With fewer than 530,000 drivers in 2019 reports, Alaska has the third-fewest drivers in the country. The natural beauty of mountains, glaciers and waterways in America’s Last Frontier are gorgeous to behold but can quickly become treacherous in the wrong conditions. The average cost of car insurance in Alaska for a minimum coverage policy is $373, while a full-coverage policy costs $1,559 per year. It’s critical that as an Alaska resident, you have the right kind of car insurance to protect you before you get behind the wheel.
The cheapest car insurance in Alaska
Just like any state, there are some companies that are more affordable than others when it comes to the cheapest auto insurance in Alaska. The five cheapest car insurance companies based on the average annual premium for minimum coverage and market share are USAA, Geico, State Farm, Progressive and Allstate.
|Car insurance company||Average annual premium for minimum coverage||Average annual premium for full coverage|
USAA is the best pick on our list for cheap car insurance in Alaska for military members and their families. It has a strong car insurance program that offers its membership low rates and expansive coverage with plenty of discounts. It’s a company known for excellent customer service, consistently receiving top ratings for customer satisfaction. In addition to the option for personal injury protection (PIP), there are military-oriented discounts like savings for low mileage or when you garage your car on-base.
Learn more: USAA Insurance Review
Geico is an affordable option that is available in all 50 states. There is personal injury protection coverage and mechanical breakdown insurance, with the option for gap insurance for leased vehicles only. To help you save some extra money, there are a ton of discounts available, like military, federal employee, defensive driver and multiple vehicle. When it comes time to manage your policy, Geico helps with fantastic mobile tools to help you manage your policy.
Learn more: Geico Insurance Review
State Farm is great for accessibility, giving you options for phone and agent support with excellent mobile tools. It holds an A++ (Superior) rating from AM Best for financial stability, so customers can feel secure in the claims process. Coverage is excellent, too, offering exclusive coverage options like emergency roadside assistance, sports car and classic car insurance. State Farm welcomes customers with a host of discounts for extra savings, like safety discounts for passive restraints and anti-theft technology, with a special Drive Safe & Save discount for safe drivers.
Learn more: State Farm Insurance Review
Progressive gives you plenty of ways to save extra money on your policy with excellent discounts like continuous insurance, good student, homeowner and online quote discounts. It also rewards safe drivers with discounts through its Snapshot® program. Coverage options are generous, as well, including roadside assistance, gap insurance, custom parts and equipment coverage and a deductible savings bank.
Learn more: Progressive Insurance Review
Allstate offers excellent options for coverage, including roadside coverage, sound system insurance and a personal umbrella policy. Although it scores only average for customer satisfaction, there is 24/7 claims service with a Claims Satisfaction Guarantee for extra peace of mind. There is an early signing discount when you renew early, plus other discounts for things like automatic withdrawal, early signing and full-pay.
Minimum coverage for Alaska drivers
Alaska requires its drivers to carry a minimum amount of liability car insurance that includes the following coverage:
- $50,000 bodily injury per person
- $100,000 bodily injury per accident
- $25,000 property damage
It is worth noting that Alaska’s minimum required state limits for car insurance are not required throughout the entire state; some areas and territories are exempt because vehicle registration is not required in these areas. Uninsured and underinsured car insurance coverage must also be offered by auto insurance providers in Alaska, but can be rejected in writing.
According to the Insurance Information Institute, over 15% of Alaskan drivers do not have car insurance. If you were to have a collision with any one of these drivers, it could mean serious losses if you do not have the right car insurance to protect yourself. That’s why it is so important to carry at least the minimum amount of coverage required by law, if not full coverage.
How to get cheap car insurance in Alaska
There are several ways to save on your car insurance in Alaska:
- Shop around: Every insurance company prices car insurance differently, so it pays to gather quotes from multiple car insurance providers in Alaska.
- Compare providers: Compare the type of coverage offered, taking into consideration things like pricing, tools, financial strength and customer service.
- Take advantage of discounts: From safe driver discounts to discounts specifically for your school or employer, there are many ways to save money on your car insurance. Ask your insurance provider about what kind of savings could lower the price of your auto insurance in Alaska.
- Work on your credit score: The higher your credit score, the less risk you pose to insurance companies, so it pays to have good credit. There are some great options for car insurance for bad credit, but you are more likely to see additional savings when you have a good credit score to show.
- Increase your deductible: One way to lower your payments each month is to increase your total deductible. This means that you will have to pay more upfront if you experience a loss, but it still will lower your payments each month, making it more affordable for you to have insurance coverage.
Frequently asked questions
What is the best car insurance in Alaska?
For the best car insurance in Alaska, Allstate, Geico, Progressive and State Farm may be a good place to start your search, according to an analysis done by Bankrate’s editorial team. The best company for you may vary, based on things like coverage, price and credit score, but these four are the best places to start in your search for the best car insurance in Alaska.
What is the average cost of car insurance in the U.S.?
The average cost of car insurance in the U.S. is $565 per year for minimum coverage and $1,674 annually for full coverage car insurance. This is significantly more expensive than the average cost of car insurance in Alaska, which runs $373 for a minimum coverage policy and $1,559 per year for a full coverage policy.
Is car insurance required in Alaska?
Alaska requires that Alaska drivers maintain a minimum amount of liability car insurance that includes $50,000 for bodily injury per person, $100,000 for bodily injury per accident and $25,000 for property damage. Some counties in Alaska do not require car insurance, but if you intend on driving, it’s always a good idea to purchase car insurance to protect yourself.
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.