Cheapest Car Insurance in Alaska (June 2024)

Allstate has the cheapest car insurance in Alaska overall for various kinds of drivers. But depending on your risk factors, Umialik Insurance, GEICO or USAA may be more affordable.

MoneyGeek's rankings of the best auto insurance providers in Alaska can help you if you want a balance of affordability and service.

On average, the cheapest auto insurance providers in Alaska for a minimum coverage policy are:

• Allstate: $458 per year
• Umialik Insurance: $458 per year

With an average annual premium of $498, GEICO is the most expensive car insurance company in Alaska for minimum coverage. Bodily injury liability and property damage liability are the only coverages offered in auto insurance policies that meet Alaska's minimum requirements.

A minimum coverage policy covers only the costs associated with the harm or injury you cause others. Consider purchasing a full coverage policy that includes comprehensive and collision coverage if you desire more extensive protection for your vehicle.

On average, the following providers offer the cheapest full coverage car insurance in Alaska:

• Allstate: $994 per year
• State Farm: $1,036 per year

Progressive has the most expensive full coverage auto insurance in Alaska, at approximately $1,352 per year.

Adding comprehensive and collision insurance to your car insurance policy may increase your annual premium. For example, you'll pay $536 more for full coverage than for minimum coverage with Allstate. Full coverage car insurance offers more financial protection in the event of a claim. It protects you against off-road incidents and on-road accidents.

The amount of car insurance you need will impact your rates. The following liability insurance limits are included in MoneyGeek's sample full coverage policy:

• $100,000 in bodily injury liability per person
• $300,000 in bodily injury liability per accident
• $100,000 in property damage liability per accident

You can lower your premiums by reducing your liability limits, dropping comprehensive and collision coverage or increasing your deductible. However, this may leave you with inadequate coverage.

The majority of auto insurers offer online quotes. To compare insurance rates, you must submit your information on multiple websites, which can take up to 15 minutes per site and requires personal details.

MoneyGeek offers a car insurance calculator for obtaining a quick estimate. Simply select your age, driving record and gender from the options below to begin. You can use this as a launching point for your car insurance search.

On average, GEICO is the cheapest provider for teens, young adults and seniors.

The following companies, on average, offer the cheapest car insurance in Alaska for teens on a parent's policy:

• GEICO: $2,131 per year for male teens and $1,975 per year for female teens
• State Farm: $2,541 per year for male teens and $1,995 per year for female teens

Progressive is the most expensive firm for teen customers, charging $4,547 on average for boys and $4,137 for girls. Teen car insurance rates decrease as they age, leaving a significant difference between a 16-year-old's premium and a 19-year-old's. In Alaska, the provider with the most affordable rates for 19-year-old male drivers is GEICO ($1,556 per year).

These are the premiums for a 16-year-old insured under their parent’s insurance. Typically, adding a teen to your coverage is less expensive than obtaining a separate policy for them. A 16-year-old boy in Alaska may spend $5,004 a year if he purchases his own coverage compared with $3,074 if his parents include him on their policy. This is a difference of $1,930.

Families with young drivers may qualify for rate discounts. Except for GEICO, which exclusively offers good student discounts, all of the Alaska auto insurance companies we evaluated offer both good student discounts and discounts for distant students.

On average, these are the cheapest car insurance companies for Alaska drivers in their 20s:

• GEICO: $1,048 per year
• Allstate: $1,142 per year

With an average annual rate of $1,681, Progressive offers the most expensive auto insurance for young adults. In Alaska, drivers in their 20s pay around $236 more per year for auto insurance than middle-aged drivers.

On average, the following car insurance providers offer the cheapest rates for senior drivers in Alaska:

• GEICO: $920 per year
• State Farm: $952 per year

Progressive charges the most for car insurance for seniors, at approximately $1,427 per year. Senior drivers pay $7 less for auto insurance in Alaska than middle-aged drivers. However, rates usually increase when drivers reach their 70s and 80s.

Senior drivers in Alaska are eligible for discounts from GEICO and Allstate. Comparing providers is the best way to find affordable coverage because age is only one of the numerous factors insurers consider when determining premiums.

Umialik Insurance is the most affordable insurer for drivers after an accident, a ticket or a DUI. GEICO is the cheapest provider for sports car drivers, and Allstate is the most affordable provider for people with poor credit.

