Candace Baker, Car Insurance Writer
@candacebaker
Car insurance in Alaska costs $39 per month or $470 per year for minimum coverage, on average. The cheapest car insurance companies in Alaska are Cincinnati Insurance, USAA, and Country Financial, and getting quotes from several companies can help you find the best deal.
The average cost of car insurance in Alaska is 14% lower than the national average auto insurance premium. There are several factors that affect how much you'll pay for car insurance in Alaska, including your driving record, age and location, the amount of coverage you purchase, and the insurance company you buy it from.
Average Cost of Car Insurance in Alaska by Category
- After an at-fault accident: $162 per month
- Driver with poor credit: $61 per month
- Teen driver: $197 per month
- After a DUI: $53 per month
Average Cost of Car Insurance in Alaska by Company
Company | Minimum Coverage | Full Coverage |
$417 per year | $2,529 per year | |
$316 per year | $1,060 per year | |
$1,052 per year | $2,407 per year | |
$404 per year | $1,320 per year | |
$258 per year | $1,152 per year | |
$374 per year | $1,604 per year |
Note: Rates are an approximation based on a 45-year-old man in Alaska with a clean driving record. Actual rates will vary.
Average Cost of Car Insurance in Alaska by Age
Age | Average Premium |
$2,363 per year | |
$1,966 per year | |
$1,629 per year | |
$1,155 per year | |
$1,028 per year | |
$874 per year | |
$783 per year | |
$718 per year | |
$657 per year | |
$567 per year | |
$488 per year | |
$470 per year | |
$443 per year | |
$503 per year |
Note: Rates are an approximation based on a driver in Alaska with minimum coverage and a clean driving record. Actual rates will vary.
How to Lower the Cost of Car Insurance in Alaska
- Shop around and compare quotes. We recommend comparing quotes from at least three different insurance companies to make sure you are getting the best rate.
- Choose a higher deductible. Your deductible is the amount you have to pay out of pocket before your insurance kicks in. Choosing a higher deductible can lower your premiums but means you will have to pay more out-of-pocket when you file a claim.
- Consider lowering your coverage. Consider purchasing only the minimum amount of coverage required by your state, rather than purchasing higher limits or a full coverage policy.
- Look for discounts you may be eligible for. For instance, most insurance companies offer a good-driver discount for customers with a clean driving record, a good-student discount, or a discount for paying your premiums in full up front.
To learn more, check out our guide to how much car insurance you need in Alaska as well as our picks for the cheapest car insurance companies in Alaska.
People also ask
How much car insurance do I need in Alaska?
Drivers in Alaska need $50,000 of bodily injury liability insurance per person (up to $100,000 per accident) and $25,000 of property damage liability insurance. Collision, comprehensive and gap insurance may also be required by a lender or lessor if your vehicle is financed.
In addition, an optional but recommended type of coverage in Alaska is uninsured/underinsured motorist insurance. It replaces the liability coverage an at-fault driver should’ve had and pays for your costs up to your policy limits.
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read full answerWhy is Alaska car insurance so expensive?
Car insurance in Alaska is expensive because state-mandated liability coverage is high to cover the expense of its severe weather and remote locations. In Alaska, you can expect to pay around $3,401 per year for full coverage car insurance, compared to the national average of $4,211 per year. Car insurance in Alaska is less expensive than the national average, which is around $4,211 per year for full coverage and about $1,407 per year for minimum coverage.
The cost of car insurance is steadily increasing,...
read full answerWhat is the penalty for driving without insurance in Alaska?
The penalties for driving without insurance in Alaska can include fines, a 90-day license suspension, and imprisonment. Penalties for repeat offenses may be even harsher, including a 1-year license suspension, a registration suspension and a longer jail sentence.
Penalties for Driving Without Insurance in Alaska
| Type of Offense | License and/or Registration Suspended? | Car Impounded? | Jail Time? | SR-22 Required? | Maximum Fines & Fees |
| No Proof of Insurance (Can Prove Coverage Later) | Yes | Yes | No | No | None |
| 1ST Offense With No Coverage | Yes, license | Yes | Yes, if involved in an accident | No | $500 for each offense |
| Repeat Offense (No Coverage) | Yes, license | Yes | No | Yes | $500 for each offense |
Not having car insurance and not being able to prove that you have it are two different violations. If you have insurance but cannot prove it when you get pulled over or at the scene of an accident, the DMV may suspend your driver’s license, your privilege to drive, or your privilege to obtain a license. Your vehicle may be impounded, too. You may be able to get these penalties waived if you can prove you carried the proper insurance coverage after you are cited. In Alaska, you have 15 days to prove you had liability insurance in effect at the time of a crash.
Driving without car insurance at all is much more serious, and the penalties are more severe. In addition to the legal consequences, you can expect your car insurance premium to go up.
You can avoid these consequences by meeting Alaska’s minimum car insurance requirements.
Required Car Insurance in Alaska
- $50,000 in bodily injury liability coverage per person
- $100,000 in bodily injury liability coverage per accident
- $25,000 in liability coverage for property damage
Best Car Insurance in Alaska After a Lapse in Coverage
Drivers in Alaska pay an average of $975 per year to maintain the minimum amount of coverage. That’s nothing compared to the consequences of driving without insurance, especially if you get into an accident.
What Happens If You Get Into a Car Accident Without Insurance in Alaska?
- If you get into an accident: all penalties will apply. If you get into an accident while driving without insurance in Alaska, you will incur the penalties for driving without insurance no matter who is at fault. In addition, driving uninsured can make it difficult to be compensated for damages if you are not at fault and can have long-lasting and life-changing consequences if you are at fault.
- If the accident is your fault: you’ll have to pay for all the damages out of your own pocket. In addition to the legal consequences of driving without insurance, you could easily be responsible for tens of thousands of dollars or more in damages to your vehicle, the other driver’s car repairs and hospital bills, and your own medical care. You could face mounting debt or even bankruptcy, especially if the other driver doesn’t carry uninsured motorist coverage or personal injury protection.
- Even if you were not at fault or only partially at fault, there will be other consequences. Driving uninsured doesn’t negate the other driver’s fault entirely, but you’re almost certainly going to be penalized and unable to recover everything you would be entitled to if you had insurance. In at-fault states such as Alaska, the driver who caused the accident is usually responsible for damage to your car and any medical treatment you may need. However, Alaska is a “no pay, no play” state, which means drivers cannot pursue certain damages after an accident, regardless of fault, if they were uninsured at the time the accident occurred. Specifically, no pay, no play in Alaska means you cannot recover non-economic damages (e.g., pain and suffering or emotional stress) if you were driving uninsured, unless the at-fault driver was intoxicated, acted with intent, or fled the scene.
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