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The extremely northwest state of Alaska is known for having the largest land mass of any state in the nation, but it also has one of the smallest – and most spread out – populations.

Alaska had a population of 737,438 in 2018 according to the U.S. Census Bureau, but also had 959,334 vehicles registered that year, according to the state’s Division of Motor Vehicles. Types of vehicles include snowmobiles along with the more commonly seen cars, trucks, motorcycles, trailers, pickups, and buses – and about 472,803 are passenger vehicles.

With that ratio of about 1.3 vehicles registered per Alaskan resident, car insurance is a necessity for most Alaskan drivers.

What drivers pay for car insurance depends on a number of factors. According to the Alaska Division of Insurance, car insurance companies take into account the year, make, and model of the vehicle along with a driver’s address, stability, age, gender, marital status, driving history, license status, credit information, prior insurance, vehicle use, and other drivers in the household.

Comparing our study’s driver profiles, Alaskan drivers pay rates that clock in below average national costs across a number of insurance companies in our analysis.

USAA is the cheapest car insurance in the nation in 2019 according to our data, with a national average representative rate of $895 for the driver profiles used in our study. In Alaska, driver profiles pay an average of $850, according to our survey.

Due to USAA’s limited membership for military affiliations, it is worth noting State Farm insurance has the second-cheapest representative rates in Alaska, according to our study, with an average driver profile paying $905 a year.

At Alaska’s most expensive national car insurance company in our study, Allstate, average driver profiles in the study pay $1,445 a year.

On average, it costs $1,080 to insure a car in Alaska, according to our study, with drivers saving a nice chunk of change compared to the national average of $1,320.

Cheapest Car Insurance Companies in Alaska

The rates shown are based on a study performed by Quadrant Information Services on behalf of U.S. News. The study examined rates from the largest car insurance companies across the nation using certain driver profiles. Individual rates differ.

How We Found the Cheapest Car Insurance Companies

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Our Study Rates

For this study, U.S. News worked with Quadrant Information Services to analyze a report of insurance rates in all 50 states from the nine largest national car insurance companies, though not every company operates in every state. Quadrant obtained publicly available rate data that car insurers file with state regulators. Our study rates are based on profiles for both male and female drivers aged 25, 35, and 60. Vehicles used include the 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150, with annual mileage ranging from 6,000 and 12,000. Three car insurance coverage levels were used, as were credit tiers of good, fair, and poor. Clean driving records and records with one accident, one speeding violation, and one DUI were also used in the calculations of certain driver archetypes. 

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To get the study rates shown here, we computed the mean rate for male and female drivers aged 25, 35, and 60 who drive 15,000 miles per year and have medium coverage, good credit, and a clean driving record. The rates shown here are for comparative purposes only and should not be considered “average” rates available by individual insurers. Because car insurance rates are based on individual factors, your car insurance rates will differ from the rates shown here. 

How Much Does Car Insurance Cost in Alaska?

See the Cheapest Car Insurance Companies

Average driver profiles pay $1,114 a year for car insurance in Alaska, significantly less than the national average of $1,415, according to our study.

Of the top five national insurance companies in Alaska, the cheapest according to our average driver profiles are USAA at $825 a month and State Farm at $1,027. However, USAA does limit its membership to members of the military, veterans, and their families.

Progressive charges about the average for car insurance in Alaska, costing average user profiles $1,126 per year. 

The most expensive top national insurers in Alaska is Allstate, which has representative rates 27% above the state average in our study. Bear in mind the study rates mentioned in this article are representative averages, not the exact amount a person should expect to pay. A wide range of factors contribute to the premiums charged by car insurance companies. 

