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Best Cheap Auto Insurance in Alaska

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Are you hitting the road to explore Alaska’s gorgeous snow-capped mountains and deep, glassy lakes? Or do you get to live among Alaska’s natural beauty year-round? Read through our guide for everything you need to know about auto insurance in Alaska. 

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Best Auto Insurance in Alaska:

Alaska Auto Insurance Overview

Here are some fast facts about auto ownership and insurance in Alaska:

  • You’ll find that Alaskans have an average of 2 vehicles per household. 
  • Minimum insurance requirements are as follows: 
    • Bodily injury liability coverage: $50,000 per person and $100,000 per accident.
    • Property damage liability coverage: $25,000 per accident.
  • You can expect to pay between $704 and $1,169 each year for state minimum coverage if you have a clean record, depending on your insurance provider. 

Alaska Auto Insurance Law Explained

You must have car insurance to drive in Alaska. The minimum coverage you need to have as a resident of Alaska includes the following:

  • Bodily injury liability coverage: Bodily injury liability coverage compensates anyone who you physically injure during an accident. You must have at least $50,000 of bodily injury liability coverage per person and $100,000 per accident to legally drive in Alaska.
  • Property damage liability coverage: Property damage liability coverage compensates anyone whose property you damage during an accident. In the context of insurance, “property” can include vehicles involved in the collision as well as houses, fencing or other buildings that take collateral damage during a crash. You must have at least $25,000 worth of property damage liability coverage to drive in Alaska.

Keep in mind that the state-required protections afford you no compensation as the driver. You may want to consider adding one or more of the following options coverages:

  • Collision coverage: Compensates you for damage done to your vehicle during an accident.
  • Comprehensive coverage: Compensates you for damage done to your vehicle outside of an accident. Some common examples include damage from animals, theft and inclement weather.

You can face some steep penalties if you’re caught driving without insurance — even if this is your first offense. The first time you receive a citation for driving without insurance, you’ll need to pay a $500 fine.

You’ll also have 30 days to visit your local Alaska Department of Motor Vehicles (DMV) office to submit proof that you now have state minimum coverage. Your license will be suspended for 90 days if you fail to produce evidence of insurance within 30 days.

Driving without insurance is costly — and it’s not worth it to take your chances and hope you don’t get pulled over. Get covered today if you aren’t already.

Alaska Traffic Laws You Should Know

Planning to drive through Alaska? Know the rules of the road. It’s your responsibility to know and obey Alaska’s unique traffic laws — this is true even if you’re just visiting. Here are a few rules of the road drivers in Alaska should know.

  • Seat belts: Everyone traveling in a motor vehicle must wear a seat belt in Alaska, including backseat passengers.
  • Parking: It’s against the law to leave a vehicle unattended while running. Remove the key from the ignition first if you must exit your vehicle.
  • Littering: Littering is a serious offense in Alaska. You can face a fine of up to $1,000 and up to 90 days in jail if you’re caught littering on a roadway.
  • Required equipment: Your vehicle must have the following equipment to be considered road-worthy: a working muffler, windshield wipers and a defroster. Your front seat must also have 2 lap/shoulder belts if your vehicle was built after 1965.  

Alaska Auto Insurance Rates per Vehicle

The type of vehicle you drive can influence how much you pay for insurance. Insurance companies look at safety ratings and crash rates. You’ll pay less for insurance if you drive a car that’s ranked highly on national safety tests. On the other hand, you’ll pay more if you drive a car that’s statistically more likely to be involved in an accident.

Insurance companies also look at theft rates when they assign you a premium. You’ll pay more for insurance if you own a vehicle that’s more likely to be stolen. Many insurance companies allow you to mitigate this increase in premium by installing an anti-theft device in your car. 

Auto Insurance Rates by Credit Score in Alaska

Your credit score can also influence how much you pay for insurance. Do you have a low credit score? If so, you’re statistically more likely to be involved in an accident, file an inflated insurance claim and even commit insurance fraud. Car insurance companies account for these risks by charging higher premiums if you have a low credit score. You may want to search for quotes again after you take some time to raise your credit score.  

Let’s take a look at just how much your credit score can influence your car insurance costs.

Credit ScoreCheapest ProviderRate for State Minimum Coverage
Poor 300–579GEICO$2,054
Fair 580–669GEICO$1,896
Good 670–739GEICO$1,322
Excellent 740+Country Financial$1,083

Insurance for Drivers with a Clean Record in Alaska

You’re more likely to find affordable car insurance with a clean record. A driving record free of accidents and infractions shows insurance companies that you’re more likely to be a defensive driver, avoid distractions and follow local traffic laws. This proven track record of success means that insurance companies can extend you their lowest rates.

