Best Auto Insurance Rates in Alaska

On average, your neighbors pay $42 a month for minimum coverage and $84 a month for full coverage.

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Compare Auto Insurance in Alaska

Drivers in Alaska have fairly low auto insurance rates compared with the rest of the country, with an average rate of $42 per month for minimum coverage and $84 a month for full coverage. Umialik comes in as the cheapest car insurance company in Alaska with an annual rate of $467.

While this makes the cost issue a bit easier, there’s still a lot to consider in order to find the cheapest car insurance quote you can. We’ve put together information from top state law and insurance industry resources to help you compare quotes and get your best auto insurance rate. This article will help you with:

Average car insurance rates in Alaska

How much is car insurance in Alaska? Our latest research shows that the average cost of car insurance in Alaska is $500 a year for minimum coverage, with full coverage coming in at $1,003 a year. This is lower than the national annual average of $641 for minimum car insurance and $1,255 for full-coverage auto insurance. This price may vary based on factors such as your ZIP code, driving record and claims history.

Cheapest auto insurance companies in Alaska

The chart below shows the average cost of both minimum and full-coverage auto insurance from the six biggest car insurance providers in Alaska. Umialik has the lowest average rate for minimum auto insurance, at $467 a year. Progressive has the highest average rate, at $1,128.

 

Best auto insurance companies in Alaska

The table below shows the best auto insurance companies in Alaska based on their market share in the state, as well as their rating in J.D. Power’s 2020 U.S. auto insurance study. The market share of an auto insurance company, as well as its customer satisfaction rating, can give you a good idea of where it stands in terms of popularity.

Despite having a higher average car insurance rate than the state average, State Farm has the highest market share in Alaska, at 28%. USAA comes in second, at 19%.

Most popular car insurance companies in Alaska
Company Car insurance market share 2020 J.D. Power satisfaction rating (out of 1,000)
State Farm 28% 814
USAA 19% 883
GEICO 18% 834
Allstate 15% 810
Progressive 8% 821
Umialik 1%

Alaska auto insurance laws

Under Alaska state law, drivers are required to have the following minimum car insurance coverage:

  • Bodily injury liability coverage per person: $50,000
  • Bodily injury liability coverage per incident: $100,000
  • Property damage liability per incident: $25,000

Alaska law does not require you to register your vehicle in some parts of the state. According to the Alaska DMV, you are not required to have auto insurance in these areas either. However, you are financially liable in the event of an at-fault accident, which makes having auto insurance an excellent investment.

Furthermore, if you have received six points or more on your driver’s license within the last five years, you are required to have the minimum amount of auto insurance. This stands even if you live in an area that doesn’t require car insurance.

Recommended auto insurance limits

While the minimum amounts of car insurance may seem satisfactory, they can fall well below what you may need to fully cover damages or injuries after an auto accident. Medical bills and legal fees can pile up quickly. If you do not have sufficient liability coverage to take care of them, the remainder comes out of your own pocket.

In order to avoid putting yourself in a financial bind in the event of a car crash, we recommend increasing your liability limits:

  • Bodily injury liability per person: $100,000
  • Bodily injury liability per incident: $300,000
  • Property damage liability per incident: $100,000

Increasing your basic auto insurance to these levels should give you satisfactory coverage if you’re at fault for a car crash, and shouldn’t add a lot to your average annual premium.

Because of Alaska’s high auto theft rates, it's a good idea to consider adding comprehensive insurance. For auto-related events that do not involve a collision, such as car theft, comprehensive insurance covers you for the replacement of your vehicle and/or repairs to damage that may have occurred during a theft.

DUI

If you are found driving in Alaska with a blood alcohol content (BAC) of 0.08% or higher, you are guilty of a DUI (driving under the influence). For first-time offenders, the penalties for a DUI include:

  • Minimum 72 hours of prison time.
  • Minimum $1,500 fine.
  • Revoking of driver’s license for at least 90 days.

Those are just the legal consequences. After a single DUI, you could see your auto insurance premium increase by $5,000 a year. That’s assuming you can find car insurance after a DUI conviction. Auto insurance providers consider DUI convicts extremely high risk and may deny coverage on those grounds.

SR-22

If your driver’s license is suspended by an Alaska court of law for a DUI, you must file an SR-22 form in order to get your license reinstated. An SR-22 is a state-recognized proof of financial responsibility showing you carry the minimum auto liability insurance Alaska requires. Under Alaska state law, you need to maintain the SR-22 for five consecutive years after the ending date of your first offense.

SR-22 insurance is available to make sure you have the minimum required auto insurance limits in Alaska, but it is very expensive, making it essentially a deterrent to drunk driving.

Methodology

QuoteWizard compiled average rates based on estimates from Quadrant Information Services for the following variables:

  • A 35-year-old single driver.
  • Employed, with a bachelor’s degree college education.
  • Excellent credit score and zero accidents.
  • Drives a 2012 Honda Accord LX, with an annual mileage of 16,000 miles.

Alaska Division of Insurance

Website:
Homepage
Division Director:
Lori Wing-Heier
Address:
Alaska DOI
P.O. Box 110805
Juneau, Alaska 99811-0805
Toll Free Hotline:
(800) 467-8725
File a Consumer Insurance Complaint:
Complaint Page

 

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