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How much does car insurance cost in Anchorage?
Car insurance in Anchorage costs an average of $1,045 for a six-month policy or about $174 per month. In 2022, our data shows USAA is the cheapest car insurance company in Anchorage with rates at $583 for a six-month policy. However, keep in mind that not everyone qualifies for USAA coverage, so read on to learn about other affordable options if you're in the market for auto insurance in Anchorage.
Anchorage residents pay slightly more than the average for car insurance in Alaska, which runs about $919 every six months. The city's average is also more than the national average of $742 every six months. In fact, 34% of our customers in Anchorage think they are paying too much for their car insurance. If you're paying too much, or want to learn about all of your options when it comes to auto coverage, then keep reading to learn more about what typical Anchorage rates look like and how they're calculated.
| Car Insurance in Anchorage vs. Alaska | Avg. 6 Mo. Premium |
|---|---|
| Alaska Average | $919 |
| Anchorage Average | $1,045 |
The cheapest car insurance companies in Anchorage
USAA is the cheapest at $97 per month or $583 for a six-month policy. The most important thing to consider with USAA is that not everyone qualifies for its insurance coverage. USAA is designed for military members and their families, so be sure to check if it's available to you.
In second place for most affordable coverage in Anchorage is State Farm, which costs $125 per month, or $752 for a six-month policy.
Umialik, an Alaska-focused company based in Anchorage, is the third-cheapest insurance company on our list. On average, a policy through Umialik in Anchorage costs $910 per six-month policy. This breaks down to about $152 per month.
The Zebra's key takeaways about car insurance in Anchorage:
- The average cost of an auto insurance policy in Anchorage is $1,045 per six-month policy — $174 per month.
- The cheapest company in Anchorage is USAA ($583) but not all drivers will qualify, so State Farm can be a good alternative.
- Anchorage ranks as the most expensive city for car insurance in Alaska, compared to others such as Fairbanks or Juneau.
- 34% of Zebra customers in Anchorage stated they used our product because they feel like they pay too much with their current insurer.
Are you paying too much for auto insurance?
Anchorage car insurance rates by company
According to our data for 2022, the best cheap car insurance with full coverage in Anchorage, Alaska, is USAA at $97 per month or $583 per six-month policy, while the second cheapest is State Farm at $125 per month or $752 for a six-month policy. Either offer a variety of options to meet your auto insurance needs, but remember, not all drivers qualify for USAA.
Learn more about top-rated car insurance companies based on The Zebra's Customer Satisfaction Survey.
Cheapest car insurance companies in Anchorage, AK
| Company | Avg. 6 Mo. Premium |
|---|---|
| USAA | $583 |
| State Farm | $752 |
| Umialik Insurance | $910 |
| GEICO | $1,017 |
| Progressive | $1,320 |
| Allstate | $1,758 |
Shop around for the best car insurance rates
The best way to find cheap car insurance that meets your needs is to shop around and compare rates. Our handy comparison tools will take care of the hard work, so you can focus on choosing the coverage that works for you. Enter your ZIP code to see rates from Umialik, Allstate and State Farm (+ other top companies) to find the best and cheapest car insurance in Anchorage.
Average car insurance in Anchorage by rating factor
Sometimes it can be challenging to find the right car insurance company — it needs to cover the things that are important to you, yet also be affordable. Though most companies use similar rating factors, their approach may vary from company to company. For example, some companies may rank credit scores fairly high when they're evaluating your rating factors, whereas others might focus more on your prior claims.
To ensure you continue to get the best rates possible as life changes, be sure to get new quotes every six months to a year.
Q: I didn't have an accident — Why is my insurance going up?
A: End-of-year earnings (revenue of premiums versus the cost of paying insureds’ claims) is a significant rating factor for how much you'll pay for car insurance in Anchorage. You might be a safe driver with no past claims, but you may still pay more with certain insurance companies because the price of doing business has increased in Anchorage.
Auto insurance premiums by age in Anchorage
Of the many factors that are taken into consideration when calculating rates, age is one of the most important. Insurance companies use data to determine how likely drivers are to get into accidents or make claims, and unfortunately, teen drivers have a higher accident rate than any other age group. As result they face the highest premiums: in Anchorage difference between rates paid by teenage drivers versus those who are in their 20s can be as much as $2,059.
