Best Car Insurance in Alaska (2024) Car Insurance Guide (Cheap Rates + Best Companies)

Best Car Insurance in Alaska (2024) Statistic Summary

Road Miles 16,129

Registered Vehicles 783,169

State Population 737,979

Most Popular
Vehicle F150

Percentage of
Uninsured Motorists 15.40

Driving Deaths Speeding: 26 Drunk Driving: 22

Average Premiums Annually

Liability: $539.68 Collision: $350.81 Comprehensive: $137.26

Cheapest Provider: State Farm Mutual Auto

What are Alaska car insurance coverage and rates?

The first and foremost information that you need before asking for quotes from insurers is the coverage requirements and rates in your state.

Why is that important?

Because if you aren’t aware of the minimum coverage requirements, options for additional coverage, add-ons, different types of discounts, and, rates in your zip code, you might end up with a policy that’s unsuitable for you.

Also, in the event of an unfortunate accident, you must be reasonably covered to pay any personal injury and property damage expenses as well as know the law to avoid any scams.

Did you know that there are many remote areas in Alaska wherein vehicle registration and insurance is not a requirement? Click now to check the exempted areas in your state.

Like every other shopping experience, you have to dive deep through the internet to get the best coverage.

Without further ado, let’s get you started with details that would help in your car insurance buying process.

What are minimum car insurance coverage requirements in Alaska?

Every state has a mandatory minimum liability coverage requirement for the safety of everyone on the road.

View as image In Alaska, it’s illegal to drive without the minimum insurance coverage and if you attempt to do that, you would face a fine of up to $500 as well as lose driving rights for a year.

Now, you might think that why do you need to shell out your hard-earned money for premiums every year when you drive safely always? We have an answer to that question.

Why the mandatory minimum coverage?

The mandatory insurance law came into place because of the inability of a few people to pay-off damages in an accident caused by them. Also, the financial and legal costs from an accident run into millions at times.

Hence, car insurance policies were invented to make a collective pool of premiums from which insurers could pay damages from accidents.

The Alaska statutes section 28.22.101 requires motorists in Alaska to buy minimum liability car insurance coverage of:

• Bodily Injury/Death: $50,000 per person per accident, with a maximum limit of $100,000 per accident
• Property Damage: $25,000 per accident in total

In this basic coverage, the insurer would pay any medical costs for personal injury to drivers, passengers & pedestrians, and, property damages costs as per the limits of the coverage.

The state minimum liability coverage pays for the damages sustained by the no-fault party, and wouldn’t cover your own personal injury and property damage costs if you’re the at-fault party.

Point to note:The car insurance limits mandated by the state of Alaska wouldn’t be enough to cover the cost of damage if you are involved in an accident with a luxury car or your car gets totaled by a moose attack.

We would talk about the different types of insurance coverage that you may consider buying for better protection in the next few sections.

What are acceptable forms of financial responsibility in Alaska?

Alaska’s financial responsibility law requires motorists to prove that they have the means to settle damages if involved in an accident while driving. Buying a car insurance policy is one way of proving financial responsibility, but there are other ways to prove that you have assets in reserve.

• Surety Bond:A bond assured by a licensed company that covers the minimum state requirement amount also serves as a proof of financial responsibility in Alaska.
• Self-Insurance: You can also get a self-insurance certificate from the DMV if you can prove that you would be able to pay the minimum coverage amount in the event of an accident, provided you have a minimum of 25 registered vehicles.

You would be required to show proof of financial responsibility during these situations:

1. Registration of car
2. Reinstatement of driver’s license after suspension
3. At the request of a police officer
4. If you happen to be involved in an accident

How much are premiums as percentage of income in Alaska?

Since buying car insurance doesn’t make us happy and also involves a fixed financial outlay every month, we always want to know what percentage of our income we’re spending on premiums.

In 2014, the average premium charged by insurance companies was around 2.11 percent of the personal household disposable income. The full coverage average premium was $1,050.09, while the average income was $49,756.

As compared to 2013 and 2012, the percentage of premium to income was lower in 2014. Though there was a drop in income during 2013, average premiums witnessed a slight rise.

