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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.
Best Auto Insurance in Alaska
Allstate is one of the largest insurance companies in the country, and it’s been around for 90 years. That means it’s secure and able to pay your car insurance claims. That doesn’t mean it’s stodgy, though. It has introduced innovations like Drivewise, which allows you to save on your insurance based on your driving habits, and Milewise, which is pay-per-mile insurance.
You can purchase insurance online or through an Allstate agent. Allstate offers several options for discounts that can bring down your policy costs significantly. It also offers several types of insurance so you can have all or most of your policies with 1 insurer.
Overall, Allstate is a good choice and worth comparing with other insurers to see if it’s right for you. It’s available in all 50 states and has an A+ rating from AM Best.
- Personalized service
- Pay-per-mile insurance from an established company
- Buying multiple types of insurance
- Extensive agent network
- Easy sign-up process
- Many customer service options
- Drivewise and Milewise aren’t available in all states
The AARP Auto Insurance Program from The Hartford is designed exclusively for AARP members who are at least 50 years old. Some of the unique features of the program can help you save money on your policy over time, especially if you have and maintain a clean driving record.
Other stand-out features include new car replacement (rather than the depreciated value), reimbursements for expenses incurred if you get injured in an accident and lifetime repairs guarantees.
The AARP Auto Insurance from The Hartford is rated #1 by J.D. Power and Associates for customer satisfaction in handling auto insurance claims.
- Safe drivers who are looking to save money
- AARP members at least 50 years old
- Offers unique coverages and benefits that can be added to a standard auto insurance policy
- Allows drivers to save for safe driving
- Rated #1 by J.D. Power for customer satisfaction in auto claims handling
- Only available for AARP members
- Must be at least 50 years old to qualify
Progressive auto insurance is among the first of the larger insurers to actively embrace usage-based insurance via electronic monitoring of driving habits. Often a refuge for younger drivers and drivers who have been refused insurance elsewhere, progressive markets and supports its insurance products through its website and a network of independent agents.
- Young and less-experienced drivers
- Drivers with consistently good driving habits
- Rates for good drivers
- RV drivers
- More welcoming to less-experienced drivers
- Great website and mobile app functionality
- Driving based discounts can be generous
- Relatively smaller agent network may leave some without a local agent
- Rates can increase at renewal based on driving data from Progressive’s Snapshot.
The American Automobile Association (AAA) is a federation of auto clubs, and it offers a wide range of insurance options, including car insurance. It is the most trusted and familiar name in auto-related services. The company has come a long way since its founding, but the mission remains the same.
Safe and efficient transportation is exactly what AAA commits to per the company’s core statement. AAA is probably best known for its roadside assistance, but the company offers a variety of insurance coverage and memberships as well. AAA strives to make your life easier with its insurance coverage for you and your family. Your safety and security is AAA’s priority.
- AAA Members
- Roadside Assistance
- Extra insurance perks
- Anyone looking for unique insurance carriers
- Serves all states
- Mobile app
- Emergency roadside assistance
- Have to be an AAA member
- Policies not available in every area
- Best Auto Insurance in Alaska
- Alaska Auto Insurance Overview
- Alaska Auto Insurance Law Explained
- Alaska Traffic Laws You Should Know
- Alaska Auto Insurance Rates per Vehicle
- Auto Insurance Rates by Insurance Credit Score in Alaska
- Insurance for Drivers with a Clean Record in Alaska
- Insurance Rates in Alaska with Driving Infractions
- Best Auto Insurance Providers in Alaska
- Maintain Coverage in Alaska
- Frequently Asked Questions
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 Insurance Credit Score in Alaska
Your insurance 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 Score||Cheapest Provider||Rate for State Minimum Coverage|
|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 Company||State Minimum Insurance||Standard Coverage||Full Coverage|
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 Company||At-Fault Accident||Speed Violation||DUI|
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.
- Extensive agent network
- Easy sign-up process
- Many customer service options
- Drivewise and Milewise aren’t available in all states
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.
- Complete line of insurance, banking, and investment services
- Easy online forms to quote and bind policies
- Top-rated customer satisfaction
- Very few physical locations
- Only available to select groups, generally tied to military service and the relatives of members
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?
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.
2) Q: How do I ensure that I’m properly covered?
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.
Q: Is there any way I can lower my insurance premiums?
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.
*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.