Alaska drivers spend around $1,278 annually for full coverage car insurance and $528 for minimum coverage, assuming a 40-year-old policyholder with strong credit and no driving infractions. Alaska ranks 19th for full coverage and 15th for minimum coverage nationwide, with costs 12% and 23% below national averages respectively.
Average Cost of Car Insurance in Alaska
Updated: October 17, 2025
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Key Takeaways
Car insurance costs range from $528 to $4,637 per year on average in Alaska depending on your chosen coverage, driving profile and location.
Alaska ranks 15th for minimum coverage and 19th for full coverage affordability among the 50 states and Washington, D.C., making it one of the most affordable states for car insurance.
To secure the cheapest car insurance in Alaska, start by deciding your coverage requirements, then research various companies before comparing quotes extensively.
Average Car Insurance Cost In Alaska
| Full Coverage | $106 | $1,278 |
| Minimum Coverage | $44 | $528 |
The difference between full and minimum coverage amounts to $750 per year, or roughly $63 monthly. Individual premiums vary according to personal profile, driving experience and policy options chosen.
Average Alaska Car Insurance Cost by Category
Credit challenges dominate Alaska's rate structure, costing $337 monthly compared to adults at $103 monthly for full coverage. Your driving profile impacts Alaska car insurance costs substantially.
Young drivers pay $236 monthly while older vehicles provide modest relief at $99 monthly. Alaska's harsh weather and remote locations affect all categories, but credit emerges as the primary differentiating factor.
| Drivers With Old Cars | $41 | $99 |
| Adult Drivers | $43 | $103 |
| Drivers With Newer Cars | $52 | $127 |
| Drivers With A Speeding Ticket | $53 | $127 |
| Drivers With A DUI | $58 | $139 |
| Senior Drivers | $61 | $135 |
| Drivers With An Accident | $63 | $147 |
| Drivers With Low Income | $78 | $194 |
| Young Drivers | $96 | $236 |
| Drivers With Bad Credit | $136 | $337 |
Alaska's challenging conditions create elevated base rates, with credit history generating the most significant premium variations across all driver categories.
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Average Alaska Car Insurance Cost by Company
GEICO offers competitive rates in Alaska at $87 monthly for full coverage, while Progressive operates at higher price points with $137 monthly. Alaska insurance markets show substantial rate differences, with full coverage costs varying from $87 to $137 monthly among well-known companies.
Alaska residents can reduce annual costs by approximately $600 through strategic company choice.
| Geico | $41 | $87 |
| State Farm | $43 | $107 |
| Western National Insurance | $44 | $125 |
| Allstate | $45 | $120 |
| Progressive | $65 | $137 |
Average Alaska Car Insurance Cost by City
Ketchikan maintains reasonable $84 monthly rates while Anchorage reaches $131 monthly for full coverage, creating a $47 difference between Alaska's largest city and smaller communities. Anchorage's size drives these higher costs.
Alaska's remote locations generally offer lower rates, while Anchorage faces increased traffic density and urban insurance challenges. Compare rates for your city below.
Data filtered by:Results filtered by:
Select
City:Adak
| Full Coverage | $102 | $1,228 |
| Minimum Coverage | $43 | $512 |
Is Alaska Car Insurance Expensive?
Alaska ranks 15th for minimum coverage and 19th for full coverage affordability, making it one of the most affordable states for car insurance in 2025. This reflects statewide averages, and affordability rankings for your city differ from the rest of the United States.
Why Is Car Insurance More Expensive In Alaska?
Below we'll explore the reasons for Alaska's high car insurance rates:
Higher minimum coverage requirements
Alaska requires some of the nation's highest minimum coverage at 50/100/25, meaning $50,000 for bodily injury per person, $100,000 per accident and $25,000 for property damage. These limits are substantially higher than most states, providing better baseline financial protection for Alaska drivers. However, even these elevated minimums may not cover all costs in serious accidents, making higher coverage worth considering.
Unique remote area exemptions
Due to Alaska's vast size and remote geography, insurance is only required in areas where car registration is mandatory. In remote communities where registration isn't required, neither is insurance --- unless drivers have received a ticket worth six or more points within the past five years. Registration and insurance are required in the five largest cities: Anchorage, Fairbanks, Juneau, Eagle River and Badger.
