Don’t get caught driving without insurance in the Land of the Midnight Sun.
There are several counties in Alaska where auto insurance is not required, but in most areas of the state, car insurance is necessary. This article will discuss the best car insurance in Alaska. Our review team has already looked at the best car insurance companies nationwide. We take another look at some of our top providers, considering the specifics of driving in Alaska.
The best way to find the cheapest insurance option in any state is to compare personalized quotes from multiple providers. You can do so by using the free quote comparison tool below.
In this article:
- 5 Top Car Insurance Companies In Alaska
- Alaska Car Insurance Requirements
- Cost Of Car Insurance In Alaska
- What To Know About Driving In Alaska
- Final Thoughts
- FAQ: Car Insurance In Alaska
5 Top Car Insurance Companies In Alaska
By looking at average rates for drivers in Alaska as well as considering Alaska driving statistics and guidelines, we’ve determined some of the top providers in the state. The table below lists what we think are five companies drivers should consider first for car insurance in Alaska.
|Best Car Insurance in Alaska||Our
|1. Geico Car Insurance||4.5||4.0||4.0||4.0|
|2. USAA Car Insurance||5.0||5.0||4.5||4.5|
|3. State Farm Auto Insurance||4.5||3.5||4.0||4.0|
|4. Progressive Auto Insurance||4.5||3.5||3.5||4.0|
|5. Umialik Car Insurance||N/A||N/A||N/A||N/A|
*You may notice that some car insurance companies are listed above those with higher star ratings. This is because our star ratings take into account nationwide factors, while our ranking looks specifically at what insurance providers are best for car insurance in Alaska.
#1 Geico: Cheapest Car Insurance In Alaska
We named Geico the best overall provider in any state, and Geico’s service holds up in Alaska. Geico offers low rates for car insurance, as well as a quick and easy claims process. The following discounts offered by Geico can help Alaska drivers save on premiums:
- Good driver discount
- Good student discount
- Defensive driving discount
- Discounts for airbags, anti-lock brakes, and anti-theft devices
- Multiple vehicle discount
- Multiple policy discount
- Military and federal employee discounts
Geico also offers usage-based insurance options in some states. By using the DriveEasy app, some Geico customers can reduce rates by driving less and driving safely.
|Geico Pros||Geico Cons|
|A+ rating from the Better Business Bureau (BBB)||Average quotes experience|
|Many choices for coverage|
|High level of customer satisfaction|
|Available in all 50 states|
|A++ financial strength rating from AM Best|
Learn more about the insurer by reading our full Geico insurance review.
#2 USAA: Best For Military
USAA consistently receives high customer satisfaction marks across the country. It ranked highly in the J.D. Power 2020 U.S. Auto Insurance Satisfaction StudySM in every region, but it should be noted that Alaska was not included in the study. The only downside to a USAA policy is that it is only available to military personnel and their families. This means that not every Alaska driver will have the option to purchase USAA car insurance.
For those who are able to purchase a USAA policy, it is one of the best options in any state, and a definite contender for the best car insurance in Alaska. In addition to the standard types of auto insurance, USAA also offers the following products:
- Roadside assistance
- Rental reimbursement
- Accident forgiveness
- Glass coverage
- Guaranteed asset protection (GAP)
- Car replacement assistance (CRA)
USAA is among the most well-regarded insurers in the country, and it is financially stable, boasting an A++ (Superior) financial strength rating from AM Best.
|USAA Pros||USAA Cons|
|Affordable rates and numerous discounts||Only available for military members and their families|
|Good option for military members and young drivers||No brick-and-mortar locations|
|Superior financial rating from AM Best|
To learn more about the company, read our USAA insurance review.
#3 State Farm: Best For Young Drivers In Alaska
State Farm offers comprehensive auto insurance coverage options, as well as a host of discounts that may help save on policies for students and teen drivers. Some discount opportunities include:
- Safe driving discounts: Drivers with a clean driving record, which means no accidents or moving violations for the past three years, can receive this discount. Drivers can also receive discounts for completing a defensive driving course or taking driver’s ed.
- Student discount: Students away at school may be eligible for discounts.
- Safe vehicle discounts: If you equip your car with anti-theft devices and other high-tech safety features, you can reduce your Alaska car insurance rates.
- Loyalty discounts: Insuring multiple vehicles or bundling your home and auto policies can reduce your State Farm premium up to 20 percent.
- Drive Safe & SaveTM: This is a usage-based insurance option. Drivers get discounts for driving less and driving safely.
- Steer Clear®: Steer Clear is available for drivers under the age of 25 with at least a 3-year clean driving record. The app offers discounts for completing driver training courses and practicing driving by using the tools offered through the app.
State Farm has an A++ financial strength rating from AM Best and offers comprehensive coverage. Customer reviews for the company are generally strong and praise State Farm’s customer service agents.
|State Farm Pros||State Farm Cons|
|Comprehensive coverage offerings||Reported errors with autopay|
|Extensive selection of discounts|
|Positive customer reviews|
|Easy online quotes process|
|A+ rating from the BBB|
To learn more, check out our State Farm insurance review.
#4 Progressive: Best For High-Risk Drivers
Progressive wrote more than $31 billion in premiums in 2019 according to the National Association of Insurance Commissioners (NAIC) and boasts an A+ financial strength rating from AM Best. We think Progressive is a good option for high-risk drivers searching for Alaska car insurance because of its money-saving features, which include:
- Deductible savings bank: Adds $50 toward your next deductible for every six-month period you go without an accident or ticket.
