Cheapest car insurance in Alaska for 2023

The cheapest car insurance companies in Alaska

Just like any state, some companies are more affordable than others when it comes to the cheapest auto insurance in Alaska. The cheapest car insurance companies based on the average annual premium for minimum coverage are the ones we've listed on the table below. Average rates were determined based on data collected by Quadrant Information Services and analyzed by our insurance editorial team.

Cheapest company for minimum coverage

Cheapest company for full coverage

Cheapest company for adding a teen driver

Cheapest company for getting a speeding ticket

Cheapest company for being in an at-fault accident

Cheapest company after a high-risk incident

The cheapest car insurance companies in Alaska by coverage level

Car insurance is mandated by law in Alaska, with drivers required to carry a minimum amount of liability coverage. The average cost for minimum coverage is $421 a year. Many drivers, however, opt to add in collision and comprehensive insurance, so that they have full coverage. The average annual rate for full coverage in Alaska is $1,946. Many insurance experts recommend that you purchase as much insurance as you can afford above the minimum to give yourself enough financial protection in case of an accident.

If you're looking for cheap insurance in Alaska, consider the following insurers:

Cheapest cities in Alaska for car insurance

Your ZIP code plays a role in determining what you will pay for your car insurance. Your insurer looks at regional claims statistics when determining premium costs. If there are a higher-than-normal number of claims from your area, you may pay more for your policy. Likewise, if you live in an area where there are few accidents or thefts, you may pay less. 

Here are some of the cheapest locations for cheap auto insurance in Alaska:

Getting a speeding ticket

Getting into an at-fault accident

Being deemed a high-risk driver

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 (Triple-I), more than 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, so that you will be able to pay the costs incurred following an accident.

How to get the cheapest car insurance in Alaska

If you are wondering how to save on car insurance in Alaska, you should know that there are several strategies you can take to save money. Here are a few of the tactics you can try for Alaska car insurance savings.

Shop around

Don't settle for the first quote you receive when looking for cheap car insurance in Alaska. Every insurance company prices car insurance differently, so it pays to gather quotes from multiple car insurance providers in Alaska. Once you have multiple quotes, you can compare insurers for the factors that are important to you, such as low cost or good 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 usually 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 will lower your payments each month, making it more affordable for you to have insurance coverage. If you increase your deductible, make sure that it is an amount you feel comfortable paying with little notice.

Car insurance discounts in Alaska

As we noted above, discounts can help lower your rate and many of them are easy to earn. Almost all insurers offer at least a few, and it's worth a conversation with your agent about which ones you can access. Here are a few that are commonly seen in Alaska:

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. 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 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.

Bankrate Scores

Our 2023 Bankrate Score considers variables our insurance editorial team determined impacts policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories.

Like our previous Bankrate Scores, each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. This year, our 2023 scoring model provides a more comprehensive view, indicating when companies excel across several key areas and better highlighting where they fall short.

• Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, 2023 quoted premiums from Quadrant Information Services (if available), as well as any of the latest third-party agency ratings from J.D. Power, AM Best and the NAIC, were analyzed.
• Tier 2 (Coverage & savings): We assessed companies’ coverage options and availability to help policyholders find a provider that balances cost with coverage. Additionally, we evaluated each company’s discount options listed on its website.
• Tier 3 (Support): To encompass the many ways an auto insurance company can support policyholders, we analyzed avenues of customer accessibility along with community support. This analysis incorporated additional financial strength ratings from S&P and Moody’s and factored a company’s corporate sustainability efforts.