Alaska Car Insurance Rates by Age

Company

25-year-old female

25-year-old male

35-year old female

35-year-old male

60-year-old female

60-year-old male

Allstate

$1,531

$1,676

$1,357

$1,357

$1,297

$1,297

Geico

$1,906

$1,289

$987

$1,041

$908

$908

Progressive

$1,342

$1,331

$1,177

$1,002

$951

$954

State Farm

$1,102

$1,270

$985

$985

$909

$909

USAA

$1,020

$1,078

$743

$741

$684

$681

The profile of a male 25-year-old driver in our study had an average car insurance representative rate in Alaska of $1,329. The study showed female driver profiles who are 25 years old pay an average of $1,380. State Farm has the lowest representative rates for the women in this demographic aside from USAA, about 20% below the average. Geico is the priciest for these women, charging representative rates about 38% above the state average. For the male driver profiles, Allstate has the highest representative rates, which are about 26% above the state average.

By age 35, the study rates almost even out with the average male driver profile's rates reducing to $1,025, and the average 35-year-old female profile’s rates decreasing to $1,050. State Farm is the most affordable aside from USAA for this demographic, charging both male and female profiles $985, or about 4% below the state average.

At age 60, costs drop again: the male driver profile's annual representative premium has an average study rate of $950, about the same as the 60-year-old female profile average rate. Most providers offer representative rates below $1,000 for this demographic and gender identity doesn’t affect the price much, although on the high end Allstate’s average rates for both genders is 37% above the state average.

To determine the average rates based on gender and age, we created driver profiles for males and females in each of the following ages: 25 years, 35 years, and 60 years. The profiles also have a clean driving record, insurance coverage for 12,000 miles per year, a medium level of insurance coverage, and a good credit score. We used three vehicles for our driver profiles: the 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150.

Alaska Car Insurance Rates by Credit Score

Company

Good

Fair

Poor

Allstate

$1,419

$1,545

$1,842

Geico

$1,173

$1,173

$1,210

Progressive

$1,126

$1,316

$1,622

State Farm

$1,027

$1,273

$1,969

USAA

$825

$944

$1,463

A driver profile with poor credit in Alaska paid an average study rate of $1,620 a year for car insurance, or about $500 more than our driver profile with good credit. 

USAA is the cheapest in Alaska over most credit score categories, but for drivers without military affiliations, State Farm is the most affordable for drivers with a good credit score, offering a rate of about 8% below the state average. 

Geico is the most affordable aside from USAA for driver profiles with fair credit, offering a rate about 6% below the state average. Geico offers both driver profiles with good and fair credit scores the same average rate.

As for driver profiles who have poor credit, Geico has the lowest average rates, offering about 25% below the state average. State Farm and Allstate offer some of the highest representative premiums, with State Farm charging driver profiles with poor credit about 21% above the state average. 

Based on profiles of male and female drivers aged 25, 35, and 60, our study verified that credit scores affect car insurance rates. We created a profile for each level of credit score (good, fair, and poor) and assigned the profiles a clean driving record, a good credit score, a medium level of insurance coverage, and 12,000 miles of annual driving. The 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150 were the vehicles used in our analysis. 

Alaska Car Insurance Rates by Driving Record

Company

Clean record

With 1 speeding violation

With 1 accident

With 1 DUI

Allstate

$1,419

$1,686

$1,996

$1,997

Geico

$1,173

$1,173

$1,712

$2,694

Progressive

$1,126

$1,458

$1,922

$1,334

State Farm

$1,027

$1,121

$1,216

$1,121

USAA

$825

$969

$1,162

$1,472

According to our study, the average representative rate for a driver profile with a clean record in Alaska is $1,115. A driver profile with one speeding ticket had an average rate in our study of $1,280, or about $165 more. With one accident added to the study profile, average representative rates went up to $1,600. When one DUI was added, the average study rate rose by another $120 to about $1,725.

Aside from USAA, State Farm is the cheapest national insurer in Alaska for average driver profiles with most types of records. Compared to the state average, State Farm charges average driver profiles with one DUI about 35% less.

Allstate penalizes average user profiles with poor driving records the most in Alaska, charging more than 25% above the state average for driver profiles with one accident. 

Drivers with a DUI may want to avoid Geico, which charges average profiles about 56% above the state average when they have one DUI. 

