Key Takeaways
- State Farm has the cheapest average minimum- and full-coverage auto insurance rates for most drivers in Alaska.
- Car insurance in Alaska is just above the national average rate.
- While USAA is the overall cheapest car insurance company in Alaska, it only provides car insurance to currently serving and veteran military members and their families.
In this article
The cheapest car insurance companies in Alaska
State Farm: Cheapest overall
Umialik: Best local company
State Farm has the cheapest rates for both minimum-coverage and full-coverage car insurance in Alaska. It offers an average rate of $56 a month for minimum coverage and $101 a month for full coverage. For comparison, the average rate for minimum coverage in Alaska is $83 a month, and the average rate for full coverage in the state is $172.
Umialik prides itself in providing insurance by Alaskans, for Alaskans. Based out of Anchorage, Umialik combines low rates with an understanding of what homeowners in Alaska are looking for in home insurance. Umialik has an average rate of $71 a month for minimum-coverage car insurance and $101 a month for full coverage. It also carries an A+ rating from A.M. Best, indicating superior financial strength and an ability to financially back claims.
To find your best coverage at the best price, compare car insurance quotes from multiple providers.
Alaska car insurance minimum limits
Alaska state law requires drivers to carry the following minimum-coverage car insurance limits:
| Coverage type | State requirements |
|---|---|
| Bodily injury liability | $50,000 per person/$100,000 per accident |
| Property damage liability | $25,000 |
| Source: commerce.alaska.gov | |
While Alaska's minimum limits may seem adequate, a major accident can cause you to hit these limits quickly with court costs and medical bills. To avoid having to pay out of pocket once you reach your limits, we recommend raising your liability limits to:
- Bodily injury per person: $100,000
- Bodily injury per accident: $300,000
- Property damage liability per accident: $100,000
Cheapest minimum-coverage auto insurance rates in Alaska: State Farm
State Farm has the cheapest minimum-coverage car insurance in Alaska, with an average rate of $56 a month. This is 33% cheaper than the state average of $83 a month.
Minimum-coverage car insurance covers the damage and injuries you cause to others in an accident.
| Company | Average monthly rate |
|---|---|
| State Farm | $56 |
| Allstate | $63 |
| Umialik | $71 |
| GEICO | $112 |
| Progressive | $148 |
| USAA | $47 |
| Rates are for minimum-coverage car insurance for a 35-year-old male with a good driving record. | |
Cheapest full-coverage auto insurance rates in Alaska: State Farm
State Farm also has the cheapest rates for full-coverage auto insurance in Alaska, with an average of $101 a month. Umialik is next at $139 a month.
| Company | Average monthly rate |
|---|---|
| State Farm | $101 |
| Umialik | $139 |
| Allstate | $163 |
| Progressive | $223 |
| GEICO | $310 |
| USAA | $97 |
| Rates are for full-coverage car insurance for a 35-year-old male with a good driving record. | |
Full-coverage auto insurance covers a lot of what liability insurance does not. Minimum coverage only pays for the repairs and injuries of others. To cover your own losses, you need full coverage.
Cheapest car insurance in Alaska for drivers with bad credit: State Farm
State Farm holds the cheapest average full-coverage rate of $195 a month for most Alaska drivers with poor credit. Umialik comes in second at $210 a month.
Providers tend to see poor credit as a risk factor when calculating your car insurance quote, although some states now forbid credit ratings to be used in premium calculation.
| Company | Average monthly rate |
|---|---|
| State Farm | $195 |
| Umialik | $210 |
| Allstate | $213 |
| GEICO | $310 |
| Progressive | $317 |
| USAA | $169 |
| Rates are for full-coverage car insurance for a 35-year-old male with poor credit and a good driving record. | |
Cheapest car insurance for drivers with a prior incident
After an offense such as a speeding ticket, an accident or a DUI, you'll probably see your car insurance rates increase. State Farm has the cheapest insurance rates available for Alaska drivers with an offense on their record. Here's the breakdown across various driving offenses.
Cheapest for drivers with a speeding ticket: State Farm
If you have a speeding ticket on your insurance record, State Farm is the cheapest car insurance option at $101 a month for full coverage. Umialik is the next-cheapest company with an average rate of $139.
| Company | Average monthly rate |
|---|---|
| State Farm | $101 |
| Umialik | $139 |
| Allstate | $153 |
| Progressive | $236 |
| GEICO | $311 |
| USAA | $90 |
| Rates are for full-coverage car insurance for a 35-year-old male with one speeding ticket on his driving record. | |
If you have a clean and long driving record, your first speeding ticket may not cause your premium to go up. If it does, the increase will probably stay on your car insurance for three to five years. That can result in hundreds of dollars out of pocket during that time. All the more reason to watch your speed when driving.
