What is the Average Cost of Car Insurance in Anchorage?

Although it is not the state’s capital, Anchorage is the largest city in Alaska with a population of 288,000 people. That figure represents 40% of Alaska’s entire population of 731,500+. Commuters driving to work here can expect an average drive time of 18.7 minutes for residents 16 years of age and older, which is higher than the rest of a state as a whole but lower than the average time for the rest of the United States. The median household income in Anchorage was $83,280 in 2018.

Anchorage has one of the highest vehicle theft rates in the nation, according to the National Insurance Crime Bureau (NICB). In 2018, the city had 3,087 vehicle thefts, giving it a rate of 773.4 per 100,000 vehicles to rank second in the United States. The combination of urban driving and the high theft rate means that Anchorage also has some of the highest vehicle insurance rates in Alaska, averaging $1,497 per year.

What Insurance Coverage is Needed for Drivers in Anchorage

Alaska’s Mandatory Insurance Statutes require every driver to maintain minimum insurance coverage of $50,000/$100,000 for bodily injury or death for one/more than one person and $25,000 for property damage. You must also carry proof of insurance in your vehicle when driving. If you don’t have proof when driving your vehicle in Anchorage, the police may impound it if you are stopped for a violation or are in an accident. Your basic coverage pays for medical bills, property damage, and other costs for drivers, passengers, and pedestrians who are in a vehicular accident that you cause.

Drivers may want to carry more insurance coverage than the minimum in case they are involved in a serious crash that causes severe injuries and/or vehicle damage. Once your policy limits have been exhausted, the driver at fault is responsible for paying for additional costs. Thus, higher insurance limits can help protect your assets. Liability coverage will cover mishaps when someone else drives your vehicle. You may also require additional coverage, such as personal injury protection (PIP) or MedPay coverage to pay for your medical expenses if you’re involved in a car accident and the other driver doesn’t have insurance to cover your losses.

Most Expensive and Least Expensive Insurance Rates by Zip Code

Cheap Car Insurance in Anchorage by Insurer

The most economical insurance companies in Alaska are Allstate Fire and Casualty, Geico General Insurance Co., Progressive Specialty Insurance Co., and State Farm Mutual Auto Insurance Co. However, when you’re looking for auto insurance, you probably shouldn’t just automatically go with the lowest rate. Check for the company’s rating, read customer reviews, and make sure that the quoted policy will meet your needs.

Learn how to find cheap car insurance near you.

Low Cost Auto Insurance for Bad Credit in Anchorage

Finding car insurance in Alaska can be difficult for drivers with bad credit. Auto insurance companies utilize your credit tier as a rating factor. Your rate will depend on your credit rating, along with where you live in Alaska and several other factors.

Learn how your credit score determines your car insurance premiums.

Difference Between Liability and Full Coverage

What is Liability Only Insurance Coverage?

Liability-only coverage means that you are only paying to cover the cost of damage that you do to other people and their property in the event you are at fault in an accident. It covers the costs of medical bills for people you injure or repair costs for property you damage.

It is a good idea to carry more liability insurance than these minimum amounts required by the state of {location-state} because you will be personally financially liable if you are in an accident and cause more damage to people or property than the state’s minimum required coverage levels.

Full Coverage Auto Insurance

Full coverage insurance not only covers the cost of the people and things you might harm when you are in an accident that is your fault. It also covers the cost of any repairs that your property or vehicle might need if you are in an accident that is your fault.

There are two main types of coverage beyond liability coverage:

Collision – This type of insurance covers the cost of repairs to your vehicle or your property that you might damage in an accident in which you are at fault.

Comprehensive – This type of insurance covers the repair costs for your vehicle when one of those unusual things happen that are outside of your control, like weather-related damage to your vehicle, theft, vandalism, and deer stepping in front of your vehicle as you drive.

What You Need to Know About the Differences Between the Car Insurance Types

The main difference between having liability and full coverage insurance is that liability insurance will only pay for injuries to others and their damages that resulted from an accident where you were at fault, where full coverage will not only pay for the damages and injuries done to others but will also cover your injuries and auto damages that resulted from an accident that you caused as well.

Average Annual Car Insurance Rates in Alaska by City

Additional cities in Alaska you can check out.

Utilize These Auto Insurance Discounts to Get a Lower Rate

There are many ways that you can save on auto insurance in Anchorage:

  • Shop around:

    It could not be clearer. The smallest difference in our driver demographics between the most expensive and the bargain insurance rate was over $1,100 yearly. It is a good idea to shop around yearly, especially if your policy rate goes up, since insurance carriers can change their rates whenever they feel it’s necessary.

  • Avoid accidents and moving violations:

    These will increase your rate, sometimes substantially.

  • If you have an accident or moving violation:

    It is often a good idea to spend a little bit of money now and attend traffic school, rather than have these violations stay on your driving record for years.

  • Insure your home and car with the same company:

    If you can insure your home or apartment and your vehicles with the same insurance carrier, you can also save money, as there is often a discount for bundling multiple services.

  • Look for discounts :

    Often, there are good driver rates for those with no moving violations or student driver rates. Sometimes, your insurance agent will not tell you about these discounts, but you can find them online.

  • Rates are influenced by the type of vehicle :

    Insurance rates are much higher if you carry full liability and have a vehicle you are paying off. Sometimes it is best to buy a new car and just maintain it thoroughly. Eventually, you will have no car payment, and you can eventually drop the collision insurance. When cars get to a certain age, you will not receive enough back from the insurance company if your car is totaled in an accident to justify buying the collision insurance each year.

Learn more about driver discounts for car insurance rates here.

Anchorage AK Car Insurance Premiums Cost – What Affects Your Rates?

Because of the traffic issues in the area, “State” car insurance rates can be quite high based on the area you live in. The risk factors are higher where there is more traffic, so the area is one important factor in your auto insurance rates. As we have seen, other factors that affect your car insurance rate include your age, marital status, how many cars and drivers you have in your household, your driving record, what type of coverage you need, the age and type of your vehicle, the insurance agency, and the average mileage you drive each year. These factors can make huge differences in how much money you have to spend each year on automobile insurance.

Since insurance rates can fluctuate from company to company, it is imperative that drivers thoroughly educate themselves about automobile insurance and shop around in order to find the very best deal. You literally can save a thousand or more dollars per year by getting quotes from several carriers.

Use this guide to find low cost rates with accidents from the top insurance companies.

Helpful Anchorage, Alaska Vehicle Resources:

Live Traffic and Accidents

DMV (Find Locations, Vehicle Registration, Titles and Insurance Info)


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