Alaska Auto Insurance (2023)

Alaska’s average car insurance cost is cheaper than the national average, but it still isn’t the cheapest state for car insurance coverage. If you live in Alaska or are planning to move, shop around based on your individual driving record and coverage requirements to find cheap car insurance in Alaska. 

Continue reading to learn about Alaska car insurance companies and which factors affect your rates at the best auto insurance companies. In addition, we discuss other pertinent information about auto insurance in Alaska and go over everything you need to know about reducing your auto insurance rates.

Cheap Auto Insurance in Alaska 

When searching for cheap car insurance, it’s important to note that just because a company is advertised as affordable doesn’t mean it will be the cheapest for you. For example, some of the cheapest companies for drivers with clean records will become some of the most expensive companies after an at-fault accident or DUI. People who have a DUI on their record should search specfically for the best auto insurance for drivers with a DUI.

Because of this, we’ve broken down which companies are the cheapest for multiple different coverage needs and driving infractions. From State Farm to Progressive insurance in Alaska, you can see which is the most affordable car insurance company for you based on your driving profile. 

Cheapest Alaska Car Insurance For Minimum Liability 

Minimum liability auto insurance is the bare minimum you must carry to drive legally in Alaska. It will cover other parties’ property damage and bodily injury bills if you cause an accident. 

In Alaska, the average cost of minimum liability insurance is only $34 per month or $408 per year. Below, you can see what different companies in Alaska charge on average for a minimum liability insurance policy. 

Geico has some of the cheapest average rates for minimum liability insurance, as does State Farm. Getting quotes from a few of the cheapest companies on the above list will help you see which one is the cheapest for you. 

It is best to avoid the more expensive companies on the list (such as Allstate) if you are looking for a basic minimum liability insurance policy. Otherwise, you may end up paying a few hundred dollars more for minimum Alaska insurance than if you picked a different auto insurance company. To find out who has the best auto insurance for other types of coverage besides just minimum liability, you can read about Geico vs. Progressive auto insurance. 

Cheapest Alaska Auto Insurance For Full Coverage 

Full coverage auto insurance costs more than minimum liability insurance, but full coverage also protects drivers’ assets more than just carrying a liability policy. Because full coverage consists of comprehensive and collision coverages in addition to minimum liability coverage, it pays for your own car repair costs if you cause a crash or your car is damaged by animal collisions or weather. 

In Alaska, full coverage insurance policies cost an average of $110 per month or $1,320 per year. However, this average changes from company to company, as you can see in the table below. 

State Farm has some of the cheapest rates on average for full coverage insurance policies in Alaska. Comparing Geico vs. State Farm auto insurance is a good way to start getting quotes when searching for cheap Alaska car insurance, as long as you have a clean driving record. 

If you have any infractions on your driving record, such as a DUI, then you will have to compare companies more in-depth to make sure these companies are still the cheapest for full coverage. 

Cheapest Car Insurance in Alaska For Young Drivers 

Because young drivers lack experience, they are more likely to get into crashes and file claims. Insurance companies will charge young drivers more to counteract the higher risk of paying out a claim. 

If you are a young driver, take a look at the average rates for younger drivers in Alaska below. 

Geico and State Farm have some of the cheaper average rates for young drivers. Choosing one of these companies can save young drivers thousands of dollars than going with a more expensive company like Allstate. 

It’s important to note that these average auto insurance rates are for young drivers purchasing their own insurance policies. Young drivers often find it much cheaper to join a pre-existing policy, such as their parent’s car insurance policy. As long as the young driver still lives at home, it is perfectly acceptable for them to join their parents’ auto insurance policy.  

Cheapest Auto Insurance in Alaska For Bad Credit 

Alaska car insurance companies will use credit scores as a factor when calculating rates. Bad credit scores suggest that a driver is more likely to miss monthly payments, leading to a lapse in coverage and increasing the likelihood of driving illegally without insurance. 

Bad credit scores will raise your insurance rates at insurance companies in Alaska. Below, you can see how much the average rates are at different companies for drivers with bad credit scores. 

