is where you live in Alaska. Areas that are densely populated or have higher claim frequency like Palmer, Wasilla, and Meadow Lakes tend to have more expensive car insurance rates, whereas less populated areas benefit from lower coverage costs.

The information below shows the most costly cities in Alaska for first-time drivers to purchase car insurance in.

Rates are comparative as the specific garaging location can alter insurance rates greatly.

Poor driving habits will raise your auto insurance rates

The obvious way to receive cheap insurance for first-time drivers in Alaska is to drive cautiously and not have accidents or get tickets. The information below shows how traffic citations and at-fault claims can increase annual premium costs for different insured age categories. The data assumes a single male driver, comprehensive and collision coverage, $500 deductibles, and no discounts are applied.

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In the example above, the average cost of auto insurance in Alaska per year with no violations or accidents is $1,409. Get written up for two speeding tickets and the average cost increases to $1,864, an increase of $455 each year. Then throw in one accident along with the two speeding tickets and the yearly cost of auto insurance for first-time drivers jumps again to an average of $2,321. That’s an increase of $912, or $76 per month, just for not being more responsible behind the wheel!

Ratings for Alaska auto insurance companies

Finding a high-quality insurance provider is hard considering how many companies there are to choose from in Alaska. The information below could help you select which car insurance companies you want to consider when shopping your coverage around. The rankings below are for the companies with a significant amount of written premium nationwide, so smaller companies that only insure vehicles in Alaska are not taken into consideration for this list.

Top 10 Large Auto Insurers in Alaska Ranked by A.M. Best Rating

1. USAA – A++
2. GEICO – A++
3. State Farm – A++
4. The Hartford – A+
5. Esurance – A+
6. Progressive – A+
7. Allstate – A+
8. The General – A-
9. Farmers Insurance – A
10. Liberty Mutual – A

Top 10 Large Auto Insurers Overall in Alaska

1. USAA
2. American Family
3. State Farm
4. The Hartford
5. AAA Insurance
6. GEICO
7. The General
8. Progressive
9. Allstate
10. Liberty Mutual

Allstate, Geico, State Farm, and Progressive: Who is best?

When comparing rates for car insurance for new drivers in Alaska, the four most popular companies are Allstate, Geico, State Farm, and Progressive. When combined, they have nearly half of all vehicles in the U.S.. The next table breaks down price and claims rank as well as some different options that are available for buyers.