Car Insurance in Alaska

With a little planning, Alaska car owners can enjoy below average premiums for car insurance, while still adhering to state-mandated guidelines. The following summary represents the latest available info about car insurance in the state of Alaska. This will help you choose the auto insurance package that works best for you.

Alaska Minimum Liability Coverage

Insurance terminology calls the minimum required insurance coverage for each vehicle owned in the state of Alaska “50/100/25.” These numbers refer to the dollar amounts (in thousands) paid out in accident-related damages to insured drivers, and to others who suffer injury or property loss from the accident. In other words, Alaska drivers are required to purchase no less than $50,000 in Personal Injury Protection (PIP), $100,000 in per-accident protection and $25,000 in coverage against property damage. Maine and Alaska are tied for having the highest minimum required bodily injury liability limits in the U.S. However, in Alaska, the rules do not apply statewide. Many Alaskan villages do not require auto registration or insurance. The Alaska DMV publishes an annual list of areas with no car insurance requirements.

Penalties for Driving Without Insurance in Alaska

Driving without insurance in Alaska can result in a fine of $500 for each offense, along with getting your license suspended for 90 days, or possibly even revoked. If this happens, the driver must file an SR-22 form (proof of minimum coverage) as part of the mandated car insurance policy. The driver must then carry the SR-22 for at least three years.

Auto Insurance Rates in Alaska

The average annual premium for Alaska car insurance was $1,078 in 2016, according to available statistical data. This is low compared to the national average, which was $1,347 for the same year.  Alaska’s low car insurance rates are probably the result of Alaska’s low crime rates, as well as a very low population density, which results in far fewer auto accidents.

Low Cost Car Insurance Programs in Alaska

As in most states, auto insurance companies in Alaska offer various discounts for good driver behavior, both on and off the road. Super safe drivers might score an Accident-Free Discount or a Good Driver Discount. Good student discounts are also available, as well as defensive driving course discounts (for senior citizens), multiple auto discounts, multiple vehicle discounts and multiple policy discounts. Also available are passive restraint discounts, anti-theft discounts and vehicle safety discounts, among others.

Obtaining Auto Insurance Quotes in Alaska

The state of Alaska is home to dozens of insurance carriers that provide auto insurance coverage at competitive rates. Popular options include national favorites like ABC, Geico, Allstate, The Hartford, State Farm and 21st Century Insurance. Call several agents and compare quotes. Or do a comparison of free online quotes. Ask about their discount programs.

Alaska Car Insurance

Here’s what you need to know about Alaska car insurance.

The population of the state of Alaska is slowly creeping its way up to three quarters of a million people. Alaska is, at this time, the 48th most populous state in the nation, still ahead of Vermont and Wyoming in total year-round residents.

The state of Alaska has a median age of about 34 years. According to statistical reports, roughly 10.5 percent of Alaska residents live at or below the poverty line. This rate is noticeably lower than the national average poverty rate, which is 13.5 percent. Alaska’s unemployment rate is 6.4 percent, somewhat above the national average of 4.7 percent. The state’s rate of uninsured drivers is around 13 percent.

The state must also have an average annual premium rate on Alaska car insurance.

Unfortunately, statewide averages of car insurance premiums are not much use to drivers in Alaska, or anywhere else in America. Statewide averages are generally based on specific parameters of “average” drivers. So, if you don’t just happen to be a 35-year-old married female with a clean driving record and a 2014 Toyota Camry that you drive less than 15,000 miles a year (for instance), statewide average insurance quotes on Alaska car insurance won’t help you very much.

Just for the record, the “average” annual Alaska car insurance quote was around $1,195 in 2016, according to data we obtained.

Auto insurance premium rates are notoriously unpredictable. Each insurance company has its own way of calculating each policyholder’s premium costs, based on vehicle location, climate conditions, the owner’s driving record, and state laws, among other parameters.

Even premium rates between nearby zip codes are affected by population density and crime rates (particularly car theft, DUI, and speeding), as well as the percentage of uninsured drivers on the road, to name just a few of the factors involved. Even within a single zip code, car insurance premium rates will vary drastically, often by more than a thousand dollars a year, depending on the demographics of the vehicle owner.

This page offers a detailed analysis of the best and worst zip codes for Alaska car insurance. You’ll also find a list of Alaska’s favorite car insurance companies, as well as some strange Alaska state laws and other state-specific information.

