Is Your Alaska Car Insurance Too High? Here is How to Save Money

If you are a novice to online car insurance shopping, you may be confused by the sheer number of online car insurance companies and websites competing for business in Alaska.

Consumers need to compare prices on a regular basis due to the fact that insurance rates go up and down regularly. Just because you had the lowest rates two years ago you will most likely find a better rate today. So ignore everything you know about car insurance because it’s time to teach you how to use online quotes to find lower rates on car insurance.

Do you qualify for a discount?

The price of auto insurance can be rather high, but there are discounts available to reduce the price significantly. Certain discounts will be triggered automatically when you quote, but lesser-known reductions have to be asked for prior to receiving the credit.

• Drivers Ed for Students – Require your teen driver to successfully complete driver’s ed class in high school.
• Good Student Discount – A discount for being a good student can be rewarded with saving of up to 25%. This discount can apply well after school through age 25.
• Air Bag Discount – Vehicles equipped with air bags or motorized seat belts can qualify for discounts of 20% or more.
• Employee of Federal Government – Being employed by or retired from a federal job can earn a discount up to 10% with certain companies.
• Pay Upfront and Save – By paying your policy upfront instead of monthly or quarterly installments you could save 5% or more.
• Multi-policy Discount – When you have multiple policies with the same company you will save approximately 10% to 15%.
• Early Switch Discount – Some companies give discounts for switching policies before your current expiration date. It’s a savings of about 10%.
• Theft Prevention Discount – Vehicles with anti-theft systems can help prevent theft and therefore earn up to a 10% discount.
• Senior Citizens – If you qualify as a senior citizen, you may receive better car insurance rates.
• Accident Waiver – A few companies will forgive one accident without raising rates if you are claim-free for a certain period of time.

It’s important to note that most discounts do not apply to all coverage premiums. Most cut specific coverage prices like comp or med pay. Just because you may think having all the discounts means you get insurance for free, car insurance companies aren’t that generous. But all discounts will bring down the amount you have to pay.

To see a list of companies offering car insurance discounts in Alaska, click here.

Get Cheaper Rates by Understanding Pricing

An important part of buying insurance is that you know the rating factors that play a part in calculating the price you pay for car insurance. When you know what positively or negatively impacts premium levels allows you to make educated decisions that may reward you with big savings.

• Safer occupants lowers premiums – Safer cars get lower rates. Safer cars protect occupants better and any reduction in injury severity translates into fewer and smaller insurance claims passed on to you as lower rates.
• Lower deductibles cost more – Physical damage insurance, commonly called comprehensive (or other-than-collision) and collision coverage, protects your car from damage. Examples of covered claims could be running into the backend of another car, damage caused by hail, or theft. The deductibles are the amount of money you are willing to pay out-of-pocket before a claim is paid by your company. The more expense you’re willing to pay, the bigger discount you will receive.
• Sex matters – Statistics show women are more cautious behind the wheel. Now that doesn’t mean men are worse drivers. They both tend to get into accidents at about the same rate, but the males tend to have more serious accidents. They also receive more costly citations like reckless driving and DUI.
• Discounts for married couples – Having a wife or husband actually saves money on car insurance. Having a significant other translates into being more mature than a single person and it’s statistically proven that married couples file fewer claims.
• Proper usage rating affects rates – Driving more miles in a year’s time the higher your rates will be. Almost all companies rate vehicles determined by how the vehicle is used. Vehicles not used for work or commuting receive lower rates than vehicles that are driven to work every day. Ask your agent if your car insurance coverage is showing the proper vehicle usage, because improper ratings can cost you money.
• Poor credit can mean higher rates – A driver’s credit score is a huge factor in calculating your car insurance rates. Drivers with high credit scores tend to file fewer claims and have better driving records than drivers who have lower credit ratings. Therefore, if your credit history is low, you could potentially save money when insuring your by improving your credit score.

Neighborhood agents for car insurance

Certain consumers just want to buy from a licensed agent and that is OK! The best thing about comparing insurance prices online is that you can obtain lower rates and still choose a local agent. Buying from local businesses is especially important if you live in a smaller city or town.

To find an agent, once you fill out this simple form, your insurance coverage information gets sent to local insurance agents who will return price quotes for your insurance coverage. There is no need to even leave your home due to the fact that quote results will go immediately to your email address. Now that’s easy! Get lower rates and a licensed agent to work with.

Alaska auto insurance agents come in two flavors

When searching for local Alaska agents, you need to know there are two types of agencies that differ in how they can insure your vehicles. Agencies in Alaska are categorized either captive or independent (non-captive).

Independent Agencies or Brokers

Independent agents are not locked into one company so they can insure your vehicles with lots of companies and potentially find a lower price. To transfer your coverage to a different company, your agent can switch companies without you having to go to a different agency. When comparing rates, we recommend you include at least one independent agent to get the best comparison.Many can place coverage with lesser-known insurance companies which can save you money.

Captive Insurance Agents

Captive agencies are contracted to one company and examples are Farmers Insurance or State Farm. They are unable to place coverage with different providers so they have to upsell other benefits. Captive agencies receive extensive training in insurance sales which can be an advantage. Consumers sometimes buy insurance from these agents mostly because of the brand legacy and the convenience of having a single billing for all their coverages.

For a full directory of car insurance agents in Alaska, click here.

Picking an insurance agent requires more thought than just the price. Some important questions to ask are:

• Will their companies depreciate repairs to your car based on the mileage?
• Will you be dealing directly with the agent or with a Custom Service Representative (CSR)?
• Are they able to influence company decisions when a claim is filed?
• What is the agency’s Better Business Bureau rating?
• Are claims handled at the agent’s location?
• Do they review policy coverages at every renewal?

Once you have good answers to all your questions and an acceptable price quote, chances are good that you have found an insurance agent that can provide car insurance coverage.

To learn more about car insurance in Alaska

Much more information about car insurance in Alaska can be read on the Alaska Division of Insurance website. Click here for link. Alaska consumers can find out industry alerts, download brochures, learn about specific coverages, and file complaints about an insurance agent or broker.

More related Alaska car insurance information:

• 8 Ways You Can Buy Car Insurance for Less in Cordova Alaska

Better coverage you can count on

As you restructure your insurance plan, you should never sacrifice coverage to reduce premiums. In many cases, someone dropped liability coverage limits only to regret at claim time that the savings was not a smart move. The ultimate goal is to buy the best coverage you can find for the lowest price while still protecting your assets.

You just read many ways to get a better price on car insurance. The key concept to understand is the more companies you get rates for, the better your comparison will be. Consumers could even find that the best price on car insurance is with the smaller companies.

People who switch companies do it for a variety of reasons including delays in paying claims, lack of trust in their agent, delays in responding to claim requests and even poor customer service. Regardless of your reason for switching companies, finding a new car insurance company is less work than it seems.