Cheapest Car Insurance in Alaska

Alaska's most affordable car insurance provider is Progressive, with an average monthly rate of $35 and an annual cost of $418 for minimum coverage. This rate is $95 less than the state average, according to data from Quadrant Information Services as of December 2024. Read our research methodology to learn how we found the cheapest Alaska car insurance.

The cheapest car insurance company for most drivers in Alaska is State Farm, with an average monthly cost of $63 for minimum and full coverage policies. This rate is $7 below the state average. GEICO, Progressive, Allstate and Umialik Insurance also offer affordable rates.

*We used combined minimum and full coverage rates for a 40-year-old driver with good credit and no driving violations to calculate these averages.

Progressive offers the cheapest minimum coverage in Alaska, while State Farm is the most affordable for full coverage. However, the best rate for you depends on your details. Below are the most affordable car insurance rates for different driver profiles.

Progressive offers the cheapest minimum coverage in Alaska at $35 monthly, while the state average is $42. State Farm, Umialik Insurance and GEICO also provide low premiums for drivers. Use the table below to compare rates from these companies and see how they compare to the state’s monthly average.

State Farm is the cheapest full coverage auto insurance provider in Alaska, with rates averaging $86 per month or $1,036 per year, $11 less than the state average. Check the table below for other options.

In Alaska, Progressive offers the best rates for young adult drivers. A minimum coverage policy costs an average of $40 per month for 25-year-olds.

*We used minimum coverage for a 25-year old driver with good credit and no driving violations to determine the cheapest provider.

Progressive offers the cheapest minimum coverage for young drivers in Alabama at $40 monthly, while GEICO provides the most affordable full coverage at $86. Rates vary based on your driving record, but these companies are a great starting point for affordable options.

In Alaska, senior drivers can get affordable rates with State Farm, averaging $36 monthly for minimum coverage.

*We used minimum coverage for a 65-year old driver with good credit and no driving violations to determine the cheapest provider.

State Farm offers the cheapest minimum coverage for senior drivers in Alaska at $36 per month. GEICO provides affordable full coverage at $76. Progressive is ideal for drivers with bad credit at $55, while Umialik Insurance is best for those with a DUI, accident or speeding ticket at $40. Rates vary, so use these as a guide.

Drivers in Alaska with a DUI, at-fault accident or speeding ticket are considered high-risk and pay higher premiums than those with a clean record. Rates vary by offense. Below are the best car insurance options for high-risk drivers.

Progressive offers the best rates for Alaska drivers with DUIs, averaging $41 per month ($496 per year) for minimum coverage. Check the table below for a list of insurance providers and their average monthly premiums for drivers with DUIs in Alaska.

*We used a 40-year-old driver with good credit and a DUI on record to calculate these averages.

Umialik Insurance, with rates averaging $42 per month ($504 per year), is the cheapest company for drivers after an at-fault accident. The table below lists other insurers offering affordable coverage for drivers with accidents on their records. Rates are for minimum coverage policies.

*We used a 40-year-old driver with good credit and an at-fault accident on record to calculate these averages.

Umialik Insurance offers the cheapest rates for Alaska drivers with speeding tickets, at $42 per month. Check the table below to compare other providers offering minimum coverage for drivers with speeding tickets.

We used a 40-year-old driver with good credit and a speeding ticket on record to calculate these averages.

Progressive is the cheapest car insurance provider for drivers with poor credit scores, with rates of $49 monthly and $588 annually for minimum coverage. Review the table below for more options.

*These rates are based on a 40-year-old driver with bad credit and a clean driving record.

Location affects car insurance rates, with factors like population, flood risks and crime influencing costs. 

For example, Progressive offers minimum coverage in Anchorage for just $41 a month. The table below shows the cheapest insurance in your city and the lowest average monthly rate.

The lowest rate reference is for a minimum coverage policy for 40-year-olds with good credit and no driving violations.

For affordable home and auto insurance bundles in Alaska, State Farm leads at $1,802 annually. Other cost-effective options are listed below.

*Rates are for a 40-year-old driver with good credit and no driving violations.