Read on to learn everything you want to know about buying an auto insurance policy in the state of Alaska.

Best Car Insurance Companies in Alaska

A random sample of insured drivers in Alaska were recently surveyed. The drivers were asked to rank various Alaska car insurance companies based on premium rates, customer satisfaction, and insurance payout.

According to the data obtained from the survey, the most favored Alaska car insurance providers are State Farm Insurance, Allstate Insurance, The Hartford Insurance, and Progressive Insurance, in that order. Also preferred are regional carriers of Alaska car insurance, such as Alaska National Insurance, Redwood Fire and Casualty Insurance, Country Mutual Insurance, and United Financial Casualty Insurance.

Sometimes, car insurance companies are ranked based on the dollar amount of written premiums, but this could possibly only mean that they spend more money on advertising than other companies do. However, just for the record, here’s an ordered list of the “top” ten Alaska car insurance companies, based on the dollar amount of premiums written, which translates to market share:

RankCompanyPremiums ($)Market Share (%)
1State Farm Group$120,55727.38
2Berkshire Hathaway Insurance$76,98217.48
4Allstate Insurance Group$64,77814.71
5Progressive Insurance$46,05010.46
6Liberty Mutual Insurance$14,9003.38
7The Hartford Insurance$12,7912.91
8Country Financial Group$12,3002.79
9Farmers Insurance$7,2831.65
10Horace Mann Insurance Group$6,7501.53

It is a little bit surprising that Geico did not make the list of Alaska’s top ten highest revenue producing car insurance companies.

Insurance carriers enhance (or destroy) their reputations with their financial strength (or lack thereof) and competent (or not) customer service. Various independent review websites outline the reputations of auto insurance companies. It’s always worth your while to do some research when deciding which types of car insurance to buy, and from which company to buy your policy. There is no such thing as The One Best Car Insurance Company. Some people like one company, while other people prefer another. Some car insurance carriers may be best for a particular demographic, while others might specialize in another demographic. What’s more, some car insurance companies are total scams.

You really have to shop around for car insurance quotes. Make your own decision based on your own demographics. This will help ensure that you get the cheapest Alaska car insurance policy that suits your personal needs.

What Types Of Car Insurance Do Alaska Drivers Need?

It is recommended by insurance experts that drivers in Alaska (and in every other state, for that matter) purchase above the minimum amount, and beyond the required types of auto insurance mandated by the state.

Alaska already has the highest minimum liability limits of any U.S. State. Alaska drivers are legally required to buy $175,000 in liability coverage against injury to others, personal injury, and property damage. Still, insurance experts recommend $100,000 in personal injury protection, $300,000 coverage against injury to others, and at least $50,000 coverage against property damage.

Surprisingly, Alaska drivers do not necessarily need Comprehensive coverage. Comprehensive coverage (otherwise known as OTC, or Other Than Collision) will cover your costs in the event of weather damage to your vehicle, among other things. However, weather damage to vehicles is not a huge problem in Alaska, because Alaska is so cold that most vehicles are parked in heated, indoor garages.

Unusual Alaska Traffic Laws

  • Not every part of Alaska requires driver registration or car insurance.
  • In Alaska, a lack of prior coverage cannot be considered a factor in the rating of an auto insurance policy.
  • Alaska is one of 31 states where drivers can show electronic proof of their insurance on their smartphones during traffic stops.
  • It is illegal to drive in Alaska with a live dog tied to the roof of your car. Pity the poor dog that brought this law into effect.
  • Also in (and only in) Alaska, moose are forbidden to have sex on city streets. Fair enough, but who’s gonna tell the moose?

Best And Worst Zip Codes For Alaska Car Insurance

Car insurance in the state of Alaska can range anywhere from about $1,000 a year to about $1,400 a year. Based on a typically “average” driver demographic, here is a list of the four zip codes where Alaska car insurance costs more than $1,300 in annual premiums.

Zip CodePop Density Unemployed %Poverty %
99513 (Anchorage)3,0880%23.6%

In this urban zip code in Anchorage, the median resident age is a relatively high 46.8 years, as compared to the state average of 33.9 years. However, what drives car insurance premiums higher is probably that the poverty rate in this zip code is more than double the state average of 10.5 percent. This would naturally lead to fewer drivers carrying auto insurance, which leads to raised premiums for drivers who do purchase auto insurance. Although uninsured drivers are not running rampant in Alaska (as compared to other states), about 1 out of 8 drivers in Alaska is uninsured. Cities with higher poverty rates are likely to have a higher concentration of uninsured drivers.

