How Much Does Car Insurance Cost in Alaska?
Alaska, the largest and northernmost state in the United States, is a land of unparalleled natural beauty and wilderness adventures. Known as the “Last Frontier,” Alaska’s vast and untamed landscapes include towering mountain ranges, sprawling glaciers, pristine rivers, and a rugged coastline teeming with wildlife and plenty of options for drivers wanting to hit the road.
Average Alaska Car Insurance Costs:
- State Minimum Liability: You can expect to pay $73 a month or $881 a year.
- Full Coverage: You can expect to pay $269 a month or $3,231 a year.
InsuranceQuotes cost rates are pulled from our real-time auto insurance database from recent quotes in your city – Rates are based on a used car driver who is single, middle aged & has a clean driving record. Read on to learn about the cheapest local rates filtered by insurance providers, new cars, vehicle types and age.
Drivers in AK should compare multiple car insurance coverage options that may be cheaper than the average rates – we will breakdown costs throughout this guide. Knowing average auto insurance costs beforehand is helpful when using InsuranceQuotes to compare free local and national provider quotes so you can know what to expect when searching for a new policy.
Who Has the Cheapest Car Insurance in Alaska?
- In Alaska the cheapest auto insurance providers on average are Allstate, USAA and GEICO.
- State minimum liability car insurance starts at $45 a month or $540 a year.
- Full coverage car insurance would cost around $348 a month or $2,371 a year.
Here is a breakdown of average costs from the cheapest local insurance providers in the state from our data set of used-car drivers who are single, middle aged and have a clean driving record:
| Insurance Company: | Minimum Liability: | Monthly: | Full Coverage: | Monthly: |
|---|---|---|---|---|
| Allstate | $540 | $45 | $4,171 | $348 |
| USAA | $570 | $48 | $2,684 | $224 |
| GEICO | $711 | $59 | $2,371 | $198 |
| State Farm | $802 | $67 | $2,969 | $247 |
| Progressive | $1,782 | $149 | $3,959 | $330 |
| Average Cost: | $881 | $73 | $3,231 | $269 |
Compare Average Alaska Car Insurance Costs for Cities
When comparing local car insurance premiums in Alaska, the city and zip code you live in will affect overall costs. Drivers living in more populated urban areas often pay more than those who live in rural areas with less population and potential for accidents. Use the table below to search for your city and see how much on average you should be paying locally for minimum and full coverage policies:
| AK City: | Minimum Liability: | Monthly: | Full Coverage: | Monthly: |
|---|---|---|---|---|
| Adak | $841 | $70 | $3,222 | $269 |
| Akiachak | $839 | $70 | $3,208 | $267 |
| Akiak | $839 | $70 | $3,227 | $269 |
| Akutan | $819 | $68 | $3,140 | $262 |
| Alakanuk | $825 | $69 | $3,138 | $262 |
| Aleknagik | $809 | $67 | $3,143 | $262 |
| Allakaket | $834 | $69 | $3,245 | $270 |
| Ambler | $833 | $69 | $3,233 | $269 |
| Anaktuvuk Pass | $833 | $69 | $3,233 | $269 |
| Anchor Point | $870 | $72 | $3,134 | $261 |
| Anchorage | $1,299 | $108 | $3,646 | $304 |
| Anderson | $770 | $64 | $3,345 | $279 |
| Angoon | $733 | $61 | $2,737 | $228 |
| Aniak | $839 | $70 | $3,227 | $269 |
| Anvik | $842 | $70 | $3,224 | $269 |
| Arctic Village | $837 | $70 | $3,258 | $272 |
| Atka | $840 | $70 | $3,221 | $268 |
| Atqasuk | $828 | $69 | $3,250 | $271 |
| Auke Bay | $797 | $66 | $2,793 | $233 |
| Badger | $898 | $75 | $3,385 | $282 |
Popular Auto Insurance Cost Guides by City
See a more in depth guide for auto insurance costs broken down by popular cities in Alaska.
Auto Insurance Rates by Age in Alaska
Statistics show that younger drivers, particularly teenagers and drivers in their early twenties, are more likely to be involved in accidents due to their limited driving experience and potential risky behavior on the road. Drivers older than 25 will see a significant drop in their auto policy costs as they are moved into the middle aged cost tier group for coverage.
Alaska will use age as a factor that influences your auto rates and quotes you receive. Younger drivers tend to face higher annual premiums compared to mature, more experienced drivers.
* Full Coverage – Average Costs by Age:
- 17 – 25 years: $4,737 yearly – $395 monthly
- 25 – 54 years: $2,347 yearly – $196 monthly
- 55+ years: $2,498 yearly – $207 monthly
* State Minimum Liability – Average Costs by Age:
- 17 – 25 years: $1,280 yearly – $107 monthly
- 25 – 54 years: $626 yearly – $52 monthly
- 55+ years: $727 yearly – $61 monthly
Here is a full breakdown of the average costs for car insurance by age in Alaska:
| Age: | Minimum Liability: | Monthly: | Full Coverage: | Monthly: |
|---|---|---|---|---|
| 17 | $1,967 | $164 | $6,886 | $574 |
| 18 | $1,660 | $138 | $5,966 | $497 |
| 20 | $1,147 | $96 | $4,533 | $378 |
| 22 | $875 | $73 | $3,373 | $281 |
| 24 | $752 | $63 | $2,928 | $244 |
| 29 | $641 | $53 | $2,474 | $206 |
| 34 | $630 | $52 | $2,383 | $199 |
| 39 | $627 | $52 | $2,361 | $197 |
| 44 | $625 | $52 | $2,335 | $195 |
| 49 | $625 | $52 | $2,318 | $193 |
| 54 | $610 | $51 | $2,208 | $184 |
| 64 | $615 | $51 | $2,162 | $180 |
| 74 | $752 | $63 | $2,583 | $215 |
| 76 | $814 | $68 | $2,722 | $227 |
How Much Car Insurance Do I Need in Alaska?
