Best Cheap Auto Insurance in Anchorage, Alaska (2023)

Nestled between the Chugach Mountains and Cook Inlet, Anchorage is the largest city in Alaska and has no shortage of wilderness attractions, like the Alaska Zoo and Chugach State Park. It’s no surprise that car insurance costs are a bit higher than in the rest of the state.

On average, Anchorage residents pay $98 per month for a liability-only policy and $177 for full coverage. Fortunately, cheap car insurance is still available. Here’s what you need to know about finding affordable coverage in Anchorage.

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Best car insurance companies in Anchorage

Locking in affordable car insurance coverage in Anchorage is essential, but it takes a bit of effort. It’s a good idea to compare several car insurance companies, including the ones Insurify identified as some of the best options below.

Best insurer for liability-only coverage: State Farm

Best insurer for a digital experience: GEICO

Best insurer for discounts: Midvale Home & Auto

Cheapest liability-only car insurance in Anchorage

Per Alaska state laws, Anchorage drivers must purchase liability car insurance to drive legally. Liability-only insurance covers the property damage and injuries of other drivers and passengers after an at-fault accident. This type of policy typically offers the most affordable car insurance coverage.

The table below shows the cheapest liability-only insurance companies in Anchorage.

Cheapest full-coverage car insurance in Anchorage

Full-coverage car insurance usually includes liability, collision, and comprehensive coverage. It’s more expensive than liability-only insurance, but it offers additional protection. If you have a loan or lease on your vehicle, your lender may require full coverage.

The table below shows the cheapest full-coverage insurance companies in Anchorage, Alaska.

Car insurance requirements in Alaska

Alaska is a tort, or at-fault, state. This means you’ll need to pay for the other drivers’ property damage and injury costs if you’re responsible for a motor vehicle accident. If you can’t show proof of personal auto insurance, you’ll face financial and legal consequences.

Here are the minimum car insurance requirements in Alaska:^[2]

Alaska’s required car insurance limits are significantly higher than in most states. But you may still want to invest in optional coverage for extra protection in various situations. Here are several to consider:

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  Comprehensive coverage

  Comprehensive coverage kicks in if an incident other than an auto accident damages your car, like theft, storms, and falling trees.

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  Collision coverage

  Collision coverage pays to repair or replace your vehicle if you hit a stationary object or another vehicle, regardless of who’s at fault.

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  Uninsured/underinsured motorist coverage

  Uninsured/underinsured motorist coverage can protect you financially if the at-fault driver doesn’t have insurance or doesn’t have enough insurance to cover your expenses.

• 

  Medical payments coverage

  Medical payments insurance is similar to personal injury protection (PIP) coverage and can cover your medical expenses after an accident, even if you caused it.

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  Rental reimbursement coverage

  Rental reimbursement helps pay for the cost of a rental car while your car is in the shop for repairs.

Cheapest car insurance for drivers with an incident

At-fault accidents, speeding tickets, and DUIs are a few incidents that can result in higher rates. Auto insurers consider these traffic violations as high-risk driving behaviors that make you more likely to file a claim. If you have an incident on your driving record, you can expect to pay more for a policy in Anchorage than a driver with a clean record.

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Cheapest car insurance for drivers with a speeding ticket

Speeding 10 mph more than the speed limit can result in a fine of $180, according to the city’s police department.^[3] When you speed, you’re more likely to lose control of your vehicle and cause an accident. For this reason, speeding tickets may warrant higher car insurance premiums.

Here’s a look at the cheapest auto insurance companies for drivers with a speeding ticket on their records in Anchorage, Alaska.

Cheapest car insurance for drivers with an at-fault accident

Alaska reported 66 fatalities and 55 total fatal car accidents in 2020.^[4] If you cause a car accident, car insurance companies will likely charge you more for an auto policy, unless you purchased accident forgiveness. Factors like the severity of the accident and the total claim value will determine how much your premium will increase.

Here’s a look at the most affordable insurance companies in Anchorage for drivers with an at-fault accident.

Cheapest car insurance for drivers with a DUI

Alaska takes DUIs in Anchorage very seriously. If you have a DUI conviction, you’ll face penalties, like fines, jail time, and driver’s license revocation.^[5] You’ll also see your car insurance costs increase, as it’s extremely risky driving behavior. Furthermore, Alaska may require you to keep an SR-22 insurance form on file with the state for five years with no lapse in coverage.

This table shows the cheapest car insurance companies in Anchorage for drivers with DUIs.

Cheapest car insurance for seniors

Compared to younger drivers, seniors have a higher car accident mortality rate. Average car insurance premiums by age group tend to decrease around age 35 and increase a bit around age 75 as a result of potential physical and mental impairments. Despite these increases, senior drivers still tend to pay lower-than-average car insurance rates.

Here’s a look at the cheapest car insurance quotes for seniors in Anchorage.

Cheapest car insurance for teens

Teenagers are young drivers who don’t have a lot of driving experience, and Alaska reports that teens account for 20% of traffic fatalities and major injuries in the state.^[6] Even though auto insurers charge teens higher car insurance premiums, they can save money if they complete a defensive driving course or stay on their parents’ insurance policy.

The table below shows the cheapest auto insurers for teens and young adults in Anchorage.

How to get the cheapest car insurance in Anchorage

Each car insurance company sets its own car insurance rates, making it essential to consider all your options. Here are several tips to help you score the cheapest car insurance policy in Anchorage:

• Shop around. Request free car insurance quotes from several car insurance companies. This will make it easier to find the right auto insurer for your budget and unique needs.

• Explore discounts. Most car insurance companies offer discounts so you can save some money on a policy. Common discounts include the good student discount, loyalty discount, and safety feature discount.

• Bundle your policy. If you need home insurance, renters insurance, or any other type of insurance product, find out if you can bundle it with an auto policy. Many insurers will give you a discount.

• Practice responsible driving. Speeding tickets, at-fault accidents, and DUIs can raise your car insurance premiums. Always drive safely to maintain a clean driving record and avoid them.

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Anchorage car insurance quotes by credit tier

Alaska allows car insurance companies to use your credit score when determining premiums.^[1] Car insurance companies argue that drivers with good to excellent credit are less risky and, in turn, typically file fewer claims than those with low credit scores. This is why they might consider the credit scores of prospective policyholders to help determine premiums.

According to the chart below, an Anchorage driver with excellent credit may pay $136 per month, on average, while a driver with poor credit might be charged an average of $274 per month.

Is car insurance more expensive in Anchorage?

Average liability-only car insurance premiums in Anchorage are less than the national average. It’s crucial to note that auto insurance costs in Alaska differ by city and ZIP code due to factors like population, weather conditions, and car accident rates. For example, you’ll pay less on average for a car insurance policy in Fairbanks than you would in Anchorage.

More cities in Alaska

Here’s a look at the average cost of car insurance in a few cities in Alaska and how they compare to Anchorage.

Anchorage car insurance FAQs