Best Cheap Auto Insurance in Alaska (2024)

The best car insurance for you in Alaska will offer cheap rates and the coverages you need.

3 years of content writing

Bylines with leading financial publications

Alani is a freelance writer specializing in personal finance. She aims to make complex topics more approachable through fun, digestible content.

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Featured in

Licensed auto and home insurance agent

4+ years in content creation and marketing

As Insurify’s home and pet insurance editor, Danny also specializes in auto insurance. His goal is to help consumers navigate the complex world of insurance buying.

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Featured in

30+ years in financial services

Clinical Professor of Finance, University of San Diego

Dan is a well-recognized and widely quoted financial services expert, regularly appearing in a variety of national and local media as a subject matter expert.

Read Editorial Guidelines

7+ years experience in data analysis

Ph.D. in Computational Biology

Konstantin has led data teams across multiple industries, including insurance, travel, and biology. He’s led Insurify’s engineering team for more than three years.

Read Editorial Guidelines

Updated July 1, 2024

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Alaska is home to breathtaking scenery, deep-rooted history, and thrilling outdoor escapades. To fully explore the wonders of this state by car, you’ll need to equip yourself with dependable car insurance. State Farm, USAA, and Allstate offer some of the state’s best and most affordable car insurance options.

The average cost of car insurance in Alaska is $135, according to Insurify’s internal data. Alaska drivers may see auto rates about 45% cheaper than the national average. That's because fewer cars are on the road in Alaska and the state’s lower population density reduces the chances of accidents.

Alaska is a tort state, meaning an at-fault driver is responsible for paying damages and losses incurred by the victim.

High-risk drivers must carry an SR-22 certificate, which can increase rates.

Alaska insurance companies can use your credit score when setting your premiums.

Best car insurance companies in Alaska

The best car insurance will depend on your specific circumstances and insurance needs. Assess your driving record, the coverage you need, and your budget to determine the right car insurance company for you. Here are a few of the best insurance companies in Alaska.

Our editorial team spent more than 350 hours developing the Insurify Quality (IQ) Score and scoring insurance companies. The IQ Score objectively analyzes and calculates a score for insurers using more than 15 crucial criteria. The team weighted criteria by importance to the consumer — factors such as customer reviews and affordability influence the score more than availability and third-party ratings.

We rate each company on a 1-to-ten scale based on five categories: financial ratings, customer satisfaction, affordability, customer support and transparency, and availability. Insurify updates ratings once a year or as more recent information becomes available.

Best insurer for cheap rates: State Farm

Cheap ratesState Farm

State Farm is the largest car insurance company in America by market share, according to the National Association of Insurance Commissioners (NAIC). It has a wide selection of coverages, including rental insurance, rideshare insurance, and travel expenses coverage.

State Farm offers some of the lowest rates in Alaska as well as a variety of discounts, including auto and life insurance bundles.

Rideshare and other less-common coverages available

Bundling car insurance with other policies allows for discounts

Gap coverage not available

Many unresolved customer complaints, according to the Better Business Bureau (BBB)

State Farm is too expensive

They Raise Rates Constantly

Excellent

Best insurer for military members: USAA

Military membersUSAA

USAA is the best car insurance choice for active-duty military personnel, veterans, and their families. It offers affordable rates, various discounts, and a safe driving program.

SafePilot safe driving program allows you to save up to 30%

Affordable rates for drivers with incidents on record

Only available to active-duty military members, veterans, and their families

Gap insurance not available

Good Service, Lousy Pricing

Disappointed with Response Regarding Increase to My Auto Premiums

Great Service, Terrible Pricing

Best insurer for drivers with at-fault accidents: Allstate

Drivers with at-fault accidentsAllstate

At-fault accidents can be a nightmare for your car insurance rates. Allstate offers an accident forgiveness policy, so you won’t have to worry about a rise in your premiums even if you cause a car accident.

The insurer also provides an expanded version of accident forgiveness, the Platinum package, which offers unlimited accident forgiveness — unlike its competitors that often impose a cap.

Pay-per-mile coverage available

Wide selection of available discounts

Low customer satisfaction and potential subpar customer service

More expensive than some competitors

Excellent

Why So Much?

High payments for a 7-year-old vehicle

7 Best Car Insurance Companies (July 2024)

How to get the cheapest car insurance in Alaska

Insurance companies will conduct a risk assessment based on your driver profile to determine your insurance rates. Factors that comprise your risk level include age, location, driving history, claim history, and more.

If you’re in the market for car insurance, these are some of the best ways to get the most affordable prices:

Compare quotes. You should get at least three different rates from various insurers. To get the most accurate comparisons, ensure your coverage types and levels are the same across each auto policy.

Look for discounts. Whether you have multiple cars, are bundling insurance products, or are part of an affiliated group, there’s a discount for every driver and situation. Stacking deals can help you get the lowest rates on your insurance policy.

Maintain a clean driving record. Good drivers tend to see lower rates on their car insurance than drivers with an incident on their record. It’s important to adhere to your state’s road rules and remain vigilant on the road.

