The Best Alaska Auto Insurance Company
Alaska’s auto insurance rates are right in line with the national average — $1,027 per year, compared to $1,009 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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Thanks to intense winters and lots of rural roads, driving in Alaska can be an adventure (much like living there). The good news is auto insurance in Alaska is actually less expensive than the national average. Depending on what kind of driving you do in the Land of the Midnight Sun, you’ll want to consider your auto insurance carefully.
If you mainly drive around town, you may want to just stick to the required liability coverage. But if you do a lot of driving in rural or wilderness areas, you may want to add comprehensive coverage to protect you from damage from other events, like theft, vandalism, or collision with an animal. Legally, companies in Alaska also have to offer an uninsured/underinsured motorist liability policy that protects you if you end up in an accident with a driver who doesn’t have insurance, but it’s considered an optional extra.
Alaska Minimum Liability
Minimum liability is the lowest amount of auto insurance coverage your state requires in order to legally drive there. This is generally a liability limit covering bodily injury and property damage referred to by three numbers. Alaska’s is noted as 50/100/25, which means:
- $50,000 bodily injury coverage per person
- $100,000 bodily injury coverage per accident
- $25,000 property damage coverage per accident
This is one of the higher minimum liability limits in the nation, which means that insured people in Alaska are going to be better off in actually covering the costs of an accident than in many states, even if they only buy the bare minimum. However, you should consider buying as much auto insurance as you can afford, as you never know what kind of coverage you’ll need. For instance, an accident with a brand-new car worth $55,000 might mean that $25,000 of property damage could still leave you with quite a big bill to pay for the rest of the damage.
Another unique feature of Alaskan auto insurance is that every company is required to offer (50/100/25) insurance for uninsured/underinsured motorist coverage, too. This is what will cover your bodily injury or property damage costs if the other driver is uninsured or underinsured. You don’t have to accept this coverage — you’ll need to reject it in writing if you don’t — but it’s clearly something policy makers are trying to encourage in order to protect motorists in the event of an accident with a driver who doesn’t have enough insurance
Of course, there are lots of things to consider when it comes to what will be the best auto insurance package for you and many different factors determine your auto insurance premium. So the best thing to do when looking for auto insurance is to shop around. Our review on the top providers in Alaska is a great place to start the process.
How We Found the Best Auto Insurance in Alaska
We didn't consider USAA.USAA is also one of the largest auto insurance providers in Alaska and has an excellent reputation for coverage and customer service. However, because it’s only available to military members and their families we can’t recommend it for everyone. If you’re eligible, be sure to check it out.
To find the best auto insurance companies in Alaska we used a similar methodology to our review on nationwide providers. We started with the four largest auto insurance providers in Alaska by market share: State Farm, GEICO, Allstate, and Progressive. Then, we evaluated these five providers based on their coverage options. We made sure they each offered at least the basic kinds of coverage many drivers are interested in: liability, comprehensive, and collision. We checked each company’s website for how many of the supplemental coverage options (endorsements) and discount options they offered from our lists of the most common and popular endorsements and discounts.
We also evaluated each company’s site for its customer service, education, and navigation tools, seeing, for example, whether a company offers a live chat with customer service option or a helpful FAQ section that might actually answer some of your questions you have while shopping. Then, we consulted JD Power and Consumer Reports — to see how each company’s customer service and claims service ratings stacked up — and Moody’s, AM Best, and S&P Global — for their most recent financial stability ratings for each company. Lastly, we tested online quote tools for each provider.
Alaska Auto Insurance Reviews
Our analysis showed that GEICO is a great place for Alaska drivers to start looking for auto insurance. For every category we analyzed, GEICO was a solid all-rounder. The GEICO website provides all the basic information regarding coverage options, endorsements, and discounts, as well as an informative state-specific page that lays out the requirements of drivers looking for auto insurance in Alaska.
