When looking for the best car insurance in Alaska, comparing personalized quotes can help you save money. MoneyGeek ranked the top car insurance carriers in the state based on average annual premiums, customer service and financial strength, among other factors. No matter your circumstances and needs, MoneyGeek’s rankings can help you determine what to look for in an auto insurance provider. When you compare car insurance rates from some of the most popular companies in Alaska, you could save up to $455.
The Best Cheap Alaska Car Insurance Companies for 2021
The Cheapest and Best Car Insurance in Alaska
Car insurance coverage rates in Alaska differ based on several factors. The most affordable car insurance coverage in Alaska is a liability-only policy that meets the state’s minimum insurance requirements.
On average, the cheapest insurers for minimum liability coverage in Alaska are:
- USAA: $328 per year (only available for current and former military members and their families)
- GEICO: $453 per year
The insurer with the highest premium rates in Alaska is Progressive, which has an average annual cost of $714.
Average Cost for Minimun Liability Coverage
The prices listed above represent what an average driver pays for a minimum liability coverage policy in Alaska. Through reviewing quotes from multiple insurers, you can find the best rates for your insurance coverage.
These prices are only estimates based on rates for an average Alaska driver and should not be used to compare insurance prices.
The minimum liability policy is the cheapest car insurance option available in Alaska and only covers the state’s minimum requirements, which are bodily injury and property damage liability costs. Alaska drivers looking for a policy that protects their vehicles against damage or one that offers higher liability coverage limits may consider purchasing a full coverage policy.
Having full coverage insurance in Alaska comes with various benefits, including higher limits and more protection against road accidents and off-road incidents.
While shopping around for full coverage in Alaska, be sure to compare car insurance quotes from various companies, as this will help you secure the cheapest premiums.
The cheapest insurers in Alaska for full coverage car insurance are:
- USAA: $619 per year
- GEICO: $882 per year
Average Comprehensive and Collision Rates in Alaska
The prices outlined above are annual estimates for an average driver with a policy that offers comprehensive and collision coverage of $100,000 per person for bodily injury liability, $300,000 bodily injury coverage per accident and $100,000 coverage for property damage per accident.
Car insurance prices vary significantly from one insurer to another since each company uses different factors to determine its scores. That means your rates may be quite different from these rates. Comparing quotes from different carriers will help you get the best prices for your needs.
The Best Car Insurance Companies in Alaska for 2021
Based on MoneyGeek’s research, the best car insurance providers in Alaska are:
- Best Overall: USAA
- Runner-up: GEICO
To determine the rating scores of car insurance companies in Alaska, MoneyGeek assessed financial strength and customer satisfaction information from reputable outlets like J.D. Power and AM Best, and considered industry standards for insurance ratings and reviews. Considering these criteria, MoneyGeek calculated scores out of 100.
MoneyGeek ranked the best car insurance providers based on good ratings in terms of affordability, claims experience, customer satisfaction and financial strength.
USAA provides consistently cheap insurance coverage across the country. It is also the best provider in Alaska, although it is only available for current and former military persons and their families. Eligible drivers can rely on the company’s affordability, high customer satisfaction and quick turnarounds when processing claims.
Apart from ranking as the best auto insurance provider in Alaska, USAA is also popular for offering the lowest rates to eligible policyholders. Active military members who store their cars on base are eligible for discounts. Your rates also get subsidized if your parents also have USAA coverage.Read MoneyGeek's USAA auto Insurance Review
GEICO’s user satisfaction score may not match USAA’s, but the company has excellent claims processing, affordability and financial strength scores that make it the second-best option for drivers looking for a cheap car insurance provider in Alaska.
One of the reasons GEICO scores highly in processing claims is because of the ease with which drivers track their policies and submit claims through the company's mobile app. The online quoting process is quite streamlined and easy to use, enabling users to request rates and adjust their coverage options faster.Read MoneyGeek's GEICO auto Insurance Review
List of the Largest Insurance Companies in Alaska
The largest insurer in Alaska is State Farm, with a market share of 29%, followed by USAA at 18.2% and GEICO at 18.1%. These scores are obtained by dividing the number of insurance policies written by each company by the total number of policies within the state.
Insurers with higher market share scores tend to be more financially stable. High scorers perform better when it comes to reimbursing legitimate customer claims. However, they may not rank as the best overall for every driver based on other factors.
- CompanyMarket Share
How to Compare Cheap Alaska Car Insurance Quotes Online
Alaska drivers can request car insurance quotes online, since most companies add a quotes section on their website.
- You can secure fair rates by comparing quotes for the same coverage limits across several insurers. For example, ask for quotes for a policy with $300,000 in bodily liability insurance per accident across multiple providers and directly compare the costs.
- For a quick comparison of car insurance providers in Alaska, provide your ZIP code below. You can also use the MoneyGeek scores to identify the best insurers and source quotes from their websites.
