Average Cost of Car Insurance in Alaska

By Coverage Level

Across all demographics, the average cost of car insurance in Alaska is $2,154 for full coverage car insurance. The average cost of minimum coverage is $541 per year. Both rates are below the respective national averages. In general, the more coverage you purchase for your vehicle, the higher your premium will be.

By Company

Auto insurance prices can vary widely by company. GEICO offers the lowest average rates for Alaska drivers after USAA, which is only available to the military community. GEICO’s average annual full coverage premium is 17 percent lower than the state average.

By Age

Across the U.S., teen drivers have the highest cost for car insurance. The average teenager in Alaska pays between $4,000 and $6,000 each year for auto insurance, while drivers in their 30s pay around $2,154 annually. However, discounts for teen drivers can offer you ways to save.

By City

Where you live can affect how much you pay for car insurance, even within the same state. When determining premiums, insurers consider factors like weather and theft rates, which vary by geographic location. Here’s the average annual cost of car insurance for full coverage in six of the largest Alaskan cities. Anchorage has the highest rates, while Sitka has the lowest.

By Driving History

Drivers with violations on their record should expect to pay more for car insurance than those with clean records. In Alaska, the average annual rate for drivers with a DUI is 33 percent higher than the average for clean records. Avoiding violations is one of the best ways to keep your rates as low as possible.

By Credit Score

Alaska permits insurance companies to consider your credit score when determining your premiums. If you have poor credit, you’ll pay a higher premium, on average.

Regardless of whether you have a clean driving record and whether you want minimum coverage or full coverage, drivers in Alaska across all ZIP codes will find the lowest average rates with the following companies:

*After USAA

There are many ways to reduce your auto insurance premiums in Alaska.

1. Maintain a good credit history: Alaska allows insurers to consider credit history when calculating premiums. Improving your credit history can help you meaningfully reduce your premium over time.
2. Take advantage of discounts: Most insurance companies offer policyholders myriad ways to save on their premiums. Popular auto insurance discounts include savings for good students, good drivers, multiple vehicles, and bundling auto with other types of insurance policies, like homeowners insurance.
3. Switch to a less expensive vehicle to insure: Luxury and other expensive vehicles tend to cost more to insure because they have higher repair costs. If it’s feasible, getting an affordable and safe car can help you save on car insurance.
4. Shop around for coverage: Getting quotes from multiple insurance companies will help you find the best coverage for the lowest premium.

Alaska requires that drivers carry bodily injury liability and property damage liability coverage with at least the following limits:

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

Minimum coverage will offer the best rates, but it doesn’t provide the best coverage if you’re in an accident. Increasing your limits will provide better financial protection. USAA offers the lowest average rates for Alaska drivers, but keep in mind that it’s only for military and veterans. For most drivers, GEICO is the cheapest option, on average.

Alaska is an at-fault state, so parties who are at fault in an accident must pay for the other party’s property damage and bodily injury. Additionally, Alaska operates as a pure comparative state, which means accident victims may recover some money for their injuries even if they were mostly at fault.

Under this system, drivers involved in an accident can recover damages based on their share of the fault. For example, if you’re found by a court to be 60 percent at fault, your compensation would be reduced by 60 percent of the total amount. To arrive at that percentage, the courts rely on insurance adjusters and the police, who assess fault based on evidence.

Drivers in the following situations will need to file SR-22s, which will apply for a certain number of years depending on circumstances:

• Driving privileges suspended or revoked: SR-22 required for three years in most cases
• DUI or Refusal conviction:
  • Five years from the ending date of a first offense
  • 10 years from the ending date of a second offense
  • 20 years from the ending date of a third offense
• Unsatisfied Judgment and Failure to Pay Damages/Installment convictions:
  • One year from the ending date of a first offense
  • Three years from the ending date of a second offense
  • 10 years from the ending date of a third offense
• Fourth DUI, Refusal, or Unsatisfied Judgment offense: lifetime of the driver¹

Living in The Last Frontier means enjoying beautiful scenery and saving on your auto insurance. Because Alaska is an at-fault state, you’ll want to have more than the minimum amount of auto insurance for more robust financial protection. Getting quotes from at least three providers can help you find the best rates for your driving profile and situation.

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, at-fault accidents, speeding tickets, low credit and households with teenagers. Full coverage averages use the following limits:

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