The Best Cheap Car Insurance in Alaska for 2020

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.

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.

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.

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.

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.

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.

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

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.

Premium Comparison by Student Type

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.

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 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.

Sources

• Alaska Department of Commerce, Community, and Economic Development Division of Insurance. “ Alaska Consumer Guide to Auto Insurance.” Accessed March 7, 2020.
• Centers for Disease Control. "Drunk Driving State Data and Maps.” Accessed March 7, 2020.
• Centers for Disease Control and Prevention. “Motor Vehicle Safety.” Accessed March 7, 2020.
• Experian. " 2019 Consumer Credit Review.” Accessed March 7, 2020.
• Insurance Information Institute. “Auto Rate Setting.” Accessed March 7, 2020.
• National Association of Insurance Commissioners. “ Market Share Reports for Property/Casualty Groups and Companies.” Accessed March 7, 2020.
• National Highway Traffic Safety Administration (NHTSA). “ 2018 Fatality Analysis Reporting System (FARS).” Accessed March 7, 2020.