Increase your deductible. A higher deductible for collision or comprehensive coverage results in lower monthly premiums. If you’re considering increasing your deductible, be sure you can afford the out-of-pocket expense in the event you need to file a claim.

Cheapest liability-only car insurance in Alaska: USAA

A liability-only policy covers the other party’s property damages and bodily injuries if you’re at fault in an accident. This insurance offers only the most basic coverage, so it’s usually a company’s most inexpensive policy.

Here are some of the cheapest car insurance companies for liability-only coverage in Alaska.

Find Cheap Car Insurance in Alaska

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Cheapest full-coverage car insurance in Alaska: USAA

While a liability-only policy pays for the other party’s losses when you’re at fault in an accident, full-coverage car insurance pays for your losses, regardless of fault.

A full-coverage insurance policy includes collision coverage, which compensates you for vehicle repairs if you collide with another vehicle or object. It also includes comprehensive coverage, which reimburses you for damage or losses related to theft, vandalism, weather damage, and other non-collision events.

If you commute frequently, drive in a high-risk area, or have an expensive vehicle, having full coverage may be worth it. Lenders may also require full coverage if you have a car loan or lease.

Car insurance requirements in Alaska

Alaska is a tort state, meaning all drivers must carry the state’s minimum liability coverage. If you’re not at fault in an accident, you can file a claim with the at-fault party’s insurance company to get reimbursed for medical bills and vehicular repairs.

The table below illustrates Alaska’s minimum coverage for bodily injury and property damage liability insurance, according to the State of Alaska Division of Motor Vehicles (DMV).[1]

Car insurance financially safeguards you from the worst. Consider spending a few extra dollars on the following coverage options to stay fully protected:

If an at-fault party doesn’t have enough liability coverage, this coverage lets you file a claim with your insurer to cover the expenses.

If you or your passengers sustain injuries in a car accident, you can use PIP coverage to pay for medical expenses, lost wages, child care, and funeral costs.

This endorsement reimburses you for rental car expenses so you can get around while your vehicle is in the shop for repairs.

Cheapest car insurance for drivers with an incident

Driving incidents refer to speeding tickets, DUIs, at-fault accidents, and other moving violations, which can increase your car insurance premiums. Insurers see drivers with an accident on their records as riskier drivers, as it indicates a higher likelihood of being involved in future accidents. So, to offset the risk, insurers raise your auto insurance rates.

For instance, in Anchorage, Alaska, a driver with an at-fault accident on their record pays almost $70 more each month for car insurance than a driver with a clean driving record, according to Insurify data.

Find Cheap Car Insurance in Alaska

Search for affordable rates in the Last Frontier state

Cheapest car insurance for drivers with a speeding ticket: State Farm

If you’ve received a speeding ticket, your auto premiums will likely increase. A ticket can stay on your record for up to five years, resulting in higher rates for that duration. However, the following auto insurers offer affordable monthly quotes in Alaska despite the blemish on your record.

Cheapest car insurance for drivers with an at-fault accident: State Farm

At-fault accidents can stay on your record for up to five years, causing your rates to remain high through that time. However, you’re not completely out of luck if you have an at-fault accident on your record. These car insurance companies offer the best monthly quotes for drivers with an at-fault accident.

Cheapest car insurance for drivers with a DUI: State Farm

Driving under the influence is a serious offense with major legal repercussions. After getting a DUI in Alaska, you may need to obtain an SR-22 certificate to reinstate a suspended license. Many states require high-risk drivers to obtain SR-22 insurance to prove they have the minimum liability car insurance in their state.

However, finding an insurance company offering high-risk insurance at a low rate can be challenging. Fortunately, these Alaska car insurance companies provide high-risk drivers with budget-friendly monthly quotes to help them get back on the road.

Cheapest car insurance for seniors: State Farm

While the cost of car insurance generally decreases around age 35, you may see your rates climb again around age 75. Despite more experience on the road, age-related conditions such as slower reflexes and decreased vision make seniors more statistically prone to accidents. So, insurers may charge more to account for this risk.

However, if you’re looking for a car insurance policy in your 70s, you can still find a good deal. The table below illustrates insurance companies that offer cost-effective monthly rates for seniors.

Cheapest car insurance for teens: State Farm

With less experience on the road, teenagers are more likely to be involved in accidents, thus posing a high risk to car insurance companies. As a result, young drivers will pay a higher price for their auto policy.

Teens can keep their auto insurance premiums low by staying on their parents’ insurance policy, driving a safe car, and taking advantage of good student discounts. They can also shop around and compare quotes from different insurance companies. Below, you’ll find some of the cheapest insurers for teens in Alaska.

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Find Cheap Car Insurance in Alaska

Compare liability or full-coverage insurance from top insurers

Alaska car insurance quotes by credit tier

Insurance companies in Alaska can use your credit history to determine your rates. A high score indicates to insurers that you’re less likely to file a claim. Drivers with excellent and good credit may see lower rates, while drivers with poor credit may pay higher rates.

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Alaska car insurance FAQs

Finding the right car insurance can be difficult. Below, you’ll find answers to some commonly asked questions about how to find the best auto insurance in Alaska.

