Average cost of car insurance in Alaska

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If you are shopping for auto insurance in Alaska, you may want to know how much you will pay for coverage. Alaska auto insurance rates are, on average, around $1,559 per year for full coverage and $373 per year for minimum coverage.

Using current premium information from Quadrant Information Services, Bankrate’s editorial team has analyzed the average cost of car insurance in Alaska, organizing it by company, city, age and driving record. Your premium will vary based on your unique rating factors, but these average premiums may help you to make informed decisions about your auto insurance coverage.

How much does car insurance cost in Alaska?

In addition to the state you live in, there are many factors that can impact your car insurance rates, including your age, driving record and ZIP code. Other factors that can affect your premium are your credit score, the types and amounts of coverage you choose and how often you drive.

The average annual cost of car insurance in Alaska is $373 for minimum coverage and $1,599 for full coverage. Compared to the U.S. average, Alaskans pay less annually for auto insurance. The average annual auto insurance premium in the United States is $565 for minimum coverage and $1,674 for full coverage.

Alaska car insurance rates by company

Every auto insurance company has different rates, which means that the price for the same coverage will usually be different with different companies. When you are researching car insurance rates in Alaska, it may be helpful to get quotes from several companies. The table below demonstrates how premiums can vary between companies for the same levels of coverage:

Car insurance company Average annual premium for minimum coverage Average annual premium for full coverage
Allstate $598 $3,526
Geico $282 $1,284
Progressive $436 $1,247
State Farm $316 $1,190
USAA $272 $1,069
Western National $329 $1,315

Alaska car insurance rates by city

In addition to your state, your specific city and even your ZIP code can impact your car insurance premium. Geographically specific factors like the incidence of accidents and the likelihood of vehicle theft or vandalism can influence the average premium of a city or ZIP code.

Below are the twenty most populated cities in Alaska and how their premiums compare to the state average.

City Average annual premium for full coverage % difference from state average annual premium
Anchorage $1,777 14%
Fairbanks $1,594 2%
Juneau $1,264 -19%
Eagle River $1,731 11%
Badger $1,584 2%
Knik-Fairview $1,670 7%
College $1,578 1%
Ketchikan $1,282 -18%
Kodiak $1,492 -4%
Lakes $1,670 7%
Palmer $1,683 8%
Wasilla $1,670 7%
Meadow Lakes $1,670 7%
Sitka $1,250 -20%
Chugiak $1,738 11%
Jber $1,690 8%
Kalifornsky $1,540 -1%
Kenai $1,541 -1%
Steele Creek $1,607 3%
Tanaina $1,670 7%

Alaska car insurance rates by age

Age is another factor that can have an effect on your auto insurance premium. Teens are more likely to get into auto accidents than any other age group. Because of this, auto insurance carriers tend to charge them higher premiums.

Age Average annual premium in Alaska
Age 16* $2,245
Age 18 $4,751
Age 20 $3,549
Age 25 $2,050
Age 30 $1,731
Age 40 $1,674
Age 50 $1,521
Age 60 $1,491
Age 70 $1,658

*16-year-old added to their parents’ policy

Premiums can begin to rise again around age 70, as some qualities of aging can impair driving ability.

Alaska car insurance rates by driving record

Having incidents on your driving record, like tickets, accidents and DUIs, could cause an insurance company to view you as a high-risk driver. The more likely a company thinks you are to file a claim, the more likely your premium will be higher than average.

Driving incident Average annual full coverage premium in Alaska % increase in average annual premium
Speeding ticket $1,863 19%
Accident $2,190 40%
DUI $2,416 55%

How to save on car insurance in Alaska

Average car insurance rates in Alaska may be lower than the national average, but there are often ways that you can save even more. If finding cheap car insurance is your primary goal, you may want to consider the following tips:

  • Shop around: Every company has a different rating system, and the cheapest company for some likely will not be the cheapest company for everyone. Comparing quotes from several providers might help you find the coverage you need at a lower price.
  • Compare discounts: Just like every company has different rates, every company also offers a different selection of discounts. Taking advantage of as many discounts as you can might help you save.
  • Increase your deductibles: If you have full coverage, your auto insurance policy has two deductibles: one for comprehensive and one for collision. Your collision deductible generally has more of an impact on your premium. Typically, the higher your deductible, the less expensive your car insurance will be. However, you will have to pay your deductible if you file a claim for damage to your vehicle, so be sure that you choose a level you can afford.
  • Increase your credit score: Statistically, drivers with low credit scores are more likely to file a claim than drivers with higher credit scores. Taking steps to raise your credit score may help you to lower your auto insurance premium.

Talking to a licensed auto insurance agent could be a good place to start your car insurance search. An agent may be able to guide you while choosing coverages and help you to find the options you need at a price that fits your budget.

Frequently asked questions

How much is car insurance in Alaska per month?

The average monthly price of full coverage auto insurance in Alaska is about $130. Minimum coverage costs, on average, just over $31 per month. However, your monthly premium will depend on your personal rating factors like your age, the type of car you drive and your driving history.

How do I change insurance companies?

Switching to a different car insurance company is relatively easy. Once you have decided which company you want to handle your policy and you have requested a quote, you can work with that company’s agents or customer service representatives to start your policy. You may want to confirm the date and time your new policy starts before you cancel your old policy, to avoid a lapse in coverage.

What should I look for in an insurance company?

That depends on what is important to you. For some, finding a cheap insurance company is paramount. But for others, access to specific coverages may be more important. Still others may want a company that provides online or mobile services. To find the best insurance company for your needs, you could first determine what matters most to you. Aspects that you may want to consider include average premiums, coverage offerings, available discounts, financial strength scores and customer service satisfaction ratings.

Methodology

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.

Age: Rates were calculated by evaluating our base profile with the ages 18-60 (base: 40 years) applied.
Incident: Rates were calculated by evaluating our base profile with the following incidents applied: clean record (base), at-fault accident, single speeding ticket, single DUI conviction and lapse in coverage.