How Much Is Car Insurance in Alaska? (2023)

Auto insurance rates in Alaska can vary based on the insurance company, age and credit score. State Farm offers the most affordable full coverage car insurance at $699 per year, while Progressive is the most expensive at $1,179 per year. Age is also a significant factor, with 20-year-olds paying an average of $1,031 per year and 60-year-olds paying around $850 annually.

Several factors can impact the cost of your premium, such as your driving history and coverage amount. The average auto insurance rate for those opting for full coverage and without violations is $849 annually. Drivers who have a DUI on their record could pay up to $1,171 per year, while those who have had accidents or received speeding tickets in the past can expect to pay approximately $1,179 and $1,044 annually, respectively.

In Alaska, the annual cost of full coverage auto insurance is approximately $849, which is lower than the national average of $1,054. This could be due to various factors, such as moderate traffic density, lower urban population density and the availability of more affordable insurance providers as well as lower instances of car theft. If your insurance premiums exceed the average, it could be because of personal factors like age or driving offenses.

Auto insurance costs in Alaska can vary significantly between insurance providers. State Farm provides the cheapest Alaska auto insurance at $322 per year for minimum coverage (with full coverage at $699 per year), whereas Progressive is the most expensive at $640 per year (with full coverage at $1,179 per year).

Although full coverage insurance policies typically cost more than minimum liability coverage, it is still possible to find affordable full coverage auto insurance or the cheapest liability-only insurance in Alaska by comparing rates from different providers.

How much car insurance costs in Alaska can vary depending on your coverage level. Minimum coverage costs $393 per year, while maximum coverage can cost up to $989 per year. When your liability limits increase, premiums usually increase as well. Choosing comprehensive and collision coverage or full coverage insurance can result in an increase in your yearly premium, often equating to hundreds of dollars.

If you want to lower your premium, you can select a higher deductible. This means you will have to pay more out of pocket if you file a claim.

If cost is a concern, one option is to purchase a minimum coverage policy in Alaska. These policies have very low liability limits and do not offer comprehensive and collision coverage. However, most insurers allow for the increase of liability limits up to a maximum of 300/500/300, which refers to:

• $300,000 bodily injury liability insurance per person
• $500,000 bodily injury liability insurance per accident
• $300,000 property damage liability insurance per accident

If your budget allows for it, a full coverage auto insurance policy can be worth considering. This type of policy includes comprehensive and collision insurance in addition to liability insurance, which covers damage or injury to others.

The average car insurance cost in Alaska is influenced by various factors, including the age of the driver. Young and inexperienced drivers usually have to pay higher premiums because they are seen as riskier by insurers. The average full coverage rates for different age groups in Alaska include:

• 22-29: $1,031 per year
• 30-59: $849 per year
• 60 and older: $850 per year

Even if you're over 30 but new to driving, you may still pay higher insurance rates because of your lack of experience. Auto insurance rates for new drivers may be similar to those of younger drivers.

For drivers in their 30s to 60s, rates usually remain relatively stable, but they tend to increase for those over the age of 60.

Teenagers in Alaska have to pay more for car insurance compared to adults because they are riskier to insure. It’s also important to note that drivers under the age of 18 might not be able to get insurance without a parent’s approval.

These are the typical prices for a male of various ages getting full coverage on his parent’s plan in Alaska:

• 16-year-old: $3,027 per year
• 19-year-old: $2,237 per year
• 22-year-old: $1,640 per year

Male teens tend to pay more than female teens in the state since they are viewed as higher risk. To save money, you can search for cheap policies for teenagers in Alaska.

In Alaska, it's generally more costly to insure a new car than an older one. On average, the premium increase for a new car is 29%, rising from $879 to $1,135 per year for full coverage. There are multiple factors contributing to this increase, including the higher actual cash value (ACV) of newer cars. This means insurance companies have to pay more if there's an accident. The pricier repairs for newer cars also pose a higher risk for insurers, as new cars are more frequently targeted by thieves.

To financially protect themselves, drivers of new cars with high ACVs may want to consider full coverage insurance that covers the cost of damage to their car and liability coverage for damages caused to others.

Alaska auto insurance rates are influenced by your driving history. Drivers with violations on their record usually pay higher premiums, and rates increase based on the severity of the infraction. Here's a breakdown of average full coverage rates for different driving records:

• Clean record: $849 per year
• Speeding ticket: $1,044 per year
• At-fault accident: $1,179 per year
• DUI: $1,171 per year

If you have a poor driving record and want to find the most affordable auto insurance rates in Alaska, it's best to compare quotes from multiple providers since they can offer different rates.

In Alaska, your credit score can have a significant impact on your auto insurance rates. Insurance companies often use credit-based insurance scores to determine rates, as research suggests that drivers with lower scores are more likely to file claims. Here are the average annual car insurance rates for different credit scores in Alaska:

• Excellent: $665 per year
• Good: $793 per year
• Fair: $916 per year
• Below fair: $1,081 per year
• Poor: $1,303 per year

Since insurance companies may have different penalties for lower credit scores, it's advisable to compare rates from multiple providers to find cheap car insurance in Alaska if you have poor credit.

Costs can vary across cities as well as states. In Alaska, the city of Anchorage has an average annual premium of $1,011 for full coverage, while the state average is $849. This might be due to Anchorage's higher population density.

When shopping for car insurance, it's always a good idea to compare rates between different providers in your city to find the most affordable options.

Shoppers prioritizing affordability often have questions about the average car insurance cost in Alaska. It is important to keep in mind that your rates can differ depending on your age and driving record.