We’ll take a look at what you might pay for 3 different coverage packages when you have a clean driving record.

  • State minimum insurance includes only the bare minimum coverages you need to drive in Alaska.
  • Standard coverage insurance includes state minimum coverage plus collision coverage.
  • Full coverage insurance includes state minimum coverage, collision coverage and comprehensive coverage. 
Insurance CompanyState Minimum InsuranceStandard CoverageFull Coverage
GEICO$948$1,315$2,342
21st Century$1,169$1,408$2,375
American National$910$1,763$2,195
Farmers$1,009$1,734$2,868
Amica$704$1,369$2,110

Insurance Rates in Alaska with Driving Infractions

Not every type of driving infraction is viewed as equally serious by insurance companies. Some infractions will only slightly raise your rates, while others will double your insurance premiums.

We’ll take a look at how 3 different types of infractions might impact your insurance costs.

  • At-fault accident: This is an accident that you fully or partially cause.
  • Speed violation: Driving too far above or below the posted speed limit is a speed violation. The faster you drive at the time you’re ticketed, the more impact your speed violation will have on your insurance costs.
  • DUI: This stands for “driving under the influence” of drugs or alcohol. A DUI is a criminal offense and will significantly raise your insurance rates. 
Insurance CompanyAt-Fault Accident Speed Violation DUI
Dairyland $2,029$1,600$5,832
State Farm$2,261$1,757$6,337
Electric Auto$2,834$1,799$4,213
Amica$3,183$1,701$4,883
MetLife$2,345$1,671$5,770

Best Auto Insurance Providers in Alaska

Now that you know how auto insurance in Alaska works, it’s time to get covered. Here are our top choices for car insurance companies in Alaska. 

1. Best Overall: State Farm

State Farm, a nationwide insurance provider, can offer you a full selection of policy choices. State Farm’s website is easy to understand and does an excellent job of explaining the different coverage choices.

A State Farm policy can give you everything from state minimum coverage to full coverage. State Farm also offers a number of add-on coverages like uninsured motorist coverage, medical payment coverage and even coverage for ridesharing service providers.

There are also a number of discounts available and you can save up to 25% by combining policies.  

2. Best Coverage for Multiple Automobiles: Allstate

Do you have multiple drivers on your policy? If so, each one might have different insurance needs.

For example, you might want to have less coverage if you have a car that your college student only uses for part of the year.

Allstate offers the widest range of customizable coverage choices, and you can apply different coverages to different vehicles on your policy. 

3. Best for Military Personnel: USAA

USAA is a car insurance provider that offers members of the armed forces, veterans and their immediate family members affordable home and auto policies.

Though not everyone qualifies, USAA made our list for its exceptionally low rates. USAA offers consistently affordable policies in our review and even had the cheapest coverage in Fairbanks.

Discounts on both homeowners and auto insurance are also available. 

Maintain Coverage in Alaska

You don’t want to pay more money for your car insurance than you have to — but you might not be aware that you’re paying too much for coverage. Lower your car insurance premium by collecting a few quotes from competing companies.

Every car insurance provider uses its own unique formula to determine how much you pay for coverage. This means that it’s possible to get 5 totally different quotes for the same coverage from 5 different companies. It never hurts to cross-check and compare quotes. 

Frequently Asked Questions

1) Q: What kind of discounts are usually available?

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1) Q: What kind of discounts are usually available?
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The most common discounts available are multi-policy and auto-pay but every company is different. Other discounts that are widely available are loyalty, good student and anti-theft device.

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2) Q: How do I ensure that I’m properly covered?

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2) Q: How do I ensure that I’m properly covered?
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The best thing you can do is talk to your insurance carrier or agent and be honest about what is going on with your car. If you have made any modifications to your vehicle, let your insurance company know so that you will be covered in the event of a loss. It’s a good idea to maintain more than state minimum coverage – you want to replace your car for the full value if you have to.

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Q: Is there any way I can lower my insurance premiums?

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Q: Is there any way I can lower my insurance premiums?
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Often times you can get a lower premium by maintaining coverage without any gaps in coverage. Discounts are also available that can lower your premium. Bundling your products is another way to lower your car insurance premium. If you feel like you can beat your current premium, get a customized quote here.

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*Quotes were obtained using the following profile: base 2015 Toyota Camry, male, 40-years-old. Policies reflect state minimum coverage options. We make every effort to provide the most accurate quotes based on the profile above. Due to the many combined variables involved in insurance quotes, the only way to get an accurate quote is to enter your own information through our partners’ secure websites.

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