How much is car insurance in Alaska?

Car insurance in Alaska costs $151 per month, on average. Drivers in the state pay $190 per month for full-coverage insurance and $112 per month for liability coverage. Your specific rate will depend on your insurer, driving record, age, credit history, vehicle type, chosen coverage level, and more.

What are the best car insurance companies in Alaska?

With an IQ Score of 4.4 out of 5 and an A.M. Best financial strength rating of A++ (Excellent), State Farm is the best car insurance company in Alaska. Of the insurers Insurify has rate data for, other top Alaska auto insurers include USAA, Allstate, GEICO, and Progressive.

Is it illegal to not have car insurance in Alaska?

Yes. Drivers in Alaska must carry car insurance. If you want to get on the road legally, you’ll need to have $50,000 per person and $100,000 per accident in bodily injury liability insurance, as well as $25,000 per accident in property damage liability coverage.

Is auto insurance cheaper in Alaska?

Yes. Alaska’s average auto insurance rate is $135 per month, $77 cheaper than the national average. Car insurance is much more affordable in Alaska than in the rest of the country because it’s remote, and fewer drivers are on the roads at any given time.

How Alaska Drivers Measure Up

While most drivers know that car insurance quotes are determined in part by your personal driving history, many may be unaware that rates are also impacted by the average risk of the drivers around you as well. Check out Insurify's latest analysis of driving records in Alaska below:

Drawing from an internal database of over 4 million car insurance applications, the research team at Insurify analyzes patterns in car ownership and driver behavior - including how Alaska drivers measure up to their fellow motorists across the United States in areas including speeding, DUIs, and more. Insurify Insights publishes data-driven articles, trend analyses, and national rankings each week on all factors related to cars and those who drive them.

Most Popular Car in Alaska

State with the Most Speeding Tickets Rank

State with the Moving Violations Rank

State with the Most DUIs Rank

State with the most Suspended Licenses

While car accidents are a sadly unavoidable feature of time spent on the road, rates of accidents do vary from city to city and from state to state. Alaska is the #46 state in the country for drivers with an at-fault accident on their driving record.

While driving while intoxicated is never acceptable, it’s a more common offense than many assume. Alaska is the #20 state in the country for drivers with a prior drunk driving conviction.

Reckless driving refers to a specific traffic violation: when drivers willfully act dangerously in spite of the risks they’re imposing on both themselves and others. Alaska is the #11 state in the country for drivers with a reckless driving offense on record.

The Insurify team classifies rude drivers as those who commit one or more of the following driving offenses: failure to yield or failure to stop, improper backing, passing where prohibited, tailgating, street racing, or hit-and-run. Alaska is the #13 state in the country for drivers with a rude driving violation on record.

Exceeding the speed limit can endanger others and have a serious impact on your insurance costs. Alaska is the #31 state in the country for drivers with a speeding ticket on record.

Failing to yield the right of way isn’t just frustrating for other drivers; it’s dangerous, too. Alaska is the #15 state in the country for drivers with a failure to yield violation on record.

Insurify's team of data scientists and content specialists presents Insurify Insights, a series of automotive, home, and health studies focusing on the topics that impact us all. through expert analysis of over 4 million car insurance applications and an array of top data sources, the Insurify Insights team produces new data-driven articles, trend analyses, regional superlatives, and national rankings every week. See Insurify Insights as featured in Forbes, Fox News, USA Today, NPR, and more.

Methodology

Insurify data scientists analyzed more than 90 million quotes served to car insurance applicants in Insurify’s proprietary database to calculate the premium averages displayed on this page. These premiums are real quotes that come directly from Insurify’s 50+ partner insurance companies in all 50 states and Washington, D.C. Quote averages represent the median price for a quote across the given coverage level, driver subset, and geographic area.

Unless otherwise specified, quoted rates reflect the average cost for drivers between 20 and 70 years old with a clean driving record and average or better credit (a credit score of 600 or higher).

Liability-only premium averages correspond to policies with the following coverage limits:

Quotes for Allstate, Farmers, GEICO, State Farm, and USAA are estimates based on Quadrant Information Services’ database of auto insurance rates.

Sources

Alani Asis is a personal finance freelance writer with nearly three years of experience in content creation. She has landed bylines with leading publications and brands like Insider, Fortune, LendingTree, and more. Alani aims to make personal finance approachable through fun, relatable, and digestible content.

Licensed auto and home insurance agent

4+ years in content creation and marketing

As Insurify’s home and pet insurance editor, Danny also specializes in auto insurance. His goal is to help consumers navigate the complex world of insurance buying.

Read Editorial Guidelines

Featured in

30+ years in financial services

Clinical Professor of Finance, University of San Diego

Dan is a well-recognized and widely quoted financial services expert, regularly appearing in a variety of national and local media as a subject matter expert.

Read Editorial Guidelines

7+ years experience in data analysis

Ph.D. in Computational Biology

Konstantin has led data teams across multiple industries, including insurance, travel, and biology. He’s led Insurify’s engineering team for more than three years.

Read Editorial Guidelines

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