Car insurance in Alaska costs roughly $85 per month, or $1,021 per year, on average. That is roughly equal to drivers in other states typically pay for car insurance.
How Much Insurance Costs in Alaska for:
- Good drivers: $1,080
- New student drivers: $5,447
- High-risk drivers: $2,808
Where Alaska Insurance Rates Rank Nationally
Alaska ranks 23 out of 50 for the most affordable car insurance rates in the U.S. For context, Michigan has the most expensive insurance in the country, with drivers paying an average of $2,693 per year. And on the other end of the spectrum, Maine has the lowest average car insurance rate, at $896 per year.
Below, you can see how car insurance costs in Alaska compare to rates in other states.
||Average Cost of Car Insurance per Year
Why Is Alaska Car Insurance Reasonably Priced?
Low Crime Rate
Alaska has a moderate crime rate compared to other parts of the country. Higher crime means a higher likelihood of vandalism or theft, which raises insurance rates. So Alaska's insurance costs less than states with more crime.
Lower Insurance Requirements
State laws affect insurance costs, too. Alaska has lower insurance requirements than many other states, which means insurance is slightly cheaper.
State fault laws: Since Alaska's insurance is at-fault, car insurance costs are a bit cheaper. No-fault insurance states tend to see a lot of fraud, which raises costs.
In addition to these statewide factors influencing car insurance costs, your personal information also affects the price you pay for insurance. Some of the most impactful data points are high-risk violations on your record (e.g. DUI), your age, and your car’s make and model. In Alaska, a driver's credit score affects their insurance costs, too - a driver with no credit pays an average of 71% more than a driver with good credit.
Whether you are considered a responsible or high-risk driver, it is always worthwhile to compare costs between several insurance companies. In other words, make sure to shop around to find a good deal for your demographic.
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