With only 529,000 drivers in the state, Alaska has the fewest drivers compared to almost every state. But even with a lower number of drivers, the cost of auto insurance tends to be higher. The average cost of car insurance in Anchorage, Alaska, is $546 annually for minimum coverage and $1,777 per year for full coverage according to Bankrate’s 2021 study of quoted annual premiums.
One reason for higher-than-average premiums is because Anchorage is Alaska’s most populated city, and more densely populated roadways can lead to heavier traffic and an increased likelihood of accidents. While finding a carrier with the least expensive premiums is important to many drivers, finding ones with strong third-party ratings and a variety of policy options could be equally important. Bankrate’s research of the top insurance companies in the city and their premiums might help narrow down the best choices for you.
Best car insurance companies in Anchorage
The table below highlights some of the best car insurance companies in Anchorage offering cheap coverage. These carriers were selected based on each company’s competitive rates, gathered in partnership with Quadrant Information Services, as well as their range of coverage options and discounts and customer satisfaction ratings through J.D. Power.
|Insurance company||J.D. Power score||Average annual premium for minimum coverage||Average annual premium for full coverage|
|USAA||*890 / 1,000||$351||$1,100|
|Geico||871 / 1,000||$379||$1,334|
|State Farm||881 / 1,000||$490||$1,406|
|Progressive||856 / 1,000||$696||$1,742|
*Due to membership eligibility restrictions, USAA is considered rank-ineligible by J.D. Power.
USAA provides insurance products exclusively to current members of the military, veterans and their immediate family members. This focus also includes a strong emphasis on customer service, which is evident in the 890 out of 1,000 points for the J.D. Power survey of claims satisfaction among auto insurance carriers. USAA offers many discounts and coverages custom to military families, such as a discount for storing a vehicle on base.
Learn more: USAA Insurance review
Geico also provides discounts to members of the military, although coverage does not have membership restrictions. While Geico does not receive the highest score with J.D. Power among these carriers, it does have an A++ Superior rating with A.M. Best for financial strength. It also has some of the lowest premiums among the carriers reviewed and a variety of additional discounts for greater savings.
Learn more: Geico Insurance review
State Farm is the largest provider of auto insurance in the U.S., with a current market share of over 16%. Because of the size of State Farm, this carrier offers multiple advantages to its policyholders. One advantage is the multiple channels of customer service communication. Whether you prefer contacting someone online, directly over the phone, through the mobile app or with your agent, State Farm has an option for you.
Learn more: State Farm Insurance review
Progressive may not offer the cheapest car insurance in Anchorage or the highest J.D. Power customer satisfaction score on this list, but it does offer a large list of discounts. Progressive has several simple ways for policyholders to save. Discounts range from multi-policy bundling and multi-vehicle savings, to going paperless or paying your premiums upfront. The Snapshot tool is another way to earn savings through monitoring your safe driving habits.
Learn more: Progressive Insurance review
Cheapest car insurance in Anchorage
The average cost of car insurance in Anchorage is $546 annually for minimum coverage and $1,777 per year for full coverage. The full coverage amount is slightly above the national average of $1,674 per year. Overall, drivers in Alaska pay an average of $373 for minimum coverage and $1,599 for full coverage, which makes Anchorage’s rates slightly higher.
The table below highlights the top five carriers, by market share, providing the cheapest car insurance in Anchorage and other advantages for policyholders.
|Insurance company||Average annual premium for minimum coverage||Average annual premium for full coverage|
USAA, Geico, State Farm, Progressive and Allstate are all highly-rated carriers for financial strength, with each earning at least an A+ rating through A.M. Best. Each carrier offers apps for policy management on your smartphone, although Geico and State Farm receive the highest ratings from customer reviews.
Anchorage insurance requirements
Like almost all other states, Alaska requires its drivers to carry insurance. The required 50/100/25 limits of liability insurance includes:
- $50,000 in bodily injury liability per person
- $100,000 in bodily injury liability per accident
- $25,000 in property damage liability per accident
Only purchasing the minimum coverage to legally drive in Alaska may be tempting because it is usually the cheapest option available, but it could cost you more in the long run. For example, if you are at fault in a multi-car, multi-injury accident and you do not have enough liability coverage for all the medical and property damage expenses, the other driver could sue you to recover their losses. Without full coverage, your vehicle’s damage would need to be expensed out of pocket. If you lease or finance your car, your lender will likely require that you purchase full coverage.
Car insurance discounts in Anchorage
- Safe driver: If you install a telematics device, usually through your smartphone, the carrier may reward you based on your safe driving habits reported through the app.
- Safety equipment: If your vehicle is equipped with driver safety equipment, such as airbags or anti-lock brakes, then you may be eligible for additional savings.
- Multi-policy: Signing up for more than one type of policy with the same carrier is another common way to save on premiums.
- Paid-in-full: Many drivers choose to pay insurance premiums each month or quarter. However, if you choose to pay your semi-annual or annual premiums all at once, you may receive a paid-in-full discount.
Since drivers in Anchorage average slightly higher rates for full coverage, taking advantage of discounts is a simple method for saving the most. Staying accident-free, going paperless with statements and getting good grades are a few examples of other ways to save. Almost all carriers offer extra savings for multi-policy and multi-line coverage.
Frequently asked questions
What is the best car insurance company in Anchorage?
There are many considerations to choose the best car insurance in Anchorage. Bankrate analyzes data from Quadrant Information Services and looks into a carrier’s financial strength rating, customer service scores, coverage, discounts, and other attributes. Our list may be used as a starting point for your research, though it may also help to consider providers based on personal criteria.
Is Alaska a no-fault state?
No, Alaska is considered an at-fault state. This means if there is an accident, one involved driver will be determined to be at fault. The at-fault driver is financially responsible for the other driver’s expenses relating to injuries and damage.
Bankrate utilizes Quadrant Information Services to analyze 2021 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on a 40-year-old male and female driver with a clean driving record, good credit and the following full coverage limits:
- $100,000 bodily injury liability per person
- $300,000 bodily injury liability per accident
- $50,000 property damage liability per accident
- $100,000 uninsured motorist bodily injury per person
- $300,000 uninsured motorist bodily injury per accident
- $500 collision deductible
- $500 comprehensive deductible
To determine minimum coverage limits, Bankrate used minimum coverages that meet each state’s requirements. Our base profile drivers own a 2019 Toyota Camry, commute five days a week and drive 12,000 miles annually.
These are sample rates and should only be used for comparative purposes.