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The Best Cheap Car Insurance Companies for Alaska Drivers in 2020

If you are shopping for the best and cheapest car insurance in Alaska, you’ll likely be able to choose from car insurance companies like State Farm, Berkshire Hathaway, Progressive and Allstate, as well as USAA, which offers insurance to members of the military and veterans and their families.

The table below lists various insurance companies and the approximate monthly premium cost for an average driver. However, these numbers are rough estimates and may vary greatly from any individual quote that would pertain to your unique driving history and situation.

Company
Amount
1. USAA
In 2020, USAA ranked #1 in Alaska for the cheapest car insurance on average.
$619
per year
2. GEICO
In 2020, GEICO ranked #2 in Alaska for the cheapest car insurance on average.
$882
per year
3. State Farm
In 2020, State Farm ranked #3 in Alaska for the cheapest car insurance on average.
$954
per year
4. Progressive
In 2020, Progressive ranked #4 in Alaska for the cheapest car insurance on average.
$1,028
per year
5. Allstate
In 2020, Allstate ranked #5 in Alaska for the cheapest car insurance on average.
$1,074
per year

Estimates give you an idea of which companies to contact for car insurance quotes, but make sure to shop around when you’re looking for Alaska car insurance companies and ask about multi-policy discounts and other discounts for safe driving, maintaining long tenure with the company and more.

The Best Car Insurance Companies in Alaska for 2020

According to 2018 data from the National Association of Insurance Commissioners, the top-rated auto insurance companies in Alaska are State Farm, Berkshire Hathaway, USAA, Progressive, Allstate, Liberty Mutual, Country Financial, AARP Auto Insurance Program underwritten by Hartford Fire Insurance Company, Western National Insurance Group and Horace Mann Educators Corporation.

Market Share by Company

State Farm has the largest market share in Alaska at 29.01%, followed by USAA and Berkshire Hathaway at 18.24% and 18.08%, respectively.

Company
Market Share
1. State Farm
29.01%
2. USAA
18.24%
3. GEICO
18.08%
4. Allstate
12.34%
5. Progressive
10.34%
6. Liberty Mutual
3.66%
7. Country Financial
3.06%
8. Hartford
2.08%
9. Western National
1.07%
10. HORACE MANN GRP
0.94%

Cheapest Car Insurance for Drivers With a DUI in Alaska

According to the Centers for Disease Control and Prevention (CDC), 222 people were killed in crashes involving a drunk driver in Alaska from 2003 through 2012. The percentage of adults who reported driving after drinking too much (in the 30 days prior to being surveyed) was 1.2% in Alaska, according to 2012 CDC data.

The financial repercussions of getting a DUI are costly and can range from court and legal fees to alcohol education treatment programs. Also, your insurance rate will also see a spike in cost, in addition to the legal fees. Consider the following auto insurance rates for drivers who receive a DUI in Alaska.

Company
Amount
1. State Farm
In 2020, State Farm ranked #1 in Alaska for the cheapest car insurance for drivers with a DUI.
$1,042
per year
2. USAA
In 2020, USAA ranked #2 in Alaska for the cheapest car insurance for drivers with a DUI.
$1,050
per year
3. Progressive
In 2020, Progressive ranked #3 in Alaska for the cheapest car insurance for drivers with a DUI.
$1,262
per year
4. Allstate
In 2020, Allstate ranked #4 in Alaska for the cheapest car insurance for drivers with a DUI.
$1,495
per year
5. GEICO
In 2020, GEICO ranked #5 in Alaska for the cheapest car insurance for drivers with a DUI.
$2,112
per year

While each insurance company calculates premiums differently, you can expect to pay an additional $40,000 over the course of 13 years in increased auto insurance premiums. Exactly how much your rate would go up depends on your insurance company, your location and your driving record. With a DUI you’ll likely pay higher rates for up to a decade.

Cheapest Car Insurance for AK Speeding or Distracted Driving Tickets

According to the National Highway Traffic Safety Administration’s (NHTSA) 2018 Fatality Analysis Reporting System (FARS), 69 crashes in Alaska were caused by distracted driving. Driving while distracted can cause accidents. Alaska’s state laws prohibit texting while driving, but cellphone use is not prohibited, according to the Governors Highway Safety Association.

Company
Amount
1. USAA
In 2020, USAA ranked #1 in Alaska for the cheapest car insurance for distracted drivers.
$723
per year
2. GEICO
In 2020, GEICO ranked #2 in Alaska for the cheapest car insurance for distracted drivers.
$882
per year
3. State Farm
In 2020, State Farm ranked #3 in Alaska for the cheapest car insurance for distracted drivers.
$1,042
per year
4. Allstate
In 2020, Allstate ranked #4 in Alaska for the cheapest car insurance for distracted drivers.
$1,274
per year
5. Progressive
In 2020, Progressive ranked #5 in Alaska for the cheapest car insurance for distracted drivers.
$1,376
per year

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).

Cheapest Car Insurance Companies in AK for Drivers With Bad Credit

According to Experian, the average FICO Score in the United States hit a record high of 703 in 2019, which is lower than the Alaska average FICO Score of 707.Nationwide Insurance uses credit scores to determine premiums, as studies show that using a credit score helps companies better predict insurance losses. If you have subprime credit (credit scores below 670), you’ll likely have to shop around to secure affordable car insurance in Alaska. Consider the following table for an estimate of Alaska auto insurance for people with low credit scores.

