INSURANCE - CAR INSURANCE

Best Car Insurance in Alaska for 2024

Updated April 3, 2024
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USAA generally has the cheapest car insurance in Alaska.

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Alaska is well known for its stunning views and bountiful wildlife, making a road trip through The Last Frontier an exciting adventure. And while food, fuel, and other necessities tend to be more expensive in the 49th state, car insurance costs are generally more affordable than the national average.

In this article

Key takeaways

  • The best car insurance in Alaska is USAA, which costs $864 a year for comprehensive coverage.
  • Drivers with a clean driving record pay an average of $97 per month in Alaska.
  • Wasilla drivers pay the most in the state, with a monthly average of $1,689.

Best car insurance companies in Alaska

The best car insurance in Alaska tends to cost less than in other states. USAA generally has the cheapest insurance, averaging just $864 per year for full coverage and $296 annually for minimum coverage.

State Farm had the second cheapest full coverage in the state, averaging $904 per year. Progressive had the most expensive full coverage policies, averaging $1,423 annually.

Provider J.D. Power customer satisfaction rating Estimated annual full coverage Estimated annual minimum liability coverage
USAA 875/1,000 $864/year $296/year
State Farm 821/1,000 $904/year $453/year
Progressive 807/1,000 $1,423/year $903/year
GEICO 797/1,000 $1,014/year $388/year
Allstate 783/1,000 $1,395/year $479/year

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USAA: Highest customer satisfaction

USAA earned the highest customer satisfaction score in Alaska. It also offers Alaskans the cheapest insurance in the state, but its policies are only available to current and former military members and their families. USAA is a good pick if you qualify because of its pricing and solid customer service. However, while it has multiple policy types and discounts, you may need to look elsewhere if you need some specialty policies.

Pros
  • USAA has multiple discounts, including up to 15% savings if you garage your car on base
  • It has the best pricing on full and minimum car insurance in Alaska
Cons
  • Only current and former military members and their families can apply for USAA policies
  • USAA has fewer policy options than some competitors

Get a quote now | USAA review

State Farm: Most affordable coverage

State Farm’s full coverage car insurance is the most affordable in Alaska. It earned high customer satisfaction scores and also provides standard and some specialty coverages with multiple discount options, including up to 25% in savings for teen drivers.

Pros
  • State Farm earned the second-highest customer satisfaction scores on our list
  • It has several agents in the state
Cons
  • State Farm does not have some specialty policies like a vanishing deductible
  • You may find more discounts with another carrier

Get a quote now | State Farm review

Progressive: Best for high-risk drivers

Progressive was the most expensive insurance company in Alaska for drivers with a clean record. However, if you have a DUI, multiple speeding tickets, or are otherwise considered high-risk, Progressive may offer better rates than some competitors. It can also file the required SR22 forms with the state.

Pros
  • Progressive has standard and specialty policies, including a vanishing deductible
  • It has multiple discounts that can help you lower your insurance cost
Cons
  • Alaska drivers with a clean record can likely find cheaper full and minimum coverage
  • Progressive earned below-average customer satisfaction scores

Get a quote now | Progressive review

GEICO: Best for senior drivers

Although GEICO did not have the cheapest full coverage car insurance in Alaska, it was the second cheapest minimum insurance overall, averaging $388 a year. It has many policy and discount options, and senior drivers may find it helpful since it offers a guaranteed renewal contract called Prime Time for drivers over age 50.

Pros
  • GEICO had the cheapest minimum coverage available to the general public
  • Senior drivers may earn an extra discount for completing a defensive driving program
Cons
  • You can likely find cheaper full coverage insurance in Alaska
  • It earned below-average customer satisfaction scores

Get a quote now | GEICO review

Allstate: Best for coverage options

Allstate has multiple standard and optional coverages in Alaska, including new car replacement, gap insurance, and accident forgiveness. However, despite its reasonable pricing and multiple coverages, Allstate earned our list’s lowest customer satisfaction scores.

Pros
  • Allstate has more specialty policies than many competitors, including a vanishing deductible
Cons
  • Allstate earned the lowest customer satisfaction scores on our list
  • It only has a few agents in Alaska

Get a quote now | Allstate review

Alaska auto insurance requirements

Some areas of Alaska do not require drivers to register or insure their vehicles. If you do not live in one of those areas, you must have insurance coverage that meets at least the state’s minimum coverage levels, which are:

  • $50,000 in bodily injury liability for one person
  • $100,000 in bodily injury liability for two or more people
  • $25,000 in property damage liability

How to choose a car insurance provider in Alaska

When looking for a new insurance provider, consider the following to help you get the best deal:

  • Compare pricing and discounts: Request quotes from at least three companies and confirm the policy coverages, discounts, and limits are the same or similar.
  • Read reviews: Check review websites like the Better Business Bureau to see how a company resolves customer service problems. Ask friends and family for recommendations, especially if you are new to the area.
  • Check the financials: Before starting with a new insurance company, check its financial stability and if it can pay claims on a website like AM Best. It’s also wise to check with the Alaska Division of Insurance and the National Association of Insurance Commissioners (NAIC) to confirm a company is currently licensed to do business in Alaska.

How much does car insurance cost in Alaska?

The average cost of car insurance in Alaska is $1,167 per year for full coverage and $500 for minimum coverage. The national average for full coverage car insurance is $1,582, so Alaskans generally pay less per year. 

Wasilla drivers tend to pay the most for car insurance, a yearly average of $1,689. Juneau drivers pay the least, $1,272 annually.

Alaska car insurance rates by city

A higher crime rate in a particular area can mean higher insurance rates since the insurance companies anticipate paying out more claims. According to the analytics site NeighborhoodScout, Wasilla drivers, who, on average, pay the most for car insurance in the state, have a one-in-32 chance of being a victim of property crime, including motor vehicle theft.

City Avg. annual full-coverage premium
Wasilla $1,689/year
Anchorage $1,678/year
Fairbanks$1,658/year
Bethel $1,579/year
Kenai $1,491/year
Juneau $1,272/year

Methodology

Our analysis was conducted using six different auto insurance marketplaces to determine the best auto insurance in each state. The data we analyzed included coverage premiums from up to 10 different insurance providers. We looked at rates by city, driver profile, and credit score, as well as factored in the impact of driving violations. This data is for comparative purposes only. Your actual quote may be different.

FAQs about car insurance costs in Alaska

What are the minimum car insurance coverage requirements in Alaska?

Although some areas in Alaska don’t require vehicle registration or insurance, if you live in an area that does, the minimum limits are $50,000 for bodily injury liability for one person and $100,000 for bodily injury liability for two or more people. Drivers must also have $25,000 in property damage liability. 

How much does car insurance cost in Alaska?

The average cost of full coverage car insurance in Alaska is $1,167 annually. The state’s minimum coverage costs a yearly average of $500. 

Which car insurance companies cover Alaska?

Several national car insurance companies, including USAA, State Farm, Allstate, Progressive, and GEICO, cover Alaska.

What is the cheapest car insurance company in Alaska?

The cheapest car insurance in Alaska comes from USAA, which costs an average of $864 per year for full coverage and $296 for minimum coverage.

State Farm was second, averaging $904 per year for full coverage. GEICO had the cheapest minimum coverage after USAA, averaging $388 annually.

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Author Details

Kate Daugherty Kate Daugherty is a professional writer with a passion for providing others the head start they deserve on their financial journeys. Largely self-taught, Kate relied on books, blogs, and trial-and-error to learn how to budget and save for the future, all while working to pay back about $15,000 in student loans.