Cheap Alaska Low-Income Car Insurance for Families and Individuals

Income is not a rating factor in the cost of car insurance in Alaska. However, factors like including a teen driver on your policy and your age do impact car insurance rates in Alaska. MoneyGeek researched the cheapest car insurance options for low-income individuals and families based on credit scores.

There is no government car insurance program in Alaska to assist low-income drivers with car insurance costs. Up to 16.1% of drivers in Alaska are uninsured, which may be partly due to high insurance costs.

For low-income car insurance in Alaska, the cheapest option is a state minimum policy. Unfortunately, pay-per-mile insurance is not available in Alaska, but should that change, it is an affordable option for drivers who need cheap car insurance.

Although Alaska does not have a government assistance program for car insurance, you can still find cheap car insurance for low-income individuals and families in Alaska by comparing quotes from different insurers. MoneyGeek researched the cheapest car insurance companies for low-income drivers in Alaska to help you find the most affordable policy.

A car insurance company can’t use income as a deciding factor for a policy rate, but they can consider credit score and age, which tend to relate to income.

A policy with state minimum coverage is the most affordable option for low-income drivers in Alaska. GEICO offers the cheapest low-income car insurance in Alaska without restrictions for various driver types.

MoneyGeek also analyzed the cheapest minimum car insurance for low-income families and individuals based on ages.

Income does not impact car insurance rates in Alaska, but low-income families must know that credit score is a significant factor in the cost of car insurance. For MoneyGeek’s sample single parent drivers in Alaska, car insurance rates differed by around $890 per year if they had a poor credit score versus a good credit score. Rates for couples with a child differed by roughly $1,156 per year if they had a poor credit score versus a good credit score.

On average, the cheapest insurers in Alaska for a couple with a teenager and poor credit score are:

• GEICO: $2,741 per year
• Allstate: $3,521 per year

Military background couples with a teenage child who have a poor credit score may qualify for USAA, the cheapest option in Alaska at $2,262 per year.

For single parents in Alaska with a poor credit score, the cheapest car insurance companies are:

• GEICO: $2,182 on average per year
• Allstate: $2,464 on average per year

A single parent with a military background and poor credit score could pay around $1,673 per year with USAA, the cheapest option in Alaska.

Not all low-income families necessarily have a poor credit score. You can use the table below to find the cheapest options for your particular profile.

Based on MoneyGeek’s sample profile of a 40-year-old driver, rates in Alaska differed by around $257 per year for a poor credit score versus a good credit score.

On average, the cheapest insurers for a 40-year-old driver with a poor credit score in Alaska are:

• GEICO: $696 per year
• Allstate: $771 per year

For those with a military background, USAA is cheapest at around $503 per year.

Not all low-income individuals have a poor credit score. If you are a 40-year-old driver in Alaska with a good credit score, a policy from GEICO costs roughly $467 per year, while Allstate costs around $517 per year. Those in the military who qualify for a USAA policy and have a good credit score pay around $338 yearly for car insurance in Alaska.

Young student drivers in Alaska pay higher car insurance rates due to inexperience. Although having a lower income isn’t part of why they pay more, student drivers typically do, meaning car insurance costs can eat up a big share of their income.

The cheapest auto insurers in Alaska for student drivers with a poor credit score are:

• GEICO: $1,645 on average per year
• Allstate: $1,823 on average per year

Student drivers in Alaska from military families may qualify for USAA, which offers the cheapest car insurance with poor credit at roughly $1,190 per year.

Not all student drivers have a poor credit score. With a good credit score, a GEICO policy costs roughly $1,104 per year, Allstate around $1,223 yearly, and USAA averages $798 annually.

On average, car insurance rates for seniors tend to be higher compared to middle-aged drivers, and credit score is an important rating factor in the cost of car insurance for senior drivers. For MoneyGeek’s sample 70-year-old driver, rates in Alaska differed by around $286 per year if they had a poor credit score versus a good credit score.

The cheapest insurance companies in Alaska for seniors with a poor credit score, on average, are:

• GEICO: $707 per year
• State Farm: $833 per year

Seniors with a military background and poor credit score may qualify for USAA, which is the cheapest option in Alaska at roughly $582 per year.

Being a low-income senior in Alaska does not mean you have a poor credit score. A senior driver in Alaska with a good credit score pays around $474 annually with GEICO, roughly $558 per year through State Farm, and around $391 a year with USAA.

Insurance companies can’t use income as a factor when calculating your car insurance rates in Alaska. However, factors related to income may affect your rates. For example, young drivers pay higher car insurance rates because their inexperience makes them more likely to get into an accident, and they are more likely to have a low income since they are new to the workforce.

MoneyGeek analyzed factors that might relate to low income and how they affect auto insurance rates in Alaska, such as:

• Adding a teen driver to a policy.
• Age of driver.
• Coverage levels.

Other factors like credit score and car model also impact car insurance rates for low-income individuals and families in Alaska.

MoneyGeek calculated the cost of car insurance for low-income drivers in Alaska using quotes sourced in partnership with Quadrant Information Services. The sample driver is either a 40-year-old male, a single 40-year-old parent with a 16-year-old child, an adult couple, each 40 years old, or a couple with a 16-year-old child. The individual or family drives a 2010 Toyota Camry LE. The driver buys the minimum car insurance required in Alaska.

Costs for poor and good credit scores were extrapolated based on MoneyGeek’s dataset of credit score rate adjustments by score categorization.