- The three companies offering the cheapest average minimum liability car insurance coverage in Alaska are USAA, GEICO and Allstate.
What Is the Average Cost of Car Insurance in Alaska?
MoneyGeek calculated the average cost of premiums for car insurance in Alaska for a typical driver — a 40-year-old man with a clean driving record driving a Toyota Camry. The actual cost will depend on factors unique to each individual, so a driver may get rates higher or lower than these averages.
- Average Driver: $984
- DUI: $1,478
- Speeding Ticket: $1,144
- Poor Credit Score: $1,404
- Seniors: $1,048
- Students: $2,728
Insurance providers in Alaska consider drivers who have a history of violations such as DUI to be high-risk. Such drivers end up paying higher premiums than those with a clean driving record.
The average cost of car insurance in Alaska for a driver with a DUI is $1,478 per year. Meanwhile, drivers with a clean record pay an average of $984 for similar coverage.
The cheapest insurers for drivers with a DUI interested in full coverage are:
- State Farm: $1,042 per year
- USAA: $1,050 per year
While USAA and GEICO are the cheapest for the average driver with a clean record, State Farm leads when it comes to rates for drivers with DUIs.
Average Car Insurance Rates With a DUI
From 2009 through 2018, 215 people were killed in crashes involving a drunk driver in Alaska, according to the Centers for Disease Control and Prevention (CDC). Additionally, 2.6% of adults in Alaska reported driving after drinking too much.
There are several financial repercussions of getting a DUI, including court fees, legal fees and even alcohol education treatment programs. You'll also likely see an increase in your car insurance costs. Comparing rates from different companies can help you find the lowest cost for car insurance with a DUI.
Having a DUI on your driving record can impact your life for years to come. You could pay an additional $40,000 over the course of 13 years in increased auto insurance premiums for a DUI. Your rate increase depends on your insurance company, location, driving record and other factors. You could pay higher rates for a decade after a DUI.
Car insurers in Alaska charge more for drivers with minor violations than those with a clean driving record. On average, you will pay about $984 per year with a clean driving history, but that rate increases to an average of $1,144 if you have a speeding ticket.
Car insurance companies that offer the lowest full coverage rates in Alaska for drivers with speeding tickets are:
- USAA: $723 per year
- GEICO: $882 per year
In Alaska, USAA and GEICO offer the cheapest rates for drivers with a clean record and those with speeding tickets.
Average Car Insurance Rates With a Ticket
According to the National Highway Traffic Safety Administration’s (NHTSA) 2018 Fatality Analysis Reporting System (FARS), distracted driving caused 69 crashes in Alaska. Alaska’s state laws prohibit texting while driving, according to the Governors Highway Safety Association. Following these laws can help you stay safe, maintain a clean driving record and maintain lower car insurance costs.
Your auto insurance rate is likely to go up if you get a ticket for speeding or for distracted driving. According to the Insurance Information Association, your driving record is taken into account when you secure your auto policy, so being riskier to insure means paying higher premiums. Your insurer can also re-evaluate your rate if you get a moving violation (i.e., a speeding ticket).
A customer’s credit score is one of the factors considered by car insurance companies in Alaska when determining their premiums. Drivers with bad credit attract higher rates because they are more likely to file claims.
On average, drivers with poor credit scores pay $1,404 per year for insurance. The top insurers in Alaska with the best full coverage rates for drivers with bad credit are:
- GEICO: $966 per year
- USAA: $1,122 per year
While USAA is the leading option for drivers with a clean record in Alaska, GEICO surpasses it for drivers with bad credit scores.
Average Car Insurance Rates for Drivers With Bad Credit
According to Experian, the average FICO Score in Alaska of 707 is slightly higher than the national average in the United States of 703. Many insurers use customer credit scores as one factor to determine premiums, as studies show that using a credit score helps companies better predict insurance losses. If you have a lower credit score (below 670), you’ll likely have to shop around to find the cheapest car insurance in Alaska.
While you may pay higher rates for auto insurance because of your credit score, there are steps you can take to lower your premiums. Improving your credit score may help you find better rates on your car insurance and other recurring expenses.
Senior drivers tend to pay increased rates for car insurance in Alaska. The average cost for seniors is approximately $1,048 per year, which is slightly higher than the $984 rate paid by average drivers.
Companies that provide the best full coverage rates for seniors in Alaska include:
- USAA: $671 per year
- GEICO: $873 per year
Behind USAA and GEICO, State Farm ranks third for senior drivers, with an average annual premium of $941.
Average Car Insurance Rates for Seniors
According to data from the National Highway Traffic Safety Administration, in 2017, 13 people age 65 and older were killed in motor vehicle traffic crashes in Alaska. Elderly people made up 16.5% of all traffic fatalities in the state during the year. Senior drivers may be able to get discounts for finishing driver safety courses. Discounts may also be available for seniors who drive infrequently and choose vehicles with good safety features.