Company
Amount
1. GEICO
In 2020, GEICO ranked #1 in Alaska for the cheapest car insurance for drivers with poor credit.
$966
per year
2. USAA
In 2020, USAA ranked #2 in Alaska for the cheapest car insurance for drivers with poor credit.
$1,122
per year
3. Allstate
In 2020, Allstate ranked #3 in Alaska for the cheapest car insurance for drivers with poor credit.
$1,347
per year
4. Progressive
In 2020, Progressive ranked #4 in Alaska for the cheapest car insurance for drivers with poor credit.
$1,569
per year
5. State Farm
In 2020, State Farm ranked #5 in Alaska for the cheapest car insurance for drivers with poor credit.
$1,704
per year

To improve your credit score, check out our guide on how to improve your credit score.

Cheapest Car Insurance Companies in Alaska for Seniors

According to 2017 National Highway Traffic Safety Administration data, there were 6,784 people age 65 and older killed in motor vehicle traffic crashes with older people making up 18% of all traffic fatalities during the year. When shopping for car insurance, seniors in Alaska should ask for discounts for completing driver safety courses, discounts for driving infrequently and discounts for choosing a vehicle that has good safety features.There are other options that seniors can consider when it comes to choosing auto insurance.

The following table is a general guideline of what seniors in Alaska can expect when they go looking for the most affordable car insurance.

Company
Amount
1. USAA
In 2020, USAA ranked #1 in Alaska for the cheapest car insurance for seniors.
$671
per year
2. GEICO
In 2020, GEICO ranked #2 in Alaska for the cheapest car insurance for seniors.
$873
per year
3. State Farm
In 2020, State Farm ranked #3 in Alaska for the cheapest car insurance for seniors.
$941
per year
4. Progressive
In 2020, Progressive ranked #4 in Alaska for the cheapest car insurance for seniors.
$1,116
per year
5. Allstate
In 2020, Allstate ranked #5 in Alaska for the cheapest car insurance for seniors.
$1,264
per year

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.

Cheapest Car Insurance for Students

Alaska Car Insurance: How Much a Teen Driver Will Cost You

Median annual price change for families with a teen driver on their policy:

$1,534 INCREASE

This is a difference of 121%.

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 following table illustrates an estimation of what parents in Alaska can expect to pay for their teen or college-aged student drivers.

Company
Amount
1. GEICO
In 2020, GEICO ranked #1 in Alaska for the cheapest car insurance for students.
$2,265
per year
2. State Farm
In 2020, State Farm ranked #2 in Alaska for the cheapest car insurance for students.
$2,822
per year
3. Progressive
In 2020, Progressive ranked #3 in Alaska for the cheapest car insurance for students.
$2,854
per year
4. Allstate
In 2020, Allstate ranked #4 in Alaska for the cheapest car insurance for students.
$2,924
per year


Premium Comparison by Student Type

Premium comparison for two adults + a 16-year-old

car
Average premium for two 2014

Mustang GTs

$5,555
car
Average premium for two 2008

Town and Country Limiteds

$2,888
Anual benefits of minivans:$2,667 saved

This is 48% less expensive.

Cheaper premium for college vs. high school drivers

Median premium change with a college student vs. high school driver:

$626 DECREASE

This is a savings of 20%.

Potential discounts for teens in Alaska

Impact on annual premium with good student and defensive driving discounts:

coins
$410 SAVED

Alaska students: a long-distance discount

You may pay a smaller annual family premium if your child lives 150 miles or more away from home.

male
Average premium for a 19-year-old male
car

$3,752 at home

graduation

$3,260 at school

$492 IN SAVINGS

female
Average premium for a 19-year-old female
car

$3,017 at home

graduation

$2,662 at school

$355 IN SAVINGS

Insurance Rate Information for Military Drivers and Veterans

Alaska has 17,000 active-duty military personnel living in the state. Enlisted military personnel and veterans living in Alaska should first check to see if their locality requires auto insurance, as some regions of the sparsely populated state do not. Discounts can be found at insurance companies where coverage is required, typically in urban areas of Alaska. As always, comparison shopping for car insurance in Alaska should yield the best savings.

As an added benefit, military members who live in Alaska but are stationed out-of-state can still renew their vehicle registration wherever they are based, online or by mail, so long as the car or truck is already registered in their name.

Many companies licensed to sell auto insurance in Alaska also offer discounts for buying two or more policies, such as auto and homeowners, so veterans and active members of the military can save even more for bundling policies. One such company is USAA, which offers services exclusively to members of the military, veterans and their family members.

Age savings for Alaska service members

male
25 years$1,710
50 years$1,132
female
25 years$1,418
50 years$1,129

$578 Saved
$289 Saved

Median auto insurance for service members: $1,033

Who Needs Car Insurance in Alaska?

If you live in an area where your car must be registered, it must also be insured. 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:

  • $50,000 per person bodily injury liability
  • $100,000 per accident bodily injury liability
  • $25,000 per accident property damage injury

Even in areas that don't normally require insurance, drivers who accumulate tickets of six points or more in five years 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). 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.

Car insurance companies use your location to calculate your rate.
Explore average rates for your city.

Car Insurance Requirements in Alaska: How Much Coverage Do You Need?

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 crash 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.

For more on the insurance that's right for you, see the MoneyGeek guidebook on car insurance.


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