- Policy bundling: Bundling your auto policy with another type of coverage (such as home or renters insurance) can reduce your auto premium up to five percent.
- Snapshot® app: This app can monitor your driving habits and lower your premium for driving safely and less frequently.
- Name Your Price® tool: This is not a discount, but it can help customers save money by setting the price they want to pay. You first choose your rate, then Progressive offers policy options that fall within your budget.
Progressive has an A+ rating from the BBB and a low volume of complaints in relation to the size of its customer base.
|Progressive Pros||Progressive Cons|
|One of the top auto insurers in the United States||Average claims process|
|A+ financial strength rating from AM Best||Mixed customer service reviews|
|Great choice for high-risk drivers|
|Several money-saving features|
Learn more by reading our Progressive insurance review.
#5 Umialik: Best Local Alaska Agents
Alaska drivers can be confident in Umialik, which is local to the state and specializes in finding coverage in the Last Frontier. Umialik Insurance Company has been around for over 30 years and is headquartered in Anchorage. It is a member of the Western National Insurance Group, which gives it access to the financial resources to meet all customer claims. It works through a network of independent agents that can help Alaska drivers find coverage to meet their needs and budget.
The Umialik Penalty-Free Promise® guarantees that rates will not increase after accidents or violations, which can help keep premium costs down.
|Umialik Pros||Umialik Cons|
|Network of independent agents that specialize in car insurance for Alaska drivers||Younger company with a less-established reputation|
|A+ financial strength rating from AM Best|
Umialik agents can help you find the best car insurance in Alaska by comparing multiple policies and coverage options. Agents are not insurance company employees and are dedicated to finding the best coverage for Alaska drivers.
Alaska Car Insurance Requirements
The state of Alaska requires that all drivers maintain the following minimum insurance policies:
- $50,000 per person bodily injury liability
- $100,000 per accident bodily injury liability
- $25,000 per accident property damage liability
There are no state requirements for personal injury protection, comprehensive, or collision policies. However, it is generally recommended that drivers purchase such policies if they can afford them. With the right provider, full-coverage auto insurance is not much more expensive than state minimum coverage requirements and can keep your finances protected in the worst-case accident scenario.
There are some areas in Alaska that do not require vehicles to be registered. In these areas, insurance is not required. A full list of the counties where car insurance is not required in Alaska can be found on the Alaska Division of Motor Vehicles (DMV) website.
Drivers who fail to maintain the state minimum required coverage where necessary can face license suspension and vehicle impoundment.
Cost Of Car Insurance In Alaska
According to the NAIC, the average premium cost for liability insurance in Alaska was $561.06 in 2017. A full breakdown of average premium costs for car insurance in Alaska is detailed in the following chart.
|Type of Coverage||Average Annual Expenditure*|
*To calculate average expenditures, NAIC assumed that all insured vehicles would carry liability coverage but not necessarily collision or comprehensive. Total cost per year measures what consumers actually spent.
The average liability premium across all states for the same year was $611.12, and the average total insurance premium for all states was $1,133.92. This means that car insurance in Alaska is relatively cheaper than it is in other states.
What To Know About Driving In Alaska
The Alaska DMV reported that the average Alaskan drove 9,902 miles in 2018. In that same year, there were 953 auto deaths, which made for 1.46 deaths per 100 million vehicle miles traveled. This is a relatively high accident fatality rate. Alaska ranked sixth out of 50 states for vehicle fatalities, behind only West Virginia, South Carolina, Mississippi, Louisiana, and Arizona.
Some parts of Alaska have narrow roads, and its rural areas may not receive as much plowing and maintenance as more populated areas in the U.S. Cell phone coverage can also be spotty in certain areas, so you may need to be prepared to perform your own roadside maintenance.
Driving in Alaska is a bit more dangerous than in most other states, but there is no reason to fear. Taking your time and being aware of the road can keep you safe. If you are purchasing car insurance in Alaska, you will still have access to many of the most popular national providers even though the state is separated from the rest of the U.S. by a significant distance.
Each top national provider is worth a look. If you want to find cheap car insurance in Alaska, try using the quote tool below to compare personalized rates. Also, be sure to check out Umialik insurance, a regional provider with local agents.
FAQ: Car Insurance In Alaska
Does Alaska require car insurance?
Alaska requires that drivers maintain at least $50,000 per person bodily injury liability, $100,000 per accident bodily injury liability, and $25,000 per accident property damage liability auto insurance. However, there are some areas in Alaska where you are not required to have car insurance or even register your vehicle. A list of these areas can be found on the Alaska DMV website.
Is car insurance cheaper in Alaska?
Based on cost reports issued by the NAIC, the average premium rates for car insurance in Alaska are cheaper than in other states. The average liability premium in 2017 was $611.12 across all states and only $561.06 for Alaska drivers. The average total insurance premium was $1,133.92 for all states and $1,072.19 for Alaska drivers.
How much is car insurance in Alaska?
The NAIC reports that the average annual premium expenditure for Alaska drivers in 2017 was $1,072.19. However, keep in mind that the cost of car insurance varies from provider to provider and depends on factors such as your age, gender, vehicle, and driving record.
Who actually has the cheapest car insurance?
There is no one cheapest provider for car insurance in any state, including Alaska. The only way to find the cheapest car insurance for you is to compare quotes from multiple providers. Based on our research, USAA, Geico, and State Farm offer the lowest rates in general.