How Much Is Car Insurance in Alaska? (2023 Averages)
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The cost of car insurance premiums varies greatly depending on the history of the driver and the level of coverage selected. For example, while the average cost of car insurance in Alaska is $984 per year, those who have a minimum coverage policy only spend about $554 annually. Meanwhile, the price rises to $1,144 if you have a violation on your record and $3,011 if you add a young driver to your insurance.
Your premiums will also change based on the auto insurance company you select. Full coverage insurance from GEICO costs $882 per year in Alaska, but the same coverage from Allstate costs $1,074 per year.
The Average Cost of Car Insurance in Alaska
MoneyGeek’s analysis outlines the average cost of car insurance in Alaska using factors that most affect rates. Age and coverage level have the most significant impact. Other aspects include driving record and credit score. The profiles below show you the average cost of auto insurance for various types of drivers.
Average Costs of Car Insurance in Alaska
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- DriverAverage Annual PremiumAverage Monthly Premium
- The Average Driver$984$82
- Drivers Buying Minimum Coverage$554$46
- Adding a Young Driver$3,011$251
- Drivers With a Violation$1,144$95
- Drivers With Poor Credit$1,412$118
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Why Are Car Insurance Rates Cheap in Alaska?
Car insurance rates vary by state due to several factors. Alaska offers one of the cheapest car insurance rates in the country, ranking 16th among all states. The factors contributing to this rate are highway density and natural disasters.
Alaska has less traffic density than every other state. With fewer cars on the road, the likelihood of car accidents also decreases.
Although natural disasters do occur in Alaska, they happen less frequently compared to other states. Extreme weather conditions may cause severe damage to your car, even rendering it a total loss. Carriers consider these incidences when setting auto insurance premiums.
Average Cost of Car Insurance in Alaska: Full Coverage vs. Minimum Coverage
On average, there is a $431 difference between a policy meeting Alaska’s minimum car insurance requirements and a full coverage policy.
The amount of coverage you buy contributes to how much car insurance costs in Alaska. Your liability limits and whether you choose to purchase comprehensive and collision insurance impact your premium.
For example, purchasing a policy meeting Alaska's minimum liability requirements costs $554 per year on average. In comparison, the average cost of full coverage car insurance in Alaska with 100/300/100 limits is $984 annually.
Average Cost of Car Insurance in Alaska by Coverage Level
A state-minimum policy in Alaska is the lowest cost option for car insurance.
For an added cost, you can choose to increase your liability coverage to 50/100/50 or 100/300/100. These numbers show the liability coverage limits for your insurance. For example, a liability coverage of 50/100/50 provides the following coverage limits:
- $50,000 in bodily injury liability insurance per person
- $100,000 in bodily injury liability insurance per accident
- $50,000 in property damage liability insurance per accident
On the other hand, a full coverage policy comes with comprehensive and collision insurance. This includes damage to your car, in addition to the standard liability coverage.
Average Cost of Car Insurance in Alaska By Company
Which provider you choose also affects how much car insurance costs in Alaska. If you’re looking for affordable liability-only coverage, GEICO offers a policy at an average of $453 per year. They also have cheap full coverage auto insurance with an average annual rate of $882.
USAA offers more affordable rates, but you must be part of a military family to purchase their policies.
On the other hand, Progressive has the most expensive policy with state minimum requirements, costing $714 per year on average. Meanwhile, Allstate’s full coverage car insurance is typically the most expensive in Alaska — its premium costs an average of $1,074 each year.
Average Annual Costs of Car Insurance in Alaska - By Company
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- CompanyMinimum CoverageFull Coverage
- $328$619
- $453$882
- $546$954
- $714$1,028
- $502$1,074
How Much Is Car Insurance in Alaska by Age?
Age and driving experience are also factors that determine car insurance rates in Alaska. A 40-year-old driver pays an average of $984 per year, while the premium for a 16-year-old is $2,027 higher on average. Their policy costs around $3,011 annually. Young drivers can save on car insurance by being added to their parents’ policy.
Regardless of age, however, first-time drivers often receive rates similar to young drivers. It’s because providers also look at driving experience. Your premium decreases as you spend more time on the road.
Average Costs of Full Coverage Car Insurance in Alaska - By Age
How Does Driving History Affect Car Insurance Costs in Alaska?
Safe drivers in Alaska pay lower insurance rates than those with violations on their driving records. For example, if you have a speeding ticket, you spend an average of $1,144 per year. A driver with a clean record has a lower car insurance rate in Alaska of only $984 annually, on average. That’s a difference of roughly $159.
Rates for drivers with bad driving records also vary depending on the severity of your infraction. The more severe the violation, such as being at fault for an accident or having a DUI, the more expensive your car insurance rate is in Alaska.
Average Costs of Full Coverage Car Insurance in Alaska - By Driving History
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- Driving ViolationAnnual Premium
- Safe Driver$984
- Speeding Ticket$1,144
- At-Fault Accident$1,437
- DUI$1,478
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Credit Scores and the Cost of Car Insurance in Alaska
One of the factors that affect the average car insurance cost in Alaska is your credit score. Drivers with good credit are more likely to pay their premiums on time, resulting in lower rates. Having an excellent credit score allows you to spend even less.
A driver with excellent credit only pays an average of $860 per year. That’s $123 less than those with good credit — their average annual premium is $982. Drivers with poor credit have a yearly rate of $1,412 on average — $430 higher than a driver with good credit.
Comparing quotes from several providers may help drivers with bad credit find better rates.
Average Costs of Full Coverage Car Insurance in Alaska - By Credit Score
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- Credit ScoreAnnual Premium
- Excellent$860
- Good$982
- Fair$1,108
- Below Fair$1,237
- Poor$1,412
How Much Is Car Insurance in Your City?
The average cost of car insurance in Alaska study was conducted in Anchorage, but rates in another city may be different. If you live somewhere less densely populated, your car insurance premium may likely be lower. Other factors that may contribute to the difference are the likelihood of road accidents or the frequency of natural disasters. Having high occurrences of either may result in higher car insurance rates in Alaska.
Average Costs of Full Coverage Car Insurance in Alaska - By City
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- CityAnnual Premium
- $984
Frequently Asked Questions About Alaska Car Insurance Rates
If you're wondering how much car insurance costs in Alaska, here’s more information to help you out. Below are the answers to some frequently asked questions about Alaska’s car insurance rates.
About Mark Fitzpatrick
sources
- Insurance Information Institute. "What Determines the Price of an Auto Insurance Policy?." Accessed September 10, 2021.