See how much you could save with a new car insurance policy
Cheapest for drivers with an at-fault accident: State Farm
After an accident, Alaska drivers find the cheapest auto insurance from State Farm, which charges an average rate of $110 a month. Umialik is next at $139 a month.
| Company | Average monthly rate |
|---|---|
| State Farm | $110 |
| Umialik | $139 |
| Allstate | $191 |
| Progressive | $260 |
| GEICO | $338 |
| USAA | $102 |
| Rates are for full-coverage car insurance for a 35-year-old male with one at-fault accident on his driving record. | |
Cheapest for drivers with a DUI: State Farm
If you have a DUI, State Farm has the lowest car insurance rate in Alaska at $101 a month. The next-cheapest option is Umialik at $140.
| Company | Average monthly rate |
|---|---|
| State Farm | $101 |
| Umialik | $140 |
| Allstate | $181 |
| Progressive | $217 |
| GEICO | $338 |
| USAA | $126 |
| Rates are for full-coverage car insurance for a 35-year-old male with one DUI on his driving record. | |
If you are pulled over and found to have a blood alcohol content (BAC) of 0.08%, you are guilty of driving under the influence (DUI). The penalties for a first-offense misdemeanor DUI in Alaska include a fine of $1,500 and revocation of drivers license for at least 90 days. To get your drivers license reinstated, you'll need to file an SR-22 form with the state for five years.
Cheapest car insurance for senior drivers: State Farm
Senior drivers in Alaska pay the cheapest car insurance rates with State Farm, at an average rate of $94 a month. Umialik also offers affordable coverage, averaging $122 a month.
| Company | Average monthly rate |
|---|---|
| State Farm | $94 |
| Umialik | $122 |
| Allstate | $190 |
| Progressive | $245 |
| GEICO | $338 |
| USAA | $95 |
| Rates are for full-coverage car insurance for a 65-year-old male with a clean driving record. | |
Senior drivers often pay higher car insurance rates than most younger demographics. This is mostly due to the risk that can occur from slower reflexes that happen as we age. Seniors with a clean driving record still pay a lower premium than teen drivers.
Cheapest car insurance for young drivers: Allstate
Allstate has the lowest minimum- and full-coverage car insurance rates for teen drivers in Alaska, charging an average of $112 a month for minimum coverage and $328 for full coverage.
| Company | Minimum monthly rate | Full monthly rate |
|---|---|---|
| Allstate | $112 | $328 |
| State Farm | $148 | $345 |
| Umialik | $150 | $414 |
| GEICO | $208 | $613 |
| Progressive | $465 | $779 |
| USAA | $83 | $195 |
| Rates are for an 18-year-old male with a clean driving record. | ||
Teens usually pay higher rates than any other age group due to their inexperience behind the wheel. As such, car insurance companies usually charge teens more for a policy to offset the risk.
However, we've found that teens on a parent's insurance pay 48% less for car insurance. If you have a teen driver, adding them to your car insurance will still raise your premium, but it will probably be cheaper than the two of you having separate policies.
Cheapest car insurance for married drivers: State Farm
Married drivers in Alaska find the cheapest rates with State Farm, at an average of $101 a month. Car insurance providers tend to view married drivers as a lower risk, and this is reflected in their rates.
| Company | Average monthly rate |
|---|---|
| State Farm | $101 |
| Umialik | $139 |
| Allstate | $152 |
| Progressive | $185 |
| GEICO | $258 |
| USAA | $87 |
| Rates are for full-coverage car insurance for a married 35-year-old male with a good driving record. | |
Frequently asked questions
The average cost of minimum-coverage car insurance in Alaska is $83 a month. Full-coverage car insurance costs an average of $172 a month.
State Farm has the lowest car insurance rates for nearly all age brackets, regardless of insurance history. Allstate, however, has the cheapest rates for teens.
Alaska law requires that drivers registered in the state carry the following car insurance minimum limits:
- Bodily injury per person: $50,000
- Bodily injury per accident: $100,000
- Property damage: $25,000
Methodology
The rates shown in this article are based on an analysis of more than 300,000 auto insurance quotes obtained from Quadrant Information Services for sample drivers from across Alaska.
Unless otherwise noted, our sample driver is a single 35-year-old with good credit. All sample drivers own a 2012 Honda Accord LX that they drive for an average of 13,500 miles per year.
Our senior base driver is a 65-year-old male with a good driving record. Our young base driver is an 18-year-old male with a good driving record.
Minimum-coverage rates reflect the cost of policies meeting the minimum liability limits required by the state.
Full coverage policies include the following coverages, limits and deductibles:
-
Bodily injury liability: 100,000 limit per person/$300,000 limit per accident
-
Property damage liability: $100,000 limit
-
Collision: $500 deductible
-
Comprehensive: $500 deductible
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