Average Cost of Car Insurance in Alaska

Across all demographics, the average cost of car insurance in Alaska is $984 for full-coverage car insurance. First, we’ll take a deep dive into how much different demographics pay, on average, for auto insurance in Alaska for 2023.

By City

Where you live can affect how much you pay for car insurance. For example, when determining your premium, insurers take into account geographic factors, including how likely your vehicle is to be stolen or vandalized in your location. Here’s the average annual cost of car insurance for full coverage in six of the largest Alaskan cities.

By Age

Across the U.S., teen drivers have the highest cost for car insurance. The average teenager in Alaska pays $4,112 each year for auto insurance, while drivers in their 20s and older have annual average insurance bills of $1,391. However, discounts for teen drivers can offer you ways to save.

By Gender

On average, women in Alaska pay less than men for car insurance.

By Marital Status

If you’re hitched, you’ll save an average of $111 on car insurance in Alaska compared with singles, divorced people, and widows/widowers.

By Coverage Level

Remember, the more coverage you purchase for your vehicle, the higher your premium will be.

By Driving History

If you have a few dings on your driving record, you will shell out more for car insurance in Alaska. If you clean up your driving record, you’ll save on auto insurance.

By Company

Not surprisingly, the price of auto insurance fluctuates depending on the insurance company. The Alaskan insurance company Umialik, a member of the Western National Insurance Group, offers the lowest rates to residents, on average.

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.

By Car

The type of vehicle you drive affects your car insurance rates in Alaska. Drivers with luxury or sports vehicles pay the highest rates due to more costly parts and labor.

Vehicle size also plays a role in premium amounts. For example, larger trucks and SUVs might cause more damage in at-fault accidents, but they do a better job of protecting drivers and passengers. Overall, SUVs and larger trucks have less property damage to the vehicles themselves in accidents compared with smaller vehicles.¹ This chart shows the average cost of insuring some popular vehicle models in Alaska:

Want low auto insurance rates? 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:

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

• Maintain a good credit history: Alaska allows insurers to consider credit history when calculating premiums. Cleaning up your credit history can net you savings on car insurance.
• Take advantage of discounts: Most insurance companies offer policyholders myriad ways to save on their premiums. Popular auto insurance discounts include good student, good driver, multiple vehicles, and the bundling of auto with other types of insurance policies, like homeowners insurance.
• Reduce the amount of coverage: Lower your premium by dropping down to Alaska’s minimum car insurance.
• Switch to a less-expensive vehicle to insure: Luxury and other expensive vehicles cost more to insure because they have higher repair costs than less-expensive vehicles do.
• Shop around for coverage: Checking with multiple insurance companies for rates will help you nab the best coverage for the lowest premium.

Alaska requires only liability insurance in the form of bodily injury liability and property damage liability.

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

Under state laws AS 28.10.011, AS 28.22.011, and 2 ACC 90.220(e), some regions or areas of Alaska — such as Arctic Village, King Cove, Perry Island, and Yes Bay — do not require auto insurance. Check out https://doa.alaska.gov/dmv/reg/exempt.htm for the full list.

If you want to find cheap auto insurance in Alaska, minimum coverage is your best bet. USAA offers the lowest rates, but keep in mind that it’s only for military and veterans. If you don’t fall into those groups, you’ll have to get cheap car insurance elsewhere.

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 in Alaska. Additionally, Alaska operates as a pure comparative state, which means accident victims may recover some money for their injuries no matter how negligent they were in the accident.

However, there are some things to keep in mind about Alaska’s at-fault policy. Drivers involved in an accident pay their share of the fault, essentially dividing the cost of the accident. For example, if, in a civil suit, you’re found 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 who meet the following conditions need to file SR-22s:

• Have had their driving privileges suspended or revoked for three years after the revocation ends
• Had received a DUI/DWI 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
• Had obtained a fourth offense for a DUI/DWI or a refusal conviction
• Have had an unsatisfied judgment

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 to protect you and your vehicles better. When you contact AutoInsurance.com, we can connect you with insurance providers.

Because AutoInsurance.com has more than two decades of experience in connecting drivers with top car insurance providers, the company has compiled a wealth of proprietary data about the auto insurance industry, including providers and customers. We examine this data — along with state-specific facts about minimum-coverage mandates, SR-22s, and fault systems — to provide you with an overview of how much car insurance costs in this state.