Alaska state law allows the DMV to conduct a re-examination of a senior’s driving ability if the DMV receives a written request from law enforcement, family members or physicians. To maintain driving privileges, seniors may be required to submit a medical form verifying they are able to drive safely and then successfully complete a vision test, written test and road skills test.
A student driver in Alaska is considered high-risk and is likely to pay more for car insurance than an average adult. The cost of full coverage insurance for students is about $2,728 per year, which is almost three times the amount paid by the average 40-year-old driver in the state.
The cheapest insurance companies in Alaska for student drivers with full coverage are:
- GEICO: $2,265 per year
- State Farm: $2,822 per year
GEICO is an excellent insurance option for student drivers, while State Farm and Progressive also present competitive rates.
Average Car Insurance Rates for Students
According to the NHTSA, 3,255 teen drivers ages 15 to 19 were involved in fatal crashes in 2017. Teen drivers are at a higher risk of being involved in an accident, so Alaska requires they get their license through a parent-supervised driving program. The program has different stages and protections to reduce the risk of your young driver becoming involved in an accident. Cars driven by teens must carry the same minimum coverage as required for everyone else, but the premiums will be more expensive.
College students attending school outside Alaska are responsible for meeting the insurance requirements in their new state. In Alaska, students who turn 21 have 90 days to apply for an adult license.
Always notify the insurance company if your car will be used in another state for more than 30 days. Also, don't let your new friends borrow your car. Loaning it out to college friends can be risky since the vehicle owner (you or your parents) will be held responsible in the event of a crash.
The above table illustrates an estimation of what parents in Alaska can expect to pay for their teen or college-aged student drivers.
Insurance Rate Information for Military Drivers and Veterans
Average Rates for Alaska service members
Car Insurance in Alaska: What You Need to Know
If you live in an area where you must register your car, you also must insure it. An automobile stored in a garage or on private property does not have to be insured until it is licensed and registered.
Proof of Insurance in Alaska
Alaska Statute 28.22.019 requires that you must have a copy of your policy, certificate of self-insurance or insurance identification card in your immediate possession when you are driving a motor vehicle. If you are involved in an accident that results in bodily injury, death or property damage exceeding $501, you will be required to show proof of insurance. Failure to have insurance can result in the suspension of your driver’s license.
Minimum Liability Insurance Requirements in Alaska
The minimum amounts for liability auto insurance coverage required in Alaska are as follows:
- $50,000 per person for bodily injury liability
- $100,000 per accident for bodily injury liability
- $25,000 per accident for property damage
Even in areas that don't normally require insurance, drivers who accumulate tickets totaling six points or more in a five-year period must carry liability insurance. Here's the current list of exempted regions in Alaska where insurance is not required.
High-Risk Auto Insurance Program in Alaska
If you're a high-risk driver who has trouble getting insurance from traditional companies, you may be able to get coverage through the Alaska Automobile Insurance Plan (assigned risk pool). With this plan, the risk is shared among multiple insurance companies licensed to sell coverage in Alaska. For more information, call AIPSO at (800) 227-4659.
How Much Coverage Do You Need in Alaska?
The best insurance isn't always the cheapest insurance. Depending on what you can afford, you may want more than the minimum insurance required by the state. Collision insurance, for example, covers damages to your car, while comprehensive coverage covers your car for theft, fire, blizzards, natural disasters and colliding with an animal, such as a deer or moose. The state requirements for insurance were also set many years ago, and consumer and insurance groups say that it's safer to get a 100/300 liability policy — that is, a policy that pays $100,000 per injury and $300,000 per accident.
Average Insurance Rate by City in Alaska
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FAQs About Car Insurance in Alaska
Questions about car insurance in Alaska often center around pricing and coverage levels. Here are some of the common FAQs regarding auto coverage in the state.
About the Author
- Alaska Department of Commerce, Community, and Economic Development Division of Insurance. "Alaska Consumer Guide to Auto Insurance." Accessed March 6, 2020.
- Centers for Disease Control. "Sobering Facts: Alcohol-Impaired Driving State Fact Sheets." Accessed December 15, 2020.
- Centers for Disease Control and Prevention. "Motor Vehicle Safety." Accessed March 6, 2020.
- Experian. "2019 Consumer Credit Review." Accessed March 6, 2020.
- Insurance Information Institute. "Auto Rate Setting." Accessed March 6, 2020.
- National Association of Insurance Commissioners. "Market Share Reports for Property/Casualty Groups and Companies." Accessed March 6, 2020.
- National Highway Traffic Safety Administration (NHTSA). "2018 Fatality Analysis Reporting System (FARS)." Accessed March 6, 2020.