On the whole, the premium cost to income ratio in Alaska isn’t very high as compared to some states such as Michigan and Louisiana where premiums are almost 3.6 percent of the disposable income.

What are average monthly car insurance rates in AK (liability, collision, comprehensive)?

In the previous section, we looked at what percentage of income is being spent by Alaskans on car insurance premiums. But, how much is that premium when broken down into different coverage types?

By law, you’re required to buy only the state minimum liability coverage, but in reality, you are recommended to buy additional coverage, such as collision, comprehensive, uninsured insurance, personal injury protection, etc.

The additional coverage options offer you a larger cushion to settle damages in the event of an accident. On the other hand, liability insurance only pays for other party’ expenses from an accident caused by you.

Before delving into the various options available to you for additional coverage, let’s look at the premium rates for liability, collision, and comprehensive insurance in Alaska.

Please note that the premiums listed in the table above are an indication of the rates in Alaska, and might differ significantly on the basis of your personal situation and factors.

In case you want to lower your premiums, here’s a short video on how to get the cheapest rates.

Do you need additional auto insurance coverage in Alaska?

We have talked about liability coverage in detail multiple times now because you are required to settle damages caused by you in an accident irrespective of anything else. That’s the law!

But, who would pay your personal injury and property damage expenses if you’re the at-fault party? Also, has anyone told you that there are motorists who drive without any insurance coverage?

The answer to all those questions is additional car insurance coverage. Let’s understand the different options in the market.

• Uninsured/Underinsured Insurance: This coverage is a blessing if you get hit by a motorist who’s uninsured or underinsured because an uninsured motorist wouldn’t have the means to pay your damages, but this coverage option would.
• Personal Injury Protection: Irrespective of the fault, PIP pays for your personal injury expenses in an accident.
• Collision Coverage: There’s some chance that you might tread off that path and hit a tree on the Alaskan highway someday. If you collide with a tree or any other object, your collision coverage would pay for the repairs.
• Comprehensive Coverage: Circumstances beyond our control such as theft, fire, vandalism, and hurricanes may cause damage to your motor vehicle, and comprehensive coverage would pay for the repair of these damages.

The loss ratio for uninsured motorist coverage hovers around 50 percent in Alaska as we can see in the table above for three years. This means that insurers are paying around $50 in claim settlement for every $100 earned in premiums from this optional coverage.

Alaska ranks at number 11 among all the states in the estimated uninusred motorists category with around 15.4 percent motorists driving without any insurance in the state.

What add-ons, endorsements, and riders are available in Alaska?

Apart from the basic coverage types that you must buy to protect yourself, insurers also offer few add-ons and optional riders that would be of use under specific circumstances.

• Guaranteed Auto Protection (GAP)
• Personal Umbrella Policy (PUP)
• Rental Reimbursement
• Emergency Roadside Assistance
• Mechanical Breakdown Insurance
• Non-Owner Car Insurance
• Modified Car Insurance Coverage
• Classic Car Insurance

Add-ons like a mechanical breakdown or emergency roadside assistance can be quite useful in Alaska as you drive on unpaved roads without any service station in sight for miles.

What are average monthly car insurance rates by age & gender in AK?

Age and gender will affect your car insurance. Younger drivers are often in a high-risk class. See if the gender stereotype (males pay more) holds true in AK.

As per multiple studies, women are less likely to cause an accident than men, and men are considered riskier drivers. Although auto insurance companies might not accept it, but the premium rates for men are higher than for women.

In Alaska, men and women above 30 are paying similar premiums, however, the gap in rates is evident in the 17-25-year-old category. The rates for single 17-year-old males are significantly higher than the females.

What are premium rates by ZIP code in Alaska?

Any typical conversation with an insurance agent for quote starts with questions specific to your profile and one of the foremost things they ask is your zip code.

Why is Zip Code important?

A lot of times you would have observed that rates in your city vary from zip code to zip code. Using your zip code, insurance companies can fetch data about car thefts, vandalism, accident rates, weather conditions, etc. in your zip code, factors that help them determine the final rate.