Incidentally, only about four dozen people live in this tiny urban zip code, which helps explain the zero unemployment.

Zip CodePop Density Unemployed %Poverty %
99504 (Anchorage)6,6306.8% 8.5%

In this primarily urban zip code in Anchorage, the unemployment rate and the median resident age are both pretty close to the state average. The poverty rate falls below the state average of 10.3 percent. Also, more than two thirds of homeowners in this zip code own at least two vehicles. So why are the auto insurance premiums in this zip code so relatively high? Population density may play a role.

Zip CodePop Density Unemployed %Poverty %
99501 (Anchorage)2,4797.1%16.5%

The poverty rate in this Anchorage zip code is quite a bit higher than the Alaska state average of 10.3 percent, and even much higher than the national average of 13.5 percent. Unemployment is also above average, which may help explain the higher premiums on auto insurance here.

Zip CodePop Density Unemployed %Poverty %
99502 (Anchorage)1,3406.0%7.4%

The average cost of car insurance is relatively high in this urban zip code, despite the unemployment and poverty rates being below the state average. It’s hard to say why, but one guess is that this zip code features many lakes, many parks, and the Alaska Air Taxi service. These points of interest may draw many tourists to the region.

In Alaska’s cheapest zip codes for car insurance, annual premium rates are anywhere from about $1,000 to about $1,150. Here is a list of the four least expensive zip codes for car insurance in the state of Alaska.

Zip CodePop Density Unemployed %Poverty %
99833 (Petersburg)28.4%10.2%

This rural zip code is is home to roughly 3,200 residents. The population density is very low, although unemployment is slightly above the state average of 6.4 percent. The poverty rate is right around the average poverty rate for the state of Alaska. Most homeowners in this zip code own at least two vehicles. This qualifies them for a multi vehicle discount with most insurance companies.

Zip CodePop Density Unemployed %Poverty %
99840 (Skagway)27.8%4.4%

This zip code is home to about a thousand people. The median resident age is a relatively high 43.7 years. The unemployment rate is only slightly above the state average of 6.4 percent. The poverty rate is much lower than the state average of 10.3 percent. All these factors may account for the relatively low premium rates on auto insurance in this zip code.

Zip CodePop Density Unemployed %Poverty %
99820 (Angoon / Hobart Bay)214.5%16.7%

Roughly 400 people live in Angoon. Most of them are Alaskan natives. Despite an the high poverty rate and an unemployment rate of well over twice the state average, this rural zip code seems to offer relatively cheap Alaska car insurance. This may be partly because there is relatively little driving going on: Most homeowners in this zip code own either one car or no car at all.

Zip CodePop Density Unemployed %Poverty %
99825 (Elfin Cove)0.2740%0%

This tiny Alaskan village is home to about 100 people. Lower rates on car insurance premiums may be due to the virtually nonexistent population density, along with an unemployment rate below the state average. Most people who live in this primarily caucasian zip code do not own a vehicle, as most workers here are self employed. It makes sense: Fewer people doing less driving will have fewer accidents.

In terms of the price of car insurance in America, Alaska car insurance is somewhere in the low-middle range.

The 10 costliest zip codes in the United States to buy car insurance are 48227 (Detroit, Michigan), 11226 (Brooklyn, New York), 19132 (Philadelphia, Pennsylvania), 02903 (Providence, Rhode Island), 70117 (New Orleans, Louisiana), 90029 (Los Angeles, California), 06525 (Woodbridge, Connecticut), 21216 (Baltimore, Maryland), 33142 (Miami, Florida), and 41464 (Royalton, Kentucky).

At the other end of the spectrum, the 10 cheapest zip codes in the United States to buy car insurance are 44836 (Green Springs, Ohio), 28704 (Arden, North Carolina), 04072 (Saco, Maine), 24073 (Christiansburg, Virginia), 83706 (Boise, Idaho), 86403 (Lake Havasu City, Arizona), 47907 (West Lafayette, Indiana), 54302 (Allouez, Wisconsin), 03303 (Concord, New Hampshire), and 61761 (Normal, Illinois).

You may notice that none of these 20 zip codes are located in the state of Alaska.

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