The Best Auto Insurance in Alaska

State Farm wrote over 80,000 auto liability premiums in Alaska in 2021, making it the largest auto insurance provider in The Last Frontier. With great incentives for safe drivers, sizable discounts, several coverage options, easy-to-use mobile features, and more, State Farm is our top pick for Alaskans.

Great Discounts

Part of what makes State Farm so cheap is its long list of discounts. Whether you’re a young driver, owner of a new vehicle, safe driver, homeowner, or something else, chances are State Farm has a discount for you. Here are a few ways you can save with State Farm.

• Steer Clear discount: If you’re under the age of 25 and complete the following requisites, you might be eligible for up to 15 percent off with the Steer Clear discount.
  • You can’t have any at-fault accidents for three years.
  • You can’t have a moving violation for three years.
  • You complete the State Farm Steer Clear Program.
• Multiple vehicle discount: You can earn a multivehicle discount if you meet the following criteria.
  • You have at least two vehicles insured with State Farm.
  • You have at least two private passenger vehicles driven by individuals who reside at your address.
  • The other drivers in your policy must be related to you (spouse, child, adoptee, etc.), or you must own the vehicle jointly.
• Defensive driving course discount: Voluntarily complete a motor vehicle accident prevention course, and you could qualify for the defensive driver discount. You must be over the age of 55.
• Passive restraint discount: You can earn up to 40 percent off your insurance if you drive a 1993 or older vehicle with factory-installed airbags.
• Drive Safe & Save app: Drive Safe & Save is a performance-based tracking program that can earn you a premium discount if you exhibit safe driving habits. You can earn up to 30 percent off with the app (look below for a detailed review of the app).
• Smart student discount: You might be eligible for this discount if you’re under the age of 25, a full-time high school or college student, and have the following requisites in your most recent school semester:
  • Rank in the top 20 percent of your class
  • Have a B average or higher
  • Made the dean’s list or honor roll
• Driver training discount: Under the age of 21? You could earn a discount by completing a certified driver training program that includes classroom instruction, actual driving experience, or a mechanical device that stimulates real driving.

Best for Safe Drivers

State Farm’s biggest saving opportunity for drivers is through the Drive Safe & Save program. If you complete the program and exhibit safe driving habits, you can earn up to 30 percent off your car insurance.

Here’s how the program works:

1. Download the app (available for both Android and Apple users).
2. Follow the app’s instructions.
3. Complete the setup after State Farm sends you a Bluetooth beacon.

Drive Safe & Save tracks behaviors like how many miles you drive each month, how hard you brake, how fast you accelerate, and other performance-based metrics to calculate your six-month score. If you drive less than 7,500 miles per year for personal usage, you could receive State Farm’s low-mileage discount. If you drive significantly more or exhibit poor driving habits, however, your premiums could increase.

All the Coverage You’ll Need

To drive legally in Alaska, you need minimum liability insurance with the following limits:

• $50,000 in bodily injury liability per person
• $100,000 in bodily injury liability per accident
• $25,000 in property damage liability per accident³

We recommend you add higher limits to minimum coverage car insurance and tack on full coverage (medical payments, collision, and comprehensive insurance), as well as uninsured motorist coverage. State Farm offers the cheapest full coverage as well as a long list of optional coverage options for your unique driving needs. Those coverage options include the following:

• Payoff Protector program: The Payoff Protector program is State Farm’s version of gap insurance, which will pay off your loan/lease if your vehicle is totaled or stolen and you owe more than the car’s depreciated value.
• Travel expenses coverage: If you get into an accident more than 50 miles away from home, State Farm will help pay for meals, lodging, and transportation.
• Personal umbrella coverage: Umbrella insurance helps pay for costs when your original limits are exhausted. It can help cover claims for auto insurance, homeowners insurance, lawsuits, and more.
• Rental car reimbursement: With rental car reimbursement, State Farm will reimburse you or pay for the rental while your car is in the shop.
• Classic car insurance: Classic cars require a specialized type of insurance because they appreciate in value over time, whereas most other vehicles depreciate over time. Not all insurance providers offer classic car insurance, so be sure to speak to your local agent if you own a classic or antique car.
• Emergency roadside service: If you run out of gas, have a flat tire, or need a jump start, State Farm will send an emergency roadside service member to help.
• Rideshare insurance: If you’re driving for a rideshare service, you need additional rideshare insurance to cover the entirety of your drive. Neither personal insurance nor Transportation Network Company (TNC) insurance will cover damages or injuries that occur while you’re waiting for your next passenger or while you’re driving to pick up a passenger.

Alaska is home to 21,407 active duty military members; 62,744 veterans; and nearly 30,000 dependents, spouses, and children of active military members.⁴ That means Alaska has more than double the percentage of veterans (12 percent in Alaska) and active military members (5 percent in Alaska) than the U.S. adult population.

If you’re an active military member, veteran, or a military dependent, USAA is our top choice for you. It offers some of the most affordable rates in the country, highly-ranked customer service scores, and excellent member benefits like financial advice and car rental discounts.

Cheapest Car Insurance Company

With an annual average rate of $1,151, USAA offers the cheapest car insurance in Alaska. And you can get those rates even lower depending on how much coverage you have or what discounts you’re eligible for.

