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Cheap Auto Insurance in Alaska: Best Companies & Quotes
Getting auto insurance might not be fun, but if you’re driving a vehicle in Alaska, it’s the law. More specifically, the Alaska Department of Motor Vehicles requires all drivers to have a minimum of $50,000/$100,000 in insurance for bodily injury or death, in addition to a minimum of $25,000 for property damage.
Best Car Insurance Companies in Alaska
- State Farm
- Country Financial
|Geico||State Farm||Country Financial||Allstate||USAA||Progressive|
|AM Best Financial Strength Rating||A++||A++||A+||A+||A++||A+|
|JD Power 2019 Overall Customer Satisfaction score||3/5||3/5||3/5||3/5||4/5||3/5|
|Avg Annual Premium||$1,054||$1,298||$1,083||$1,694||$1,031||$2,214|
|Consumer Reports Reader Score||78||78||79||72||92||75|
|BBB Rating||A+||B+||A+||A+||Not Rated||A+|
Auto Insurance Statistics in Alaska
Car insurance rates in Alaska have remained around the same level for the past two decades. According to previous trends, no change is detected in the near future. Alaskan drivers can expect to pay between $800 and $900 for yearly insurance premiums. It’s important to keep in mind that different drivers may pay more or less depending on their driving record.
Top 7 Cheapest Car Insurance Companies in Alaska
|Rank||Company Name||Avg. Annual Premium|
Drunk driving fatalities in Alaska from 2013 to 2017
Teen Drinking and Driving
Although the legal drinking age is 21, many teens still test the boundaries and end up breaking the law by drinking and driving. The Center for Disease Control reports that in Alaska, teen drinking and driving has been much lower than in other areas around the country. The below data depicts the incidences of teen drinking and driving in Alaska when compared with the national averages.
Teen Drinking & Driving in Alaska vs. Nationwide (2017)
SR-22 Insurance in Alaska
Alaska is one of the many states that requires SR-22 insurance certificates by law. Depending on the reason you lose your right to drive, you might have to submit an SR-22 certificate to the Alaskan authorities if you want to reinstate your license. One particular requirement of the state is that you need to show a certificate that has been dated within the last 30 days. We can assist you in finding cheap SR-22 insurance when you’re ready to get it.
If you do not show an SR-22 certificate to Alaskan authorities, you will not be able to legally drive in the country if you have been excluded. The insurance company will notify the Alaskan DMV if your coverage is cancelled or suspended, so you must ensure that it is active while you are operating any vehicles. Talking to an auto insurance broker locally may help you better understand local laws and requirements for this.
Car Theft in Alaska
When purchasing car insurance in Alaska, it helps to know which types of car insurance will cover you if your car has been stolen. To safeguard against theft, it is essential to get comprehensive car insurance coverage.
Vehicle Thefts by Rank Nationwide vs. Alaska
Uninsured Motorists in Alaska
Uninsured and underinsured motorist coverage provides reimbursements for drivers who have been in an accident where the other driver was underinsured or uninsured. There are twenty states as well as the District of Columbia that mandate this type of coverage. The below data shows how well Alaska ranks in the total number of reported uninsured motorists in the state in the year 2015.
Percentage of uninsured drivers (Top 11 States in 2015)
Source: Insurance Information Institute
As in other states, Alaskan drivers are required to carry proof of insurance with them at all times while driving. Failure to do so can result in suspension of your driver’s license, as well as getting your vehicle impounded. Given the consequences, it’s not worth it to risk driving in Alaska without insurance.
Just because insurance is mandatory doesn’t mean you should go out and sign up for the first policy you find, though. Auto insurance prices can vary – in some cases quite a bit. If you’re on a budget, you don’t want to pay more for insurance than you have to. To make the task of finding affordable auto insurance less painful, we’ve compiled a list of the cheapest car insurance companies in the state:
- United Services
- 21st Century
- State Farm
United Services winds up having the cheapest rates for Alaska, charging only $435 per year on average. USAA is next, also offering a bargain at $485 per year. GEICO and 21st Century come in at 3rd and 4th respectively, with GEICO offering average rates of $545 and 21st Century at $667. The jump from $545 to $667 may seem steep, but it’s actually still a very reasonable price. State Farm comes in just slightly more expensive, averaging $681. Also take a look at our Progressive vs Geico review.
