Jessica Fox Last Updated On: July 25, 2023

How to Land the Best Car Insurance in Alaska

Living in the Last Frontier has its own set of challenges, but auto insurance shouldn’t be one of them. Whether you call Alaska your home or you’re looking to move there, you can find affordable car insurance that meets your needs.

We’ll dive into all things car insurance unique to Alaska, including cost, coverage types, insurance providers and more.

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Table of Contents

Types of Auto Insurance in Alaska

Although Alaska may not technically border the U.S., it still has comparable car insurance options to the rest of the country. The main types of auto insurance coverage include:

  • Bodily Injury Liability: If you cause injury or death to another driver or pedestrian, this coverage helps with the associated expenses.
  • Collision: If you collide with another vehicle or an object, this coverage helps repair or replace your vehicle.
  • Comprehensive: This helps to repair or replace your vehicle if you collide with an animal or if it’s damaged by weather or vandalism. Note, in Alaska, this type of coverage could come in handy (the moose alone are a hazard!).
  • Property Damage: If you cause an accident and damage someone’s property, like a home or vehicle, this helps with the associated costs.
  • Uninsured/Underinsured Motorist: If you’re in an accident with someone with no auto insurance or not enough coverage, this helps cover your costs.
  • Medical Expenses: This additional coverage helps with any medical costs for you and your passengers stemming from an accident.

These are some of the main options for cheap car insurance in Alaska, but you can also add optional coverage to customize your policy. Some popular add-ons include:

  • Roadside Assistance: Get a tow if you’re stranded, fuel if you ran out, help with a spare tire, etc.
  • Gap: If you finance your vehicle and it’s totalled, this helps cover the balance of what you owe on your loan.
  • Rideshare: If you drive for Uber or Lyft, you’ll need to add rideshare coverage to your auto insurance.
  • Rental Car Reimbursement: If your vehicle is being repaired and you need to rent a vehicle, this coverage helps cover those costs.

Each insurance provider may offer additional options to customize your policy, so be sure to review your options and choose what’s right for you. 

When exploring your options for cheap car insurance in Alaska, keep in mind that the more coverage you have, the better.

Minimum Car Insurance Requirements in Alaska

It might help to know the coverage you legally need to have in place before hitting the road in Alaska. Like most states, you need to have auto insurance in Alaska and you need a small amount of minimum coverage in a couple of key categories. This is to protect you and other drivers on the road.

These include:

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

Without proof of this required coverage, you could have your driver’s license suspended for 90 days to a year, you’ll be required to pay a fine, and your vehicle could be impounded. 

However, not all areas of Alaska require these minimums, because they also don’t require vehicle registration. These are remote areas rather than the main cities of Alaska. You can find a full list of these communities here

The minimum required coverage is all that the state needs you to have, but it’s strongly recommended to purchase more coverage if you can. Otherwise, you could be responsible for paying any difference in coverage out of pocket, and those costs can quickly add up. 

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No Pay, No Play Law in Alaska

It’s interesting to note that Alaska is one of a few states that tries to encourage car insurance coverage with a “No Pay, No Play” law. This means that if you’re involved in an accident and you don’t have car insurance, you’re limited in the amount of money you can receive—even if you’re not at fault. You may not be able to sue for damages for pain and suffering, so keep this in mind. 

The Average Cost of Car Insurance in Alaska

It might surprise you, but the cost of car insurance in Alaska hovers around the middle of the pack. The state doesn’t have the cheapest or the most expensive insurance nationally. Alaskans get a break on costs because of the low population density of the 49th state, but there is also a greater risk of animal and weather-related accidents (golf-ball-sized hail and vehicle hoods don’t pair well together!) than elsewhere in the U.S. 

Fun fact: Alaska has the highest rate of moose-vehicle collisions in the world.

So, what’s the average cost of auto insurance in Alaska? 

