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Cheap Car Insurance Alaska

The cheapest car insurance in Alaska tends to come from USAA, costing an average of $79 per month or $949 per year for a full coverage insurance policy.

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06/19/2023 10:24 AM

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There are several counties in Alaska where auto insurance is not required, but in most areas of the state, car insurance is necessary. This article will discuss the cheapest car insurance in Alaska, looking at the most affordable providers available. We’ll also provide details on the specifics of driving in Alaska.

The best way to find the cheapest insurance option in any state is to compare personalized quotes from multiple providers.

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Cheapest Car Insurance Companies In Alaska

According to our car insurance rate estimates, USAA, State Farm, and Progressive are among the cheapest providers in Alaska.

Car Insurance ProviderAverage Annual Cost Estimate
State Farm$1,244
Western National$1,498

Cost Of Car Insurance In Alaska

According to our cost data, the average premium cost for liability insurance in Alaska is $425 per year. This is about 39 percent below the national average of $635 per year. We also found that a full coverage car insurance policy in the state, which includes both comprehensive and collision coverage, averages around $1,400 per year.

Annual Alaska Car Insurance Estimates By Age

Based on our research, 25-year-old drivers in Alaska pay significantly more for car insurance coverage than a 35-year-old driver.

AgeAlaska Annual Car Insurance Cost

Annual Alaska Car Insurance Estimates By Gender

According to our cost estimates, gender does not affect car insurance rates in Alaska much.

GenderAlaska Annual Car Insurance Cost

Annual Alaska Car Insurance Estimates For Drivers With Bad Credit

Drivers with fair and poor credit scores can expect to have higher car insurance costs than drivers with good credit scores.

Credit RatingAlaska Annual Car Insurance Cost

Annual Alaska Car Insurance Estimates For Bad Drivers

Annual car insurance rates for drivers with speeding tickets, at-fault accidents, or DUIs can increase up to 35 percent.

Driving RecordAlaska Annual Car Insurance Cost
Speeding Ticket$1,809
At-Fault Accident$2,074

Top 5 Car Insurance Companies In Alaska

By looking at average rates for drivers in Alaska as well as considering Alaska driving statistics and guidelines, we’ve determined some of the top providers in the state. The table below lists what we think are five companies drivers should consider first for car insurance in Alaska.

Best Cheap Car Insurance In AlaskaOur Overall RatingAverage Annual Cost
1. Geico4.6$1,084
2. USAA4.6$949
3. State Farm4.7$1,244
4. Progressive4.3$1,743
5. UmialikN/AN/A

*Not all companies were included in our rate estimates for each state. You may also notice that some car insurance companies are listed above those with higher star ratings. This is because our star ratings take into account nationwide factors, while our ranking looks specifically at what insurance providers are best for car insurance in Alaska.

#1 Geico: Cheapest Car Insurance In Alaska

We named Geico as one of the best overall providers in any state, and the provider’s service holds up in Alaska. Geico offers low rates for car insurance, as well as a quick and easy claims process. The following discounts offered by Geico can help Alaska drivers save on premiums:

  • Good driver discount
  • Good student discount
  • Defensive driving discount
  • Discounts for airbags, anti-lock brakes, and anti-theft devices
  • Multiple vehicle discount
  • Multiple policy discount
  • Military and federal employee discounts

Geico also offers usage-based insurance options in some states. By using the DriveEasy app, some Geico customers can reduce rates by driving less and driving safely.

Geico Pros And Cons

Pros A+ rating from the Better Business Bureau (BBB) Many choices for coverage High level of customer satisfaction Available in all 50 states A++ financial strength rating from AM Best
Cons Average quotes process Usage-based app not available in all states

You can find out more about the company in our Geico insurance review.

#2 USAA: Best For Military Members

USAA consistently receives high customer satisfaction marks across the country. It ranked highly in the J.D. Power 2022 U.S. Auto Insurance StudySM in every region, but it should be noted that Alaska was not included in the study. The only downside to a USAA policy is that it is only available to military personnel and their families. This means that not every Alaska driver will have the option to purchase USAA car insurance.

