How Much Is Car Insurance in Alaska? (2024)


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ByMark Fitzpatrick
Reviewed byMark Friedlander
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ByMark Fitzpatrick
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Reviewed byMark Friedlander
Edited byKatherine Kurtz
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Updated: May 28, 2024

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In Alaska, drivers pay around $1,102 yearly for full coverage car insurance. For those opting for minimum coverage, the cost hovers at about $471 annually.

Factors like how old you are, the kind of coverage you choose, where you live, your history on the road, and your credit score all play a role in determining the price. Affordable plans can be found, but cheaper isn't always better.

Why Trust MoneyGeek? We analyzed data and quotes from Quadrant Information Services and the Alaska Division Of Insurance to get the most precise average costs for a variety of Alaska drivers.

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These rates reflect the average cost of car insurance in Alaska as of 2024.

7,908Quotes Analyzed
 
6Companies Compared
 
13ZIP Codes

Average Car Insurance Costs in Alaska

Alaska's average full coverage car insurance cost is about $1,102 annually. Knowing your state's average car insurance cost can help you evaluate if your quote is affordable 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.

100/300/100 Full Cov. w/$1,000 Ded.Average Annual Premium$1,102Average Monthly Premium$92
100/300/100 Liability OnlyAverage Annual Premium$556Average Monthly Premium$46
State Minimum Liability OnlyAverage Annual Premium$471Average Monthly Premium$39

Why Are Car Insurance Rates Moderate in Alaska?

When comparing Alaska to the national average cost of car insurance, the state's rates for full coverage with a $1,000 deductible stand at $1,102 annually or $92 monthly, less than the national average of $1,244 a year or $104 each month. Minimum coverage in Alaska costs about $471 annually or $39 per month, while the national equivalent is $573 per year or roughly $48 monthly.

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.

Average Car Insurance Costs in Alaska by Company

Car insurance premiums can vary significantly per company. For instance, Allstate offers the cheapest full coverage in Alaska at an annual cost of $994, while Progressive presents the priciest average premium, at $1,339.

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

Data filtered by:Results filtered by:
Coverage:
Coverage:Full Coverage
Age Group:
Age Group:30-59
AllstateAnnual Premium$994Monthly Premium$83
GEICOAnnual Premium$1,019Monthly Premium$85
State FarmAnnual Premium$1,036Monthly Premium$86
Umialik InsuranceAnnual Premium$1,119Monthly Premium$93
ProgressiveAnnual Premium$1,339Monthly Premium$112
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Average Car Insurance Costs in Alaska by Coverage Level

Car insurance costs in Alaska are influenced by the choice of coverage level, with monthly premiums for minimum coverage at around $39 compared with full coverage at approximately $92. Full coverage insurance offers superior financial protection, which is why it's often recommended despite being more costly.

Although comprehensive and collision coverages will increase premiums, selecting higher deductibles can help mitigate the added cost. Each time a comprehensive or collision claim is made, the deductible amount applies separately to each coverage.

State Minimum Liability OnlyAverage Annual Premium$471Average Monthly Premium$39
100/300/100 Liability OnlyAverage Annual Premium$556Average Monthly Premium$46
300/500/300 Liability OnlyAverage Annual Premium$649Average Monthly Premium$54
State Minimum Liability w/ Full Cov. w/$1,500 Ded.Average Annual Premium$938Average Monthly Premium$78
State Minimum Liability w/ Full Cov. w/$1,000 Ded.Average Annual Premium$1,016Average Monthly Premium$85
100/300/100 Full Cov. w/$1,500 Ded.Average Annual Premium$1,023Average Monthly Premium$85
100/300/100 Full Cov. w/$1,000 Ded.Average Annual Premium$1,102Average Monthly Premium$92
300/500/300 Full Cov. w/$1,500 Ded.Average Annual Premium$1,116Average Monthly Premium$93

Minimum Car Insurance Requirements in Alaska

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.

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    $50,000 for bodily injury liability per person

    This is the amount paid for a single person's injuries in an accident you cause.

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    $100,000 for bodily injury liability per accident

    This covers total injury costs for all persons injured in an accident you're liable for in Alaska.

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    $25,000 for property damage liability per accident

    This is the amount used to cover property damage you cause in an accident.

Average Car Insurance Costs in Alaska by City

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.

AnchorageFull Coverage Annual Premium$1,011Minimum Coverage Annual Premium$524

Average Car Insurance Costs in Alaska by Age

In Alaska, age impacts car insurance costs, with younger drivers often paying more. Typically, those aged 22 to 29 face the highest premiums at an annual rate of $1,337. This trend descends as motorists get older, with drivers aged 60 and above paying the least, around $1,096 per year. Car insurance rates tend to decrease as drivers gain experience and a proven safe driving record.