To find out just how much of an effect a person's driving record has on insurance rates, we made driving profiles with a clean record, with one speeding violation, with one accident, and with one instance of driving under the influence (DUI). These driving record representative profiles were based on 25-, 35-, and 60-year-old males and females who drove 12,000 miles per year and had a medium level of insurance coverage and a good credit score. Vehicles used in the analysis were the 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150.

Alaska Car Insurance Rates by Coverage Type

Company

Low

Medium

High

Allstate

$1,418

$1,419

$1,555

Geico

$1,168

$1,173

$1,244

Progressive

$1,125

$1,126

$1,200

State Farm

$1,009

$1,027

$1,119

USAA

$820

$825

$868

In Alaska, our representative rates range from an average of $1,110 for low coverage to $1,200 for high coverage.

According to our analysis, the cheapest car insurance company in Alaska, USAA, charges average driver profiles with high coverage about 27% below the state average.

Next best is State Farm, costing our average driver profiles with high coverage 7% below the state average, according to our survey.

The most expensive in Alaska is Allstate, which charges average driver profiles with high coverage nearly 30% above the state average.

The about $90 increase per year on average from low to high is probably worth it considering how much more you could end up paying if you cause an accident and have minimum coverage.

We created identical profiles in our study to represent drivers, then found out how rates changed with the three levels of coverage. The profiles were assigned a clean driving record, a good credit score, and 12,000 miles of annual driving. We used both males and females aged 25, 35, and 60. The 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150 were the vehicles used in our analysis. 

Alaska Car Insurance Rates by Mileage 

Company

6,000 miles annually

12,000 miles annually

Allstate

$1,319

$1,419

Geico

$1,104

$1,173

Progressive

$1,126

$1,126

State Farm

$929

$1,027

USAA

$780

$825

As for mileage in terms of car insurance payments, driver profiles who drive about 6,000 miles a year pay an average study rate of $1,050 in Alaska. Those who put about 12,000 miles on their car annually, pay around $1,115 on average, the study shows.

For our USAA driver profiles, both types of commuters pay about 26% below the state average – the most affordable in Alaska, according to our study. 

State Farm is the second-cheapest insurer for these profiles, with the average 6,000-mile commuter profile paying about 12% below the state average and the 12,000-mile commuter profile paying about 8% below the state average5 in Alaska.

Allstate is the most expensive in Alaska according to our study, with commuter profiles paying averages of about 27% above the state average in the high mileage range.

We created two driver profiles to compare how annual mileage can change car insurance rates: one with low mileage (6,000 miles per year) and one with high mileage (12,000 miles per year). The profiles covered males and females in the 25-, 35-, and 60-year-old age groups with a medium level of insurance coverage, a good credit score, and a clean driving record. The vehicles used in our study were the 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150.

Alaska Car Insurance Rates by City 

City

Average Rate

Anchorage

$1,273

Barrow

$1,127

Bethel

$1,136

Fairbanks

$1,166

Juneau

$955

Ketchikan

$981

Kodiak

$1,031

Sitka

$938

Unalaska

$1,109

Wasilla

$1,129

The most expensive city in which to insure a car in Alaska is Anchorage, costing driver profiles an average of $1,273. Fairbanks is also pricey at $1,166.

Alaska’s capital, Juneau, is the second-cheapest place to insure a car in the state, with our average driver profiles paying $955 a year; the absolute cheapest city is Sitka at $938. Car insurance in Ketchikan is also cheap at an average cost of $981 for average driver profiles in our study.

Within each state, insurance rates can vary dramatically from city to city. To get a sense of how these differences affect car insurance premiums, we looked at average representative rates across 10 of Iowa’s top cities. In our study, we used male and female driver profiles aged 25, 35, and 60 who put 12,000 miles on the odometer each year. Our profiles have medium insurance coverage, a clean driving record, and good credit. We included three vehicles in our study: the 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150.

