Cheap Car Insurance in Alaska (2023)

Alaskan drivers enjoy abundant natural beauty, reliably snowy holidays, and the 13th-cheapest car insurance rates in the country. On average, drivers pay $165 per month, which is lower than the national average of $233 per month. 

But drivers who want to lock in the cheapest car insurance should compare quotes online. Shopping around is the best way to see all available providers and find the cheapest car insurance.

Best cheap car insurance in Alaska: State Farm

1

State Farm

When insurance companies determine car insurance premiums, each has a unique method of setting your rates. Details like your personal information and driving record can lead to large variations in rates across insurers. Since everyone’s situation is a little bit different, comparing quotes from multiple companies can help you lock in the best rates.

Check out the table below for the cheapest car insurance companies in Alaska alongside the average quote they offer. These rates are sourced from Insurify’s proprietary database of more than 70 million quotes.

Minimum car insurance requirements in Alaska

Alaska requires its residents to insure all motor vehicles they operate or park on the state’s roadways. You must carry proof of insurance in your car at all times and make it available when:

• Requested by law enforcement

• Renewing vehicle registration

• The vehicle is involved in a car accident

The minimum liability insurance requirements for private passenger vehicles in Alaska are:1

• $50,000 per person for bodily injury

• $100,000 per accident for bodily injury

As a major part of your liability insurance, bodily injury coverage covers medical bills for parties you injure in an accident. Alaska is an at-fault state, meaning the driver who’s responsible for the collision is also responsible for paying for any resulting expenses, either through their car insurance provider or out of pocket.  

• $25,000 per accident for property damage

If it’s determined that an insured driver is at fault for an accident, this coverage pays for repairs to the property of the other involved parties. Additionally, property damage coverage can cover legal costs if the insured driver is involved in a lawsuit following the accident.

Alaska DMV information

The Alaska Division of Motor Vehicles (DMV) offers drivers a wide range of services, including renewing their driver’s licenses, reporting vehicle sales, vehicle registration renewal, and more. Although you’ll find DMV offices around the state, you can handle several critical vehicle tasks through the DMV’s website.2 For example, you can take a driver's exam, renew your license, and more online. 

Public transportation in Alaska

The Alaska Community Transit program oversees all the state’s public transportation infrastructure systems. Modes of public transportation include buses, ferries, trains, and cars for door-to-door service in rural areas. Other ways to get around in developed areas of the state include rideshare options.3 But in some areas of the state, access to a vehicle is the most efficient mode of transportation. 

Tips for getting cheap car insurance in Alaska

As you shop for car insurance, it’s important to realize that every insurance company will evaluate your unique situation differently. Details like your ZIP code and driving history can lead to dramatically different quotes across insurance companies. Taking the time to shop around provides an opportunity to find the best rates. Compare quotes to find the most affordable policy for you.

Be sure to check into any discounts that may be available to you, such as a good driver discount, or a good student discount for teens and college students.

Liability-only vs. full-coverage insurance in Alaska

If you live in Alaska, you can opt to carry liability-only auto insurance, which pays for expenses related to injuries and damage to the other party’s car if you cause an accident. Each state sets its own minimums for how much liability insurance it requires drivers to carry. Liability-only insurance can make sense if:

• You have a low-value vehicle.

• You can afford to repair or replace your car out of your own pocket.

• Getting the cheapest insurance possible is your top priority.

For a higher level of protection, you can choose full-coverage insurance, which includes basic liability plus collision and comprehensive coverage. Collision coverage pays for damages to your car, even if you’re at fault for an accident. Comprehensive coverage pays for damages caused by events out of your control, like vandalism, theft, weather, and damage caused by animals. Auto lenders and leasing companies typically require drivers to carry full coverage on a car they’ve financed.

You may also opt for full coverage if:

• You have a high-value vehicle.

• You wouldn’t be able to afford to repair or replace your car out of pocket.

• Your car’s actual cash value (the payout you’d likely get if your car is totaled) exceeds your annual premium to carry full coverage.

Here’s a look at the average monthly quotes for the cheapest auto insurance in Alaska by policy type.

How your driving history affects Alaska car insurance rates

Your driving record is one big factor that insurance companies consider when determining your car insurance rates. Most insurance companies consider drivers with an at-fault accident, speeding ticket, or DUI as a higher risk, while drivers with a clean driving record are considered as a lower risk. Drivers with more infractions typically face higher insurance premiums.

In Alaska, high-risk drivers with infractions on their record can expect the cheapest rates from national insurers like State Farm and GEICO, while those belonging to military families can also enjoy affordable rates from USAA. For those who prefer regional companies, Umialik also has affordable rates.

See More: High-Risk Car Insurance Alaska 

SR-22 insurance in Alaska

In Alaska, you might need an insurance company to file an SR-22 form, or a certificate of financial responsibility, if you get in trouble with the law for many different reasons, like getting a DUI. The SR-22 form shows that your auto insurance meets the state’s minimum liability insurance requirements.4 

You can file this form at the DMV. If you live in Alaska, these companies can help you get SR-22 insurance.

• Allstate 

• GEICO 

• Progressive 

• State Farm 

• USAA

How credit scores affect Alaska car insurance quotes

In Alaska, insurance companies take your credit history into account when setting your car insurance premium. In most cases, a poor credit score indicates a higher risk that you won’t make your premium payments on time. But a good credit score is often seen as a lower risk. Due to this perception of risk, those with good credit scores tend to pay less than those with poor credit scores. 

