Everything You Need to Know About Auto Insurance in Alaska

Located at the northwest extremity of North America, Alaska truly sticks to its moniker as the Last Frontier State, sharing its land borders with Canada and its maritime one with Russia along the Bering Strait. More than 733,500 residents call this cold, rugged state home, with many having ancestral origins in this region that date back centuries.

Known for its abundant natural resources, the land now called Alaska had been home to several indigenous groups — including the Athabaskan, the Eyak, the Tlingit, and the Haida — for thousands of years before European settlers arrived in the 17th century. It became a U.S. territory in 1912, after the Gold Rush boom at the turn of the 19th century brought countless prospectors to the region, seeking to make their fortunes. The territory officially became a state in 1959.

There are plenty of things for visitors to explore, including riding a passenger train from Seward to Fairbanks and making time to stop at Denali National Park to view the highest mountain in North America.

If you’re looking for an affordable auto policy to keep you and your loved ones safe on the road, InsureOne expert agents can help you find the best auto insurance at a great rate in Alaska.

How Much Does Car Insurance Cost in Alaska?

On average, Alaska drivers pay annual auto premiums of $1,946 for full coverage and $421 for minimum liability insurance.

These premiums are significantly lower than national averages, which stand at around $2,014 and $622 for full and minimum coverage, respectively. That means drivers in this state save between $68 and $201 annually on their car insurance.

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Reasons Why Insurance Is So Cheap in Alaska

Alaska insurance rates may seem cheap compared to national averages, but that’s likely because the state has several rural communities and small towns that don’t experience as much traffic as larger ones, like Anchorage or Juneau. In recent years, rates have been going up in the Last Frontier State.

Affordable Car Insurance Rates Comparison by Cities in Alaska

For a comparison of the average monthly premiums drivers pay in different cities across the state, check out our breakdown below.

City Full Coverage Insurance Liability Insurance Coverage
Fairbanks $128 $31
Anchorage $122 $33
Juneau $103 $27
Kodiak $108 $30
Bethel $123 $29

Our average monthly premiums by city are based on the following methodology: male, age 30, lowest possible legal coverage allowed by Alaska.

How Bundling Your Vehicle and Homeowners Insurance Can Save You Money in Alaska

Bundling your insurance coverage reduces annual premiums, typically by around 5% to 25%. Homeowners benefit the most from combining coverage since they tend to pay more for coverage than renters do.

For example, if you own a house near Juneau or Anchorage and bundle your home and auto coverage, you’ll likely get the maximum 25% reduction on your annual premium. By contrast, someone renting a home in these same cities might only receive a discount of up to 15% when they combine coverage.

An InsureOne agent can help you build a quality package that meets your needs and budget. They do all the work, comparing offerings from top providers, which saves you time and money.

What Types of Auto Discounts Are Available in Alaska?

Driver discounts can save you money on your premiums, especially if you’re eligible for more than one. For example, if you own a house and lease two cars, bundling homeowner’s insurance and auto coverage could land you a 25% reduction on your premium.

Other rate-reducing discounts include:

  • Good driver
  • Defensive driver
  • Military
  • Anti-theft
  • Loyalty
  • Paperless billing
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Alaska Car Insurance Laws

Alaska has a 50/100/25 minimum mandatory liability insurance requirement, and drivers must always carry proof of having auto coverage. Here’s a closer look at what this means.

What Are the Mandatory Car Insurance Requirements in Alaska?

In Alaska, a basic policy must provide 50/100/25 liability coverage to cover costs you cause in a crash. That means you need to have:

  • $15,000 to pay for medical treatment if one person is injured or their funeral expenses if they die as a result of the crash
  • $100,000 to cover medical bills or funeral expenses if two or more persons are hurt or die as a result of the crash
  • $5,000 to pay for property damage

Many drivers choose to increase the amount of liability coverage on their basic policies to avoid being underinsured in a crash.

What Is the Penalty for Driving Without Insurance in Alaska?

Failing to provide proof of insurance during a traffic stop will lead to the suspension of your driver’s license, along with fines starting at $500. Your vehicle will also be impounded in the municipality of Anchorage, and you will need to contact the Anchorage Police Department so you can get it back.

What Factors Does Alaska Law Allow in Determining Your Premiums?

State law allows insurers to calculate your premium by considering several factors. Some of the most important ones are:

  • Age
  • Gender
  • Marital status
  • Location
  • Credit history
  • Vehicle type
  • Driving record and experience
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Here’s What You Need to Know When Driving in Alaska

The Last Frontier State has a few unique laws that other states lack. Its landscape and weather play a big role in that, requiring heightened care and vigilance behind the wheel. These laws include:

  • Using headlights at all times, day or night, during the winter months. Motorcyclists are required to use their headlights year-round. Many drivers abide by this rule year-round, too.
  • Adhering to speed limits that are much lower than those of other states. For instance, in an Alaska business district, the maximum speed limit is 20 mph.
  • Not texting while driving. Drivers can speak on the phone while holding it, but the law forbids the typing of text messages.

At InsureOne, our expert agents help you find the best auto insurance with customizable options that best meet your needs.

What Is Driving Like in Alaska?

Alaska experiences cold temperatures throughout the year, even during the warmer months, with highs remaining mild, reaching 73 degrees Fahrenheit in some areas. With beautiful vistas of mountains, meadows, and streams, the terrain is rough and rugged in this state. On the road, drivers need to be mindful of landslides and treacherous conditions during storms or when it’s snowing.

How Many Car Accidents Happen in Alaska?

In 2021, 59 fatal crashes in Alaska resulted in 67 deaths. The following chart shows the number of fatal crashes in various cities across the state that year.

City Fatal Crashes in 2021
Fairbanks 1
Anchorage 20
Juneau 2
Kodiak 1
Bethel 1
Kenai 1
Homer 1
Wasilla 3
Unalaska 0
Sitka 1
Soldotna 2
Palmer 3
Ketchikan 0

Source: U.S. Department of Transportation National Highway Traffic Safety Administration.

How Many Uninsured/Underinsured Motorists Are in Alaska?

In Alaska, more than 16% of drivers are uninsured. In 2019, the state ranked no. 14 among those with the highest number of uninsured or underinsured motorists.

Get the Best Car Insurance in Alaska Today

InsureOne offers a one-stop auto insurance shopping experience with expert agents who will listen to your needs and help you find top-quality insurance options that work best for you.

We will save you time and money by researching quotes and presenting you with several options that meet your needs. Get a quote online, visit us at an Alaska office near you, or call us at (800) 836-2240 for a quote.