Best Car Insurance in Alaska
Last Updated on June 7, 2021
Car insurance in Alaska is more affordable than many drivers realize. The average driver in Alaska pays around $250 less per year for car insurance than the average American.
According to our research, the average driver in Alaska pays around $1,202 per year for full coverage car insurance, significantly less than the nationwide average of $1,450 per year. In fact, Alaska is one of the top 15 cheapest states in America for car insurance. Drivers can save even more by shopping around and comparing quotes.
Top 10 Auto Insurance Companies in Alaska
Drivers in Alaska have fewer options than other states for car insurance. However, there are still plenty of nationwide providers and larger firms eager to provide drivers with effective car insurance at a reasonable rate.
Here are some of the best car insurance companies in Alaska for drivers with different driving records and demographics:
If you want cheap insurance and you qualify for USAA membership, then USAA may be the best option in Alaska. USAA is available to United States military personnel and certain qualifying family members. In Alaska, USAA charges rates as low as $941 per year for full coverage car insurance, making them the cheapest provider in the state according to our rankings.
GEICO’s membership is open to everyone, and its rates are only slightly more expensive than USAA’s. GEICO insures thousands of drivers and property owners across Alaska. According to average quotes provided to our model driver profiles, GEICO charges around $972 per year for full coverage car insurance.
3. State Farm
State Farm is the largest car and home insurance company in the United States. They’re also one of the most popular insurers in Alaska. Available in all corners of the state, State Farm charges around $976 per year for full coverage car insurance, making their rates very competitive with the providers above.
Umialik Insurance Company is a member of the Western National Insurance Group. The Anchorage-based company offers property insurance throughout the state, including auto, home, business, and umbrella insurance, among other products. As the only Alaska-based insurance company on this list, Umialik is popular across the state. Expect to pay around $1,023 per year with Umialik.
Allstate’s rates are competitive with other leading providers on our list, with the company charging around $1,043 per year for full coverage car insurance. Allstate is one of the largest insurance companies in the country, offering good pricing and strong claims satisfaction scores.
Progressive is the third-largest insurance company in the United States, and the company offers Alaskans the amenities of a large insurance company at affordable prices. Progressive’s rates are around $1,056 per year, according to the average quotes provided to our model driver profiles.
Although not as well-known as the insurance companies listed above, Safeco is popular throughout the state of Alaska, including both urban and rural areas of the state. The average Safeco driver pays around $1,212 per year for full coverage car insurance, based on rates provided to our model driver profiles.
8. The Hartford
Instead of charging cheap insurance premiums for basic coverage, The Hartford offers extended coverage and strong claims satisfaction at a slightly higher price than competitors. The Hartford also offers a range of auto, home, and business insurance coverage in all corners of the state of Alaska. Expect average rates of around $1,304 per year with The Hartford in Alaska.
Nationwide charges average car insurance premiums across Alaska, with drivers paying around $1,313 per year for full coverage car insurance. Nationwide has good ratings for claims satisfaction and financial stability. They also offer all of the amenities you would expect wit a large insurer.
MetLife is one of the world’s largest insurance companies, and the company offers an extensive range of home insurance, car insurance, and more. MetLife isn’t the cheapest insurer in Alaska, although the company offers an extensive range of discounts and customization options that can lower premiums across the state.
Alaska Insurance Requirements
According to the Alaska Division of Motor Vehicles, car insurance is mandatory across the state.
Drivers in Alaska must carry the following minimum amount of liability coverage to drive on public roads in Alaska:
- $50,000 of bodily injury liability coverage per person
- $100,000 of bodily injury liability coverage per accident
- $25,000 of property damage liability coverage
Many drivers choose to carry uninsured and underinsured motorist coverage in Alaska for added protection. However, it’s not required in the state.
You may be required to carry collision and comprehensive coverage (as part of a full coverage car insurance policy) if you are leasing or financing your vehicle. Most lenders require full coverage car insurance to protect the collateral of your loan. If you fully own your vehicle, then you can buy any car insurance policy you like, as long as it meets the minimum requirements listed above.
Driving Without Insurance in Alaska
Drivers in Alaska will face penalties when caught driving without insurance. Law enforcement officers in Alaska can verify insurance requirements during a traffic stop or at the scene of an accident.
Since July 2019, the Alaska DMV has begun to electronically check all vehicle transactions for mandatory insurance coverage. Prior to July 2019, you only needed to bring proof of insurance to the DMV when registering a vehicle or transferring a vehicle to a new owner. Now, the DMV will electronically verify your insurance coverage.
If you already have insurance, then the DMV will search electronically by your name, vehicle, VIN, license plate number, or policy number. If you are registering your vehicle and do not have insurance, then you must obtain insurance prior to visiting the DMV.
Failing to carry car insurance in Alaska may result in the suspension of your driver’s license. When driving within the municipality of Anchorage, the law enforcement officer may impound your vehicle if you fail to provide proof of insurance.
