Cheap Car Insurance, Alaska: What Drivers Should Know (2025 Guide)

Drivers need cheap auto insurance in Alaska. But to get this, you should understand the factors that affect car insurance in the state. This comprehensive guide breaks down Alaska auto insurance rates, the best companies for different driver ages, state requirements, and tips for getting the cheapest rates.

Average Cost of Alaska Auto Insurance

The Last Frontier State maintains affordable auto insurance rates. According to Bankrate, Alaska drivers pay $2,378 a year for full coverage and $501 a year for minimum coverage.

These averages show that Alaska tends to be more affordable than many states in the U.S. for minimum and full‑coverage policies. However, keep in mind that the actual cost depends on factors such as coverage level (liability vs. full), driving record, credit score, city or ZIP code, and the insurer.

Factors Affecting Auto Insurance Rates in Alaska

Car insurance rates in Alaska, as in any state, are influenced by different factors. Understanding these can help drivers manage their premiums and reduce costs. They include:

• Driving History: A clean driving record means you will pay lower rates. But a single accident or speeding ticket can increase your premiums.
• Age and Gender: Younger drivers, especially teens, often face some of the highest premiums due to their lack of experience on the road and their higher accident risk. On the other hand, senior drivers in Alaska may get lower costs.
• Credit History: Alaska insurers often use credit scores to determine premiums. Drivers with poor credit pay higher premiums.
• Vehicle Type: Luxury and high-performance cars have higher premiums due to the cost of repairs and replacements. But older or less expensive vehicles may have lower premiums. Also, cars with modern anti-theft devices and safety features may qualify for discounts.
• Location: Urban areas with higher traffic volumes, more accidents, and greater theft risk have higher insurance rates. Also, Alaska's weather can affect premiums, especially in the winter months, when some areas have icy roads and reduced visibility, increasing the likelihood of accidents.
• Coverage Levels and Deductibles: Minimum coverage is often more affordable than full coverage. Also, choosing a higher deductible can reduce your premiums. However, this means you’ll need to pay more for a claim, thereby taking on more financial responsibility.
• Your Claims History: If you’ve filed multiple claims in the past, insurers may view you as a higher risk, which can increase your premiums.

Cheap Auto Insurance, Alaska, by City

Where you live in Alaska can affect your premiums through factors such as local accident rates, theft or vandalism risk, traffic density, and weather conditions. For example, if you live in an area with fewer vehicle thefts, you may pay less for insurance.

Cities like Juneau tend to have lower average rates, while larger towns such as Anchorage have higher premiums. The cheapest cities for Alaska car insurance are:

Source: Cheapest Car insurance in Alaska for 2025 (Bankrate)

Cheapest Auto Insurance, Alaska, by Age Group

Providers will often consider your age when determining your auto insurance policy cost. Young drivers pay the most because they have limited driving experience, while older drivers get more affordable rates.

When you compare car insurance quotes with us, we will help you get the cheapest full coverage for your age. Here's a closer look at the most affordable insurance companies for drivers of different ages:

Teen Drivers

According to US News, teenagers aged 17 in Alaska pay an average of $4,494 for female drivers and $5,275 for males. However, several insurers offer more affordable premiums, with the cheapest being USAA at $4,042 for female teens and $4,490 for male teens.

However, note that USAA only serves the military community and their families. If you do not qualify for USAA, consider Progressive, which offers the second-cheapest rates at $4,162 and $4,540 for female and male teens, respectively. The following companies also offer cheap car insurance in Alaska to teens:

Source: Cheapest Car Insurance in Alaska for 2025 (US News)

Young Adult Drivers

Young adults who are 25 often pay lower premiums than teens. Geico offers the lowest premiums for drivers in this category: $1,266 for male drivers and $1,302 for female drivers.

Source: Cheapest Car Insurance in Alaska for 2025 (US News)

Adult Drivers

40-year-old drivers often get more affordable rates because providers see them as less likely to file a claim. Many insurers offer cheap rates to these drivers, with Progressive being the cheapest. They offer $1,105 and $1,092 per year for female and male drivers, respectively.

Source: Cheapest Car Insurance in Alaska for 2025 (US News)

Senior Drivers

Senior drivers in their 60s pay the lowest car insurance rates in Alaska. Most insurers offer discounts and low average rates to these drivers. The most affordable rates are $946 annually for female drivers this age, and $965 for males by Progressive.

Source: Cheapest Car Insurance in Alaska for 2025 (US News)

Cheapest Car Insurance, Alaska, for High‑Risk Drivers

Good drivers often get more affordable rates than high-risk drivers. High‑risk drivers include those with speeding tickets, past accidents, or DUIs. Insurers increase prices for these drivers, and it can get expensive. Comparing rates through multiple car insurance quotes can help you save money if you're in this category.