We have collated the rates for every zip code/city in Alaska and you can use the search box to look for rates in your area.

Where are the most expensive/ least expensive cities by premiums rates in Alaska?

We have also collected data for the most expensive and cheapest cities in Alaska by premium rates.

Here’s a list of the 25 cities with the highest premium rates in Alaska.

Alaska’s biggest city, Anchorage, makes it to this list quite a few times.

Now, let’s look at the list of cities with the lowest premium rates in Alaska.

Which are the best auto insurance companies in Alaska?

When we say the best car insurance companies in Alaska, we mean the ones that you can rely on to pay your claims when you actually need them. They might not have the cheapest rates, but you should choose an insurer based on their financial ratings, customer reviews, complaints data, etc.

An insurance policy might be an unwanted purchase for you, but you must carefully assess and thoroughly research your insurer before committing to a policy.

When you’re stuck on a highway with a mechanical breakdown, your insurer should attend to your need without any delay. And, you can ensure that by looking at the customer satisfaction data of insurance companies.

In the next few sections, we would look at factors that would help you decide your insurance company in Alaska.

Financial Ratings of Leading Insurance Companies in Alaska

Your insurance company collects premiums from you, makes a collective pool, and then disburses money for claims from that pool among those who need it.

Long-term financial viability of your insurer should be a major factor in your buying decision. Any new entrant in the market without extensive knowledge about the management of premiums and disbursements wouldn’t be able to settle your claims in the long-run.

Similarly, old players in the market might not always have the assets to manage a large payout in the event of a catastrophe in your location.

Financial ratings can tell you the long-term viability of an insurer. We have collated the A.M. Best ratings for the leading insurers in Alaska.

A.M. Best ratings assess the financial viability of a business in the long-run after a thorough analysis of its assets and debt-paying ability in the future. Any rating of A+, A, and B+ means good financial standing in the market.

Insurance Companies with Best Customer Ratings in Alaska

Existing customers of insurance companies can be a reliable source to talk about the quality of services provided by an insurer.

Once you have shortlisted the companies for your car insurance policy, you must conduct web research for the customer ratings of these insurers.

Customer ratings can offer you insights such as, the overall satisfaction level, other similar insurers in your location, reasons people bought a policy from a specific insurer, their intent to renew with the same insurer, etc.

These granular pieces of information can provide you the information you need to make a final decision on the insurance company you go with.

Who is the cheapest car insurance company in AK? Review the average auto insurance rates by company below:

Customer Complaints Data of Leading Insurers in Alaska

In the table above, State Farm Group has the highest number of customer complaints, however, it also has the largest market share in Alaska. Rather than looking at the absolute number of complaints, you should look at the proportion of complaints to an insurer’s market share.

You also have the option to cancel your car insurance policy mid-term if you aren’t satisfied with the services of your insurer.

What are Alaska’s premiums rates by insurance providers?

What are Alaska’s premium rates by coverage level?

What are Alaska’s premium rates by credit history?

If you have a poor credit history, insurance companies would penalize you with higher premiums as you can see in the table.

As per the State of Credit survey in 2017 by Experian, the average vantage score of Alaskans was 668 while the national average was 675.

Vantage score, developed by Equifax, Experian, and, TransUnion, is a credit-rating model for consumers that scores them in the range of 300-850.

While the vantage score in Alaska is close to the national average, Alaskans have the highest average balance on their credit cards in the US.

What are Alaska’s premium rates by driving record?

In other states, a driving record with driving under the influence of alcohol increases your premiums significantly. However, most of the insurers in Alaska charge higher premiums from those with a record of an accident in their driving history.

What are the leading insurance companies in Alaska?

As we have learned a lot about insurance companies and their premium rates in Alaska, let’s look at the leading players in the auto insurance market of Alaska and their overall share.

These six insurance companies capture the major share of the market in Alaska, with the largest chunk being held by the State Farm Group.

Number of Insurance Companies in Alaska

What are the state laws in Alaska?

Knowing about the laws of your state with respect to car insurance and driving helps you to keep your insurance rates low.

There are many laws and to-do’s inside the pages of your DMV website, driver’s handbook, and car insurance documentation. You aren’t required to remember everything on the go, but it’s always recommended to know the basics.

