Alaska Car Insurance
Last Updated on December 19, 2019
Getting good, affordable car insurance in Alaska is cheaper than you think. Sure, Alaska has a wintry and icy climate for much of the year, but that doesn’t mean Alaskan drivers are forced to pay higher car insurance prices.
In fact, drivers in Alaska paid the 13th lowest rates for car insurance in the United States. In 2017, drivers in Alaska paid an average of $1,132 per year for car insurance, slightly less than the US average.
Yes, drivers in Alaska deal with winter conditions, but they also have smaller cities and a less urbanized population. Drivers in crowded urban areas pay higher rates for car insurance than drivers in smaller cities and rural areas. Other factors, like the percentage of uninsured drivers in the state and the number of claims per capita, also play a role in the low prices on car insurance in Alaska.
Like all other states in the United States except for New Hampshire, car insurance is mandatory in Alaska. Drivers in Alaska require a minimum of $50,000 of bodily injury liability per person and $100,000 of bodily liability coverage per accident. Drivers are also required to have $25,000 in property damage liability coverage per accident. These coverage limits are relatively high compared to other states – in spite of the fact that Alaskans pay below average costs for car insurance compared to the rest of the country. That means Alaskans get more coverage for less money than drivers in other states.
Compare Car Insurance Quotes in Alaska
Car insurance companies are fairly competitive in Alaska. Different companies charge different rates to different drivers. Generally speaking, however, United Services is a particularly affordable car insurance company, as is USAA.
The other major nationwide brands, like GEICO, 21st Century, and State Farm, all tend to offer similar rates, although some users report getting particularly low car insurance prices from GEICO.
Car Insurance Prices Vary By City in Alaska
Car insurance prices will vary widely based on where you live in Alaska. Drivers in Anchorage, for example, often pay 20% higher insurance prices than drivers in smaller cities. That’s because Anchorage is the most urbanized area in Alaska.
Drivers in Fairbanks and Juneau, which are roughly the same size as the second and third largest cities in Alaska, tend to pay similar prices for car insurance. These prices tend to be slightly lower than prices in Anchorage.
Overall, all of this information highlights the importance of comparing as many car insurance quotes as possible when shopping for car insurance in Alaska. By shopping for quotes across the state, you can ensure you’re getting the best deal on car insurance.
Alaska Auto Insurance Requirements
When you operate a motor vehicle in a “Tort” state, such as Alaska, you are financially responsible for any damages and personal injuries that are a result of an accident you caused. Because of this, all drivers are required to carry liability insurance.
The state of Alaska mandates minimum amounts of coverage that are the highest in the country (see the chart below). Though this may mean higher premiums, these minimums ensure that residents are adequately prepared for some of the high costs that can be incurred in an auto accident.
Other options for residents of Alaska to increase their protection include collision, comprehensive, uninsured/underinsured motorists, and/or medical payment coverage.
|Coverage Type||Required?||Minimum Coverage Amount Required|
|Bodily Injury Liability||Yes||$50,000 per person$100,000 per accident|
|Property Damage Liability||Yes||$25,000|
|Uninsured Motorist Coverage||No||$50,000 per person$100,000 per accident|
You may want to consider purchasing limits of coverage higher than those required by law to protect your assets or property, as you may be personally responsible for any damages above the policy limits.
Auto Insurance for Leased Vehicles in Alaska (AK)
Most leasing companies in Alaska typically require drivers to maintain insurance coverage which exceeds the minimums set by Alaska state law. This is to protect you financially, as well as your leasing company, should they be held partly responsible. Most leasing companies will recommend the following amounts of insurance coverage:
- Bodily injury liability coverage: $100,000 per person/$300,000 per accident
- Property damage liability coverage: $50,000
- Comprehensive and collision coverage: $500 maximum deductible
Contacts for Auto Insurance Information In Alaska
|Alaska Division of Motor Vehicles
|Alaska Division of Insurance
3601 C Street, Suite 1324
Anchorage, AK 99503