For those who are able to purchase a USAA policy, it is one of the best options in any state, and a definite contender for the best car insurance in Alaska. In addition to the standard types of auto insurance, USAA also offers the following products:

  • Roadside assistance
  • Rental reimbursement
  • Accident forgiveness
  • Glass coverage
  • Guaranteed asset protection (GAP)
  • Car replacement assistance (CRA)

USAA is among the most well-regarded insurers in the country, and it is financially stable, boasting an A++ (Superior) financial strength rating from AM Best.

USAA Pros And Cons

Pros Affordable rates and numerous discounts Good choice for military service members Superior financial strength rating and A+ rating from the BBB
Cons Only available for military members and their families No brick-and-mortar locations

To learn more about the company, read our USAA insurance review.

#3 State Farm: Best For Young Drivers In Alaska

State Farm offers comprehensive auto insurance coverage options, as well as a host of discounts that may help save on policies for students and teen drivers. Some discount opportunities include:

  • Safe driving discounts: Drivers with a clean driving record, which means no accidents or moving violations for the past three years, can receive this discount. Drivers can also receive discounts for completing a defensive driving course or taking driver’s ed.
  • Student discount: Students away at school may be eligible for discounts.
  • Safe vehicle discounts: If you equip your car with anti-theft devices and other high-tech safety features, you can reduce your Alaska car insurance rates.
  • Loyalty discounts: Insuring multiple vehicles or bundling your home and auto policies can reduce your State Farm premium by up to 20 percent.
  • Drive Safe & SaveTM: This is a usage-based insurance option. Drivers get discounts for driving less and driving safely.
  • Steer Clear®: Steer Clear is available for drivers under the age of 25 with at least a 3-year clean driving record. The app offers discounts for completing driver training courses and practicing driving by using the tools offered through the app.

State Farm has an A++ financial strength rating from AM Best and offers comprehensive coverage. Customer reviews for the company are generally strong and praise State Farm’s customer service agents.

State Farm Pros And Cons

Pros Largest auto insurer in the country Many discounts for teens and students Superior financial strength rating and A+ rating from the BBB Available in 48 states A++ AM Best financial strength rating
Cons Reported errors with autopay Not taking new customers in Massachusetts or Rhode Island Higher rates than some competitors

To learn more, check out our State Farm insurance review.

#4 Progressive: Best For High-Risk Drivers

Progressive wrote more than $35 billion in premiums in 2021, according to the National Association of Insurance Commissioners (NAIC), and boasts an A+ financial strength rating from AM Best. We think Progressive is a good option for high-risk drivers searching for Alaska car insurance because of its money-saving features, which include:

  • Deductible savings bank: Adds $50 toward your next deductible for every six-month period you go without an accident or ticket.
  • Policy bundling: Bundling your auto policy with another type of coverage (such as home or renters insurance) can reduce your auto premium by up to five percent.
  • Snapshot® app: This app can monitor your driving habits and lower your premium for driving safely and less frequently.
  • Name Your Price® tool: This is not a discount, but it can help customers save money by setting the price they want to pay. You first choose your rate, then Progressive offers policy options that fall within your budget.

Progressive has an A+ rating from the BBB and a low volume of complaints in relation to the size of its customer base.

Progressive Pros And Cons

Pros One of the top auto insurers in the United States A+ financial strength rating from AM Best Great choice for high-risk drivers Several money-saving features
Cons Average claims process Average customer satisfaction Higher rates than some competitors

Learn more by reading our Progressive insurance review.

#5 Umialik: Best Local Alaska Agents

Alaska drivers can be confident in Umialik, which is local to the state and specializes in finding coverage in the Last Frontier. Umialik Insurance Company has been around for over 30 years and is headquartered in Anchorage. It is a member of the Western National Insurance Group, which gives it access to financial resources to meet all customer claims. It works through a network of independent agents that can help Alaska drivers find coverage to meet their needs and budget.

The Umialik Penalty-Free Promise® guarantees that rates will not increase after accidents or violations, which can help keep premium costs down.

Umialik Pros And Cons

Pros Network of independent agents that specialize in car insurance for Alaska drivers A+ financial strength rating from AM Best
Cons Younger company with a less-established reputation

Umialik agents can help you find the best car insurance in Alaska by comparing multiple policies and coverage options. Agents are not insurance company employees and are dedicated to finding the best coverage for Alaska drivers.

