Find affordable car insurance with bad credit by comparing rates.
Finding cheap auto insurance can be tough if you have bad credit. Car insurance companies utilize credit tier as a rating factor, setting policy prices based in part on drivers’ credit histories. Because auto insurance companies rely on historical data showing clients with bad credit histories are more likely to file auto insurance claims, they compensate for the additional risk by assigning expensive rates.
Car insurance rates with bad credit depends on which company you choose, where in Alaska you live, and an array of other rating factors. We've gathered below typical insurance rates for drivers with bad credit in major Alaska cities and rates from a few of the most popular insurance companies, , along with tips to save on auto insurance if you have bad credit in Alaska.
Alaska drivers pay a penalty of $949 each year for having a credit score at the low end of the scale. Drivers in either the “poor” or “below fair to poor” credit tier will also face a penalty.
|Credit Tier||Average Annual Rate in Alaska|
|Below Fair to Poor||$1,766|
|Average — All Credit Tiers||$1,152|
Your car insurance rates also depend on the specific area in which you drive. Insurers rely on your address to estimate your odds of filing a claim: the denser your area,, the more you'll pay.
Listed below are major Alaska cities and their average car insurance rates for drivers with poor credit ratings.
|City||Average Annual Rate — Worst Credit||Average Annual Rate — Poor Credit||Average Annual Rate — Below Fair to Poor Credit|
Another factor that contributes to how much you pay for car insurance is the company you choose. Every auto insurance company prices its policies differently, giving rating factors varying weights in their pricing calculations. Credit can be a significant price differentiator between insurance companies. In Alaska, the most affordable insurance company with bad credit is GEICO, which offers a discount of $396 annually in comparison to the second-most affordable company, USAA.
See below prices from major auto insurance companies in Alaska for drivers with bad credit.
|Company||Average Annual Rate — Worst Credit|
If you're buying auto insurance with bad credit, keep these tips in mind: