Cheap Car Insurance Companies In Alaska

The average semiannual cost of car insurance in the state of Alaska is $964.30. An insured premiums are influenced by more variables than purely their place of residence. Car insurance underwriters calculate auto insurance rates after assessing a range of criteria such as the policyholder’s age, driving record, marital status, and credit rating. We examined typical car insurance costs in Alaska across each of the predominant rating factors. We aim to provide consumers insight to identify a car insurance policy that meets their needs and budget.

*Data Methodology – Updated 2/27/2024

The Alaska car insurance rates are based on a 35-year-old male with the most popular car (Honda Accord) living in AK. The Quote is for full coverage with comprehensive at $500 deductible and collision at $500 deductible.

Alaska Minimum Liability Coverage

Alaska has minimum liability insurance requirements for all drivers. Maintaining at least the state minimum liability coverage is essential to legally drive in Alaska.

Alaska mandates the following minimum coverage amounts:

• Bodily Injury Liability – $50,000 per person and $100,000 per accident. This covers injuries sustained by other drivers and passengers involved in an accident you cause.
• Property Damage Liability – $25,000. This covers damages to other vehicles and property resulting from an accident you cause.
• Personal Injury Protection (PIP) – $10,000. PIP covers medical expenses for you and your passengers resulting from an accident, regardless of fault.

In addition to the minimum liability limits, Alaska recommends drivers carry additional coverage:

• Uninsured/Underinsured Motorist – Coverage for injuries caused by drivers with no insurance or insufficient coverage.
• Medical Payments (MedPay) – Covers medical expenses for you and your passengers, regardless of fault. It supplements PIP coverage.
• Collision – Covers damage to your own vehicle from a collision with another vehicle or object.
• Comprehensive – Covers damage to your vehicle from events other than a collision, like theft, fire, vandalism, flooding, and falling objects.

Penalties for Driving Without Insurance in Alaska

Driving without insurance in Alaska is illegal and comes with serious consequences. In Alaska, all drivers are required by law to carry liability insurance on any vehicle they operate on public roads. If caught driving without insurance, you may face significant penalties.

The minimum penalties for a first offense of driving without insurance in Alaska include:

• A fine between $500 to $1,000. The fine amounts increase for subsequent offenses.
• Up to 90 days in jail, though jail time is typically reserved for repeat offenders.
• A suspended driver’s license for up to 3 months for a first offense and up to 1 year for a second offense within 5 years.
• Your vehicle may be subject to impoundment, depending on the local jurisdiction. Impound fees can be costly to retrieve your vehicle.

Beyond these minimum penalties, you may also face higher insurance premiums for several years. Insurance companies typically consider a no insurance violation as very high risk and may refuse to provide you coverage or significantly increase your rates for 3 to 5 years after the violation. This can translate to thousands of dollars in higher premium costs over time.

Auto Insurance Rates in Alaska

Auto insurance rates in Alaska tend to be higher compared to other states for several reasons. Alaska has a higher rate of uninsured motorists, which means insurance companies have to charge more to cover claims. Road conditions also contribute to higher accident rates and more severe accidents in Alaska.

Alaska has many rural areas with limited road access, forcing drivers to navigate winding roads, unpaved back roads, and hazardous winter conditions. This leads to more at-fault accidents that raise insurance rates. Severe winter weather also causes longer periods of vehicle disuse, leading to more wear and tear on vehicles when they are finally operated again. Older vehicles in poor condition cost more to insure.

Alaska’s remoteness means medical and auto repair costs are typically higher, so insurance payouts tend to be larger. This means insurers need to charge higher premiums to remain profitable. The state also has fewer insurance companies actively providing coverage compared to other states, reducing competition and allowing those that remain to charge above-average rates.

Low Cost Car Insurance Programs and Discounts in Alaska

Car insurance rates in Alaska tend to be higher than the national average due to the harsh winter conditions, remote locations, and high vehicle repair costs. However, there are several ways you can lower your premiums and find affordable car insurance in Alaska.

Government-Run Programs: The Alaska Temporary Assistance Program offers subsidized car insurance to low-income households. To qualify, your income must be below 150% of the federal poverty level. The state also offers high-risk drivers the Alaska Automobile Insurance Plan, which provides coverage to those who cannot obtain it through regular insurance companies.

Discounts: Many insurance companies offer discounts to Alaska drivers that can lower your premium by 5% to 30%. The most common discounts are for good students, good drivers, multiple policies, military service, and being claim-free for several years. Some insurers also provide discounts for completing a defensive driving course, installing anti-theft devices, or bundling homeowners coverage.

Group Plans: Certain organizations, workplaces, and unions offer group insurance plans for their members that are often more affordable. Group plans pool members together to achieve lower rates due to the higher overall volume of policies. Check with your employer, alumni association, credit union, or other groups you belong to for potential group insurance options.

Shop Around: Compare rates from multiple insurance companies as rates can vary significantly between providers. Get at least three quotes to find the best coverage at the most affordable price. Consider both national carriers and smaller regional insurers, as some may offer better deals for Alaska drivers.

Alaska Car Insurance Statistics

Alaska has some of the highest car insurance rates in the United States, driven by a number of factors related to the state’s conditions and demographics.

The most significant contributor to Alaska’s high auto insurance costs is the state’s harsh environment. The state experiences extreme cold temperatures for much of the year, along with ice, snow, and hazardous road conditions that make driving difficult and increase accidents. Additionally, Alaska has a higher rate of theft and vandalism compared to the rest of the U.S., increasing claims costs for insurers.

Alaska also has a lower population density, with many remote areas that are difficult and expensive for insurers to serve. The long distances between cities mean that accident victims often require medical evacuation via air ambulance, which significantly increases medical claim costs. The lack of public transit options in much of the state also means that Alaskans are highly dependent on personal vehicles.

Alaska’s demographics also play a role, with a higher proportion of high-risk drivers. Alaska has a younger population compared to the national average, with more teenagers and drivers under 25 who tend to file more claims. The state also has a large Native American population, which insurance companies consider a high-risk group due to socioeconomic factors.

The 10 Largest Alaska Car Insurance Companies

Alaska is known for its rugged beauty and vast open spaces, but car insurance can still cost a pretty penny in the Last Frontier State. The combination of harsh weather, long distances between towns, and high repair costs mean Alaskans pay some of the highest auto insurance premiums in the nation. Here are the 10 largest auto insurance companies in Alaska based on market share:

1. State Farm – State Farm has the largest market share of any auto insurer in Alaska at around 16%. They offer a full range of coverage options for Alaskan drivers.
2. Progressive – Progressive has around 13% of the Alaska car insurance market. They are known for offering some of the most customizable policies.
3. GEICO – GEICO insures around 10% of Alaskan drivers. They are one of the more affordable options, especially for good drivers.
4. USAA – USAA serves around 7% of the Alaska insurance market. They specialize in serving military members, veterans, and their families.
5. Liberty Mutual – Liberty Mutual has a market share of around 6% in Alaska. They are known for providing higher liability limits.
6. Allstate – Allstate insures around 5% of Alaska drivers. They offer a variety of discounts and add-on coverages.
7. Farmers – Farmers has a market share of roughly 4% in Alaska. They are known for personalized service and claims handling.
8. Nationwide – Nationwide insures about 3% of Alaskan drivers. They are focused on offering simple and transparent policies.
9. AAA – AAA has around 2% of the Alaska car insurance market. They are best for members who value their roadside assistance benefits.
10. Alaska National – Alaska National is an Alaska-based insurer with around 2% market share. They specialize in serving Alaskan drivers.