Specifically, laws related to insurance for high-risk drivers, restrictions on cellphone usage, teen driving, penalties for driving without insurance, etc. are some of the laws that can save you a lot of hassle later on.

Car insurance laws are in effect mainly for two reasons:

• To protect everyone on the roads through mandatory liability coverage that pays for third-party damages in the event of an accident
• To make sure that insurance companies adhere to the laid-down principles for determining premium rates and offer coverage to everyone, barring few exceptions

Behind the premium rates that you are charged, insurance companies utilize the combined experience of underwriters and actuaries to design a rating model.

The rating model of insurers uses many factors to determine your premiums, such as your car’ make and model, age, marital status, physical address, driving history, vehicle usage, etc.

When there are these many factors and calculations involved, there has to be a regulatory body for consumer protection. The Division of Insurance in Alaska oversees the operations of insurers and drafts laws.
Take a look at these 6 major factors affecting auto insurance rates in Alaska.

Now, let’s look at some laws that might impact you while driving.

Windshield Coverage Laws in Alaska

Any cracks or chips on windshields can lead to personal injuries if not taken care of immediately. Though most of the states have specific laws for repair of windshields, Alaska doesn’t talk about windshield repair or replacement.

However, before buying car insurance, make sure that your insurance policy has windshield coverage in order to avoid any unnecessary expenses in the future.

High-Risk Insurance in Alaska

What happens if you’re a high-risk driver in the sense that you tend to be involved in accidents and speeding violations quite frequently?

You would end up making regular claims for damages leading to an unusually high loss ratio for your insurer. At times, insurers might have to make more payments for claims than they receive in premiums.

Hence, insurers have the right to refuse coverage in case they deem a motorist as a high-risk driver.

You can look at this short video to understand – what kind of motorists are considered high-risk.

How can you buy coverage if you’re a high-risk driver then?

To be fair to everyone, Alaska offers coverage to high-risk drivers under the Alaska Automobile Insurance Plan.

The Alaska Automobile Insurance Plan works like an association where every insurer (with a license to operate in Alaska) has to participate and offer coverage to a specific percentage of motorists directly proportional to its market share.

How does the Alaska Automobile Insurance Plan work?

Once an eligible motorist applies for coverage under the plan, he/she is assigned an insurer from the pool with whom the motorist would get a guaranteed coverage for a period of three years.

If State Farm’ market share is 28 percent in Alaska, they would have to offer coverage to 28 percent of the high-risk drivers in the pool. Through this plan, the risk is shared amongst all the insurers in the state.

Automobile Insurance Fraud in Alaska

Fraudulent claims by customers cost over $80 billion annually to the insurance industry overall, as per estimates by the Coalition Against Insurance Fraud.

Auto insurance fraud is considered to be one of the most expensive white-collar crimes in the US which increased auto claims payments by $5.6 billion-$7.7 billion in the year 2012.

Payment towards fraudulent auto claims accounted for 13-17 percent of overall payments made for auto crashes.

What comes under the definition of auto insurance fraud?

Any attempt to conceal information or provide incorrect information to your insurer with an intention to benefit by way of wrongful claims settlement is known as insurance fraud.

Fraudulent claims can arise from:

• Providing false information in your application to get a better rate
• Inflating your damages in an accident to get a higher settlement
• Staging auto accidents to obtain an insurance payout
• Staging car theft or damage by fire to claim the car’s original value

Since auto insurance fraud is rampant everywhere, there are strict laws and penalties to combat the occurrences. Do remember that your insurer might also wrongly deny your request for a claim in which case you can file a complaint with the Division of Insurance.

Penalty for Insurance Fraud

Statute of Limitations in Alaska

After an accident, you have a time limit to file a lawsuit against the at-fault party.

What are the vehicle licensing laws in Alaska?

Now that we have looked at the state-level laws and their impact, let’s look at laws that help us be up-to-date with our license and insurance documentation.

In the next few sections, we would cover questions like – when can teenagers apply for a driving license? what are the penalties for driving without car insurance? how long is your license valid?