GEICO really stood out with the most offered discounts of any of our five contenders — offering 15 of the 27 most popular discounts we looked for, including ones many drivers might be able to take advantage of, like multi-policy and multi-car discounts. There are also several for good drivers, enrollment in driving courses, and whether your car has safety devices, like anti-lock brakes, airbags, and daytime lights. It doesn’t offer the most endorsements, that crown goes to Allstate, but still lays out 11 of the most common ones we looked for — including mechanical breakdown coverage, umbrella coverage and accident forgiveness.
GEICO has a good reputation when it comes to customer service and claims satisfaction, earning an 89/100 overall customer rating from Consumer Reports and 3 out of 5 from JD Power for overall satisfaction and claims experience — ratings second only to USAA, widely considered the benchmark for sterling customer satisfaction (not included in our top picks as it’s limited to military members and their families). GEICO, a subsidiary of Warren Buffett’s Berkshire Hathaway group, also boasts superior financial stability ratings, again second only to USAA.
Overall, we enjoyed the experience of shopping for auto insurance with GEICO, especially the online quote tool, which was quick and easy to use and allowed us to adjust coverage options to see how adding/removing certain endorsements affected our monthly premium.
State Farm is another solid all-rounder in auto insurance. Its informative and easy to navigate website clearly outlines a range of good coverage options. Though there’s no live customer service chat offered, a feature we liked on the GEICO and Progressive websites, there is a whole resource page dedicated to tips about auto insurance and ownership.
State Farm also boasts a good reputation when it comes to customer service and claims experience, earning the exact same grades as our top pick, GEICO — 89/100 overall customer rating from Consumer Reports and 3 out of 5 from JD Power for overall satisfaction and claims experience. You can rest assured when it comes to State Farm’s financial stability as well, the company earns extremely high ratings from Moody’s, AM Best, and S&P Global. While GEICO earned slightly higher financial ratings, both companies are rated very highly and considered stable.
State Farm provides a significant number of discounts — just behind those offered by GEICO — including a healthy driving habits discount for those with a clean driving record and a student-away-at-school discount if you want a break on insuring a driver who lives far from home and won’t be driving that often. It also offers the same number of endorsements as GEICO, which at 11 is slightly less than competitors Allstate and Progressive, but they include the most important, like liability (including for uninsured/underinsured drivers), collision, and comprehensive, as well as add-ons, such as rental reimbursement if you have to rent a car while yours isn’t driveable, and coverage specifically tailored for teen drivers.
One thing we didn’t like about State Farm’s online quote process was that you have to provide a social security number or driver’s license number to get an online quote. Since they’re the only one of our top picks that require this, it seems like an unnecessary hurdle to receive potential pricing. That said, you can always get a quote from an agent over the phone.
If customizing your auto insurance policy is top on your priority list, Allstate offers the most endorsements and supplemental insurance options of any of our top picks. They cover all the basics, liability and under/uninsured motorist coverage, collision, and comprehensive coverage, as well as some options we couldn’t get with other companies, like new car replacement and property protection coverage.
Allstate was one of only two companies (the other was State Farm) in our top picks for Alaska to offer rideshare coverage, so you can be covered if you drive for Uber or Lyft. It also offers a range of discounts, although slightly fewer than GEICO or State Farm. Allstate was the only one of our top picks to offer an early signing discount, up to 10% off if you sign your policy seven days before it becomes effective.
Allstate had good scores from Consumer Reports, an 88/100 reader score for overall satisfaction, “Very Good” (the second-best rating) for simplicity of claims process, and “Excellent” (the best rating) for the all-important timely claims payments. Where Allstate stumbles a bit is in its JD Power Customer Service ratings, for which it receives just 2 out of 5 for both overall customer satisfaction and claims experience. Allstate’s financial stability ratings, too, while still good and considered stable by all three ratings companies we checked, are lower than the others in our top picks.
The Allstate website doesn’t offer an FAQ section or a customer service option for live chat with an agent, however, it generally does offer a lot of clear info about coverage options, available discounts and endorsements, as well as a state-specific page outlining the requirements for auto insurance in Alaska. Allstate’s online quote tool stood out as easy to use, quick, and customizable, which makes it easier to figure out whether they’re the right auto insurer for you.
