The Cheapest Auto Insurance in Alaska in 2024

At just $83 per month, the average car insurance premium in Alaska is among the cheapest in the nation — and for good reason. Despite harsh weather conditions, the state has a low population density, and insurance companies here pay less in auto claims than in any other state except Wyoming, according to the Insurance Information Institute (Triple-I).

Alaska only requires liability insurance, but minimum limits are relatively high — $50,000 in bodily injury coverage per person, $100,000 per accident, and $25,000 in property damage coverage. Additional coverage is recommended to protect you financially, but luckily, it comes at a good price.

Key Takeaways:

• GEICO offers the lowest average rate to Alaska drivers in most categories.
• Even drivers with marks on their records can find rates under $50 per month.
• More than 16% of Alaskans drive uninsured, so adding uninsured motorist coverage to your policy is a good idea.

Alaska’s Cheapest Car Insurance Companies

Though average monthly rates in Alaska are $83, you can find even better rates with many insurers.

Below are the five cheapest auto insurers for Alaska drivers, based on Compare.com data.

GEICO is the most affordable option for the average Alaska driver, at just $46 per month. And its rates are nearly half those of the next-cheapest insurer, State Farm. Local insurer Umialik Insurance is a close third — 29% cheaper than the next option, Allstate.

But keep in mind that these are broad averages. We’ll take a look at how coverage options and driver demographics change rates throughout this article.

Compare.com’s Best Alaska Insurance Companies of 2024

Though there’s no best car insurance company that fits every driver in Alaska, some stand above the rest. The companies that made our list were chosen based on a combination of their average premiums, available discounts, customer reviews, coverage options, and more.

The three companies found below are great places to start your insurance shopping journey — but don’t stop here. Grab a wide range of quotes to get a clear idea of all your options.

GEICO: Best for Alaskans on a budget

Average premium: $46 per month

Compare.com rating: 4.7 out of 5

Trustpilot rating: 1.9 out of 5

BBB rating: A+

Pros:

• 24/7 customer service
• Strong customer satisfaction ratings
• Great mobile app and website

Cons:

• Higher-than-average number of customer complaints
• Higher rates for drivers with spotty records
• No local agents

GEICO beats the competition in nearly every category when it comes to pricing, often offering rates at half the cost of the next-cheapest option. J.D. Power gives GEICO a higher-than-average score for customer satisfaction, but the company has nearly double the average rate of customer complaints compared to similarly sized companies.

Though GEICO doesn’t offer local agents, you can manage many of your policy needs quickly through the company’s online portal or mobile app.

State Farm: Best for personalized service

Average premium: $79 per month

Compare.com rating: 4.3 out of 5

Trustpilot rating: 1.7 out of 5

BBB rating: A+

Pros:

• Plenty of local agents
• Many available discount options
• Higher-than-average customer satisfaction ratings

Cons:

• Higher-than-average number of customer complaints
• Gap coverage not available
• Higher rates for drivers with bad credit

State Farm has local agents in most of Alaska’s major cities, which means many Alaskans can get personalized service for their auto coverage. You can also bundle auto with home insurance (or condo, renters, life, and more) to earn a discount.

But, as with GEICO, you can’t get gap coverage through State Farm. The company also has 1.5 times as many complaints as the average large insurer.

Umialik Insurance: Best for Alaskans with a DUI

Average premium: $81 per month

Compare.com rating: Not rated

Trustpilot rating: Not rated

BBB rating: A+

Pros:

• Low premiums for most drivers
• Signature Auto plans offer premium options
• Low number of customer complaints

Cons:

• Subpar mobile app
• Online quotes not available
• Limited website capabilities

Umialik is another great option for Alaska drivers looking for a local agent, and the company has the cheapest rates for drivers with a DUI. While Umialik struggles with technology features, it has fewer-than-average customer complaints and a variety of discounts and coverage options.

You can also sign up for its Signature Auto plan, which gives you access to accident and ticket forgiveness, plus other perks.