To put this rates into perspective, the average price for auto insurance in Alaska is $773 per year. By contrast, the most expensive insurance company in the state, Teachers Insurance Company, charges an average rate of $1,339 per year.
All About Location
In order to truly find the cheapest auto insurance in Alaska, you have to take location into account. Different companies sometimes charge different premiums depending on the city hence why it’s a good idea to compare auto insurance quotes from multiple companies. Some cities definitely tend to charge higher auto insurance rates than others, and it’s not always in direct proportion to the overall cost of living in each place. These are Alaska’s main cities and towns, ranked from ones offering the most affordable car insurance to the most expensive:
- Juneau, AK: Alaska’s capital also has its cheapest auto insurance.
- Nome, AK: Known as gold rush town in the early 1900’s, you don’t have to strike it rich to get auto insurance here.
- Kenai, AK: With a population of just over 7,000, there shouldn’t be too many traffic jams here.
- Wasilla, AK: Home of former VP nominee Sarah Palin, many of this town’s residents commute to Anchorage for work, making auto insurance especially important here.
- Fairbanks, AK: Auto insurance starts to get a little pricier here, in one of Alaska’s northernmost major cities.
- Bethel, AK: Home to the only detention center in the southwestern part of the state, Bethel is roughly 400 miles from Anchorage.
- Anchorage, AK: The most populous city in Alaska, as well as the most expensive place to buy auto insurance. Don’t get too mad about the auto insurance rates, though; Kiplinger has named Anchorage the most tax-friendly city in the US.
Whether you’re in Anchorage or Juneau, it’s a good idea to shop around when looking for auto insurance. Find an insurance policy that’s right for you, and make sure it’s available at a reasonable price. If there’s any state where having a vehicle is an absolute requirement, it’s probably Alaska with its sparse population and massive distances between cities. Still, there’s plenty of good affordable auto insurance options available, which means you don’t have to settle for overpaying.
Types of Auto Insurance Coverage in Alaska:
- Uninsured/Underinsured Motorist Bodily Injury Insurance
- Uninsured Motorist Property Damage Insurance
- Bodily Injury Liability Insurance
- Property Damage Liability Insurance
- Comprehensive Insurance Coverage
Minimum Requirements For Car Insurance in Alaska
There are minimum requirements for car insurance in the state of Alaska. According to the Alaska Department of Motor Vehicles (DMV), it is mandatory to carry proof of insurance with you at all times. Failing to do so can have very harsh consequences. The minimum amount of coverage that an Alaskan can carry is liability coverage.
Alaska Liability Coverage minimums are as follows:
- $25,000 for property damage.
- $50,000 for bodily injury and $100,000 for death caused by a car accident
New Driver Licensing in Alaska
Obtaining a new driver’s license is a major milestone and in Alaska, driver license requirements are very specific to ensure that the driver can handle this major responsibility. Drives need to be 16 years old or older in order to have a valid driver’s license in Alaska. To apply for a provisional license, applicants will need to be 18 years of age. They must then hold the license for 6 months prior to being eligible to apply for a standard driver’s license.
Cheap Auto Insurance Discounts
At Cheap Auto Insurance, we know you want to save big when it comes to paying auto insurance premiums. That’s why we provided a list of the most popular but overlooked vehicle insurance discounts that can help you to save on the cost of insuring your vehicle in Alaska. Have a look at the list below to see if there are potential savings you may have overlooked.
- Mature driver discount
- Multi-car auto insurance discount
- Military or Veteran discount
- Senior citizen discount(see the auto insurance for seniors article)
- Car safety features discount
- Good student discount
- Defensive driving discount
- Bundling insurance policies discount
- Anti-theft discount
- Infrequent usage discount
- Low-mileage discount
Top Cities in Alaska
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