The cost of insuring a teen driving can seem overwhelming or even unfair, but insurers are in the business of managing risk. Since teens have the highest risk, companies charge them higher rates to offset the increased cost of claims.
Cheapest car insurance companies for teen drivers in Anchorage, AK
| Company | Avg. 6 Mo. Premium |
|---|---|
| USAA | $1,782 |
| Umialik Insurance | $2,120 |
| GEICO | $2,574 |
| State Farm | $2,926 |
| Allstate | $4,614 |
| Progressive | $6,434 |
Zebra Tip: The cheapest companies for Anchorage drivers between 20 and 40 are USAA, State Farm and Umialik.
Our data tells us that drivers between the ages of 20 and 40 make up the majority of Anchorage drivers. On average, this group pays $1,244 every six months. By going with these companies, they can potentially save 31%.
Auto insurance premiums for minimum coverage in Anchorage
The level of coverage you choose has a lot to do with your insurance rates. Our data indicates that 33% of Anchorage drivers have the state minimum coverage. While drivers are only required to have a certain amount of coverage, if you only keep the bare minimum then you could potentially be underinsured in the event of a claim.
Adding collision coverage or comprehensive coverage (commonly known as "full coverage" when purchased together) will increase your rates, but provides additional peace of mind, which can be worth a lot. These coverages typically require a deductible, which varies in amount and will also affect your rate. If you opt for a higher deductible, the cheaper your rates will be. If you go with a lower deductible, you'll pay more for your policy.
Also worth considering are things like roadside assistance or uninsured motorist coverage that can protect you against drivers who or uninsured or underinsured. These add-ons will increase your insurance premium, as well, but The Zebra recommends them since they add an extra layer of protection for you later on.
Q: Can I lower my car insurance coverage?
A: Possibly — if your vehicle is paid off.
In an analysis of our data, 61% of drivers in Anchorage have owned vehicles. If you are not leasing or financing your vehicle, you might consider if dropping comprehensive or collision coverage is right for you. We recommend getting the actual cash value of your vehicle via Kelley Blue Book or another reputable source. In general, if your vehicle is worth less than $4,000, you probably don't need collision coverage. Bear in mind, however, that dropping these coverages means that you will have to pay for any repairs out of your own pocket if you're involved in an accident.
Cheapest car insurance companies for minimum coverage in Anchorage, AK
| Company | Avg. 6 Mo. Premium |
|---|---|
| USAA | $209 |
| GEICO | $296 |
| State Farm | $305 |
| Umialik Insurance | $427 |
| Allstate | $439 |
| Progressive | $614 |
Anchorage car insurance rates by credit score
In most states, including Alaska, credit score is a rating factor in determining premiums. It's right up there with age and driving history when insurers calculate your rates, but you might be wondering why this is the case. When looking at historical data, it's been shown that drivers with lower credit scores tend to file more claims, have lapses in coverage and engage in more risky driving behavior. The statistics show that the better your credit, the less risky you are to insurance companies. Improving your credit can be a good way to get cheaper auto insurance rates.
Anchorage drivers with poor credit (300-579) pay 52% more than drivers with excellent credit (800-850). Our data tells us 38% of drivers in Anchorage have a "Good" credit score. In 2022, USAA or State Farm are the cheapest options for Anchorage drivers for this credit tier.
Cheapest car insurance companies for bad credit in Anchorage, AK
| Company | Avg. 6 Mo. Premium |
|---|---|
| USAA | $1,024 |
| GEICO | $1,177 |
| Umialik Insurance | $1,381 |
| State Farm | $1,446 |
| Allstate | $1,911 |
| Progressive | $1,979 |
Zebra Tip: If you've improved your credit score, it's time to shop around for car insurance!
In Anchorage, our data shows drivers with "Fair" credit pay $552 less for car insurance in a year than drivers with "Poor" credit. If you have recently paid off a loan or other credit-improving actions, check your preferred credit monitoring software to see if your recent efforts could save you on your car insurance!
Auto insurance rates with an at-fault accident
At-fault and collision-type accidents are the most common type of insurance claims. In 2022, an at-fault accident raised the average car insurance rates in Anchorage from $174 to $246 per month — a 41% increase. The cheapest insurance company in Anchorage after an at-fault accident is USAA, with Umialik Insurance a close second for savings.
