Best Car Insurance in Alaska

The #1 car insurance company is State Farm because it is the largest auto insurer in the U.S., with a market share of 16%. State Farm insures over 80 million people and offers coverage in all 50 states.

Largest Auto Insurance Companies in America

Together, these 10 companies own more than 70% of the auto insurance market share in the U.S. As a result, it shouldn't come as a surprise that these companies tend to be the best options for most types of drivers.

Best Car Insurance Companies by Category

To learn more, check out WalletHub's guides to the best car insurance and the largest auto insurers.

In Alaska, drivers need $50,000 of bodily injury liability insurance per person, up to $100,000 per accident, and $25,000 of property damage liability insurance. Alaska does not require uninsured motorist protection, which replaces the liability coverage an at-fault driver should've had and pays for your costs up to your policy limits. Coverage like MedPay or personal injury protection pays for medical expenses for you and your passengers, and MedPay is optional in Alaska. PIP is not available. If you live in a remote area where vehicle registration is not mandatory.

Here's How Much Car Insurance Drivers Need in Alaska:

If you lease or finance your car, you may be required to carry coverage types that are not mandatory under Alaska law. Lenders usually require comprehensive and collision insurance. Collision insurance covers repairs to your car when you hit another car or object. If the damage to your vehicle was caused by something other than a collision—like a natural disaster, vandalism, falling objects, or animals—it is most likely covered by comprehensive insurance. You might also have to get gap insurance, which covers the difference between what you owe on your loan and what the vehicle is worth at the time of a total loss.

Even if you're not required to carry these optional coverage types, you may still need them. You can learn more about when to drop optional coverage and the penalties for driving without insurance in Alaska to make sure you're paying for the coverage you need.

Car insurance in Alaska costs $45 monthly ($543 per year) for minimum coverage, on average, and around $131 per month ($1,573 annually) for a full-coverage policy. The cheapest insurance companies in Alaska are USAA, State Farm, and Allstate, but insurers calculate premiums differently, so it's a good idea to get quotes from more companies to find the best deal.

Average Cost of Car Insurance in Alaska by Category

• Clean driving record: $49 per month
• After an at-fault accident: $68 per month
• Driver with poor credit: $78 per month
• Teen driver: $153 per month
• After a DUI: $68 per month

The average cost of car insurance in Alaska is 25% lower than  the national average auto insurance premium, and Alaska ranks 18 out of 50 for the most affordable car insurance rates in the U.S.. There are several factors that affect how much you'll pay for car insurance in Alaska, including your driving record, age, location, the amount of coverage that you purchase, and the insurance company you buy it from.

Finally, it's worth noting that car insurance premiums in Alaska are average , compared to the cost of coverage in neighboring states like Washington and Hawaii. You can find more details in the table below. 

Cost of Car Insurance in Alaska vs. Neighboring States

In Alaska, you need $50,000 in bodily injury liability insurance per person ($100,000 per accident) plus $25,000 in property damage liability insurance, if you buy car insurance. Car insurance is not required in Alaska if you live in a remote area where vehicle registration is not mandatory.

Even though Alaska doesn't always require liability insurance, going without it is risky. Buying coverage now can shield you from the financial consequences of causing a serious accident in the future, which could include lawsuits, seized assets, and garnished wages. And if you lease or finance a car, your lender or lessor will likely require you to carry insurance.

Finally, drivers should also consider purchasing other types of car insurance in order to better protect themselves, given that liability insurance does not provide any coverage for the policyholder's own injuries or property. For instance, collision insurance covers damage to the policyholder's car regardless of fault. And comprehensive insurance pays if the policyholder's vehicle is damaged by something besides an accident, like a natural disaster or vandalism.

In Arizona, you need $25,000 in bodily injury liability insurance per person ($50,000 per accident) plus $15,000 in property damage liability insurance to drive legally. These liability insurance requirements can also be written as 25/50/15.

Even though Arizona only requires 25/50/15 in liability insurance, drivers should consider buying more coverage if they can afford it. If you cause an accident that results in damage beyond your policy limits, you will be personally responsible for paying the difference. And no matter what, you should be sure to fulfill the minimum Arizona car insurance requirements to avoid facing consequences for driving without insurance.

Finally, drivers should also consider purchasing other types of car insurance in order to better protect themselves, given that liability insurance does not provide any coverage for the policyholder's own injuries or property. For instance, collision insurance covers damage to the policyholder's car regardless of fault. And comprehensive insurance pays if the policyholder's vehicle is damaged by something besides an accident, like a natural disaster or vandalism.