Data filtered by:Results filtered by:
Coverage:
Coverage:100/300/100 Full Cov. w/$1,000 Ded.
22-29Average Annual Premium$1,337Average Monthly Premium$111
30-59Average Annual Premium$1,102Average Monthly Premium$92
60 +Average Annual Premium$1,096Average Monthly Premium$91

Average Car Insurance Costs in Alaska for Teens

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.

Data filtered by:Results filtered by:
Gender:
Gender:Male
16Added to Family Policy Premium$3,027Individual Premium$4,998
17Added to Family Policy Premium$2,997Individual Premium$4,290
18Added to Family Policy Premium$2,569Individual Premium$3,625
19Added to Family Policy Premium$2,237Individual Premium$2,571
20Added to Family Policy Premium$2,298Individual Premium$2,299
21Added to Family Policy Premium$1,843Individual Premium$1,842
22Added to Family Policy Premium$1,640Individual Premium$1,647
23Added to Family Policy Premium$1,711Individual Premium$1,476

Average Car Insurance Costs in Alaska for New Cars

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, as well as their increased susceptibility to theft, leading to a steeper insurance premium.

Drivers with newer car models, like 2022 vehicles, 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.

Data filtered by:Results filtered by:
Coverage:
Coverage:Full Coverage
Age Group:
Age Group:30-59
2012 VehicleAnnual Premium$879Monthly Premium$73
2022 VehicleAnnual Premium$1,135Monthly Premium$95
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ACTUAL CASH VALUE

The actual cash value (ACV) of your vehicle is important for insurance claims. It's the amount insurers use as the vehicle's market value at the time of the loss. If your car is totaled or damaged, the insurance company will typically pay up to the ACV, minus your deductible, to either repair or replace your vehicle. This figure helps ensure that you receive a fair and market-reflective reimbursement for covered incidents.

Average Car Insurance Costs in Alaska by Driving Record

The cost of car insurance in Alaska varies based on your driving history.

  • With a ticket: $1,285 per year; $107 per month
  • With an at-fault accident: $1,445 per year; $120 per month
  • With a DUI: $1,456 per year; $121 per month

The more serious the violation, the more you'll have to pay for car insurance. This higher cost sticks with you as long as the violation is on your record, and every state has different rules about how long that is. In Alaska, for example, a DUI can stay on your driving record for up to five years. That means your insurance premiums could be higher for that entire time.

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

Data filtered by:Results filtered by:
Coverage:
Coverage:100/300/100 Full Cov. w/$1,000 Ded.
Age Group:
Age Group:30-59
CleanAverage Annual Premium$1,102Average Monthly Premium$92
TicketAverage Annual Premium$1,285Average Monthly Premium$107
At-fault AccidentAverage Annual Premium$1,445Average Monthly Premium$120
DUIAverage Annual Premium$1,456Average Monthly Premium$121

Average Car Insurance Costs in Alaska by Credit Score

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.

Data filtered by:Results filtered by:
Coverage:
Coverage:100/300/100 w/ $1000 Deductible
Age Group:
Age Group:30-59
ExcellentAnnual Premium$665Monthly Premium$55
GoodAnnual Premium$793Monthly Premium$66
FairAnnual Premium$916Monthly Premium$76
Below FairAnnual Premium$1,081Monthly Premium$90
PoorAnnual Premium$1,303Monthly Premium$109
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Factors Affecting Car Insurance Rates in Alaska

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.

How to Save Money on Car Insurance in Alaska

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

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    Shop Around for Rates

    Comparing quotes from multiple insurers can lead to finding the cheapest car insurance in Alaska, potentially saving hundreds of dollars annually.

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    Maintain a Clean Driving Record

    Drivers with no accidents or traffic violations often qualify for lower premiums, reflecting their lower risk to insurers.

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    Bundle Insurance Policies

    Purchasing auto insurance along with other policies like home or life insurance from the same company can unlock discounts on premiums.

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    Increase Your Deductible

    Opting for a higher deductible can reduce your monthly premiums, but ensure you can afford the out-of-pocket expense in case of a claim.

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    Look for Discounts

    Insurers may offer discounts for various reasons such as being a good student, having anti-theft devices or for low annual mileage.

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    Consider Vehicle Type

    The cost of insurance in Alaska can vary based on the car model. Choosing a vehicle that is cheaper to insure can lead to significant savings.

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    Improve Your Credit Score

    A higher credit score can influence insurers to offer more affordable rates because it suggests financial responsibility.

FAQ: Car Insurance Costs in Alaska

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

What are the minimum car insurance requirements in Alaska?
What is the average cost of full coverage and minimum coverage auto insurance in Alaska?
What is the average cost of car insurance for a 22-year-old in Alaska?
What are the cheapest car insurance companies in Alaska?

About Mark Fitzpatrick


Mark Fitzpatrick headshot

Mark Fitzpatrick has analyzed the property and casualty insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. Currently, he leads P&C insurance content production at MoneyGeek. Fitzpatrick has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.

Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.