Alaska drivers pay about $1,278 per year for full coverage car insurance and $528 for minimum coverage, based on a 40-year-old driver with good credit and no driving violations. Your rates will vary depending on your unique profile.
Average Cost of Car Insurance in Alaska
Updated: August 19, 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 |
*Rates are based on a 40-year-old driver with good credit and a clean record driving a 2012 Toyota Camry LE. Minimum coverage means basic liability required by state law. Full coverage includes 100/300/100 liability limits plus comprehensive and collision with $1,000 deductibles.
Average Alaska Car Insurance Cost by Category
Car insurance varies widely depending on your unique characteristics, location and car. Here are average rates for common categories of drivers so you can see how pricing can vary.
| Young Drivers | $96 | $236 |
| Adult Drivers | $43 | $103 |
| Senior Drivers | $61 | $135 |
| Drivers With An Accident | $63 | $147 |
| Drivers With A DUI | $58 | $139 |
| Drivers With A Speeding Ticket | $53 | $127 |
| Drivers With Bad Credit | $136 | $337 |
| Drivers With Low Income | $78 | $194 |
| Drivers With Newer Cars | $52 | $127 |
| Drivers With Old Cars | $41 | $99 |
We modified rates based on the same 40-year-old driver profile with these changes: young drivers (16 to 25), adults (26 to 64), seniors (65+), low income (fair credit), bad credit (poor credit), newer cars (2025 Toyota Camry LE), older cars (2007 Toyota Camry LE). Driving violation profiles include only that specific violation.
FIND THE BEST CHEAP PROVIDER FOR YOUR PROFILE
Check out our comprehensive roundup guides to identify the best cheap provider for your profile.
Personalized Average Alaska Car Insurance Costs
General driver categories only tell part of the story. Our filterable table below shows you exact costs based on your personal details for more accurate pricing.
Data filtered by:Results filtered by:
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Coverage Level:100/300/100 Full Cov. w/$1,000 Ded.
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Age Group:Adult Drivers
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Gender:Female
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Credit Alignment:Below Fair
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Driving Record:At Fault Accident ($1000-$1999 Prop Dmg)
| 100/300/100 Full Cov. w/$1,000 Ded. | 343 | 4119 |
*Rates for the age groups are based on the following assumptions: young drivers (16 to 25), adults (26 to 64), seniors (65+).
Average Alaska Car Insurance Cost by City
Your location in Alaska significantly affects your car insurance costs. Annual rates for full coverage range from $419 in Ketchikan to $1,577 in Anchorage. Below you can compare both full and minimum coverage rates for your city and all other residential areas in the state.
Data filtered by:Results filtered by:
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City:Adak
| Full Coverage | $102 | $1,228 |
| Minimum Coverage | $43 | $512 |
*Rates are for a 40-year-old driver with good credit and no driving violations who is insuring a 2012 Toyota Camry LE. Minimum coverage represents the minimum required liability coverage in the state while full coverage is representative of a 100/300/100 liability policy with a $1,000 deductible for comprehensive and collision coverage.
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.