How Much Is Car Insurance in Alaska? (October 2024)

In Alaska, drivers pay around $1,174 yearly for full coverage car insurance. For those opting for minimum coverage, the cost hovers at about $507 annually.

Factors like age, coverage, location, history on the road and credit history all affect the price. Affordable plans are available, but cheaper isn't always better.

Alaska's average full coverage car insurance cost is around $1,174 annually or $98 monthly. Knowing your state's average car insurance cost can help you evaluate if your quote is fair or pricey. Start comparing car insurance quotes to find your ideal plan.

Below is a summary of what you might pay for auto insurance in Alaska. These numbers reflect what you could spend monthly and yearly for minimum or full coverage.

Car insurance in Alaska is relatively moderate compared to other states. When comparing the average annual premium for state minimum coverage in Alaska of $507 to the national average of $619, Alaska is more affordably priced.

The rates in Alaska might be deemed relatively affordable due to factors such as less road traffic, a lower number of claims or reduced risk of accidents and thefts compared with more densely populated regions.

Car insurance premiums can vary significantly per company. For instance, State Farm offers the cheapest full coverage in Alaska at an annual cost of $1,036, while Umialik Insurance presents the priciest premium at $1,319.

Shopping around is important when hunting for the cheapest car insurance in Alaska. Compare quotes to ensure you secure an affordable and suitable policy.

The cost of car insurance in Alaska is also impacted by the level of coverage selected. A monthly minimum coverage averages at about $42; in contrast, a monthly full coverage insurance, specifically one with a $1,000 deductible, averages around $98. Despite the higher cost, it's recommended to opt for full coverage as it provides more financial protection in the event of an accident.

Opting for comprehensive and collision coverage will raise your insurance premium, but the impact can be mitigated by selecting higher deductibles. For instance, a deductible amount like $1,000 with comprehensive and collision coverage can lower the monthly premium. The deductible applies separately to each comprehensive and collision claim.

Alaska's minimum car insurance requirements include $50,000 for bodily injury per person, $100,000 for bodily injury per accident and $25,000 for property damage per accident. Uninsured/underinsured motorist coverage is not mandated.

Your location can heavily influence your car insurance premiums. In Anchorage, full coverage is $1,011, while minimum coverage costs $524.

Car insurance rates in Alaska can be affected by several factors, including local crime rates, climate conditions and road safety. Other variables like traffic volume and car repair costs also play a role in determining premiums.

In Alaska, age impacts car insurance costs. Drivers aged 22 to 29 face the highest premiums at an annual rate of $1,431. This changes as motorists age, with drivers aged 30 to 59 seeing premiums drop to an average of $1,174. However, those aged 60 and above experience a slight increase, paying around $1,176 per year.

Age and gender influence car insurance rates in Alaska, with 16-year-old male drivers facing higher premiums than other age groups. On average, adding a 16-year-old boy to a family policy costs $3,027 annually, which is the most expensive age for car insurance premiums.

It's often not possible for teens under 18 to purchase car insurance independently — they'll need a co-signer. Opting for an individual policy, a 16-year-old male driver would pay about $4,998 in premiums.

The average annual cost for full coverage on a 2012 car model is $879, while for a 2022 model, it's notably higher at $1,135. This uptick in cost can be attributed to the greater actual cash value and repair expenses for newer vehicles and their increased susceptibility to theft.

Drivers with newer car models should consider securing comprehensive and collision coverage. This not only protects against a wide range of incidents but can also facilitate prompt repairs without significant out-of-pocket expenses.

Understanding the average cost of car insurance in Alaska based on your driving record is crucial, and here's how it breaks down:

• With a ticket: $1,364 per year, $114 per month
• With an at-fault accident: $1,534 per year, $128 per month
• With a DUI: $1,551 per year, $129 per month

The more serious the violation, the more you'll have to pay for car insurance. These higher premiums stick with you as long as the violation is on your record. Although a DUI typically leads to the highest insurance rates due to its seriousness, there are exceptions. Some insurance companies' policies may be costlier depending on the driving violation and the state.

In Alaska, a DUI can stay on your driving record for up to five years. That means your insurance premiums could be significantly affected for a substantial amount of time.

The table provides specific costs for different coverage options and age groups to find out what you might pay for car insurance in Alaska, given your driving record.

In Alaska, the average annual cost of car insurance varies significantly based on credit score, ranging from $665 for those with excellent credit to $1,303 for people with poor credit. This demonstrates how your credit score can influence what you pay for car insurance. A good credit score falls between 670 and 739. Drivers with lower scores tend to face higher insurance premiums.

Key factors influence the average cost of car insurance in Alaska. Knowing them helps you make an informed decision:

• Location: Urban areas in Alaska often have higher insurance rates due to increased risks of theft, vandalism and collisions compared with rural areas.
• Vehicle Type: The cost to insure higher-value vehicles or those with poor safety ratings is usually greater due to the potential for larger claims.
• Age and Driving Experience: Younger, inexperienced drivers in Alaska tend to face higher premiums due to a statistically higher likelihood of accidents and insurance claims.
• Driving Record: A clean driving record can lead to more affordable premiums, whereas accidents and violations can significantly increase rates.
• Credit Score: In Alaska, a driver's credit score may impact car insurance rates, with higher scores generally benefiting from lower costs.
• Coverage Level: Choosing higher coverage limits or adding collision insurance and comprehensive insurance can raise premiums, but provide more protection.
• Deductible Amount: Opting for a higher deductible can lower your monthly premium, but this means more out-of-pocket expense in the event of a claim.
• Annual Mileage: The less you drive, the lower your risk of incidents. Drivers in Alaska with low annual mileage may benefit from reduced rates.
• State Minimum Requirements: Meeting Alaska's state minimum coverage is essential, but opting for more than the minimum can affect the insurance rate.

Compare car insurance quotes to find a policy that matches your driving needs and fits your budget. You could miss potential savings by not exploring your options.

To secure affordable car insurance in Alaska, compare rates, opt for a higher deductible and fully utilize all available insurance discounts.

Get answers about what impacts the average cost of car insurance in Alaska and how to find affordable rates.