Geico and State Farm are some of the best auto insurance companies for bad credit in Alaska. Travelers is also a good choice for cheaper auto insurance with bad credit. 

If you find your car insurance rates have increased due to bad credit, working on improving your credit score and picking a cheaper company can help you reduce your insurance rates. After all, getting your credit back on track is hard if you have to pay hundreds of dollars more in car insurance payments. 

Cheapest Alaska Insurance For At-Fault Accidents 

Like bad credit scores, causing a car accident will increase your auto insurance rates in Alaska. How much more you pay for coverage depends on your insurance company. Below, you can see how insurance companies’ rates vary after an at-fault accident in Alaska. 

State Farm and Geico have some of the cheapest rates after an at-fault accident, whereas companies like Progressive and Allstate have some of the most expensive average rates. However, Geico will increase your rates more after the first accident than other companies. 

Keep in mind that the average rate increases you see in the table above are just for one at-fault accident on a driver’s record. More than one at-fault accident within the last few years will raise higher rates. 

If your insurance company offers accident forgiveness, it is usually worth signing up for it. Since at-fault accidents increase rates by at least a few hundred dollars, having accident forgiveness means you won’t have to pay increased rates after your first at-fault accident claim. 

Some accident forgiveness programs are free for qualifying drivers, while others may require you to pay a small fee to join. Regardless, accident forgiveness can save you a lot of money in the long run, as insurance companies will forgive your first at-fault accident with them. 

Cheapest Insurance in Alaska For Traffic Tickets 

Any traffic ticket that adds points to your driving record, such as speeding or reckless driving tickets, will also increase your auto insurance rates. Violations like these indicate to an insurance company that you are a higher risk to insure due to poor driving habits.

Below, you can see how traffic tickets change average rates at Alaska companies. 

State Farm and Geico have some of the cheapest rates in Alaska for drivers with a traffic ticket. Drivers with tickets on their records should avoid Allstate, as this company has some of the highest average rates for drivers with tickets on their records. It’s important to know how long a speeding ticket affects your auto insurance when shopping for a policy. 

Cheapest Alaska Car Insurance For DUI 

A DUI conviction raises rates significantly at all insurance companies in Alaska, making it much more difficult to find cheap auto insurance. Below, we’ve outlined some of the average rates for drivers with a DUI on their driving record. 

State Farm has some of the lowest rates for drivers with a DUI on their record, making it a good choice to try and find savings. Meanwhile, while Geico is usually one of the cheapest companies, it will be one of the more expensive insurers if you have a DUI.

This is why comparing companies’ average rates based on your driving record is essential. A cheap company may become more expensive than other insurers for certain demographics. So if you have a DUI on your driving record, get quotes from multiple companies in Alaska to see which companies are actually the cheapest for you. 

Cheapest Cities for Insurance Coverage in Alaska 

Just as car insurance rates change from state to state, drivers in different cities in Alaska will pay different rates, even with the same auto insurance company. This is due to the different location risks in each city. For example, one city may have higher rates of vehicle theft or fatal crashes, making it riskier to insure cars in that city. 

Take a look at the table below to get an idea of how average rates can change in Alaska’s major cities, including auto insurance in Anchorage.

One of the most expensive cities for car insurance is Anchorage, Alaska. Still, it’s possible to find cheap auto insurance in Anchorage. If you move to Anchorage, you may see a slight increase in your insurance rates, even if you stick with the same insurance company. Therefore, if you are moving to a new area in Alaska, we recommend getting a few insurance quotes to check how your rates will change and which company offers the cheapest area rates. Y

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Additional Tips For Saving on Alaska Insurance 

Getting insurance quotes and comparing companies’ average rates based on your driving record is one of the best ways to find cheap insurance in Alaska. However, there are a few other tips and tricks to reduce your insurance costs. 