Penalties for Driving without Car Insurance in Alaska

State laws in Alaska require motorists to carry the minimum liability coverage insurance at all times while their vehicle is registered (with exceptions in certain remote areas).

Anyone driving without car insurance in Alaska can be penalized with a fine of up to $500 along with the possibility of driver’s license suspension for up to a year. If an uninusred motorist is involved in an accident, the driver’s license can be suspended for up to three years.

Teen Driving Laws in Alaska

In the eyes of the law, teenagers are considered high-risk drivers because of their inexperience in driving and limited knowledge of the laws in their state.

That’s why it’s important for teens to be very careful on the road while driving and follow the law under every circumstance. This also helps in keeping premium rates low for teens.

We hope that you would follow the advice shared in the video above for getting better premium rates. Now, let’s look at the licensing laws for teens in Alaska.

Instruction Permit

The minimum age to apply for an instruction permit is 14. The teenager must be accompanied at all times by a licensed driver who’s at least 21 and has a driving experience of at least one year. The instruction permit has a validity of two years.

Provisional License

At the age of 16, teens are eligible to apply for a provisional license provided they have completed the mandatory holding period of six months for the instruction permit and maintained a clean driving record.

In addition, you have to show proof that you have completed 40 hours of driving which included 10 hours of nighttime driving.

Restrictions on a provisional license: You aren’t allowed to drive with passengers under the age of 21, exceptions being siblings, and may not drive during the night hours of 1 a.m to 5 a.m.

Unrestricted License

Teens are allowed to apply for an unrestricted license when they turn 18 provided they have followed the restrictions and maintained a clean record. You may visit your local DMV office to apply for your driving license.

License Renewal Procedure in Alaska

Everyone in Alaska is required to renew their driver’s license every five years irrespective of age. Renewals by mail and online renewals are permitted for those under 69, while the older population has to renew their license in person.

What are the rules of the road in Alaska?

When was the last time you checked the car seat laws, speed limits on highways, move over laws, and ridesharing laws in Alaska? Once we start driving, we lose touch with these laws and follow what others are doing on the road.

We will look at some of these laws in the next section so that you can be safer on the road. Also, if you’re a new resident of Alaska, you must know about these rules.

Fault vs No-Fault

Alaska follows the tort system or the at-fault system for car insurance which means the at-fault party in an accident is responsible for paying the damages. The mandatory liability coverage in Alaska helps at-fault parties to claim damages from their insurer.

Seat Belt Laws in Alaska

The car seat laws in Alaska require all riders of a car to wear a seat belt irrespective of their seat in the car.

Car Seat Laws in Alaska

Car seat laws for children are applicable to all kids younger than four. There are certain seat requirements for children depending on their age and weight in Alaska.

Keep Right and Move Over Laws in Alaska

If you’re driving under the speed limit, you aren’t allowed to drive in the left lane as per the state laws.

If you happen to notice a stationary emergency vehicle (including animal control vehicles) with flashing lights, you are required to either slow down or vacate the lane next to the stationary vehicle if it’s safe to do so.

Speed Limits in Alaska

The maximum posted limits on the highways and freeways of Alaska is 65 mph. While driving, motorists must follow the posted limits on different types of roads and take special care when the weather conditions are severe.

Ridesharing Laws in Alaska

In June 2017, the Governor of Alaska signed an act, HB 132, to regulate the operation of transportation network companies (TNC) such as Uber and Lyft. Also known as the Let’s Ride Alaska Act, the new law established a uniform code for TNC’ across the state.

Requirements to work as a driver:

• No criminal record
• Clean driving record in the past
• 21 years or older
• Need to include information like name, age, address, motor vehicle registration, insurance, and driving license number in the application

The ridesharing laws don’t allow anyone to drive if they have been convicted in the past or listed on the sex offenders website.

What are the safety laws in Alaska?

We would now look at the safety laws in Alaska, regulations that make it safer for everyone to drive on the roads.

In this section, we will understand the penalties for distracted driving or driving under the influence of alcohol/other substances.

DUI Laws in Alaska

Driving under the influence of alcohol is not only dangerous for you as it can lead to fatal crashes but impact other motorists and pedestrians as well.