The Average Cost of Alaska Car Insurance

At $83 per month, average rates are relatively cheap across Alaska. Here’s how those rates compare to other Pacific states, as well as the national average.

While rates are nearly the same in Hawaii, Alaska is 36% cheaper than the national average. It’s also well below the continental coastal states — especially Oregon, where average rates are 86% more expensive.

But how you set up your policy can greatly affect your rates, which we’ll examine next.

Cheapest State-Minimum Car Insurance in Alaska: GEICO

Typically, the cheapest auto insurance policy you can buy is for state-minimum liability coverage.

Let’s take a look at the companies offering the lowest average rates for Alaska minimum-coverage car insurance.

At exactly half the cost of the next-cheapest insurer, GEICO is the most affordable option. Umialik Insurance, Allstate, and State Farm are all within a few dollars of each other, while Progressive trails the pack by quite a bit.

Cheapest Full-Coverage Car Insurance in Alaska: GEICO

Full-coverage policies typically include comprehensive and collision coverage and are often required by lenders and leasing companies. But the added protection of covering your vehicle comes at a cost.

This table shows the most affordable companies for full-coverage policies in Alaska, based on Compare.com data.

GEICO is once again the cheapest insurer on this list, with average full-coverage rates coming in at just under $70 per month — 36% cheaper than the next option. The company keeps rates low by eliminating common overhead costs, such as a local office. Progressive trails significantly behind again — this time alongside Allstate — possibly indicating that the company prefers (at least for the moment) to issue liability-only policies.

Compare Alaska Auto Insurance Rates by Age

Car insurance rates change significantly based on your age. Young drivers under 25 years old contend with higher premiums because of their inexperience and riskier behaviors, such as speeding. But with more age and experience, you’ll typically see a decrease in premiums.

Rates continue to fall as you get older, but seniors eventually experience premium increases in their mid-70s, as reaction times slow and other factors increase the chance of an at-fault accident.

Let’s take a closer look at how rates change in Alaska based on your age.

Cheapest car insurance for Alaska teens: GEICO

Teen drivers are typically the most expensive age group to insure, no matter where you live. That’s because they’re involved in more crashes compared to their population size than any other age group.

But that doesn’t mean you’re stuck with higher-than-average rates. Some companies offer teens incredibly affordable policies — you just have to know where to look.

With that in mind, we’ve broken down the five most affordable insurers for Alaska’s 18-year-old drivers in the table below.

GEICO is cheapest for both liability and full-coverage policies, with costs between 33% and 38% cheaper than the next-cheapest option in both categories. Rates are more competitive for liability coverage — which means you can likely save by driving an older, less expensive vehicle with lower coverage levels.

Now, let’s compare these rates to what seniors pay.

Cheapest car insurance for Alaska seniors: GEICO

As you approach retirement age, you should also approach your lowest car insurance rates since you’ll likely have the most experience, drive less, and practice safer driving habits.

The following companies offer the most affordable rates on average for senior drivers in Alaska, sorted by liability cost.

GEICO’s average rates for seniors are nearly half the second-cheapest option for both liability and full-coverage policies. Umialik and State Farm are similarly priced in the middle of the pack. Allstate continues being cheaper for liability policies, but it’s less affordable for full coverage.

Though there’s a wide spread of averages here, comparing quotes from several insurers is still worth it.

Compare Alaska Auto Insurance Rates by Driving Record

Your driving record is one of the most crucial factors in determining your car insurance premiums. It directly reflects on-road behavior, playing a pivotal role in shaping insurance costs.

A clean driving history, free from auto accidents and traffic violations, earns lower premiums as it signals a low risk of at-fault claims. On the flip side, a track record of accidents or tickets raises your risk profile, leading insurers to charge higher rates.

Let’s take a look at how rates change for different driving records, as well as which Alaska insurers offer the cheapest rates for each.

Cheapest car insurance for good drivers in Alaska: GEICO

Drivers who don’t have any recent tickets or accidents earn the best rates, all else being equal.