  • Minimum coverage: $373 annually
  • Full coverage: $1,559 annually

If you’re considering relocating to Alaska, it might help to know which cities are the most expensive for car insurance. While that may not sway your decision, the information can help you plan accordingly, so here it is:

  • Anchorage has the highest insurance in Alaska, at $1,656 annually
  • Douglas and Angoon are the most affordable, with rates of $1,119 per year

Keep in mind, your quotes will depend on factors like your driving history, your age, your vehicle, and more. But there are always ways to find savings on car insurance rates. More on that next. 

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How to Save on Alaska Car Insurance Rates

No matter your situation, you can always find ways to keep your car insurance costs under control. From Anchorage to Fairbanks and everywhere else in the Great North, these are the best ways to save on you auto insurance:
  • Get Multiple Quotes: Every insurance provider has their own formula for calculating insurance rates, so you can save money just by reaching out to multiple providers and comparing rates.
  • Look for Discounts: Almost all insurance providers offer some form of discounts, and taking advantage of them could save you anywhere from 5-20% on your auto insurance. These discounts can include:
    • Paperless Billing
    • Good Driver
    • Student
    • Claims Free
    • Loyalty
    • Employee
    • Membership
    • Anti-Theft Device
  • Bundle Policies: If the rates make sense to do so, two or more insurance policies (like home, life, auto) with one provider to get a deal on your insurance.
  • Drive Safe: Tickets, accidents and violations cause your insurance rates to spike. You can’t do much about past incidents except wait for them to drop off your record, but you can control your future driving to help prevent your insurance rates from increasing.
  • Watch Your Credit Score: Alaska is one of the states that’s allowed to check your credit score to help determine your insurance rates. By doing your best to improve your credit score, you can help lower your premiums.
    • Note: If you have a poor credit score, consider a usage-based telematics program to track your driving and net you insurance savings that way.
  • Review Your Coverage: Make sure you always know exactly what you’re paying for year to year. As your car gets older, it might no longer make sense to have collision coverage, so removing that will lower your rates. Plus, be sure to never let your policy auto-renew without checking your coverage and shopping around for a better rate.
  • Increase Your Deductible: By agreeing to pay a higher deductible before your insurance kicks in on a claim, your monthly/annual premiums will drop. But be sure you can actually afford the deductible you choose, or you could be in a tight spot should you need to submit a claim.
  • Manage Your Claims: Speaking of claims, remember that submitting one will cause your premiums to increase. So for smaller incidents, it might make more sense to pay out of pocket for the fix rather than see your premiums jump.
We weren’t kidding when we said there are always ways to find savings on your auto insurance, even up in the 49th state. Even a small discount can put money back into your pocket, so you can do more of what you love, whether that’s dog mushing, hunting, or gazing at the Northern Lights.

Auto Insurance Companies in Alaska

Alaska may be vast and remote, but there are still options for your car insurance. Some of the best options in the state include:
  • State Farm
  • Progressive
  • Allstate 
  • USAA
  • Umialik
The good news is that you’re not stuck with one provider and can easily shop around for the best rate. 

What Do You Need to Get Auto Insurance in Alaska?

Getting auto insurance in Alaska is simple. Once you determine the type of coverage you need, you can start by getting quotes online or by calling an insurance agent. You can also make your life easier by visiting ConsumerCoverage for access to free quotes fast.  Once you find an option you’re happy with, you’ll need the following information ready:
  • Personal info (name, address, DOB)
  • VIN
  • Driver’s License 
  • Previous insurance
  • Driving history
By having this information ready, you can purchase an insurance policy quickly and often have coverage starting that same day.

The Best Auto Insurance in Alaska Is Yours to Discover

Alaska may sometimes feel like a world of its own, but car insurance is pretty much the same as in any other state. And while Alaska car insurance quotes are neither the most expensive nor the cheapest in the state, you can still find plenty of savings to put some money back in your pocket. 

Life in Alaska doesn’t stop just because you need car insurance. Get affordable coverage fast and get on with your life. We’ve got you covered. 

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