Some of the things you can do to cut back on insurance costs include the following: 

• Apply for car insurance discounts. Some discounts aren’t automatically applied to your insurance policy unless you apply for them, such as defensive driving discounts or good student discounts. 
• Buy a car with cheaper insurance rates. Cars that are cheaper to repair and have good safety ratings are cheaper to insure. You can get quotes for the vehicle you want to see which are the best cars for Alaska insurance.
• Drop any unnecessary car insurance coverages. You may want to get rid of extra coverages like roadside assistance or carry just bare minimum liability insurance if your car is old and greatly depreciated in value. 
• Raise your car insurance deductible. Increasing your insurance deductible will decrease your insurance rates, although you should take care not to raise your deductible beyond the amount you can afford to pay out-of-pocket.

Make sure to check out your insurance company’s full list of discounts. There are many you may qualify for that haven’t been applied to your policy yet or programs you participate in for a discount. 

For example, some insurance companies offer usage-based auto insurance discounts, where the company tracks your driving data for a few months and then offers a discount based on your score. Even if you don’t score well, most usage-based discounts often offer a small five to ten percent discount just for signing up.

Alaska Car Insurance Coverage and DUI Laws 

Knowing what coverages you must carry can help you plan your car insurance costs accordingly. States that require drivers to maintain higher levels of coverage will naturally have higher average insurance costs. Read on to find out what insurance coverages you need to carry in Alaska, as well as important DUI penalties and SR-22 insurance requirements.

Required Insurance Coverage in Alaska 

If you live in Alaska, you will need to carry liability insurance to drive legally in the state. Alaska requires drivers to carry both bodily injury liability insurance and property damage liability insurance. The amounts drivers must carry for both of these liability coverages are as follows: 

• Bodily injury liability insurance: $50,000 per person and $100,000 per accident 
• Property damage liability insurance: $25,000 per accident 

Alaska has fairly high limits required for bodily injury liability insurance but only requires $25,000 worth of property damage liability insurance. If you cause a major accident that results in more than $25,000 worth of damages, such as totaling another driver’s car, then you may be stuck with out-of-pocket bills. Because of this, it might be prudent to purchase a slightly higher liability limit if you can afford it.

Optional Insurance Coverage in Alaska 

Because Alaska only requires drivers to carry liability insurance, all other insurance coverages are optional, and you can drive legally without them. However, your lender may require you to carry comprehensive and collision insurance if you have a lease or loan on your car. In this case, you are legally obligated to purchase those coverages.

In all other cases, you can choose whether you want to carry the following car insurance coverages. 

• Comprehensive insurance 
• Collision insurance 
• GAP insurance 
• Modified car insurance 
• Non-owner car insurance 
• Rental car reimbursement insurance 
• Roadside assistance insurance 
• Uninsured motorist insurance 
• Underinsured motorist insurance 
• Umbrella insurance 

A number of these optional insurance coverages can be well worth the additional cost. For example, comprehensive auto insurance will pay for your car repairs if your car is damaged by an animal collision, vandalism, theft, extreme weather, and more. With multiple large animal collisions in Alaska every year, purchasing comprehensive insurance can be well worth the slightly higher insurance costs. 

Likewise, collision insurance will pay for damages to your car if you hit another vehicle or object, such as a telephone pole. Without collision insurance, you would have to pay for your own car repairs in an accident you cause. So while you will see an increase in insurance rates when adding these coverages, they can save you from a financial headache later.  

DUI Penalties in Alaska 

DUIs in Alaska can cost you a great deal of time and money beyond just huge increases in insurance rates. Some of the penalties you may face in Alaska for a DUI conviction include the following consequences: 

• Alcohol/drug evaluation
• Alcohol/drug treatment program 
• Driving record points 
• Fines and court fees 
• Ignition Interlock Device (IID)
• Jail time 
• License revocation
• Probation 
• Restricted driver’s license 
• SR-22 certificate 
• Vehicle impoundment 

The severity of the penalties in Alaska depends on the number of offenses and the severity of the offense. For instance, drivers may not receive jail time for their first DUI and have lighter fines. But a driver with a third DUI charge will face mandatory jail time and have much higher fines and fees. 