On average, the following car insurance companies offer the cheapest full coverage policies to Alaska drivers with a speeding ticket:

• Umialik Insurance: $1,119 per year
• State Farm: $1,168 per year

At approximately $1,778 annually, Progressive has the most expensive auto insurance for drivers with a speeding ticket on their record. After receiving a speeding ticket in Alaska, your auto insurance premium increases by an average of $185.

In Alaska, the cheapest full coverage auto insurance companies for drivers with an at-fault accident on their driving record are, on average:

• Umialik Insurance: $1,119 per year
• State Farm: $1,275 per year

Progressive has the most expensive premium for drivers with an at-fault accident, at an average annual rate of $1,946. Having an at-fault accident history in Alaska could increase your premium by approximately $348 per year.

On average, the following companies offer the cheapest car insurance in Alaska for drivers with a DUI on their record:

• Umialik Insurance: $1,119 per year
• State Farm: $1,168 per year

GEICO is the most expensive auto insurance provider for drivers with a DUI, charging approximately $1,967 per year. In Alaska, a DUI normally results in an annual insurance rate increase of $360.

On average, the cheapest car insurance companies in Alaska for drivers with poor credit are:

• Allstate: $1,292 per year
• Umialik Insurance: $1,750 per year

State Farm's annual auto insurance premium is $2,052, which is the most expensive option for drivers with low credit in Alaska.

Your credit score has an impact on how much insurance companies charge you. If you have a credit score below 580, you may be required to pay around $696 more for auto insurance in Alaska than someone with a credit score of at least 750.

Some car insurers charge higher premiums to drivers with bad credit records since they are more likely to file claims. Although not legal in all states, this is allowed in Alaska.

You can reduce your insurance costs by improving your credit score, but you can also compare rates and search for providers that offer common discounts to save money.

On average, the following auto insurance providers in Alaska offer the lowest prices for drivers with sports cars:

• GEICO: $898 per year
• Allstate: $1,240 per year

Progressive has the most expensive auto insurance for drivers with sports cars, costing around $1,700 per year.

Sports car insurance is often (but not always) more expensive than insurance for a conventional car due to the higher maintenance and replacement costs associated with these cars. In Alaska, drivers with sports cars pay $174 more for auto insurance than drivers of a Toyota Camry LE.

The make and type of a vehicle can significantly impact car insurance rates. For the quotes in this analysis, MoneyGeek utilized a Ford Mustang. Sports cars, luxury vehicles and electric cars typically have higher insurance rates than other vehicle types.

MoneyGeek found that USAA has the cheapest auto insurance in Alaska for active-duty service members and veterans, with an annual average rate of $724. USAA has an exceptional track record in terms of financial stability, customer satisfaction, affordability and consumer complaints. It offers special coverage benefits and discounts for military personnel.

MoneyGeek found that the cheapest auto insurance provider for full coverage in Anchorage, Alaska, is GEICO at around $1,300 per year. Learn more about auto insurance in Anchorage.

In Alaska, drivers are required to have auto insurance that fulfills the minimum state limits. In most states, including Alaska, this includes property damage and bodily injury coverage.

Unless you live in an area of Alaska where registration is not required, you need to purchase the minimum required insurance. This includes bodily injury and property damage liabilities. Although cheaper, these policies offer less protection.

In Alaska, drivers who commit significant traffic offenses must have SR-22 insurance. Your coverage requirements and costs may increase if you need an SR-22. MoneyGeek recommends purchasing as much liability coverage as you can afford to maximize your protection.

MoneyGeek recommends getting liability insurance with minimum levels of $100,000 per injury and $300,000 per accident and increasing property damage coverage to $100,000. Comprehensive and collision insurance might be required if you financed the purchase of your car. If your vehicle is damaged in an off-road accident, comprehensive insurance will cover the necessary repairs or replacements.

Collision insurance will cover the cost of repairing or replacing your vehicle if it is damaged by another vehicle, a pole or a tree. We also recommend buying comprehensive and collision insurance if you own a valuable car.

The Alaska Automobile Insurance Plan (assigned risk pool) might be able to insure high-risk drivers who do not qualify for coverage from conventional insurers. This plan distributes risk among numerous insurance providers registered in Alaska. For additional information, please contact AIPSO at 800-227-4659.

In addition, there is an exception in Alaska. In locations where registration is not necessary, insurance is not required. However, a driver must carry liability insurance if they have received a violation ticket with six or more points within the past five years. Furthermore, residents of Alaska who don’t own a car can consider non-owner car insurance.

Given the number of different insurers, it might be challenging to choose a car insurance policy. Our answers to frequently asked questions about car insurance in Alaska might be able to help.