Speeding Ticket

According to US News, the statewide average rate for drivers with one speeding violation is $1,914. But Geico has the cheapest rate for these drivers at $1,672 per year. Progressive is also an affordable company below the state average.

Car Accident (At-Fault)

Umialik Insurance offers the lowest average rate for drivers after an at-fault accident at $1,910 annually. Another affordable company for drivers in this category is Geico at $1,911.

DUI

Progressive’s average annual rate for Alaska drivers after a DUI is $1,447. Progressive offers the most affordable rates for these drivers, followed by Umialik Insurance.

Source: Cheapest Car Insurance in Alaska for 2025 (US News)

Cheapest Car Insurance in Alaska for Drivers With Poor Credit

Poor credit can increase your Alaska car insurance costs compared to good-credit drivers. According to US News, drivers with good credit pay an average of $1,616 per year, while those with poor credit pay $3,239. Always compare quotes from different insurance companies to get the most affordable rates.

The cheapest company for drivers with poor credit is Progressive at $1,810 per year. You can also get affordable coverage from the following companies:

Source: Cheapest Car Insurance in Alaska for 2025 (US News)

Tips for Getting the Cheapest Alaska Car Insurance Rates

1. Buy Minimum Coverage: Different coverage options often mean different prices. If you drive an older car or don’t mind higher out-of-pocket repair costs, then consider liability-only coverage.
2. Maintain a Clean Driving Record: Avoid tickets, accidents, or DUIs.
3. Improve your Credit Score: Alaska insurers can use credit-based ratings, where better credit usually means lower premiums.
4. Shop Around: Compare car insurance quotes from multiple providers to find the cheapest options.
5. Ask About Common Discounts: Some insurers offer safe‑driver discounts, usage-based discounts, good-student discounts, and low-mileage discounts.
6. Bundle Policies: If you need more than one insurance product (e.g., home and auto), bundling may reduce overall costs.

Minimum Coverage Car Insurance Requirements in Alaska

Alaska law has minimum coverage requirements like any other state. The minimum coverage limits are:

• Bodily Injury Liability (per person): $50,000
• Bodily Injury Liability (per accident): $100,000
• Property Damage Liability (per accident): $25,000

Bodily injury liability helps pay for medical expenses for others you injure in an accident caused, while accident property damage liability coverage helps pay for damage to others' property, such as their car or mailbox.

Insurance providers in Alaska must also offer uninsured/underinsured motorist coverage, though you can reject it in writing. This coverage provides financial protection if an uninsured or underinsured driver hits you. Underinsured/uninsured motorist coverage is a good purchase in areas with a high number of uninsured drivers.

Note: Some areas of Alaska don't require vehicle registration. These are often areas with no public roads, so insurance is not mandatory. Drivers in these areas with certain traffic violations must have liability coverage. Otherwise, other drivers do not have to buy insurance. Always check with the Alaska Division of Motor Vehicles if you fall under this category.

Additional Alaska Car Insurance Coverages

Alaska drivers may choose additional coverages for more protection, such as:

• Comprehensive Coverage: Covers damage to your own vehicle after a non-collision incident, such as vandalism, theft, weather damage, and animal collisions. If you have any financed vehicles, your lender or lessor may require it.
• Collision Coverage: Covers damage to your car after a collision with an object or vehicle. If you have a newer car, then you may benefit from comprehensive and collision coverage.
• Medical Payments Coverage (MedPay): Helps cover medical expenses regardless of fault when you or your passengers are injured in an accident.
• Rental Car Reimbursement: Pays for renting a car while your vehicle’s in the shop for covered repairs.
  

FAQs

What is the Best Car Insurance in Alaska?

The best Alaska car insurance often depends on factors such as your age, coverage level, credit score, and driving history. For example, according to Bankrate, Geico offers the cheapest state minimum coverage in Alaska. On the other hand, Progressive offers the most affordable average rates for drivers in Alaska with poor credit.

How Do I Show Proof of Car Insurance in Alaska?

Alaska law requires you to carry proof of motor vehicle liability insurance in paper or digital form when you're on the road. You must present it if a peace officer or other authorized person requests it.

How Can I Lower My Car Insurance Rates in Alaska?

• Choose liability-only (minimum coverage) instead of full coverage.
• Keep a clean driving record by avoiding tickets, accidents, and DUIs.
• Maintain or improve your credit to avoid credit-based increases.
• Compare quotes from multiple insurers.
• Take advantage of available discounts (eg, safe driver, low mileage, bundling, good student).

Is Alaska a No-Fault Car Insurance State?

No. Alaska is a “fault” state (also called a “tort” state). If you cause an accident, your liability insurance must cover the other driver's damages or injuries.

Is Car Insurance Required in Alaska?

Yes, but only in some places. If your vehicle is registered in Alaska, you must maintain at least minimum liability insurance coverage. However, some counties in Alaska do not require vehicle registration, and thus do not require car insurance. But it helps to purchase at least minimum liability to protect yourself.