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:

Average annual rate in Alaska
$0 $5,000
North Carolina car owners pay the least
Average annual rate in the US
Michigan car owners pay the most

Enter your ZIP code to find your best rates:

Find the best auto insurance in Alaska

Enter your ZIP code to find your best rates:

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

Bodily Injury

per person
per accident

Property Damage

per accident

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

Yearly Rate

  • $2,164
  • $2,179
  • $895
  • $1,498
  • $1,181
    State 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.

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

Population: 300,950

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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