Of our five top picks for Alaska, Progressive’s website was the most informative and educational with more resources and customer service tools, like a customer service live chat option, an informative FAQ section, and easy to find info on coverage options, discounts and endorsements.
Progressive also offered the second-most endorsements and supplemental coverage options, 13 out of the 20 we looked for. It’s the only company we analyzed to offer a gap loan/lease payoff if your car is declared a total loss and you owe your lender more than the declared cash value of the car. It’s also the only company in our top picks to offer pet injury coverage as part of its collision coverage, which would cover vet bills for a pet injured in a covered accident.
While Progressive offers fewer discounts than our other top picks, 10 out of the 27 we looked for, it wasn’t by a huge margin — the company we looked at that offered the most, GEICO offered just 15 out of 27. And it may well have the right discounts for your situation. For instance, Progressive was the only company in our top picks to offer a teen driver discount for adding a new driver (under 18) to your policy.
Progressive had nearly identical JD Power and Consumer Reports ratings to Allstate, 2 out of 5 from JD Power for overall rating and claims experience rating, and a “Very Good” (second-best) rating for Simplicity of Claims Process from Consumer Reports and “Excellent” (best) rating for Claims Timely Payment. It did receive one point lower than Allstate, 87/100, for the Consumer Reports overall reader score. Though overall, these are still good scores that shouldn’t scare you away. The same goes for financial stability ratings, while Progressive’s are slightly lower than GEICO’s, and State Farm’s, they are still considered good, stable ratings.
We also loved Progressive’s online quote tool, which was easy to use, gave us a quick estimate and allowed us to quickly see how adjusting certain coverage areas would affect our estimated premium.
Premiums Vary — Shop Around for Coverage That Fits
|Premium for at least: min. liability (50/100/25*)||$57.45/month||$86/month||$82.02/month|
|Premium for at least: min. liability (50/100/25) + 50/100/25 for un-/underinsured motorist coverage||$72.74/month||$108/month||$98.86/month|
|Premium for at least: min. liability (50/100/25) + 50/100/25 for un-/underinsured motorist coverage + $500 deductible comprehensive coverage**||$76.78/month||$144/month||$107.86/month|
Quotes based on — Driver: Single, 37-year-old female; Vehicle: 2010 Subaru Forester; Location: Anchorage, AK
*Alaska’s state minimum liability coverage: $50,000 bodily injury coverage per person/ $100,000 bodily injury coverage per accident/ $25,000 property damage coverage per accident
**Comprehensive coverage pays to repair damage to your car that’s caused by something other than a collision, like: fire, theft, vandalism, hail, flood, or hitting an animal (something to think about in Alaska!)
Shopping around for your auto insurance coverage is important to get the best price on your premium for the coverage that works best for you. You can tell by looking at the chart above that premiums vary from company to company based on different amounts and types of coverage. For example, the quoted premium from GEICO for a 50/100/25 liability coverage, plus the same amount of liability coverage for uninsured/underinsured motorist coverage, plus a $500 deductible comprehensive coverage option, to cover you for damage not caused by an accident (like, say, running into an animal on a rural Alaskan road) is still less than the quoted premium for the same person and car from Allstate and Progressive for just the minimum liability 50/100/25 coverage required by Alaska. Of course, your premiums may vary even more from these example quotes since companies also take into account factors like your age, location, and vehicle.
Keep an Eye On Your Credit
A bill passed in Alaska in March 2018 means that insurers in the state can use credit data to determine premium rates when a policy is renewed. Before this, insurers in the state could already use a consumer’s credit score when determining the premium when first buying a policy with the company, but the new bill means that credit score can continue to be checked each time a policy is renewed, potentially impacting your premium rate.
Supporters of the new law say that consumers with good credit history will save money on their insurance premiums, while opponents say it will result in potentially higher auto insurance costs for rural Alaskans, racial minorities, the elderly, and the poor. In any case, whether you’re shopping for new car insurance or considering renewing your existing policy in Alaska, it’s important to be aware of your credit rating and how it might affect your premium.