The Cheapest Car Insurance in Alaska for 2022

In this review, MoneyGeek outlined the cheapest companies by city and identified the best car insurance companies in Alaska that offer quality service at a fair price.

Car insurance coverage rates in Alaska differ based on several factors. The cheapest 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:

• GEICO: $523 per year
• Allstate: $580 per year

The cheapest option for current and former military members and their families is USAA at an average cost of $379 per year. Alternatively, the insurer with the highest premium rates in Alaska is Progressive, which has an average annual cost of $825.

These prices are only estimates based on rates for an average Alaska driver and should not be used to compare insurance prices.

Having full coverage insurance in Alaska comes with various benefits, including higher limits and more protection against road accidents and off-road incidents.

The cheapest insurers for full coverage car insurance in Alaska are:

• GEICO: $1,019 per year
• State Farm: $1,102 per year

In Alaska, the most affordable full coverage car insurance provider for military members and their families is USAA, at an average cost of $715 per year. Allstate is the most expensive provider of full coverage car insurance at $1,241 per year.

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.

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, use MoneyGeek’s car insurance calculator to find rate estimates for the average driver. Enter more information to get a personalized quote.
• The three companies offering the cheapest average minimum liability car insurance coverage in Alaska are USAA, GEICO and Allstate.

Young drivers are considered riskier to insure and are likely to have higher auto insurance premiums. The average cost of car insurance for a 16-year-old driver in Alaska is $3,479 annually, while a 25-year-old driver pays $1,403, on average.

In Alaska, the cheapest auto insurance company for young drivers between the age of 16 and 25 is GEICO.

Understanding what costs young drivers can expect to pay for car insurance in Alaska can help you select the best insurance company for your needs.

The table above displays the estimated cost of car insurance for young Alaskan drivers. Because teens are more likely to be involved in a car accident, Alaska requires that they obtain their license through a parent-supervised driving program. Further, if students are planning to use their cars outside Alaska, they must meet the new state's requirements.

Alaska's cheapest rate for a 16-year-old driver is $2,686, while the most affordable rate for a 25-year-old driver is $1,244. To get the best rate in Alaska as a young driver, get quotes from several insurers before purchasing an insurance policy.

Senior drivers in Alaska usually pay more for car insurance. The average cost for seniors is approximately $1,211 per year, which is slightly higher than the annual rate of $1,137 paid by average drivers.

Companies that provide the best full coverage rates for seniors in Alaska include:

• GEICO: $1,009 per year
• State Farm: $1,087 per year

At an average cost of $775 per year, USAA offers the cheapest policies to seniors in Alaska, but only active-duty military, veterans and their family members are eligible. The most expensive car insurance for seniors in Alaska is Allstate, at an average cost of $1,460 per year.

Seniors in Alaska pay higher insurance rates because providers consider them riskier to insure, as it’s more likely that they’ll get into an accident. However, senior drivers can get discounts for completing driver safety courses and driving vehicles with quality safety features.

For seniors to maintain their driving privileges, they may need to complete a vision test, a written test and a road skills test and submit a form verifying these results.

In Alaska, seniors pay between $1,087 and $1,460 per year for car insurance. This means you could potentially save $373 per year by comparing quotes.

Car insurers in Alaska charge more for drivers with minor violations than those with a clean driving record. On average, you’ll pay $1,137 per year with a clean driving history, but that rate increases to $1,322 if you have a speeding ticket.

The following car insurance companies offer the cheapest full coverage rates in Alaska for drivers with speeding tickets:

• GEICO: $1,019 per year
• State Farm: $1,204 per year

In Alaska, USAA is the cheapest car insurance option for drivers with speeding tickets at an average of $835 per year; however, it’s only available to active or former military members and their families. Conversely, Progressive is the most expensive option in Alaska at an average cost of $1,590 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).

The average cost of car insurance in Alaska for a DUI driver is $1,708 per year. The following insurers offer the cheapest full coverage to drivers with a DUI in Alaska:

• State Farm: $1,204 per year
• Progressive: $1,458 per year

For military members and their families, USAA offers the cheapest DUI coverage at $1,214 annually. Furthermore, GEICO is the most expensive option for drivers with DUIs at $2,440 per year.

If you receive a DUI conviction, you’ll have to pay court and legal fees, take alcohol education treatment programs and possibly face jail time. You'll also see an increase in your car insurance costs.

The most affordable car insurance for drivers in Alaska with a DUI costs $1,204 per year, while the most expensive costs $2,440 per year. By shopping around and comparing quotes, you could save approximately $1,236 annually.

Insurance companies in Alaska typically charge more to drivers with at-fault accidents compared to those with clean records. Drivers with at-fault accidents pay an average of $1,660 per year for auto insurance.

On average, the cheapest options for drivers with at-fault accidents in Alaska are:

• State Farm: $1,304 per year
• GEICO: $1,475 per year

USAA, which is only available for military families, is the cheapest option in the state, with an average annual rate of $1,003.

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 $1,631 per year for insurance. The insurers in Alaska with the best full coverage rates for drivers with bad credit are:

• GEICO: $1,116 per year
• Allstate: $1,556 per year

Although USAA is one of the top-leading options for drivers with bad credit in Alaska, at an average cost of $1,296 per year, it’s only available to current and former military members and their families.

One of the factors insurers consider when determining premiums is customer credit scores. To get the cheapest car insurance in Alaska, you'll likely have to shop around if your credit score is low, below 670.

Car insurance rates for drivers with bad credit in Alaska range from $1,116 to $1,969, so comparing quotes could save you up to $853 per year. If your credit score is currently low, you may be better off improving your credit score first to lower your auto insurance rates and reduce other recurring expenses.

For active-duty military members, veterans and their families, USAA is the most affordable insurer in Alaska, charging an average of $328 per year. This is $125 lower than the next most affordable insurer in the state, GEICO.

Where you live can have an impact on your car insurance cost. The average cost of a full coverage auto insurance policy in Anchorage is $984 per year. This rate is based on MoneyGeek’s sample driver profile.

Click on your city to learn more about the cost of car insurance in your area.

In Alaska, you’re required to purchase car insurance after registering your vehicle. MoneyGeek outlined the car insurance requirements in Alaska, so that you can make sure your vehicle is fully covered.

When you drive a motor vehicle, you must have a copy of your policy, certificate of self-insurance or insurance identification card with you. A proof of insurance will also be required if bodily injury, death or property damage exceeds $501 in an accident.

Minimum Liability Insurance Requirements in Alaska

Minimum coverage policies are the cheapest option for car insurance. Listed below are the minimum amounts of liability coverage required in Alaska:

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

Furthermore, if you accumulate six or more points in a five-year period on your tickets, you must carry liability insurance.

High-Risk Auto Insurance Program in Alaska

A high-risk driver who does not qualify for insurance from traditional companies may be able to get insurance through the Alaska Automobile Insurance Plan (assigned risk pool). This plan shares risk among multiple Alaska-licensed insurance companies. For more information, call AIPSO at (800) 227-4659.

How Much Coverage Do You Need in Alaska?

The cheapest insurance may not always be the best. It may be in your best interest to buy more insurance than what is required by law, depending on what you can afford. For instance, collision coverage covers damage to your car, while comprehensive coverage covers theft, fire, blizzards, natural disasters and animal collisions.

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.

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.