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Alaska Auto Insurance Minimum Coverage Requirements

Like almost every state in the U.S., Alaska has minimum car insurance coverage requirements. It’s common to require liability insurance, which Alaska does for bodily injury protection and property damage. Also, the Alaska DMV started electronically checking all vehicle transactions for mandatory insurance coverage in July 2019

The minimum insurance requirements in Alaska are:

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

Cheapest Car Insurance in Alaska

Category

Cheapest Company

Drivers with a Military Affiliation

USAA

Young Adult Drivers

State Farm

Married Adult Drivers

State Farm

Senior Drivers

Geico

Drivers with Good Credit

State Farm

Drivers with Poor Credit

Geico

Drivers with a Clean Record

State Farm

Drivers with One Speeding Violation

State Farm

Drivers with One Accident

State Farm

Drivers with One DUI

State Farm

Low-mileage Drivers

State Farm

High-mileage Drivers

State Farm

Drivers with Low Coverage

State Farm

Drivers with High Coverage

State Farm

Drivers with Used Cars

State Farm

Drivers with New Cars

State Farm

According to our study, State Farm insurance is on average the cheapest in Alaska for most of our driver profiles aside from USAA, which limits membership to drivers who have military affiliations. 

USAA driver profiles paid an average study rate of $825 a year and State Farm driver profiles paid an average of $1,025 in Alaska, according to our study. USAA is the most affordable car insurance option for those who have military affiliations, our study found.

State Farm has some of the most affordable insurance options in Alaska for average driver profiles who are men or women across age groups; for those who want low, medium or high coverage; for those with a clean record or with incidents; and for those with good or fair credit.

For average driver profiles with poor credit and for senior drivers, Geico was the cheapest in Alaska, our study shows.

To find which car insurance company offers the lowest rates, our study used representative driver profiles with good credit, medium insurance coverage, and a clean driving record. Our profiles included males and females aged 25, 35, and 60 who drove 12,000 miles per year. The vehicles used in our study were the 2015 Honda Civic, 2015 Toyota RAV4, and 2015 Ford F-150.

Why Car Insurance Rates Vary in Alaska

Legal requirements, traffic congestion, economic conditions, weather, and competition are some of the top factors that lead to different insurance rates in general.

Drivers with the highest perceived risk pay the highest car insurance rates, regardless of state. Drivers with clean records have a lower risk and the lowest rates, but age, gender, annual mileage, and credit scores are also considered, so rates are not consistent from person to person.

Daniel A. Leifheit / Getty Images

According to the Alaska Division of Insurance, auto insurance rates take into account the year, make and model of the vehicle along with a driver’s address, stability, age, gender, marital status, driving history, license status, credit information, prior insurance, vehicle use, and other drivers in the household.

Our study shows in general, inexperienced drivers, those in high risk areas, or those who have a history of poor driving or financial irresponsibility pay the highest premiums. Older drivers with good credit history and good driving records pay lower rates because they are less likely to be involved in an accident.

How to Get the Cheapest Car Insurance in Alaska

Most major insurers offer discounts on car insurance for those who bundle policies. Having more than one car on your policy or combining your car insurance with your homeowners or renters insurance can lower your rates. You can also often get discounts for younger drivers on your policy if they maintain a B average and qualify for a good student discount. Read more about the cheapest car insurance companies for teens to find even more ways to save when you add a young driver to your policy.

In Alaska, insurers can apply discounts for drivers or households with characteristics that have demonstrated lower frequency of accidents or severity of losses, according to the DMV. 

Common discounts in Alaska include multiple vehicles on the same policy; taking a driver education course targeting younger and older drivers; good students; good drivers; students who live away from home and do not have access to a vehicle; having anti-theft devices installed that lower vandalism rates; safety devices such as automatic seatbelts; and auto and home bundles. 

Be sure to shop around when you're looking for a new car insurance policy. The best way to know you're getting the cheapest rate for the best coverage is to compare quotes from different companies.

The most common way to lower your rates and keep them low is to be a good driver with a clean record. Some insurance companies offer discounts if your driving record remains spotless for six months or more. Once you have an accident or a citation, though, rates usually go up significantly.

