Best Cheap Auto Insurance in Alaska (2023)

Alaska is home to breathtaking scenery, deep-rooted history, and thrilling outdoor escapades. To fully explore the wonders of this state, you’ll need to equip yourself with dependable car insurance. State Farm, USAA, and Allstate offer some of the state’s best and most affordable car insurance options.

The average cost of car insurance in Alaska is $135, according to Insurify’s internal data. Alaska drivers may see auto rates about 45% cheaper than the national average because fewer cars are on the road and the state’s lower car density reduces the chances of accidents.

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Best car insurance companies in Alaska

The best car insurance will depend on your specific circumstances and insurance needs. Assess your driving record, the coverage you need, and your budget to determine the right car insurance company for you. Here are a few of the best insurance companies in Alaska.

Best insurer for cheap rates: State Farm

Best insurer for military members: USAA

Best insurer for drivers with at-fault accidents: Allstate

Cheapest liability-only car insurance in Alaska

A liability-only policy covers the other party’s property damages and bodily injuries if you’re at fault in an accident. This insurance offers only the most basic coverage, so it’s usually a company’s most inexpensive policy.

Here are some of the cheapest car insurance companies for liability-only coverage in Alaska.

Cheapest full-coverage car insurance in Alaska

While a liability-only policy pays for the other party’s losses when you’re at fault in an accident, full-coverage car insurance pays for your losses, regardless of fault.

A full-coverage insurance policy includes collision coverage, which compensates you for vehicle repairs if you collide with another vehicle or object. It also includes comprehensive coverage, which reimburses you for damage or losses related to theft, vandalism, weather damage, and other non-collision events.

If you commute frequently, drive in a high-risk area, or have an expensive vehicle, having full coverage may be worth it. Lenders may also require full coverage if you have a car loan or lease.

Car insurance requirements in Alaska

Alaska is a tort state, meaning all drivers must carry the state’s minimum liability coverage. If you’re not at fault in an accident, you can file a claim with the at-fault party’s insurance company to get reimbursed for medical bills and vehicular repairs.

The table below illustrates Alaska’s minimum coverage for bodily injury and property damage liability insurance, according to the State of Alaska Division of Motor Vehicles (DMV).^[1]

Car insurance financially safeguards you from the worst. Consider spending a few extra dollars on the following coverage options to stay fully protected:

Uninsured/underinsured motorist coverage

If an at-fault party doesn’t have enough liability coverage, this coverage lets you file a claim with your insurer to cover the expenses.

Personal injury protection (PIP) coverage

If you or your passengers sustain injuries in a car accident, you can use PIP coverage to pay for medical expenses, lost wages, child care, and funeral costs.

Rental car coverage

This endorsement reimburses you for rental car expenses so you can get around while your vehicle is in the shop for repairs.

Cheapest car insurance for drivers with an incident

Driving incidents refer to speeding tickets, DUIs, at-fault accidents, and other moving violations, which can increase your car insurance premiums. Insurers see drivers with an accident on their records as riskier drivers, as it indicates a higher likelihood of being involved in future accidents. So, to offset the risk, insurers raise your auto insurance rates.

For instance, in Anchorage, Alaska, a driver with an at-fault accident on their record pays almost $70 more each month for car insurance than a driver with a clean driving record, according to Insurify data.

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Cheapest car insurance for drivers with a speeding ticket

If you’ve recently received a speeding ticket, your auto premiums may increase. A ticket can stay on your record for up to five years, resulting in higher rates for that duration. However, the following auto insurers offer affordable monthly quotes in Alaska despite the blemish on your record.

Cheapest car insurance for drivers with an at-fault accident

At-fault accidents can stay on your record for up to five years, causing your rates to remain high through that time. However, you’re not completely out of luck if you have an at-fault accident on your record. These car insurance companies offer the best monthly quotes for drivers with an at-fault accident.

Cheapest car insurance for drivers with a DUI

Driving under the influence is a serious offense with major legal repercussions. After getting a DUI in Alaska, you may need to obtain an SR-22 certificate to reinstate a suspended license. Many states require high-risk drivers to obtain SR-22 insurance to prove they have the minimum liability car insurance in their state.

However, finding an insurance company offering high-risk insurance at a low rate can be challenging. Fortunately, these Alaska car insurance companies provide high-risk drivers with budget-friendly monthly quotes to help them get back on the road.

Cheapest car insurance for seniors

While the cost of car insurance generally decreases around age 35, you may see your rates climb again around age 75. Despite more experience on the road, age-related conditions such as slower reflexes and decreased vision make seniors more statistically prone to accidents. So, insurers may charge more to account for this risk.

However, if you’re looking for a car insurance policy in your 70s, you can still find a good deal. The table below illustrates insurance companies that offer cost-effective monthly rates for seniors.