Let’s take a look at which companies offer the best rates in Alaska for these drivers.

GEICO is once again half the cost of the second-cheapest insurer when it comes to liability-only rates, with average monthly premiums of just $24. It’s also the cheapest company for full coverage, at $68 per month, but State Farm doesn’t fall as far behind as others.

Let’s see how getting a speeding ticket affects these low rates.

Cheapest car insurance in Alaska after a ticket: GEICO

A speeding ticket causes rates to go up by 37% on average, according to Compare.com data. But that doesn’t mean every insurance company raises rates the same.

Let’s review Alaska’s cheapest options for drivers with one speeding ticket.

Surprisingly, GEICO doesn’t raise liability rates in Alaska if you’ve gotten a speeding ticket, but full-coverage rates do see a slight increase. Otherwise, these companies closely follow their trademark pattern.

GEICO is 50% cheaper than the next-closest competitor for liability insurance and 30% cheaper for full coverage. Umialik, State Farm, and Allstate are in the middle, but Allstate is once again higher for full-coverage policies.

Will the pattern hold for drivers with an at-fault accident? That’s next.

Cheapest car insurance in Alaska after an accident: GEICO

Getting into an at-fault car accident significantly affects your rates, raising them by an average of 44%, according to data from Compare.com. But just because your rates are likely to increase doesn’t mean you’re out of options.

Below are the five cheapest companies for Alaska drivers with one at-fault accident.

GEICO is once again the cheapest option, but its rates are somewhat higher than before for both liability and full-coverage policies. In fact, GEICO’s liability rates increased by more than 50% for drivers after an accident, compared to drivers with clean records — a more substantial rate hike than average.

Umialik’s liability coverage is much closer to GEICO’s than in other categories, though its full-coverage premiums are 26% more expensive.

Still, rates for drivers with accidents are typically cheaper than rates for people with a DUI conviction. Let’s see if that’s true for Alaska drivers.

Cheapest car insurance in Alaska with a DUI: Umialik Insurance

DUIs substantially increase your rates — the average driver sees a 94% increase after a single conviction, according to Compare.com data. Still, some companies offer relatively affordable policies, even for drivers with a DUI — you just need to know where to look.

With that in mind, let’s check out the cheapest car insurance companies for Alaska drivers with a DUI.

Umialik breaks GEICO’s winning streak by offering the cheapest liability premiums, with rates for DUI drivers falling just below $50 per month. But the three cheapest companies are fairly close for full coverage, with State Farm taking a slight edge.

Penalties for a DUI in Alaska include:

• $1,500 fine
• 90-day license revocation
• $100 reinstatement fee
• Minimum 72-hour imprisonment
• 6+ months of ignition interlock device requirement

People with multiple convictions face more significant fines, imprisonment, and penalties, including permanent license revocation.

5 Ways to Get Cheap Car Insurance in Alaska

No matter your situation, you can still find ways to save money on car insurance. Here are five of our favorites.

• Look into discounts: Ask your agent about available discounts and take advantage of as many as you can. Bundling policies, being a good driver, and taking a defensive driving course are great ways to save with many insurers. But many companies offer dozens of discounts, and each has its own mix.

• Maintain a clean driving record: Even if you have tickets or accidents, avoiding future violations ensures your rates go down as quickly as possible.

• Re-evaluate your policy: Remove unnecessary coverage and raise your deductibles to lower your premiums.

• Check out pay-per-mile insurance: If you’re a low-mileage driver (less than 7,500 miles annually), consider a pay-per-mile policy to lower your insurance costs.

• Compare policies: Comparing rates often — at least every six months — is the best way to ensure you have the best deal now and in the future.

Alaska Auto Insurance Requirements

The Alaska Division of Insurance has fairly straightforward minimum requirements:

• $50,000 in bodily injury liability insurance per person
• $100,000 in bodily injury liability per accident
• $25,000 in property damage liability

If your vehicle is leased or financed, you’ll likely need to carry collision and comprehensive insurance as well. And you may want additional coverage, as licensed agent Nick Schrader points out.

