How Much is Car Insurance in Alaska? Rates by Coverage Level, Age, Driving History and Location

Alaska has one the cheapest car insurance rates in the U.S., with an annual average premium of $984, much lower than the national average of $1,424. MoneyGeek breaks down Alaska’s average rate by coverage level, age, credit score and driving record.

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Drivers in Alaska pay an annual average of $984, making it one of the cheapest states for car insurance. This rate is for a 40-year-old driver with a full coverage policy and a clean record.

Rates vary depending on your specific characteristics. If the driver profile above buys a policy with state minimum liability-only coverage, they pay roughly $554 annually. In comparison, a 16-year-old driver buying full coverage car insurance will pay a much higher rate — their premium is $3,011 on average.

MoneyGeek breaks down the average cost of car insurance in Alaska for several different demographics to help you understand how rates vary.

Average Cost of Car Insurance in Alaska: Summary

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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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

Minimum vs. Full Coverage Car Insurance Costs 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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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

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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 Violation
    Annual Premium
  • Safe Driver
    $984
  • Speeding Ticket
    $1,144
  • At-Fault Accident
    $1,437
  • DUI
    $1,478

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 Score
    Annual 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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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.

Methodology

MoneyGeek gathered car insurance quotes across Alaska in collaboration with Quadrant Information Services for this study. All policies were for a 40-year-old driver with a full coverage policy and a clean record unless altered by factors such as age, coverage levels, driving violations and credit score. MoneyGeek’s methodology page details the analysis of a full coverage car insurance policy.

MoneyGeek used data from the following sources:

  • 2019 data from the Federal Highway Administration for highway traffic density
  • 2019 data from the Insurance Research Council for the number of uninsured motorists
  • The latest data from the U.S. Census Bureau for the calculation of the urban share of the population
  • The FBI’s Crime in the United States Report for 2019 for motor vehicle theft rate

About the Author


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Mark Fitzpatrick is a senior content manager with MoneyGeek specializing in insurance. Mark has years of experience analyzing the insurance market and creating original research and content. He graduated from Boston College with a Bachelor of Arts and Johns Hopkins University with a Master of Arts.


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