Take a look at the table below to get an idea of how much you can expect to pay for car insurance in Alaska, based on your credit score. These averages were determined through Insurify’s proprietary database.

How your city affects Alaska insurance quotes

Where you live is a significant factor to insurance companies. Risk factors like population, crime rates, and average commuting times are tied to the ZIP code you call home. In most cases, Alaskan drivers in bigger cities pay more than those living in smaller towns. Take a look at the average rate for your city below. 

How your age affects your Alaska car insurance rates

It’s natural to get better at driving as you practice. Older drivers have put in plenty of time behind the wheel, and many insurance companies reward their years on the road with lower insurance premiums. For example, Alaskan drivers in their 50s enjoy the cheapest average rates for car insurance. But teen drivers and those under 25 tend to pay the most for this unavoidable expense. 

Quotes for younger drivers

Alaskan drivers under 25 pay an average of $232 for car insurance a month. If you add in a speeding ticket, accident, or a DUI, this number jumps significantly. For example, if you’re a young driver with a clean record you can expect to pay about $221 with GEICO, but if you have a DUI on your record, your rate jumps almost 100% to $422. This is because young drivers are already considered a high risk to insure due to their lack of experience, and a DUI is even less reassuring to insurers. 

Take a look at the table below to see how much you can expect to pay for car insurance as a young driver in Alaska based on your driving record. 

Quotes for middle-aged drivers

Middle-aged drivers in Alaska can expect to pay cheaper rates compared to younger counterparts, owing to their years of demonstrated driving experience. Middle-aged drivers can find the cheapest rates from State Farm, the largest insurer in the country. However, regional companies like Umialik also provide affordable options.

Read More: Compare Car Insurance by Age and Gender

Quotes for senior drivers

Alaskan drivers over the age of 60 find incredibly affordable car insurance rates. This is because older drivers typically have safer driving behaviors and as such, are a lower risk to insure.5 Check out the table below for a better idea of how much senior Alaskans can expect to pay for car insurance. The quotes below are sourced from Insurify’s database of more than 70 million insurance quotes, as well as third-party databases provided through Quadrant Information Services. 

Alaska car insurance FAQs

Check out the answers to some often-asked questions about car insurance in Alaska. 

Insurify Insights

How Alaska Drivers Measure Up

While most drivers know that car insurance quotes are determined in part by your personal driving history, many may be unaware that rates are also impacted by the average risk of the drivers around you as well. Check out Insurify's latest analysis of driving records in Alaska below:

Methodology

Drawing from an internal database of over 4 million car insurance applications, the research team at Insurify analyzes patterns in car ownership and driver behavior - including how Alaska drivers measure up to their fellow motorists across the United States in areas including speeding, DUIs, and more.
Insurify Insights publishes data-driven articles, trend analyses, and national rankings each week on all factors related to cars and those who drive them.

Ford F-Series Pickup

Most Popular Car in Alaska

#31

State with the Most Speeding Tickets Rank

#39

State with the Moving Violations Rank

#20

State with the Most DUIs Rank

#20

State with the most Suspended Licenses

• Accidents in Alaska

  While car accidents are a sadly unavoidable feature of time spent on the road, rates of accidents do vary from city to city and from state to state. Alaska is the #46 state in the country for drivers with an at-fault accident on their driving record.

  • Rank among states: #46
  • Percent of drivers in Alaska with an accident: 6.2%
• DUIs in Alaska

  While driving while intoxicated is never acceptable, it’s a more common offense than many assume. Alaska is the #20 state in the country for drivers with a prior drunk driving conviction.

  • Rank among states: #20
  • Percent of drivers in Alaska with a DUI: 1.6%
• Reckless Driving in Alaska

  Reckless driving refers to a specific traffic violation: when drivers willfully act dangerously in spite of the risks they’re imposing on both themselves and others. Alaska is the #11 state in the country for drivers with a reckless driving offense on record.

  • Rank among states: #11
  • Percent of drivers in Alaska with a reckless driving offense: 1.8%
• Rude Driving in Alaska

  The Insurify team classifies rude drivers as those who commit one or more of the following driving offenses: failure to yield or failure to stop, improper backing, passing where prohibited, tailgating, street racing, or hit-and-run. Alaska is the #13 state in the country for drivers with a rude driving violation on record.

  • Rank among states: #13
  • Percent of drivers in Alaska with a rude driving violation: 2%
• Speeding in Alaska

  Exceeding the speed limit can endanger others and have a serious impact on your insurance costs. Alaska is the #31 state in the country for drivers with a speeding ticket on record.

  • Rank among states: #31
  • Percent of drivers in Alaska with a speeding ticket: 7.9%
• Failure to Yield Rates in Alaska

  Failing to yield the right of way isn’t just frustrating for other drivers; it’s dangerous, too. Alaska is the #15 state in the country for drivers with a failure to yield violation on record.

  • Rank among states: #15
  • Percent of drivers in Alaska with a failure to yield violation: 0.2%

Insurify Insights

Insurify's team of data scientists and content specialists presents Insurify Insights, a series of automotive, home, and health studies focusing on the topics that impact us all. through expert analysis of over 4 million car insurance applications and an array of top data sources, the Insurify Insights team produces new data-driven articles, trend analyses, regional superlatives, and national rankings every week. See Insurify Insights as featured in Forbes, Fox News, USA Today, NPR, and more.