No matter where you live, keeping a clean driving record by avoiding accidents and citations is the best way to keep your auto insurance rates affordable. Speeding citations, reckless driving charges, DUIs and DWIs and at-fault accidents all result in rate increases. Depending on the type of accident or ticket, your premium will be impacted for three to five years, but DUIs or DWIs can follow you for even longer.
Cheapest car insurance companies after an at-fault accident in Anchorage, AK
| Company | Avg. 6 Mo. Premium |
|---|---|
| USAA | $843 |
| Umialik Insurance | $910 |
| State Farm | $961 |
| GEICO | $1,528 |
| Allstate | $2,071 |
| Progressive | $2,156 |
Anchorage car insurance rates by violation
Below you can see how much different violations and claims will increase your rate in Anchorage.
Car insurance rate increases after violations and citations in Anchorage, AK
Why is car insurance in Anchorage so expensive?
Auto insurance in Anchorage may feel expensive for a variety of reasons. One reason is that the cost of living in Anchorage is higher than in other cities in Alaska, which means that car insurance companies have to charge more to cover their own costs. Aside from your coverage level, credit history and driving record, there are also other factors that impact your rates.
Let's look at why car insurance can be expensive in Anchorage, even for a great driver.
Like most large cities, Anchorage has certain areas where crime, theft and uninsured motorists are more prevalent. If you live in a high-crime neighborhood you'll most likely pay more for insurance than if you lived in another part of town. The good news is that Anchorage rates don't vary too much from one ZIP code to the next — so one may be slightly higher, but usually only by a few dollars.
Although Anchorage itself is tucked in amongst the peninsulas and islands that make up Alaska, it is still a waterfront city and it receives a high rate of yearly rainfall: factors that each pose a risk of flooding. Flood damage is covered if you have comprehensive coverage, so if you have a new or high-end vehicle we recommend adding comprehensive coverage if you don't currently carry it as part of your insurance policy.
The area is also at risk for major winter storms with freezing rain and blizzards, creating hazardous driving conditions. Weather-related damage is a major risk that can drastically impact an insurance company, and even put them out of business. Since the weather risks are so high in the Anchorage area, insurers must take this into consideration and raise business costs accordingly, which leads to higher rates for consumers.
With the higher population in Anchorage compared to more remote areas in Alaska, that means there are also more cars on the road. More cars mean more accidents, in general. The costs of accident-related claims are generally passed along to other drivers in the area through higher premiums — this is even the case for safe or infrequent drivers.
According to our data, about 33% of drivers in Anchorage are not currently insured. If you’re hit by an uninsured driver in Anchorage, the cost of repairs might fall completely on you.
Zebra Tip: We suggest carrying comprehensive coverage as well as uninsured motorist coverage in Anchorage
Damage caused by weather-related events is covered under comprehensive car insurance. If you're worried about flooding or other weather-related events damaging your vehicle, it might be time to get comprehensive coverage for your vehicle.
Another consideration in Anchorage should be uninsured motorist coverage (also called UMPD). This coverage will help you out if your vehicle, or yourself, is damaged by an underinsured or uninsured driver. UMPD coverage typically has a lower deductible and is cheaper than collision coverage. As another bonus, the rate increase after a UMPD claim can be hundreds of dollars cheaper than after a collision claim.
Bundling insurance policies in Anchorage
Car insurance costs always seem to be increasing, no matter where you live, but there are still ways to help make your auto coverage more affordable. When shopping for a new policy, bundling your homeowners or renters insurance with your car insurance is an easy option to help save money. You can potentially save 10% in combined premiums when you bundle. Learn more about bundling home and car insurance.
If your car and home insurance policies are separate, it's worth a little time to see what you could save. Shop around and compare rates from different companies to see which insurer offers the best rate with bundling.
Cheapest car insurance companies for bundling home and auto insurance in Anchorage, AK
| Company | Avg. 6 Mo. Premium |
|---|---|
| USAA | $557 |
| State Farm | $612 |
| Umialik Insurance | $828 |
| GEICO | $989 |
| Progressive | $1,071 |
| Allstate | $1,675 |
You can't control what your insurance rates will be, but our best advice when it comes to finding cheap auto insurance is simply to compare auto insurance quotes from as many companies as possible. It can be stressful to find a rate that doesn't compromise your coverage but also makes sense for your budget.
Remember those personal factors that can make a difference, (like moving, celebrating a birthday or improving your credit score) just in case something has changed that might save you money. Some companies are simply more expensive than others, so don't be afraid to shop around and find the one that suits you best.