“Many people overlook optional insurance coverages, such as rental car reimbursement, roadside assistance, and guest medical payments,” Schrader says. “And some consumers should increase their liability limits to protect their net worth.”

Though the state doesn’t require uninsured and underinsured motorist protection, 16% of Alaska drivers are driving without insurance, according to Triple-I, so consider adding it to your policy as well.

Penalties for driving without auto insurance in Alaska

Driving without insurance leaves you vulnerable to serious financial risks if you cause an accident. You’re also vulnerable to civil penalties, including:

• $500 fine
• 90-day driver’s license suspension
• $100 reinstatement fee
• Three years of SR-22 filing requirements

Subsequent offenses come with steeper penalties, including a longer suspension and larger reinstatement costs. Plus, non-continuous insurance coverage and SR-22 requirements will likely increase your insurance rates.

SR-22 auto insurance in Alaska

An SR-22 is a form filed with the DMV that’s often required of high-risk drivers. It can be required after a DWI, driving without insurance, excessive points, and more and can be required for three to 20 years, depending on the offense. Typically, the insurance company will file this form for you, though it often will come with an extra fee.

If you have to file an SR-22, be sure to maintain a clean record going forward and compare quotes often to keep rates as low as possible.

Alaska Auto Insurance FAQs

Got questions about car insurance in Alaska? You’re not alone. Here are answers to the most common questions about Alaska car insurance coverage.

Who is the cheapest auto insurance company in Alaska?

GEICO offers the cheapest average car insurance rates in Alaska based on data from Compare.com. However, the cheapest company in general doesn’t mean it will be the cheapest option for you. Always compare your rates before deciding on your car insurance company.

How much is car insurance in Alaska?

The average cost of car insurance in Alaska is $83 per month, but some drivers pay more or less than average depending on their location, age, driving history, vehicle, and coverage options.

Is car insurance cheaper in Alaska?

Yes, car insurance is cheaper in Alaska than in most states. In fact, Alaska’s premiums are the eighth cheapest in the nation. Though rates are generally cheaper, some drivers have more expensive premiums.

What car insurance is required in Alaska?

Alaskans are required to maintain bodily injury liability coverage of at least $50,000 per person and $100,000 per accident, plus property damage liability coverage of at least $25,000. While the state doesn’t require additional coverage, such as uninsured motorist protection, it’s worth considering whether supplementary protection is right for you.

Methodology

Data scientists at Compare.com analyzed more than 50 million real-time auto insurance rates from more than 75 partner insurance providers in order to compile the quotes and statistics seen in this article. Compare.com’s auto insurance data includes coverage analysis and details on drivers’ vehicles, driving records, insurance histories, and demographic information.

All the quotes listed in this article have been gathered from a combination of real Compare.com quotes and external insurance rate data gathered in collaboration with Quadrant Information Services. Compare.com uses these observations to provide drivers with insight into how auto insurance companies determine their premiums.

Sources

1. Alaska Department of Commerce, Community, and Economic Development, Division of Insurance, “Auto Coverage Options,” Accessed November 28, 2023.
2. Alaska Department of Commerce, Community, and Economic Development, Division of Insurance, “Consumer Guide to Automobile Insurance,” Accessed November 28, 2023.
3. Alaska Division of Motor Vehicles, “Fees For Driver Licensing,” Accessed November 28, 2023.
4. Insurance Information Institute, “Facts + Statistics: Uninsured motorists,” Accessed November 28, 2023.
5. The Alaska State Legislature, “Alaska Statute 28.22.011,” Accessed November 28, 2023.
6. The Alaska State Legislature, “Alaska Statute 28.33.030,” Accessed November 28, 2023.
7. The Alaska State Legislature, “Alaska Statute 28.35.030,” Accessed November 28, 2023.Insurance Information Institute, “A Firm Foundation: How Insurance Supports the Economy,” Accessed November 29, 2023.