Best car insurance in Alaska for 2023

Best car insurance companies in Alaska

According to Bankrate’s study premium data provided by Quadrant Information Services, the average cost of a full coverage car insurance policy in Alaska is $1,946 per year, with minimum coverage averaging $421. However, we considered more than average rates to find the best company for Alaska car insurance. We also reviewed third-party scores reported by the J.D. Power 2022 U.S. Auto Claims Satisfaction Study, AM Best financial strength ratings and coverage options, discount opportunities and more.

Based on our extensive research, you might find the best car insurance in Alaska by shopping with Geico, USAA, Progressive, State Farm or Allstate.

How Bankrate chose the best car insurance companies in Alaska 

To find the best car insurance in Alaska, Bankrate’s insurance editorial team first reviewed average premium data from analytics company Quadrant Information Services. However, our time as licensed agents taught us that drivers know that the cheapest coverage isn’t always the best for their individual needs.

In addition to rates, we analyzed digital tool availability, financial strength, corporate sustainability initiatives and more. Then, we distilled this information into a proprietary Bankrate Score (with 5.0 being the best score possible). With this, we hope to give our readers a quick and easy way to evaluate insurance companies while they shop around.

How much is car insurance in Alaska?

Full coverage Alaska auto insurance rates are slightly below average, at $1,946 annually. For comparison, the 2023 national average is $2,014. However, Alaskan drivers with minimum coverage fare a little better, with an average premium of $421 per year. This is 32 percent lower than the average annual minimum coverage rate of $622. These rates make sense — Alaska’s low population density could mean fewer-than-average at-fault accidents (and liability claims). However, Alaska’s harsh weather might lead to quite a few comprehensive claims, narrowing the gap between the state and national average full coverage premiums.

Alaska’s unique geographic location makes it difficult to compare its rates to those of nearby states, but for the sake of comparison, let’s consider Washington and Oregon. The average full coverage rate in Washington is $1,410, with minimum coverage averaging $515. Oregon’s rates are similar to Washington’s, at $1,415 and $616, respectively. Alaska’s severe winters, coupled with a higher-than-average cost of labor and repairs due to its remote location, could be driving up the state’s car insurance premiums.

How to find the best car insurance in Alaska

In most of Alaska, you are required to carry car insurance to drive on public roads. A robust policy also provides essential financial protection if you’re involved in an accident. When looking for the best auto insurance in Alaska, determining your coverage package and priorities might help you streamline the shopping process. Before requesting quotes, you may want to:

Consider minimum insurance requirements in Alaska

Familiarizing yourself with Alaska’s insurance laws is essential to being a responsible driver. Additionally, knowing Alaska’s minimum insurance requirements can help give you a baseline to build your coverage package. Although Alaska’s state minimum insurance requirements are higher than in many other states, you may want to consider purchasing more than the minimum for extra financial protection. Alaska’s remoteness could lend to higher medical and vehicle repair costs, meaning your liability coverage may not stretch as far here as it would in other parts of the country. 

Consider lender requirements

Most lenders require drivers to carry full coverage when financing or leasing a vehicle. Drivers that lease may also have additional liability limit requirements to meet. To avoid expensive force-placed insurance, you may want to review your financing and leasing documents carefully. When in doubt, speaking with your lender and insurance agent to ensure you carry the required coverage levels and options can be helpful. 

Consider your individual needs

When building out your Alaska car insurance policy, consider factors such as where you live, the kind of car you drive, safety features, your credit score and what kind of claims history you have had with your car insurance. All of these and more can affect your car insurance coverage and pricing, so finding providers with a reputation for giving good rates to people with your needs could offer useful means of comparison.

Frequently asked questions