Compare Cheap Auto Insurance in Alaska

GEICO offers the cheapest full coverage auto insurance in Alaska, with an average annual premium of $1,692. This is approximately 23 percent cheaper than the state average of $2,196. In addition to its affordable rates, GEICO also offers a variety of discounts, including financial responsibility, anti-theft device and good driver discounts, to maximize your savings even further.

For military members, veterans and their families, USAA also offers highly competitive rates, along with excellent customer service. This is why we named USAA the best auto insurance in Alaska for military and veterans.

USAA and GEICO offer the cheapest minimum coverage in Alaska at $386 and $451 annually, respectively — both below the state average of $561. Allstate is next cheapest and is a good choice for drivers looking to bundle their auto insurance with other policy types, like homeowners or renters insurance.

USAA offers the cheapest auto insurance for military-affiliated households with teen drivers in Alaska, with an average annual premium of $4,738. While this number is high, it is 3 percent lower than the state average of $4,891 and 22 percent lower than the national average of $6,054. GEICO has the next cheapest average rates at $4,966 annually. While this is more expensive than the state average, GEICO does offer good student discounts for teens with B averages or higher. Insurance is expensive for teen drivers because they are considered high risk due to lack of experience and statistically higher accident rates.

For military-affiliated drivers, USAA offers the cheapest insurance for drivers with a speeding ticket in Alaska, with an average annual premium of $1,864 — 21 percent cheaper than the state average. GEICO also offers below-average rates at $1,905. A speeding ticket is likely to raise your insurance premium, but there are ways to minimize the impact. Some insurers, like GEICO, offer the opportunity to take a defensive driver course following your speeding ticket to help reduce your rate increase.

GEICO is the cheapest option for auto insurance for Alaskan drivers with an at-fault accident, with an average annual premium of $2,090, which is about 17 percent cheaper than the statewide average of $2,513. State Farm ($2,113 annually) and USAA ($2,118 annually) also provide comparatively affordable rates.

Progressive offers the most affordable insurance for Alaskan drivers with a DUI, with an average annual premium of $2,118 — 17 percent lower than the statewide average. Anchorage-based Umialik also offers reasonable rates at $2,286.

In Alaska, insurance companies are allowed to consider your credit history when calculating your auto insurance rates. Progressive provides the cheapest car insurance for Alaskan drivers with low credit, with an average annual premium of $2,531. For those that qualify, USAA offers the next cheapest average rates at $2,557 per year.

Along with its competitive rates, USAA ranks highest in both shopping and claims satisfaction. For non-military customers, State Farm is a strong alternative. (That said, it’s worth noting both companies scored below average on CRASH Network’s Insurer Report Card, indicating room for improvement in claims practices from the perspective of auto repair shops.)

Although rankings are unavailable due to its small size, those seeking a local insurer may want to look into Umialik. In addition to price, customer satisfaction is important to consider when choosing your insurance provider, as it can make all the difference, especially in moments you need it the most, like after an accident.

1. Bundle policies: Many insurance companies offer a significant discount to customers who bundle multiple policies. If you buy another policy type in addition to auto insurance, like homeowners or renter’s insurance, you can save money while keeping everything under one provider for added convenience.  
2. Shop around: The first quote you get isn’t necessarily the cheapest; compare rates from at least three providers to find the best deal. Knowledge is power and the more informed you are, the more empowered you are to confidently choose coverage that fits your needs and budget. 
3. Ask your agent about discounts: Check with your insurance provider to see what kinds of discounts you qualify for based on your personal profile. Many companies offer good student discounts, safe driver rewards, military discounts and more. You might be surprised by how much you can save, so it’s always worth asking.  
4. Enroll in a telematics or usage-based program: If you’re a safe driver, signing up for a telematics program to track your driving, such as Progressive Snapshot and State Farm Drive Safe and Save, can help you lower your premium. These programs track your driving habits, including speed, braking and mileage, and reward responsible driving with discounts. If you drive safely or infrequently, this could be an effective way to save money on your insurance.  
5. Improve your credit score: In most states, higher credit translates into lower auto insurance rates. While improving your credit takes time, it’s a smart long-term strategy for lowering your premium. 
6. Raise your deductible: Opting for a higher deductible can help lower your premium, but it’s important to make sure you can comfortably afford the out-of-pocket deductible cost if you need to file a claim.  

With an average annual premium of $2,499, Anchorage has the highest auto insurance rates in Alaska — about 14 percent higher than the statewide average of $2,196. The city’s higher population density and increased traffic contribute to these elevated costs. Fairbanks follows closely behind with an average annual premium of $2,327 while smaller cities like Sitka and Ketchikan have lower rates at $1,777 and $1,783.

In Alaska, the minimum car insurance requirements are as follows:

• Bodily injury liability: $50,000 per person and $100,000 per accident
• Property damage liability: $25,000 per accident

While underinsured/uninsured motorist coverage is not mandatory, insurers must offer it and you can choose to reject it or lower the limits. Since Alaska is an at-fault state — meaning the driver responsible for the accident is responsible for the damages — opting for higher coverage limits than the state minimum is recommended.

Adding comprehensive and collision coverage can help protect you from out-of-pocket expenses in case of an accident, vehicle theft or damage from events like extreme weather or moose collision.

Additionally, while medical payments coverage is optional in Alaska, it can be a valuable addition to your policy, as it helps cover medical expenses for you and your passengers, regardless of who is at fault.

We analyze average premiums in Alaska for full and minimum coverage for good drivers with good credit, as well as various driver profiles, including those with DUIs, accidents, low credit, and teenagers. Full coverage averages use the following limits:

• Bodily injury liability: $100,000 per person/$300,000 per accident
• Property damage liability: $50,000 per accident
• Uninsured and underinsured motorist bodily injury: $100,000 per person/$300,000 per accident
• Comprehensive and collision: $500 deductible