Here are a few ways you can save with USAA:

• Storage discount: Save up to 60 percent on your car insurance if you keep your vehicle in storage while you’re deployed out of state.
• Good student discount: Teens with B averages or higher may be eligible for this discount.
• Military base discount: Earn up to 15 percent off your comprehensive coverage premium when you store your vehicle on a military base.
• Bundling discount: Bundle your auto insurance with USAA homeowners or renters insurance, and you can earn up to 10 percent off your car insurance.

• Safe driver discount: Get 10 percent off your car insurance by signing up with USAA’s safe driving program, SafePilot. Complete the program and earn up to 30 percent off your premiums.
• New car discount: You may be eligible for this discount If your new car is less than three years old.
• Parent discount: You can earn up to 10 percent off your premiums if your parent(s) has USAA.
• Automatic payments: Set up automatic payments, and you can earn 3 percent off your car insurance.

Excellent Customer Service Scores

Third-party rating systems ensure auto insurance providers are able to meet their financial obligations to customers, like fulfilling claims and upholding their service standards. USAA is consistently ranked among the best in the auto insurance industry for customer service, financial security, claims satisfaction, and more.

• Standard & Poor’s (S&P): S&P assesses auto insurance providers’ creditworthiness and abilities to meet their financial obligations. It gave USAA a rating of AA+, which is the second-highest possible rating.
• AM Best rating: AM Best awarded USAA an A++ (Superior) rating, which is the highest score.⁶ AM Best assesses the financial strength and creditworthiness of over 16,000 insurance companies, providing customers with valuable feedback about the likelihood that an insurer will default on its obligations.
• J.D. Power U.S. Auto Insurance Study: J.D. Power scores auto insurance providers by customer satisfaction. In 2022, it gave USAA an 890 out of 1,000 for customer claims satisfaction, which outranks every insurance company on our list.

Easy-to-Use Mobile App

USAA’s newly updated app is sleeker, simpler, and more helpful than ever. We had no trouble signing into our account and taking advantage of the app’s features in a matter of minutes. Here’s everything the new-and-improved app offers:

• Fingerprint, voice, or face recognition password
• In-app chatbot and easy access to USAA representatives via chat
• New smart search feature that will get you what you need with fewer taps
• Easy access to your digital ID card
• Roadside assistance request
• Claims management, including checking the status of an existing claim or filing a new claim
• Step-by-step accident checklist so you’ll know what to do in the days, weeks, or months following an accident

The USAA app has a 4.8 out of five-star rating on the App Store and a 4.1 out of five-star rating on the Google Play store.

If you’re a teen in Alaska, you can get a learner’s permit as early as 14 and a provisional license by 16. It’s important to note that teens and young drivers face the highest insurance premiums because younger drivers tend to get into more accidents and file more claims.

If you want to keep your insurance rates low for you or your family, take advantage of teen safety driver programs and discounts. With Allstate, you can apply for several young driver discounts, including a safety program, good student discounts, and more.

Best for Teens

According to the NHTSA, drivers between the ages of 14 and 20 make up about 42,000 of the approximately 553,000 licensed drivers in Alaska, or about 8 percent.⁷ If you’re the parent of a teen driver, you can bring your costs down by encouraging your child to avoid at-fault accidents, maintain a clean driving record, take advantage of student/teen discounts, and sign up for teen safety programs like Allstate’s TeenSMART partnership.

TeenSMART is a teen driver education program that improves your teen’s driving habits and increases their awareness while they’re behind the wheel. If your child is under the age of 25 and unmarried, they could be eligible for a TeenSMART discount with Allstate. The retail price for the teenSMART program is $120, but with Allstate, you can get $50 off.

24/7 Roadside Assistance

Allstate has three price points and roadside assistance models for its drivers. You can become a motor club member, add roadside assistance as an insurance add-on, or call for assistance on a pay-per-use basis. Here’s how the three models differ in terms of their starting prices:

Here are some of Allstate’s basic roadside services:

• Trip interruption: Allstate will reimburse you for meals, transportation, and lodging if your car becomes undrivable and you’re at least 100 miles away from home on a trip.
• Hazard reimbursement: Allstate will reimburse you for tire and wheel damages due to road hazards.
• 24-hour roadside assistance: Get help with towing, vehicle lockouts, jump start fuel deliveries, flat tire assistance, and more.
• Motorcycle and RV coverage: Extend coverage to your motorcycle or RV.
• Member discounts: Roadside service members benefit from discounts on oil changes, auto parts, travel costs, and more.

Rideshare Drivers

Uber and Lyft started operations in Alaska as early as 2017, providing drivers with the opportunity to drive and make money in the 49th state’s major cities. As we discussed above, you’ll need rideshare insurance to stay covered while you’re waiting to be matched with a passenger. Here’s how Allstate’s rideshare coverage, Ride for Hire, works:

• When you’re offline: Your existing Allstate policy applies when you sign off from the app.
• Waiting for a passenger: If the app is on and you’re waiting for a passenger, Allstate’s Ride for Hire plan comes into effect.
• Accepted a passenger: Your TNC coverage likely applies, and Allstate’s Ride for Hire would provide deductible gap coverage for damages of up to $2,500.