Auto Insurance in Alaska
Alaska’s auto insurance rates are right in line with the national average — $1,583 per year, compared to $1,669 nationwide. That said, how much you’ll pay can vary a lot depending on your car, your coverage, and your address. Use our tool to find your best rates:
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Our Review of the Best Auto Insurance in Alaska
With winter daytime temperatures that rarely rise above freezing, the state sees a lot of insurance claims related to ice and snow. The population is also small in comparison to the geographical size of the state, so risk is spread over much fewer drivers. This keeps car insurance rates high across the state.
Alaska Minimum Liability
All drivers should carry minimum liability coverage that is 50/100/50 or better, meaning $50,000 per person for bodily injury, $100,000 per accident for bodily injury, and $50,000 for property damage. The minimum liability coverage allowed in the state of Alaska is 50/100/25, providing adequate protection. Ideally, however, you should get better coverage, such as 100/300/100, to fully protect you from out-of-pocket costs in the event of a car accident.
The difference between your coverage and the actual damages from the accident has to be covered by you. Having the minimum coverage would only avoid out-of-pocket expenses if your accident happens to have average damages, which were $3,231 for property damage and $15,443 for bodily injury in 2013. However, half of all accidents are more expensive than these figures. Some can cost tens or hundreds of thousands of dollars. If the amount of your auto insurance coverage is not larger than the damages from the accident, you are on the hook to pay the remainder.
The best strategy for finding the right car insurance is to get quotes from several companies. This helps you determine which company offers the best rate, since different companies often treat your driver profile differently. Occasionally, you can find a hidden gem of a rate by shopping through several quotes.
Cheapest Car Insurance in Alaska
- $1,181State Farm
If you only care about the price of your car insurance, then the companies listed above are your best choices in Alaska. These offer the lowest rates around, but there may be hidden dangers with low-rate auto insurance.
These dangers can materialize in many ways, but you can be sure the company has cut back somewhere in order to deliver the cheapest price. Low-cost car insurance typically comes with poor customer service and a less-than-easy claims process. Rather than assigning an agent to your claim, the company may point you to a website. Where the agent would take care of all the paperwork for you, it may be you navigating the claims forms on your own. If this is not a problem for you, and you truly want cheap coverage, then these auto insurance companies can be quite affordable.
Most Popular Companies by Marketshare
- State Farm
The specific needs of drivers in Alaska are regularly met by the most popular car insurance companies in the state. These companies have the largest numbers of customers when compared with other auto insurance companies throughout the state. However, just because they are popular does not mean they are the best.
Typically, these companies have larger ad budgets, and this helps them attract clients. The only way to know which car insurance company is right for you is to get quotes from several auto insurance companies and compare them. This lets you know if the popular one is also the right one for you.
Choosing the Best Car Insurance in Alaska
When you’re looking for the best auto insurance company, try to find a top-rated company you are comfortable with. Some characteristics that can help you identify the best company for your needs are fair premiums, exemplary customer service, extensive options for coverage and discounts.
You need to know that your auto insurance agency will be there when you need it, won’t overcharge you and will answer any questions that come up. Having a solid financial standing ensures the company will be there when you need to file a claim. Additionally, real agents, discounts and a fair claims process go a long way toward establishing a good relationship with customers, and fair premiums ensure you can afford to stick with the best car insurance company once you’ve found it.
Where is car insurance most affordable?
The largest city in Alaska also offers the best rates on car insurance in the state. With much of the population of Alaska living in Anchorage, insurers have a large pool of clients to draw from. The rate of insurance for the residents of Anchorage pretty much equals the rate for all Alaskans.
Anchorage Auto Insurance
Anchorage is the most populated city in Alaska. It has 300,950 residents, about 44 percent of the entire state population. As a tax-friendly city, Anchorage offers a number of benefits to its residents. The car insurance rates in the city are average for the state, but your individual premium will depend on factors such as your driving history, the type of vehicle you’re insuring, and your age.
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