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Cheapest car insurance in Alaska for 2023
Based on Bankrate's research and analysis, USAA, Geico and Umialik Insurance Company offer some of the cheapest car insurance policies in the Last Frontier
At Bankrate, we strive to help you make smarter financial decisions. To help readers understand how insurance affects their finances, we have licensed insurance professionals on staff who have spent a combined 47 years in the auto, home and life insurance industries. While we adhere to strict , this post may contain references to products from our partners. Here’s an explanation of . Our content is backed by Coverage.com LLC, a licensed entity (NPN: 19966249). For more information, please see our
What To Know First
Alaska drivers pay an average of $421 annually for state-mandated minimum coverage and $1,946 a year for full coverage, which includes collision and comprehensive insurance. Bankrate's insurance editorial team, which includes licensed property and casualty agents, analyzed average rates, coverage options, discounts and more to determine who is writing the best cheap car insurance in Alaska. Alaskans may want to consider our top choices when they are looking for affordable car insurance in the state.
- Cheapest company for minimum coverage: USAA
- Cheapest company for full coverage: USAA
- Cheapest company for adding a teen driver: USAA
- Cheapest company after a speeding ticket conviction: Geico
- Cheapest company after an at-fault accident: Umialik Insurance Company
- Cheapest company after a high-risk incident: Umialik Insurance Company
On This Page
- The cheapest car insurance companies in Alaska
- The cheapest car insurance companies in Alaska by coverage level
- Cheapest cities in Alaska for car insurance
- Factors that impact cheap rates in Alaska
- Minimum coverage requirements for Alaska drivers
- How to get the cheapest car insurance in Alaska
- Car insurance discounts in Alaska
- Frequently asked questions
- Methodology
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
Company | Average monthly minimum coverage premium | Average annual minimum coverage premium |
---|---|---|
USAA | $26 | $314 |
Cheapest company for full coverage
Company | Average monthly full coverage premium | Average annual full coverage premium |
---|---|---|
USAA | $104 | $1,251 |
Cheapest company for adding a teen driver
Company | Average monthly minimum coverage premium | Average annual minimum coverage premium |
---|---|---|
USAA | $53 | $639 |
Cheapest company for getting a speeding ticket
Company | Average monthly minimum coverage premium | Average annual minimum coverage premium |
---|---|---|
Geico | $27 | $318 |
Cheapest company for being in an at-fault accident
Company | Average monthly minimum coverage premium | Average annual minimum coverage premium |
---|---|---|
Umialik Insurance Company | $36 | $434 |
Cheapest company after a high-risk incident
Company | Average monthly minimum coverage premium | Average annual minimum coverage premium |
---|---|---|
Umialik Insurance Company | $36 | $434 |
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:
Insurance company | Average monthly minimum coverage premium | Average annual minimum coverage premium | Annual savings vs. State average* |
---|---|---|---|
USAA
4.3
Bankrate Score
|
Average monthly minimum coverage premium
$26
|
Average annual minimum coverage premium
$314
|
Annual savings vs. State average*
- $107 |
Geico
4.4
Bankrate Score
|
Average monthly minimum coverage premium
$27
|
Average annual minimum coverage premium
$318
|
Annual savings vs. State average*
- $304 |
State Farm
4.2
Bankrate Score
|
Average monthly minimum coverage premium
$29
|
Average annual minimum coverage premium
$352
|
Annual savings vs. State average*
- $69 |
Umialik Insurance
|
Average monthly minimum coverage premium
$36
|
Average annual minimum coverage premium
$434
|
Annual savings vs. State average*
+ $13 |
Allstate
3.8
Bankrate Score
|
Average monthly minimum coverage premium
$43
|
Average annual minimum coverage premium
$513
|
Annual savings vs. State average*
+ $191 |
Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.
*Based on policies with minimum coverage for 2023
Insurance company | Average monthly full coverage premium | Average annual full coverage premium | Annual savings vs. State average* |
---|---|---|---|
USAA
4.3
Bankrate Score
|
Average monthly full coverage premium
$104
|
Average annual full coverage premium
$1,251
|
Annual savings vs. State average*
- $695 |
State Farm
4.2
Bankrate Score
|
Average monthly full coverage premium
$114
|
Average annual full coverage premium
$1,366
|
Annual savings vs. State average*
- $580 |
Geico
4.4
Bankrate Score
|
Average monthly full coverage premium
$114
|
Average annual full coverage premium
$1,367
|
Annual savings vs. State average*
- $647 |
Umialik Insurance
|
Average monthly full coverage premium
$126
|
Average annual full coverage premium
$1,513
|
Annual savings vs. State average*
- $433 |
Progressive
4.2
Bankrate Score
|
Average monthly full coverage premium
$132
|
Average annual full coverage premium
$1,580
|
Annual savings vs. State average*
- $366 |
Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.
