Best Cheap Auto Insurance in Alaska (2025)
The best car insurance for you in Alaska will offer cheap rates and the coverages you need.
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Alaska is home to breathtaking scenery, and to fully explore the wonders of this state by car, you’ll need to equip yourself with dependable car insurance.
The average cost of car insurance in Alaska is $135 per month, which is cheaper than the national average. That’s because fewer cars are on the road in Alaska, and the state’s lower population density reduces the chances of accidents.
Here’s what you need to know about finding the cheapest car insurance in Alaska.
3 of the cheapest car insurance companies in Alaska
The best car insurance depends on your specific circumstances and insurance needs. Assess your driving record, the coverage you need, and your budget to determine the right car insurance company for you.
Below are three of the cheapest insurance companies in Alaska.
State Farm
USAA
Allstate
How to get the cheapest car insurance in Alaska
Insurance companies will conduct a risk assessment based on your driver profile to determine your insurance rates. Factors that comprise your risk level include age, location, driving history, claim history, and more.
If you’re in the market for car insurance, these are some of the best ways to get the most affordable prices:
Look for discounts. Whether you have multiple cars, are bundling insurance products, or are part of an affiliated group, there’s a discount for every driver and situation. Stacking deals can help you get the lowest rates on your insurance policy.
Maintain a clean driving record. People with clean driving records pay lower car insurance rates than people with an incident on their record. It’s important to adhere to your state’s road rules and remain vigilant on the road.
Increase your deductible. A higher deductible for collision or comprehensive coverage results in lower monthly premiums. If you’re considering increasing your deductible, be sure you can afford the out-of-pocket expense if you need to file a claim.
Compare quotes. You should get quotes from at least three different insurers. To get the most accurate comparisons, ensure your coverage types and levels are the same across each auto policy.
Cheapest liability-only car insurance quotes in Alaska: USAA
A liability-only policy covers the other party’s property damages and bodily injuries if you’re at fault in an accident. This insurance offers only the most basic coverage, so it’s usually a company’s most inexpensive policy.
Here are some of the cheapest car insurance companies for liability-only coverage in Alaska.
Cheapest full-coverage car insurance quotes in Alaska: USAA
While a liability-only policy pays for the other party’s losses when you’re at fault in an accident, full-coverage car insurance pays for your losses, regardless of fault.
A full-coverage insurance policy includes collision coverage, which compensates you for vehicle repairs if you collide with another vehicle or object. It also includes comprehensive coverage, which reimburses you for damage or losses related to theft, vandalism, weather damage, and other non-collision events.
If you commute frequently, drive in a high-risk area, or have an expensive vehicle, having full coverage may be worth it. Lenders may also require full coverage if you have a car loan or lease.
Car insurance rates fluctuate with age. Teen drivers pay higher premiums, as they’re more likely to be involved in accidents due to their lack of experience on the road.
While the cost of car insurance generally decreases around age 25, you may see your rates climb again around age 70. Despite more experience on the road, age-related conditions such as slower reflexes and decreased vision make seniors more statistically prone to accidents.
Car insurance requirements in Alaska
Alaska is a tort state, meaning all drivers must carry the state’s minimum liability coverage. If you’re not at fault in an accident, you can file a claim with the at-fault party’s insurance company to get reimbursed for medical bills and vehicular repairs.
The table below illustrates Alaska’s minimum coverage for bodily injury and property damage liability insurance.3
Car insurance financially safeguards you from the worst. Consider spending a few extra dollars on the following coverage options to stay fully protected:
Cheapest car insurance in Alaska by driving record
Having a driving incident on your record, such as a speeding ticket, driving under the influence (DUI), at-fault accident, or other moving violation, can increase your car insurance premium because of the risk you pose to insurers. And if you’re convicted of a DUI, you may need to obtain an SR-22 certificate to reinstate a suspended license.
In Anchorage, drivers with an at-fault accident pay $70 more per month for car insurance than drivers with a clean record. The table below shows how Alaska liability insurance rates vary by different driving incidents.
Alaska car insurance FAQs
Finding the right car insurance can be difficult. Below, you’ll find answers to some commonly asked questions about how to find the best auto insurance in Alaska.
Car insurance in Alaska costs an average of $151 per month. Drivers in the state pay $190 per month for full-coverage insurance and $112 per month for liability-only insurance. Your rate will depend on your insurer, driving record, age, credit history, vehicle type, chosen coverage level, and more.
With an Insurify Quality (IQ) Score of 9.3 and an AM Best financial strength rating of A++ (Superior), State Farm is the best car insurance company in Alaska. Other top Alaska auto insurers include USAA, Allstate, GEICO, and Progressive.
Yes. Drivers in Alaska must carry car insurance. If you want to get on the road legally, you’ll need to have $50,000 per person and $100,000 per accident in bodily injury liability insurance, as well as $25,000 per accident in property damage liability coverage.
Yes. Alaska’s average auto insurance rate is $135 per month, which is cheaper than the national average. Car insurance is much more affordable in Alaska because it’s remote and fewer drivers are on the roads at any given time.
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