Cheapest car insurance for teens

With less experience on the road, teenagers are susceptible to accidents, thus posing a high risk to car insurance companies. As a result, young drivers may have to pay a higher price for their auto policy.

Teens can keep their auto insurance premiums low by staying on their parents’ insurance policy, driving a safe car, and taking advantage of good student discounts. They can also shop around and compare quotes from different insurance companies. Below, you’ll find some of the cheapest insurers for teens in Alaska.

How to get the cheapest car insurance in Alaska

Insurance companies will conduct a risk assessment based on your driver profile to determine your insurance rates. Factors that comprise your risk level include age, location, driving history, claim history, and more.

If you’re in the market for car insurance, these are some of the best ways to get the most affordable prices:

• Compare quotes. You should get at least three different rates from various insurers. To get the most accurate comparisons, ensure your coverage types and levels are the same across each auto policy.

• Look for discounts. Whether you have multiple cars, are bundling insurance products, or are part of an affiliated group, there’s a discount for every driver and situation. Stacking deals can help you get the lowest rates on your insurance policy.

• Maintain a clean driving record. Good drivers tend to see lower rates on their car insurance than drivers with an incident on their record. It’s important to adhere to your state’s road rules and remain vigilant on the road.

• Increase your deductible. A higher deductible results in lower monthly premiums. If you’re considering increasing your deductible, be sure you can afford it when you need to file a claim.

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Alaska car insurance quotes by credit tier

Insurance companies in Alaska can use your credit score to determine your rates. A high score indicates to insurers that you’re less likely to file a claim. Drivers with excellent and good credit scores may see lower rates, while drivers with poor credit scores may pay higher rates.

Alaska car insurance FAQs

Insurify Insights

How Alaska Drivers Measure Up

While most drivers know that car insurance quotes are determined in part by your personal driving history, many may be unaware that rates are also impacted by the average risk of the drivers around you as well. Check out Insurify's latest analysis of driving records in Alaska below:

Methodology

Drawing from an internal database of over 4 million car insurance applications, the research team at Insurify analyzes patterns in car ownership and driver behavior - including how Alaska drivers measure up to their fellow motorists across the United States in areas including speeding, DUIs, and more.
Insurify Insights publishes data-driven articles, trend analyses, and national rankings each week on all factors related to cars and those who drive them.

Ford F-Series Pickup

Most Popular Car in Alaska

#31

State with the Most Speeding Tickets Rank

#39

State with the Moving Violations Rank

#20

State with the Most DUIs Rank

#20

State with the most Suspended Licenses

• Accidents in Alaska

  While car accidents are a sadly unavoidable feature of time spent on the road, rates of accidents do vary from city to city and from state to state. Alaska is the #46 state in the country for drivers with an at-fault accident on their driving record.

  • Rank among states: #46
  • Percent of drivers in Alaska with an accident: 6.2%
• DUIs in Alaska

  While driving while intoxicated is never acceptable, it’s a more common offense than many assume. Alaska is the #20 state in the country for drivers with a prior drunk driving conviction.

  • Rank among states: #20
  • Percent of drivers in Alaska with a DUI: 1.6%
• Reckless Driving in Alaska

  Reckless driving refers to a specific traffic violation: when drivers willfully act dangerously in spite of the risks they’re imposing on both themselves and others. Alaska is the #11 state in the country for drivers with a reckless driving offense on record.

  • Rank among states: #11
  • Percent of drivers in Alaska with a reckless driving offense: 1.8%
• Rude Driving in Alaska

  The Insurify team classifies rude drivers as those who commit one or more of the following driving offenses: failure to yield or failure to stop, improper backing, passing where prohibited, tailgating, street racing, or hit-and-run. Alaska is the #13 state in the country for drivers with a rude driving violation on record.

  • Rank among states: #13
  • Percent of drivers in Alaska with a rude driving violation: 2%
• Speeding in Alaska

  Exceeding the speed limit can endanger others and have a serious impact on your insurance costs. Alaska is the #31 state in the country for drivers with a speeding ticket on record.

  • Rank among states: #31
  • Percent of drivers in Alaska with a speeding ticket: 7.9%
• Failure to Yield Rates in Alaska

  Failing to yield the right of way isn’t just frustrating for other drivers; it’s dangerous, too. Alaska is the #15 state in the country for drivers with a failure to yield violation on record.

  • Rank among states: #15
  • Percent of drivers in Alaska with a failure to yield violation: 0.2%

Insurify Insights

Insurify's team of data scientists and content specialists presents Insurify Insights, a series of automotive, home, and health studies focusing on the topics that impact us all. through expert analysis of over 4 million car insurance applications and an array of top data sources, the Insurify Insights team produces new data-driven articles, trend analyses, regional superlatives, and national rankings every week. See Insurify Insights as featured in Forbes, Fox News, USA Today, NPR, and more.