Certain parts of Alaska do not require vehicle registration. If you live in a part of Alaska where registration is not required, then insurance is also not required. However, drivers who have received a ticket for a violation worth 6 points or more within the last 5 years must have liability insurance even in an area with no registration or insurance requirements.
If you are caught driving without insurance in Alaska, then you could face the following penalties:
- $500 for each offense
- 90 day license suspension (first offense), one year license suspension (second offense), or 3 year license suspension (if at-fault in an accident without insurance)
- SR-22 requirement for three years
If you are unable or unwilling to pay fines for driving without insurance in Alaska, then you could face prison time.
Car Insurance in Alaska with DUI
Drivers who have a DUI in Alaska will pay significantly higher insurance premiums than drivers with a clean record. Some insurers charge significantly higher rates after a single DUI conviction, while other insurers continue to charge competitive prices. The following companies offer the cheapest insurance for drivers with a DUI:
- USAA: $1,393 per year
- Umialik: $1,471 per year
- State Farm: $1,762 per year
- Progressive: $1,799 per year
- GEICO: $1,812 per year
Car Insurance in Alaska with At-Fault Accidents
At-fault accidents, like DUIs, will raise car insurance premiums in Alaska. Drivers found to be at fault for a car accident will pay higher insurance premiums. Typically, insurers raise rates slightly less than they would for a DUI. However, you can still expect to pay 30% to 60% higher insurance premiums, depending on your insurer.
- USAA: $1,343 per year
- GEICO: $1,417 per year
- Umialik: $1,421 per year
- Travelers: $1,563 per year
- Progressive: $1,719 per year
Car Insurance in Alaska with Speeding Tickets
Insurers may ignore one or two minor speeding tickets, but they’re unlikely to ignore multiple speeding tickets or serious speeding convictions. Some insurers are more forgiving about speeding than others, while some insurers charge significantly higher rates. Consider requesting a quote from the following car insurance companies in Alaska if you have speeding tickets on your driving record.
- USAA: $1,113 per year
- GEICO: $1,171 per year
- Umialik: $1,241 per year
- Nationwide: $1,259 per year
- State Farm: $1,331 per year
Car Insurance in Alaska for Young Drivers
As a young driver, insurers are biased against you. Statistically, you’re more likely to cause an accident than older, more experienced drivers.
Even if you have 50 years of clean driving ahead of you, insurers err on the side of caution by charging higher rates to drivers under age 25. Young drivers cause more accidents in Alaska – and more serious accidents in Alaska – than drivers in any other demographic. Fortunately, some insurers use young drivers to balance their insurance pool, charging comparatively low rates to drivers under 25.
- Umialik: $1,413 per year
- GEICO: $1,467 per year
- USAA: $1,513 per year
- Nationwide: $1,709 per year
- State Farm: $1,732 per year
Car Insurance in Alaska with Poor Credit
As a driver in Alaska with a bad credit score, you pay higher rates for car insurance than drivers with fair to good car insurance rates. Insurers in Alaska are permitted to use your credit-based insurance score to calculate premiums.
Statistically, drivers with poor credit scores or no credit scores are more likely to make insurance claims than drivers with good credit scores. However, some insurers in Alaska put less of an emphasis on credit score than others.
- GEICO: $1,762 per year
- Allstate: $1,813 per year
- Nationwide: $1,934per year
- Travelers: $1,954 per year
- Umialik: $1,997 per year
SR-22 Insurance in Alaska
The Alaska Division of Motor Vehicles uses an SR-22 system to manage high-risk drivers. If you are a high-risk driver with at-fault accidents, insurance lapses, or other incidents on your record, then you may need to submit an SR-22 certificate of insurance to the DMV.
An insurer will submit the SR-22 certificate to the DMV on your behalf. Most insurers charge a filing fee of $15 to $50.
The SR-22 certificate is not insurance. it’s a certificate verifying you have insurance. Also known as a certificate of financial responsibility, the SR-22 will raise insurance rates because you’re considered a high-risk driver.
Alaska has some of the longest SR-22 requirement periods of any state. Drivers convicted of a DWI are required to carry an SR-22 certificate for five years (for their first offense), 10 years (for their second offense), or 20 years (for their third offense). If you receive a fourth offense, then you must carry an SR-22 certificate for life.
For most offenses in Alaska, you must carry an SR-22 certificate for three to five years. If you receive another conviction within that period, then the state may extend your SR-22 requirement period.
Shop around for SR-22 insurance to find the cheapest rates. If you are a high-risk driver, then you may need to work with a specialty or high-risk insurance company. You may not be able to purchase insurance from ordinary insurance companies in Alaska.
Conclusion: How to Find the Best Auto Insurance in Alaska
The cost of living tends to be higher in Alaska. However, car insurance in Alaska is more affordable than in most states. In Alaska, drivers pay around $200 less per year for car insurance than the average American.
By shopping around for car insurance, drivers in Alaska can save even more. Drivers with a safe driving history and drivers who qualify for discounts can save hundreds per year on car insurance in Alaska.