Alaska Auto Insurance [Rates + Cheap Coverage Guide]

Drivers in Alaska have to carry liability coverage. Because of the terrain and unique setting, some areas of Alaska are at a higher risk for car accidents and damage. This means that liability requirements in Alaska are higher than those in many other states.

If you own a car in Alaska, you must carry the proper auto insurance coverage. But you can shop online to compare and find affordable quotes from companies in your area to find Alaska auto insurance rates that fit your budget. 

What are Alaska’s car insurance requirements?

More: Best Cheap Auto Insurance in Anchorage, AK (2022)

Alaska car insurance requirements are straightforward. Drivers in Alaska have to carry the state’s minimum coverage to be able to drive legally. Keep in mind that requirements for coverage in Alaska only cover liability insurance.

If you live in Alaska, you must have the following auto insurance coverage:

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

This liability coverage may sound like a lot. Still, if drivers in Alaska are in a multi-car accident or if someone is seriously injured due to an accident, people in Alaska who only carry the state’s minimum requirements for coverage could be in a lot of trouble.

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How much is car insurance in Alaska?

More: Best Cheap Auto Insurance in Fairbanks, AK (2022)

Auto insurance in Alaska is not very expensive if you are simply looking for liability coverage. Still, car insurance in Alaska can cost more if you have a bad driving record or are a new driver who poses more risk.

The amount you will pay for car insurance in Alaska will depend on several different factors, such as:

• Age
• Gender
• ZIP Code
• Car make and model
• Driving history
• Credit score
• Occupation
• Marital status

Where you live in Alaska depends on how much you will pay for auto insurance coverage. The table below shows the average cost of car insurance in each of the state’s ZIP codes.

As you can see, full coverage Anchorage auto insurance costs around $3,135 annually, while a full coverage policy in Angoon is just $2,335. Full coverage costs substantially more than a liability-only policy, but it will provide both collision and comprehensive coverages to help make sure you are better protected.

If you believe your Alaska car insurance rates are higher than they should be, you can shop around for coverage to see if other companies are willing to offer you the coverage types you want at a price that works for you.

What happens if I drive uninsured or underinsured in Alaska?

Around 15% of drivers in Alaska do not have proper auto insurance coverage. While this number may not sound all that high, uninsured drivers can do a lot of damage if they are ever at fault in a car accident.

If you are caught driving without proper insurance in Alaska, you could risk:

• Having your driver’s license suspended 
• Having your vehicle impounded
• Receiving a fine from local law enforcement

Some drivers purchase additional auto insurance coverage to ensure they will not be in a bad situation if they’re in an accident with an uninsured driver. In addition, you can buy uninsured/underinsured motorist coverage in Alaska for reasonably cheap.

Uninsured and underinsured motorist coverage costs around $50 to $70 annually, adding around $25,000 per person and $50,000 per accident to your policy.

What are the best car insurance companies in Alaska?

While the best auto insurance provider in Alaska will depend on what you’re looking for and the individual rates each company can offer, many residents agree that a few companies provide better coverage at better rates. 

Some of the state’s top auto insurance providers include:

• State Farm
• Progressive 
• Allstate
• GEICO 
• USAA
• Umialik
• Liberty Mutual

To find the company that works best for you, you should shop around for coverage online to see what your options are. Then, once you’ve narrowed your search down to a few different companies, you can reach out to each provider to see if you qualify for any discounts on coverage.

Car Insurance in Alaska: The Bottom Line

If you are searching for Alaska car insurance, you will find that you have plenty of options in terms of companies. However, it would help if you first decided on the types of coverage you want to include in your policy.

Alaska drivers looking for a liability-only policy could pay less than $600 per year for coverage. But remember that you and your vehicle will not be covered if you’re deemed at fault in a car accident.

Full coverage policies in Alaska can cost anywhere from $2,000 to $3,500 annually and provide drivers with both collision and comprehensive coverage. Because around 15% of Alaska drivers do not have proper insurance, you may want to consider adding uninsured/underinsured motorist coverage to your policy as well. 

To find the best car insurance company in Alaska, you must shop and compare quotes from multiple policies. Doing so will help you get the coverage you need without paying too much for car insurance.

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