While a DUI increases a driver’s insurance rates, other costs associated with the charge make getting a DUI very expensive. Auto insurance costs will also stay increased for a few years, so even after the court fees and fines are paid, DUI drivers will still face financial repercussions long after the DUI conviction, making obtaining cheap auto insurance with a DUI difficult to do. 

SR-22 Certificates in Alaska 

High-risk drivers in Alaska may have to apply for SR-22 certificates. SR-22 certificates in Alaska are proof that a driver is carrying the state’s required insurance. You may need to file one to get back a revoked driver’s license and similar documentation. 

Some drivers who might need an SR-22 certificate include the following: 

• Drivers with a DUI or two on their driving record
• Drivers with multiple traffic violations and points on their driving record
• Drivers who were caught driving without insurance coverage
• Drivers who were caught driving with an expired or suspended driver’s license

If you currently have an auto insurance company and need an SR-22 certificate, you’ll need to contact your insurer and let them know to file it. Your insurance company may charge a small fee to file SR-22 or drop your coverage entirely if it cannot insure high-risk drivers with an SR-22 certificate. 

While the insurance company is required to give you notice, so you have enough time to find new coverage, you may have trouble getting another policy if you have been dropped.

If you can’t find an insurance company willing to insure you as a high-risk driver and provide an SR-22 certificate, you can apply to the Alaska Automobile Insurance Plan. The Alaska Automobile Insurance Plan will assign high-risk drivers to insurance companies in Alaska, so you are guaranteed insurance coverage. However, insurance through this plan is often more expensive, so it is usually best to see if you can find car insurance on your own first. 

Finally, if you need an SR-22 certificate but don’t own a vehicle, you must purchase non-owner car insurance first. This insurance coverage provides liability insurance when you drive other cars and meets the requirements needed for an SR-22 certificate and cheap SR-22 auto insurance. 

The Final Word on Finding Cheap Car Insurance in Alaska 

Alaska’s car insurance rates can be cheap if drivers take the time to compare auto insurance quotes based on their driving records. Drivers can also save on Alaska car insurance by applying for discounts, dropping non-vital coverages, and raising their deductibles. 

If you want to start shopping around for the best car insurance rates in Alaska, you can use your free quote comparison tool below to find the cheapest rates for car insurance in Alaska. 

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Frequently Asked Questions About Cheap Alaska Auto Insurance

How much is Alaska car insurance? 

How much Alaska car insurance costs depends upon the individual driver. The average annual cost for one driver might be just a few hundred dollars, whereas another driver may pay thousands of dollars every year for coverage. 

The only way to know how much Alaska car insurance will be for you is to get insurance quotes from a few different companies. This will give you a personalized glimpse into what averages you will pay for car insurance in Alaska. 

What is the best car insurance for the cost? 

When looking at car insurance companies, drivers should consider more than just the cost of a policy.  In addition to insurance rates, it’s important to consider a company’s reputation and financial strength as an insurance provider. 

With that said, some of the better insurance companies in Alaska that offer both cheap rates and decent ratings are State Farm and Geico. If you are a military member or veteran, another great choice that considers both cost and reputation is USAA. 

What is the average monthly cost of Alaska auto insurance? 

Minimum liability insurance in Alaska costs an average of $34 per month, whereas full coverage insurance in Alaska costs an average of $110 per month. However, your insurance rates will be different depending on your driving record, location, vehicle, and other important insurance rate factors. 

Do I need car insurance in Alaska? 

Yes, you need to have car insurance if you live in Alaska. The state requires all drivers to carry the minimum limits of both bodily injury and property damage liability insurance. Drivers who don’t have insurance in Alaska face multiple fines, revoked licenses, increased insurance rates, and other penalties. 

If you find yourself struggling to pay for car insurance in Alaska, make sure to compare quotes and take advantage of discounts at your company. You may also consider dropping non-vital insurance coverages or raising your auto insurance deductibles.

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