Alaska Car Insurance Requirements

The state of Alaska requires that all drivers maintain the following minimum insurance policies:

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

There are no state requirements for personal injury protection, comprehensive, or collision policies. However, it is generally recommended that drivers purchase such policies if they can afford them. With the right provider, full coverage auto insurance is not much more expensive than state minimum coverage requirements and can keep your finances protected in the worst-case accident scenario.

There are some areas in Alaska that do not require vehicles to be registered. In these areas, insurance is not required. A full list of the counties where car insurance is not required in Alaska can be found on the Alaska Division of Motor Vehicles (DMV) website.

Drivers who fail to maintain the state minimum required coverage where necessary can face license suspension and vehicle impoundment.

What To Know About Driving In Alaska

The Alaska DMV reported that the average Alaskan drove 9,902 miles in 2018. In that same year, there were 953 auto deaths, which made for 1.46 deaths per 100 million vehicle miles traveled. This is a relatively high accident fatality rate. Alaska ranked sixth out of 50 states for vehicle fatalities, behind only West Virginia, South Carolina, Mississippi, Louisiana, and Arizona.

Some parts of Alaska have narrow roads, and its rural areas may not receive as much plowing and maintenance as more populated areas in the U.S. Cell phone coverage can also be spotty in certain areas, so you may need to be prepared to perform your own roadside maintenance.

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Cheapest Car Insurance In Alaska: Conclusion

Driving in Alaska is a bit more dangerous than in most other states, but there is no reason to fear. Taking your time and being aware of the road can keep you safe. If you are purchasing car insurance in Alaska, you will still have access to many of the most popular national providers, even though the state is separated from the rest of the U.S. by a significant distance.

Each top national provider is worth a look. If you want to find cheap car insurance in Alaska, try using the quote tool below to compare personalized rates. Also, be sure to check out Umialik insurance, a regional provider with local agents.

Car Insurance in Alaska: FAQ

Below are frequently asked questions about car insurance in Alaska:

Does Alaska require car insurance?

Alaska requires that drivers maintain at least $50,000 per person bodily injury liability, $100,000 per accident bodily injury liability, and $25,000 per accident property damage liability auto insurance. However, there are some areas in Alaska where you are not required to have car insurance or even register your vehicle. A list of these areas can be found on the Alaska DMV website.

Is car insurance cheaper in Alaska?

Based on our research, Alaska auto insurance is cheaper than the national average. A full coverage car insurance policy averages around $1,400 per year, compared with the national average of $1,730. Minimum liability coverage costs $425 per year on average, which is below the national average of $635.

How much is car insurance in Alaska?

We found that a full coverage policy in Alaska averages $1,400 per year or $117 per month.

Who actually has the cheapest car insurance?

There is no one cheapest provider for car insurance in any state, including Alaska. The only way to find the cheapest car insurance for you is to compare quotes from multiple providers. Based on our research, USAA, Geico, and State Farm offer the lowest rates in general.

How We Rate Insurers

Our review process aims to deliver consistent and unbiased assessments of car insurance providers. While there are multiple qualities that make a car insurance company successful, our review team focuses on those we believe are the most important for consumers:

  • Cost: Cost can be difficult to compare between insurers because so many factors impact annual premiums. The cheapest insurer for one driver may not be the cheapest for another. To determine our cost score, we look at insurance rate estimates generated by Quadrant Information Services, discount opportunities, and consumer reports.
  • Coverage: To determine our coverage score, we look at the number of coverage options available as well as coverage limits and deductible options. Our ratings also take into account additional services and benefits like roadside assistance.
  • Reliability: It’s important that an auto insurer is able to meet its claims obligations. Companies with a strong financial strength rating from AM Best score best in this category. Established insurers with a long history of reliable service also receive positive marks.
  • Service: We comb through customer reviews on sites like the Better Business Bureau (BBB) to learn about customer experiences. Insurers with a low volume of complaints score well in this area. We also consider the claims process, giving higher ratings to car insurance providers that offer easy-to-use claims apps.