Average cost of car insurance in Alaska in 2023

How much is car insurance in Alaska? 

Although the cost of living tends to be on the higher side in the Last Frontier State, it’s a trend that seemingly does not extend to car insurance in Alaska. According to Bankrate’s analysis of premium data from Quadrant Information Services, Alaska drivers pay $1,946 a year for full coverage and $421 a year for minimum coverage, on average. This is less than the national average cost of car insurance, which is $2,014 for full coverage and $622 for minimum.

Even so, multiple factors go into how much you, individually, will pay for car insurance in Alaska. Below, Bankrate explains how your location, age, gender, driving record, credit history and the type of car you drive can influence Alaska car insurance rates — plus, some tips on how to spend less on insurance.

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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 rates. Geographically specific factors — like the incidence of accidents and the likelihood of vehicle theft or vandalism — can influence average premiums in your area. Population density can also affect rates. Living in a densely populated area typically means a higher likelihood of accidents, which in turn means higher insurance rates.

In the table below, you can see how average full coverage car insurance premiums vary by city in Alaska.

Average car insurance costs by age and gender in Alaska

Unless you live in certain states like California or Hawaii, age is typically a determining factor in the price of your car insurance. Drivers under 25, especially teens, 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 encouraging them to get their own. However, you may have to fulfill certain 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 who have their own.

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

Car insurance rates in Alaska by credit score

Alaska car insurance rates by vehicle type

Estimate your car insurance cost in Alaska

Car insurance rates in Alaska vary from driver to driver, so much so that it can feel impossible to get a feel for what you’ll pay. Bankrate knows how tricky insurance costs can be, which is why we created the calculator below. Once you enter some basic information, you’ll get a rough estimate of your insurance rate. It is not an exact quote, but it can provide a rough estimate to aid you in your budget planning.

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 an amount 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 coverage and help you find the options you need at a price that fits your budget.

Frequently asked questions

Methodology 

Bankrate utilizes Quadrant Information Services to analyze 2023 rates for ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. 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 coverage that meets each state’s requirements. Our base profile drivers own a 2021 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.

Credit-based insurance scores: Rates were calculated based on the following insurance credit tiers assigned to our drivers: “poor, average, good (base) and excellent.” Insurance credit tiers factor in your official credit scores but are not dependent on that variable alone. Four states prohibit or limit the use of credit as a rating factor in determining auto insurance rates: California, Hawaii, Massachusetts and Michigan.

Incidents: Rates were calculated by evaluating our base profile with the following incidents applied: clean record (base), at-fault accident, single speeding ticket and single DUI conviction.

Model: To determine cost by vehicle type, we evaluated our base profile with the following vehicles applied: BMW 330i, Ford F-150, Honda Odyssey, Toyota Prius and Toyota Camry (base).

Age: Rates were calculated by evaluating our base profile with the ages 16-70 (base: 40 years) applied. Depending on age, drivers may be a renter or homeowner. Age is not a contributing rating factor in Hawaii and Massachusetts due to state regulations.

Gender: The following states do not use gender as a determining factor in calculating premiums: California, Hawaii, Massachusetts, Michigan, North Carolina, Pennsylvania.

Teens: Rates were determined by adding a 16- or 17-year-old teen to their 40-year-old married parents' policy. The rates displayed reflect the total cost of a driver this age added to their parents’ policy unless otherwise noted.