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If anyone ever tells you that they're excited to shop for car insurance, you can be sure that you've met an unusual driver. Insuring a car is less about having fun and more about protecting your assets. It's about having all the coverage you need at a price you can afford. The good news is this: Some of the best car insurance companies in the state of Alaska are also among the biggest names in insurance nationwide.
- Cheapest for a typical driver: USAA
- Cheapest for a teen driver: USAA
- Cheapest for members of the military: USAA
- Cheapest for a senior driver: Geico
- Cheapest for driver looking for minimum coverage: USAA
Cheapest for a typical driver
For a "typical" driver with a clean driving record, the cheapest car insurance in Alaska is available through USAA, which offers an average annual rate of $1,178
Because USAA insurance is reserved for military members and their families, you may need to look at other top-rated insurers. Here are two other Alaska auto insurance carriers worth considering:
- State Farm, with an average annual rate of $1,224
- Geico, with an average rate of $1,297
Cheapest for a teen driver
USAA proves once again that it's among the best car insurance in Alaska by offering an average annual rate of $2,764 to teen drivers.
Following behind are:
- State Farm, offering an average annual rate of $3,119
- Geico, coming in with an average rate of $3,287
Cheapest for members of the military
Current and former military members (and their families) enjoy relatively cheap auto insurance in Alaska through USAA, with an average annual rate of $1,151.
Other competitive carriers include:
- State Farm, offering an average annual rate of $1,224
- Geico, with an average annual rate of $1,246
Cheapest for a senior driver
Geico rewards older drivers for their experience by offering an average annual rate of $1,013.
Other options include:
- State Farm, with an average annual rate of $1,114
- USAA, offering an annual rate of $1,158
Cheapest for a driver looking for minimum coverage
Once again, USAA beats competitor's rates by offering cheap liability car insurance in Alaska, with an average annual rate of $313.
Other companies offering competitive rates for minimum coverage Alaska auto insurance include:
- Geico, with an average annual rate of $320
- Allstate, coming in with an average rate of $345
Average car insurance cost in Alaska compared to the national average
The average cost of auto insurance in the state of Alaska is $1,758 annually, nearly 34% lower than the national average. The cost of your coverage depends on things like age, driving history, credit score, and where you live.
| Average Rate Category | Alaska | National Average |
|---|---|---|
| Overall | $1,758 | $2,646 |
| Young drivers | $4,090 | $5,988 |
| 1 accident on driving record | $1,948 | $3,092 |
| 1 speeding ticket on driving record | $1,729 | $2,766 |
Alaska auto insurance laws
Per Alaska car insurance laws, drivers must carry at least minimum liability coverage (we'll cover the exception to this rule below). Drivers caught without proof of insurance can face a fine of $500 to $1,000, 90 days in jail, and a suspended license. After their license is reinstated, they may also be required to provide an SR-22 document.
Alaska minimum coverage requirements
Alaska minimum car insurance requirements include:
- $50,000 for bodily injury or death, per person injured or killed
- $100,000 for total bodily injury or death
- $25,000 for property damage
The exception to these minimum coverage amounts applies in areas of the state where vehicle registration is not required. Unless the owner of a vehicle has recently been cited for specific traffic violations, liability car insurance is not normally required.
How to get cheap auto insurance in Alaska
Landing low-cost car insurance involves shopping around, gathering insurance quotes, comparing level of coverage to the quoted premiums, and looking for any discount that can drive those car insurance quotes in Alaska even lower. The best car insurance companies in Alaska are happy to provide you with the information you need to compare apples to apples.
Hunting for discounts
How much is car insurance in Alaska? It's the price you're initially quoted, minus any discounts for which you qualify. The number of potential insurance discounts varies by the insurance company, but taking time to look through the options can save you money. Here are some of the ways you can save money:
- Good student discount
- Defensive driver discount
- Pay-in-full discount
- Away-at-school discount
- Occupational discount
- Alumni discount
- Professional organization discount
- Safety feature discount
- Usage-based discount
- Multi-car discount
- Multi-policy discount
- New car discount
You will also find that insurers base your rate quote, in part, on your credit score. If your credit score is low, taking steps to raise it can lower the rate you pay for auto insurance. One way to land affordable car insurance in Alaska is to do everything within your power to increase your score. It may take time, but will be worth the effort.
Other things to consider when looking for car insurance in Alaska
Alaska may have some of the most forgiving insurance rates in the country, but it's important to remember that the state follows a "fault" system when it comes to who's responsible for paying for accidents. The financial responsibility for any loss stemming from an accident, including vehicle damage and injuries, belongs to the driver who caused the accident.
Make sure you have adequate coverage to pay for whatever comes your way. That means purchasing the most comprehensive insurance coverage you can afford and reviewing your policy at least once a year to determine if you have enough.
Our Insurance Expert
Dana George has a BA in Management and Organization Development from Spring Arbor University. For more than 25 years, she has written and reported on business and finance, and she's still passionate about her work. Dana and her husband recently moved to Champaign, Illinois, home of the Fighting Illini. And though she finds the color orange unflattering on most people, she thinks they'll enjoy Champaign tremendously.
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We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent, a Motley Fool service, does not cover all offers on the market. The Ascent has a dedicated team of editors and analysts focused on personal finance, and they follow the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.
The data found on this page is a combination of publicly available quote data obtained directly from the carrier as well as insurance rate data from Quadrant Information Services. These rates were publicly sourced from the top ten (10) to fifteen (15) carrier markets, within each state, based on annual written premium and should be used for comparative purposes only -- your own quotes may be different.
Dana George has positions in Apple. The Motley Fool has positions in and recommends Apple. The Motley Fool recommends the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool has a disclosure policy.