In the year 2014, Alaska witnessed 29 alcohol-imparied driving fatalities, which includes those who weren’t even driving in those crashes.

What is the minimum blood alcohol content (BAC) for a DUI offense in Alaska?

If you’re under the age of 21, there’s a zero-tolerance policy under the DUI laws – that means you aren’t allowed to drive after drinking under any circumstance.

If you’re above 21, the BAC limit for DUI is 0.08 percent. For commercial drivers, the BAC limit is 0.04 percent.

What are the penalties for DUI in Alaska?

• First Offense: Motorists are fined a minimum of $1,500 and face jail time of at least three days for the first DUI offense. In addition, their license is also suspended for a minimum period of 90 days.
• Second Offense: If a motorist is found guilty again within a period of 15 days from the first offense, he/she would be charged a minimum fine of $3,000 and face prison time of at least 20 days. The driver’s license would be revoked for at least a year.
• Third Offense: A third DUI offense, within 15 years, would cost motorists a fine of at least $4,000 and a minimum of 60 days in prison. The driver’s license would be revoked for at least three years.
• Fourth Offense: On the fourth DUI offense, motorists would be fined at least $5,000 with prison time of a minimum 120 days. The driver’s license would be revoked for at least five years.
• Fifth Offense: After the fifth offense, motorists face prison time of at least 240 days and a fine of $6,000. The driver’s license would be revoked for at least five years.

Motorists who have been convicted more than five times for DUI would face minimum jail time of 360 days and a fine of $7,000.

Distracted Driving Laws in Alaska

Alaska’s laws for distracted driving are relaxed as compared to cellphone usage laws in other states.

The state only prohibits motorists from texting while driving and there isn’t a cellphone usage ban otherwise. However, the penalties for texting while driving can be steep, especially if you hit or injure someone.

How bad is vehicle theft in Alaska?

After all the information in the previous sections, you are now well-versed about the state laws related to driving and car insurance in your state.

For instance, you should also know: Alaska is home to some of the most expensive tollways in the United States, so plan your driving here accordingly.

In the next few sections, we would present facts about your state such as car theft stats, fatality rates, teen drunk driving numbers, and EMS response time.

Pickup trucks are the most popular vehicle for theft in Alaska.

How many road fatalities occur in Alaska?

Do you know the fatality rates by weather conditions in your state? Or the reason for most fatal crashes?

Knowing about the fatality rates and reasons behind crashes helps you to be more careful on the road.

Fatal Crashes by Weather Conditions

Traffic Fatalities by Road Type in Alaska

Fatalities by Person Type in Alaska

Fatalities by Crash Type in Alaska

Fatalities Trend for the Top 10 Counties in Alaska

Teen Drinking and Driving

There were 31 arrests for DUI in the year 2016. Traffic fatalities rate for alcohol-impaired driving per 100,000 population was 1.4 in Alaska which was higher than the national average of 1.2.

EMS Response Time in Alaska

What is transportation like?

Traffic congestions, commute time to work, and car ownership numbers do impact your everyday life while you’re driving.

Car Ownership in Alaska

The maximum number of households in Alaska own two cars in line with the national average as per the chart above by Data USA.

Commute Time in Alaska

The employees in Alaska have a shorter commute to work of 17 minutes versus the national average of 25.3 minutes.

Commuter Transportation in Alaska

Most of the people (about 69 percent) in Alaska prefer to drive alone to work, followed by around 12 percent who carpool to their office.

Before making any final decisions on your insurance company, it is important to learn as much as you can about your local insurance providers, and the coverages they offer. Call your local insurance agent to clear up any questions that you might have. Questions to consider asking include, “What is the best coverage plan for me/my family/my situation?” “What are the minimum coverage requirements in my state and what form of coverage do you recommend?” “Do you guys offer any bundle discounts if I take out both my auto insurance and home insurance with you?” and “What is the average rate of insurance quotes you guys offer?”

Before making any big insurance decisions, use our free tool to compare insurance quotes near you. It’s simple, just plug in your zip code and we’ll do the rest!

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