Average cost of car insurance in Alaska in 2023

How much is car insurance in Alaska?

If you’re asking yourself “how much is car insurance in Alaska,” you should know that the state that you live in plays a role in your average car insurance premium, and some states are cheaper than others. Luckily, rates in Alaska tend to skew cheaper than average. According to premium data from 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 per year. These rates are a bit lower than the national average rates, which are $2,014 and $622, respectively.

Alaska car insurance rates by city

In addition to your state and other personal rating factors, 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 in your area.

In the table below, you can see how average full coverage car insurance premiums vary between various cities in Alaska.

Average car insurance costs by age and gender in Alaska

Another factor that can significantly impact your premium in most states (including Alaska) is your age. Teens and young adults tend to exhibit riskier driving behavior than their older counterparts. This inexperience behind the wheel typically leads them to pay the highest premiums since they’re at the highest risk of being involved in a car accident. Generally, rates go down as you age but tend to tick up again after you turn 70, when age-related health issues may lead to a higher chance of accidents. 

Gender is another car insurance rating factor in Alaska. Typically, men (especially young men) pay more expensive car insurance premiums than women, but this isn’t always the case. Take the tables below, for instance. As you can see, after age 40, women in Alaska pay slightly higher average rates than men. Since car insurance premiums are based on actuarial tables, the statistics may show that claims payouts are more frequent or costly for women in Alaska than for men, leading to marginally higher rates.

Cost considerations for young drivers in Alaska

If you have a teen or young driver in your household, you’re likely looking to lower your car insurance premium. One way you might accomplish this goal is by listing your young adult child on your policy rather than putting them on their own. However, you may have to meet some criteria to do so, depending on the company. For instance, your young adult child will more than likely have to live in your home to qualify to be listed as an additional driver on your policy.

The table below illustrates the difference in average rates in Alaska for young drivers listed on their parents’ policy compared to those listed on their own.

*16- and 17-year-old drivers must be on their parents’ policy.

How does driving record impact the cost of car insurance in Alaska? 

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.

Although drivers with any conviction or accident will probably pay more for insurance than those with a clean record, some incidents impact your premium more significantly than others, as shown in the table below:

Car insurance rates in Alaska by credit score

Some states prohibit car insurance companies from using your credit score to determine your premium, but Alaska is not one of them. This means that Alaskans with lower credit scores generally pay higher premiums. Statistics show that drivers with poor credit scores file more claims, leading insurers to charge higher rates to compensate for this elevated risk.

Alaska car insurance rates by vehicle type

Finally, the type of vehicle you drive can help dictate your Alaska car insurance rates. Much of the time, drivers with luxury vehicles and sports cars pay the highest premiums, thanks partly to higher parts and labor costs. Vehicle size is another factor — large trucks and SUVs tend to do more damage in an at-fault accident, which could lead to expensive liability coverage premiums. However, some common mid-size vehicles may also have higher rates since there are more of them on the road (leading to a higher statistical likelihood that they’re involved in a claim). 

Since a vehicle’s make and model can significantly impact your premium, it may be a good idea to get quotes for each type of vehicle you’re looking for if you’re shopping for a new car.

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, raising your deductible to get a cheaper rate can be risky. Since you will have to pay your deductible if you file a claim for damage to your vehicle, 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.

Estimate your car insurance cost in Alaska

Frequently asked questions