Important Laws Around Auto Insurance in Alaska

Alaska’s financial responsibility and mandatory insurance laws allow the DMV to remove irresponsible drivers from the road. Vehicle owners or drivers who are at-fault in a collision are required to pay for damage or injury to others. If there is a reasonable possibility of the person at fault being found liable in a civil court, their privilege to drive could be suspended for up to three years. The suspension can be ended with a financial settlement to the other parties involved in the accident.

In Alaska, it is required to carry proof of insurance in your possession inside the vehicle, available for presentation upon demand. Alaska accepts digital proof of insurance.

There are a few exceptions in Alaska: in some rural areas, neither registration nor insurance is required. However, drivers with certain violations within a five-year span must carry liability insurance. 

Driving without car insurance in Alaska can result in a fine or a driver’s license suspension. In Anchorage, the offense could result in vehicle impoundment.

Alaska Driving Laws and Punishments

Alaska does not allow driving with any visual screen device in operation including computers, DVD players, or a smartphone – even to use a map app. Alaska does have a texting ban, but answering a phone call is allowed.

In Alaska, licenses can be revoked for reckless driving.

Jaromir Chalabala / EyeEm / Getty Images

Alaska’s DUI laws allow drivers who consume alcohol and then operate a vehicle to be arrested or cited. In Alaska, all drivers have consented to a chemical breath test by getting behind the wheel. Refusing to take a breath test carries the same penalties as a DUI in Alaska. Anyone driving with a blood alcohol concentration of 0.08% or more is presumed to be driving under the influence.

DUIs are also issued for drivers under the influence of controlled substances or inhalants. The Alaska DMV can revoke drivers' licenses and privileges to drive or obtain a new license. 

Alaska also has a pretty unique law surrounding littering, which includes driving with an unsecured load uncovered in a way that drops or leaks from the vehicle. The penalty for littering in Alaska is a fine of up to $1,000, and sometimes a sentence of cleaning up litter for a time.

Alaska Car Insurance FAQs

Is Car Insurance Required in Alaska?

Yes, in Alaska the vehicle owner or the driver must carry liability insurance with a minimum of $25,000 coverage for property damage, $50,000 per person for bodily injury or death, and $100,000 per accident for bodily injury or death. However, certain rural areas are exempt in Alaska.

Which Cars Are Required To Be Insured in Alaska?

In Alaska, trucks, buses, passenger vehicles, vans, motorhomes, motorcycles, boats, ATVs, snow machines and trailers are required to be registered and insured. Registration is not required for manufactured homes or house trailers – but titles still are.

When Should I Get Car Insurance in Alaska?

In Alaska, people can drive a vehicle registered in another state for up to 60 days – unless they are employed in Alaska, in which case they must register the vehicle within 10 days. Active duty military and full-time students are exempt.

What Happens if My Car Is Not Properly Insured in Alaska?

Failure to have the required minimum insurance coverage can result in a fine or driver’s license suspension – and in Anchorage, could even result in an impounded vehicle.

Is Alaska a No-Fault State?

No, Alaska is an at-fault state. According to Alaska’s financial responsibility law, vehicle owners or drivers who are at fault in a collision are required to pay for damage or injury caused to another person.

Do I Need Uninsured Motorist Coverage in Alaska?

Yes, uninsured and underinsured motorist coverage is required in Alaska.

Is Liability Insurance Required in Alaska?

Yes, liability insurance is required in Alaska. Alaska law requires the owner of the vehicle to maintain $50,000 for bodily injury or death of any one person, $100,000 for bodily injury or death for any accident, and $25,000 for property damage.

Does Alaska Accept Digital Insurance Cards?

Yes, Alaska accepts digital insurance cards.

The Best Car Insurance Companies in 2020

Our Car Insurance Ranking

  1.     USAA
  2.     Geico
  3.     Allstate
  4.     State Farm
  5.     Farmers
  6.     Progressive
  7.     American Family
  8.     Nationwide
  9.     Travelers

The Cheapest Car Insurance Companies in 2020

Average Annual Rates:

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