Best car insurance in Alaska for 2024

Our 2024 Bankrate Score considers variables our insurance editorial team determined impacts policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories. 

Each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. Our scoring model provides a comprehensive view, indicating when companies excel across several key areas and highlighting where they fall short.

• Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, average quoted premiums from Quadrant Information Services (if available), as well as any of the latest third-party agency ratings from J.D. Power, AM Best, Demotech and the NAIC, were analyzed.
• Tier 2 (Coverage & savings): We assessed companies’ coverage options and availability to help policyholders find a provider that balances cost with coverage. Additionally, we evaluated each company’s discount options listed on its website.
• Tier 3 (Support): To encompass the many ways an auto and home insurance company can support policyholders, we analyzed avenues of customer accessibility along with community support. This analysis incorporated additional financial strength ratings from S&P and Moody’s and factored a company’s corporate sustainability efforts.

Tier scores are unweighted to show the company's true score in each category out of a possible five points.

Before deciding on a policy, it’s essential to understand Alaska’s minimum car insurance requirements. That is the amount of auto insurance you’ll need to drive in the state legally. In Alaska, the law only requires liability coverage, but the state actually has high liability limit requirements compared to many other states. Still, many drivers choose to add full coverage, including comprehensive and collision insurance, to increase their financial protection.

Although states never require full coverage from drivers, it’s common for lenders to do so. If you are currently financing or leasing your vehicle, the odds are good that the lender will require that you maintain collision and comprehensive coverage on top of the state-required liability coverage. These added coverage types can have a significant impact on your premium. If you are unsure of a lender’s requirements, you can ask them directly or look through your loan contract carefully.

Much of your insurance policy is up to you. Specifically, you select the coverage types and amounts, which factor into how much you pay for car insurance. To ensure that you’re not paying for coverage you don’t need, it can help to identify what you need from an insurance policy. For instance, you might consider your car’s value, the drivers you’ll list on your policy or how you plan to use your vehicle. All of these factors can impact your premium. Since your needs change over time, you may want to revisit your insurance coverage regularly. For example, if you chose an insurance provider because it offered a great multi-car discount, but you no longer have additional vehicles, you might search for a provider that better suits your current situation.

Since car insurance rates vary depending on your driving history, age, gender, vehicle and other personal rating factors, the cheapest car insurance company will be different for everyone. Experts recommend getting quotes from several insurers for the same coverage types and policy limits to compare. You may want to start your search by requesting quotes from Bankrate’s cheapest car insurance in Alaska resource, which reflects average rates and is updated regularly.

Alaska car insurance laws mandate that drivers carry liability insurance that covers bodily injury up to $50,000 per person and $100,000 per accident, as well as property damage up to $25,000. These minimum coverage limits are designed to provide basic protection against the costs associated with injuries and damage resulting from an accident you cause.

However, it might be beneficial for drivers to consider higher coverage limits or additional types of insurance, such as collision or comprehensive coverage, for better financial protection. Evaluating your personal needs and the value of your assets can potentially guide you in selecting the appropriate coverage beyond the state-mandated minimums for Alaska car insurance.

Every driver is different, and the best car insurance company is one that best fits each driver’s unique needs. To find the best carrier for your needs, you may want to determine how much you value low rates, customer service, digital tools and financial strength and then look for carriers that meet your priorities. If you're looking for a place to start, our research found that the best carriers may include Geico, USAA, Progressive and State Farm.

Average car insurance rates in Alaska tend to be cheaper than the national average. Alaska has some of the lowest population densities in the country, which may help reduce auto insurance rates. However, the state has unusually high costs for vehicles and repairs, which can somewhat push rates back up. Additionally, Alaska has some of the highest requirements for minimum liability car insurance.

The result is that Alaska has several variables pulling firmly in opposite directions when it comes to average auto insurance premiums, ultimately causing average prices to end up being close to the national average.