Alaska is unique in the United States – drivers must carry a minimum of liability insurance, as long as you live in a part of the state that also required you to register your vehicle. That means, for more than 300 communities in rural Alaska, carrying auto insurance is not legally required for most drivers.
Here are the minimum amounts of liability you should have in Alaska for the parts of the states that do require it:
- Bodily Injury Liability Coverage:
- $50,000 per person for bodily injury.
- $100,000 per accident for bodily injury if multiple people are injured.
- Property Damage Liability Coverage:
- $25,000 per accident for property damage.
- Uninsured/Underinsured Motorist Coverage:
- $50,000 per person for bodily injury.
- $100,000 per accident for bodily injury if multiple people are injured.
We recommend purchasing higher levels of coverage, especially if you have assets to protect or if you want to ensure that you’re adequately covered in case of a severe accident. You may also want to consider additional types of coverage, such as:
- Collision Coverage: This covers the cost of repairs to your own vehicle in the event of an accident, regardless of who is at fault.
- Comprehensive Coverage: This coverage protects your vehicle from non-collision events, such as theft, vandalism, and natural disasters.
The right amount of car insurance for you depends on your individual circumstances, including your assets, budget, and risk tolerance.
How Much Does a Driving Record Violation Increase Insurance Costs?
Driving violations can have a significant impact on your car insurance costs in Alaska, as they indicate a higher level of risk to insurance providers. When you receive a driving violation, such as a speeding ticket or a DUI, your insurance company may consider you a higher-risk driver, which can lead to an increase in your insurance premiums for the foreseeable future.
Here is a breakdown of full coverage car insurance cost increases with driving violations:
- Clean Driving Record: Average annual premium cost of $2,685
- Speeding Tickets: 16% increase of an extra $419 a year at $3,104
- At-Fault Accident: 30% increase of an extra $816 a year at $3,501
- DUI/DWI: 35% increase of an extra $949 a year at $3,634
| Driving Violation: | Minimum Liability: | Monthly: | Full Coverage: | Monthly: |
|---|---|---|---|---|
| Clean Record | $741 | $62 | $2,685 | $224 |
| 1 Speeding Violation | $844 | $70 | $3,104 | $259 |
| 1 At-Fault Accident | $962 | $80 | $3,501 | $292 |
| 1 DUI Violation | $979 | $82 | $3,634 | $303 |
Things to Know About Auto Insurance in Alaska
- Alaska law requires insurance companies to offer a written quote for uninsured motorists coverage. Insurance companies must provide you with a variety of coverage options. The insurance company is required to insure you for this coverage if you don’t officially reject it.
- As an Alaska resident, you can exclude a driver in your household. If a driver in your household is a greater risk than others, your insurance company may ask to exclude him or her.
- Insurance companies may use your credit information. They use this information to set rates and determine who they insure. However, changes to the laws in the state have set guidelines about the type of information used and how it is considered by insurance companies. This protects the consumer to some extent, as insurance companies can no longer flat out deny you coverage based on a poor credit score.
- If you don’t purchase insurance, you must have the means to cover damages or injury to the other person in the event of an accident. You can post a bond or self-insure, however, the DMV must authorize self-insurance.
Important Information About Moving to Alaska
If you move to Alaska, you have 30 days to get a driver’s license. To get a license, you must pass a written knowledge test, an alcohol and drug awareness test, and a vision test. You must also show proof of your legal name and your current address.
You also have 10 days to register your vehicle, unless you have moved to one of the 300 rural communities in the state that doesn’t require vehicle registration.
Understanding Driving Laws in Alaska
If you drive in Alaska, you must use a hands-free device to talk on the phone and cannot text while driving. Talking on the phone using a hand or texting while driving is illegal and can result in stiff penalties.
Alaska encourages drivers to report dangerous drivers. The state provides information on what to look for, and signs along the roadways remind drivers to call emergency services if they see anyone driving dangerously.
Frequently Asked Questions About Alaska Auto Insurance
What other types of coverage should you get?
The law requires only liability insurance, but you may consider other things like uninsured motorists coverage. In addition, if your car is new or you took out a loan, you should consider collision and comprehensive, which cover the cost to repair or replace your car.
What happens if you only have minimum coverage and your car gets damaged in an accident?
Liability coverage only covers the other person in the event of injury or death when the other person’s property is damaged. To cover your own vehicle, you’ll need collision or comprehensive insurance, or both.
What if you’re in an accident and the other driver doesn’t have coverage?
If you have uninsured motorists coverage, you will be covered up to your limits. If not, you are responsible for repairing or replacing your vehicle.
Can I carry electronic proof of insurance?
Yes. Alaska is among a majority of states that allow electronic proof of auto insurance at traffic stops. You simply have to have your insurance provider’s app downloaded onto your smartphone.