"No Pay, No Play" protection laws
Alaska enforces "No Pay, No Play" laws, which limit how much uninsured drivers can collect from others in accidents. If you drive without insurance and someone crashes into you, you'll only be able to collect limited compensation from the guilty party and likely won't be able to sue for physical or bodily damage. This law encourages compliance with mandatory insurance requirements.
Below-average insurance costs
Alaska drivers benefit from relatively affordable insurance rates. Alaska ranks among the cheapest states for auto insurance, with costs kept low by extremely low population density of fewer than two people per square mile and reduced accident frequency in remote areas.
Moderate uninsured driver rates
Alaska has an estimated uninsured driver rate that's slightly above the national average. This makes uninsured motorist coverage particularly valuable for Alaska drivers. Alaska law requires insurers to offer uninsured/underinsured motorist coverage, though drivers can reject it in writing. Given the uninsured rate, accepting this coverage provides important protection.
Harsh weather challenges
Alaska's extreme weather conditions create unique driving challenges that can impact insurance claims. The state experiences severe winter conditions, ice storms and wildlife encounters that can cause car damage. Alaska has challenging highway infrastructure, and comprehensive coverage becomes important for protecting against weather-related damage, animal collisions and other non-collision incidents common in Alaska's rugged environment.
How To Lower Car Insurance Costs In Alaska
Even with Alaska's affordable rates, you can save more. Here's how to lower your car insurance costs:
- 1
Decide on Coverage Needs Before Buying
Deciding on your coverage needs is important so you're not oversold on too much coverage. Consider your financial situation, driving habits, car details and risk tolerance when making this decision.
- 2
Research Costs
To save money for your profile, know the average costs for your preferred coverage level. Research car insurance discounts you may qualify for and look into the best home and auto insurance bundles for the most balanced perspective.
- 3
Look Into Company Reputations and Coverage Options
Cost isn't everything. Consider add-on coverage options and customer experiences with different providers to help narrow down which companies you'd like to compare quotes from. Use resources like industry studies, review forums and public forums like Reddit.
- 4
Compare Multiple Quotes Through Different Means
Compare quotes from multiple companies to find the best deal possible. Use different means of getting quotes, such as comparison sites and independent agents, since pricing varies widely by method.
Cost of Car Insurance in Alaska: Bottom Line
Alaska car insurance costs are among the most affordable in the United States, but smart shopping can still help you save even more. Decide on your coverage needs beforehand, do thorough research and compare quotes from the right insurers.
Cost of Car Insurance in Alaska: FAQ
Below are answers to frequently asked questions about Alaska car insurance costs:
How much is Alaska car insurance per month?
Per month, Alaska car insurance costs $44 for minimum coverage and $106 for full coverage policies. However, rates can range anywhere from $41 to $337 monthly depending on your unique driver profile and coverage choice.
What factors affect Alaska car insurance costs?
Primary factors include driving history, age and location. Drivers with accidents, violations or those who are young face higher rates, while urban areas cost more than rural ones. Car type, coverage amounts, credit score and annual mileage also impact premiums, along with factors like gender and marital status in some states.
Why is Alaska car insurance so expensive?
Alaska requires some of the nation's highest minimum coverage at 50/100/25, yet maintains affordable auto insurance rates nationally. The state's unique geography allows insurance exemptions in remote areas where car registration isn't required. Alaska's extremely low population density (under two people per square mile) and 8.4% uninsured driver rate contribute to affordable premiums despite harsh winter conditions.
How expensive is Alaska car insurance?
Alaska ranks 15th in affordability for minimum coverage and 19th overall for full coverage, making it a more affordable state to get auto insurance in the U.S.
How We Determined Alaska Car Insurance Costs
We used the following profile and modifications of this profile to determine Alaska auto insurance costs across all available zip codes and cities in the state:
- 40-years-old
- Clean driving record
- Good credit
- 2012 Toyota Camry LE
Minimum coverage was defined as a state's minimum liability coverage and full coverage is a policy with 100/300/100 liability limits and a $1,000 deductible for comprehensive and collision coverage.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.