In Alaska, the average monthly cost of full coverage car insurance is $98, while minimum coverage averages $42. Understanding the average cost of car insurance in Alaska helps you gauge if you're getting a fair price on your policy.

Alaska's insurance rates change by city. See the average costs for state minimum and full coverage below.

Car insurance in Alaska ranks 31st compared to other states, making it more affordable than in many areas. The state's low population density, favorable location away from major natural disaster zones and lower vehicle theft rates help keep insurance costs down.

Alaska law requires all drivers to carry car insurance policies with minimum coverage limits: $50,000 for bodily injury per person, $100,000 per accident and $25,000 for property damage per accident. This ensures financial protection in case of an accident.

If you finance or lease your car, you’ll likely need comprehensive and collision insurance on top of the state minimum coverages. While minimum liability insurance is the most affordable option, it offers the least financial protection. Experts suggest opting for full coverage insurance with the highest deductible and liability limits within your budget.

Drivers with serious traffic violations, like speeding or drunk driving, may need SR-22 insurance, which can increase premiums. In Alaska, either you or your insurance company can submit the SR-22 form to the state. It remains valid for three years from your most recent offense.

In Alaska, self-insurance is a common alternative to traditional car insurance. It allows drivers to prove they can pay for damages in an accident, meeting state minimum coverage requirements.

Business owners can consider fleet insurance to cover multiple vehicles. This option helps manage costs and ensures all vehicles meet state requirements.

MoneyGeek recommends full coverage car insurance, which includes liability, collision and comprehensive coverage. We suggest the following liability limits:

• $100,000 in bodily injury liability per person
• $300,000 in bodily injury liability per accident
• $100,000 in property damage per accident

Comprehensive coverage pays for off-road damage to your car if it's stolen, vandalized or damaged by something other than a collision, like severe weather or a fire. Collision coverage pays for damage to your car in an on-road collision.

If you own a valuable car, it's wise to purchase both comprehensive and collision insurance, even though it’s not legally required. Tailor your deductible to what you can afford to pay out of pocket before your insurance covers the rest.

State Farm offers Alaska's cheapest full coverage at $86 monthly, and Progressive's minimum coverage rates average $35. While low prices are tempting, the cheapest option isn't always the best for car insurance. Experts recommend getting the most coverage you can afford for the best financial protection.

We answer common questions about the cheapest car insurance in Alaska to ensure you get the right minimum coverage for your needs.

MoneyGeek obtained Alaska auto insurance rates from the Alaska Department of Insurance and Quadrant Information Services. We examined 7,908 auto insurance quotes from six providers across 13 ZIP codes to determine Alaska's most affordable car insurance companies.

Alaska Driver Profile

We used a driver profile with the following background information to identify the cheapest auto insurance companies in Alaska:

• 40-year-old male
• 2012 Toyota Camry LE
• Clean driving record
• 12,000 miles driven annually

To find the cheapest option for various driver backgrounds, we adjusted this sample profile by age, driving record, credit score, car make and model, and military service where specified.

Standard Coverage Levels in Alaska

We compared Alaska car insurance companies that offer minimum and full coverage policies. We set the limits of the minimum coverage car insurance policy to the minimum amount required by law in Alaska.

The minimum coverage limits in Alaska are:

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

For full coverage policy rates, we used the following liability limits:

• $100,000 for bodily injury liability per person
• $300,000 for bodily injury liability per accident
• $100,000 for property damage liability
• Comprehensive and collision coverage with a $1,000 deductible

Home and Auto Coverage Levels in Alaska

MoneyGeek analyzed the rates of insurance companies for a full coverage auto insurance policy that includes the following coverage and limits:

• $100,000 in property damage liability
• $100,000 bodily injury liability per person
• $300,000 bodily injury liability per accident
• Comprehensive and collision coverage with a $1,000 deductible

We also analyzed rates for a homeowners insurance policy that includes the following limits and coverage:

• $250,000 dwelling coverage
• $25,000 other structures coverage
• $100,000 personal property coverage
• $25,000 loss of use coverage
• $100,000 personal liability coverage
• $1,000 medical payments coverage
• All-perils coverage with a $1,000 deductible