*Based on policies with full coverage for 2023
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:
City | City average annual minimum coverage premium | Cheapest car insurance company | Company average annual minimum coverage premium |
---|---|---|---|
Delta Junction | $302 | State Farm | $214 |
Fort Greely | $304 | State Farm | $214 |
Anderson | $307 | State Farm | $214 |
Healy | $307 | State Farm | $214 |
Denali National Park | $308 | State Farm | $214 |
Chicken | $310 | State Farm | $214 |
Eagle | $310 | State Farm | $214 |
Northway | $310 | State Farm | $214 |
Tanacross | $310 | State Farm | $214 |
Tok | $310 | State Farm | $214 |
City | City average annual full coverage premium | Cheapest car insurance company | Company average annual full coverage premium |
---|---|---|---|
Kodiak | $1,730 | USAA | $1,146 |
Port Lions | $1,789 | USAA | $1,105 |
Sterling | $1,814 | USAA | $1,242 |
Seward | $1,815 | USAA | $1,195 |
Ninilchik | $1,816 | USAA | $1,209 |
Kenai | $1,816 | USAA | $1,218 |
Soldotna | $1,817 | Progressive | $1,226 |
Sand Point | $1,817 | USAA | $1,105 |
King Cove | $1,819 | USAA | $1,105 |
Hope | $1,820 | USAA | $1,246 |
*USAA is only available to active military personnel, veterans and their qualifying immediate family members.
Factors that impact cheap rates in Alaska
In addition to your ZIP code, there are multiple other factors that play a role in determining your rate. In Alaska, these include your age and credit rating as well as the age and model of car you drive. Your driving skills also make a difference. Here are four situations that may impact the amount you pay for affordable car insurance in Alaska.
Insuring a teen driver
If you add a teen driver to your policy, you can expect an increase in your premium. Statistics show that teens are involved in more accidents than any other age group, largely because they have less experience behind the wheel. Insurers compensate for this increased risk by charging more for drivers under the age of 20. Here are some of the best companies for cheap car insurance in Alaska when you have a teen driver on your policy.
Car insurance company | Average annual minimum coverage premium | Average annual full coverage premium |
---|---|---|
Geico | $639 | $2,471 |
State Farm | $840 | $2,856 |
Umialik Insurance Company | $867 | $2,760 |
USAA | $882 | $3,083 |
Allstate | $1,092 | $7,263 |
Getting a speeding ticket
With a single speeding ticket conviction, you may find your cheap Alaska car insurance rates rising. The increased rate will stay in effect for three to five years before dropping off—unless you receive another speeding ticket during that time period. Speeding may mean you're more likely to be involved in an accident, so your insurer will adjust its rates accordingly. Consider these five insurers to help give you a baseline for how each insurance provider treats a speeding ticket on average in the state.
Car insurance company | Average annual minimum coverage premium | Average annual full coverage premium |
---|---|---|
Geico | $318 | $1,367 |
State Farm | $407 | $1,572 |
USAA | $409 | $1,625 |
Umialik Insurance Company | $434 | $1,513 |
Allstate | $583 | $4,200 |
Getting into an at-fault accident
As is true of speeding tickets, getting into an at-fault accident may leave your insurer thinking that you're not as safe a driver as you could be. That means you're likely to see an increase if you are found to be the cause of an accident. The exception would be if you have an accident forgiveness endorsement on your policy. Following an at-fault accident, you may want to check out the following insurers to see who offers the cheapest car insurance in Alaska for those with an accident on their records.
Car insurance company | Average annual minimum coverage premium | Average annual full coverage premium |
---|---|---|
Umialik Insurance Company | $434 | $1,513 |
State Farm | $458 | $1,731 |
Geico | $483 | $2,026 |
USAA | $497 | $1,897 |
Allstate | $647 | $4,440 |
Being deemed a high-risk driver
Every insurance company has their own criteria for determining who is a high-risk driver. Generally, if you have had multiple speeding ticket convictions or at-fault accidents, or, most seriously, a single DUI conviction, you will be placed in the high-risk category. Once you are in this category, you can expect to find it more difficult to find low-cost car insurance in Alaska and some insurers may not want to work with you. Examine these rates from five car insurance companies in Alaska to see how average rates might change for drivers considered high-risk.
Car insurance company | Average annual minimum coverage premium | Average annual full coverage premium |
---|---|---|
Umialik Insurance Company | $434 | $1,513 |
State Farm | $541 | $1,989 |
USAA | $595 | $2,350 |
Progressive | $672 | $1,925 |
Allstate | $816 | $4,749 |
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.