Average cost of car insurance in Alaska in 2024

How much is car insurance in Alaska? 

Although the cost of living tends to be on the higher side in the Last Frontier State, car insurance in Alaska remains on par with the rest of the country. According to Bankrate’s analysis of premium data from Quadrant Information Services, Alaska drivers pay $2,311 a year for full coverage and $498 a year for minimum coverage, on average. This is less than the national average cost of car insurance, which is $2,458 for full coverage and $678 for minimum.

It’s important to remember that a lot of factors go into how much car insurance is in Alaska for any individual driver. Below, Bankrate explains how your location, age, gender, driving record, credit history and the type of car you drive can influence Alaska car insurance rates — plus some tips on how to spend less on insurance.

Key takeaways

• Per month, the average cost of car insurance in Alaska is $193 for a full coverage policy, which is 2 percent less than the national average.
• Minimum coverage car insurance costs $41 per month in Alaska, around 27 percent less than the national average.
• On average, Alaskan drivers with a clean driving record and poor credit pay 32 percent more per year for full coverage than Alaskans with good credit but one at-fault accident.
• If you’re shopping for a new vehicle in Alaska, you may see favorable insurance rates if you choose a Honda Odyssey.

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Alaska car insurance rates by city

In addition to your state and other personal rating factors, your specific city and even your ZIP code can impact your car insurance rates. Geographically specific factors — like the incidence of accidents and the likelihood of vehicle theft or vandalism — can influence average premiums in your area. Population density can also affect rates. Living in a densely populated area typically means a higher likelihood of accidents, which in turn means higher insurance rates.

In the table below, you can see how average full coverage car insurance premiums vary by city in Alaska.

Average car insurance costs by age and gender in Alaska

Unless you live in certain states like California or Hawaii, age is typically a determining factor in the price of your car insurance. Drivers under 25, especially teens, tend to exhibit riskier driving behavior than their older counterparts. This inexperience behind the wheel typically leads them to pay the highest premiums since they’re at the highest risk of being involved in a car accident. Generally, rates go down as you age but tend to tick up again after you turn 70, when age-related health issues may lead to a higher chance of accidents.

Gender is another car insurance rating factor in Alaska. Typically, men (especially young men) pay more expensive car insurance premiums than women, but this isn’t always the case. Take the tables below, for instance. As you can see, after age 40, women in Alaska pay slightly higher average rates than men. Since car insurance premiums are based on actuarial tables, the statistics may show that claims payouts are more frequent or costly for women in Alaska than for men, leading to marginally higher rates.

Cost considerations for young drivers in Alaska

If you have a teen or young driver in your household, you’re likely looking to lower your car insurance premium. One way you might accomplish this goal is by listing your young adult child on your policy rather than encouraging them to get their own. However, you may have to fulfill certain criteria to do so, depending on the company. For instance, your young adult child will more than likely have to live in your home to qualify to be listed as an additional driver on your policy.

The table below illustrates the difference in average rates in Alaska for young drivers listed on their parents’ policy compared to those who have their own.

How does driving record impact the cost of car insurance in Alaska?

Having incidents on your driving record, like tickets, accidents and DUIs, could cause an insurance company to view you as a high-risk driver. If an insurer thinks you are likely to file a claim, they may increase your premium to mitigate their risk. A DUI can be among the more serious driving infractions cost-wise and coverage-wise, as not all insurers will write policies for drivers with a DUI conviction. Additionally, you may need an insurer that issues SR-22 certificates.

Although drivers with any conviction or accident will probably pay more for insurance than those with a clean record, some incidents impact your premium more significantly than others, as shown in the table below:

Car insurance rates in Alaska by credit score

Some states prohibit car insurance companies from using your credit history to determine your premium, but Alaska is not one of them. This means that Alaskans with lower credit scores generally pay higher premiums. Statistics show that drivers with poor credit scores file more claims, leading insurers to charge higher rates to compensate for this elevated risk.

Alaska car insurance rates by vehicle type

Finally, the type of vehicle you drive can help dictate your Alaska car insurance rates. Much of the time, drivers with luxury vehicles and sports cars pay the highest premiums, thanks in part to the higher costs of parts and labor. Vehicle size is another factor — large trucks and SUVs tend to do more damage in an at-fault accident, which could lead to expensive liability coverage premiums. However, some common midsize vehicles may also have higher rates since there are more of them on the road, leading to a higher statistical likelihood that they’re involved in a claim.

Since a vehicle’s make and model can significantly impact your premium, it may be a good idea to get quotes for each type of vehicle you’re considering when shopping for a new car.

Estimate your car insurance cost in Alaska

Car insurance rates in Alaska vary from driver to driver, and Bankrate knows this can make it challenging to estimate how much you should expect to pay. Plus, the same driver may get vastly different quotes between providers. Because insurance rates can be so tricky, Bankrate has created a calculator to help you estimate your costs. Once you enter some basic information, you’ll get a rough estimate of your insurance rate. It is not an exact quote, but it can provide a benchmark figure to aid you in your budget planning.

How to save on car insurance in Alaska

Average car insurance rates in Alaska may be lower than the national average, but there are often ways that you can save even more. If finding cheap car insurance is your primary goal, you may want to consider the following tips:

• Shop around: Every company has a different rating system, and the cheapest company for some likely will not be the cheapest company for everyone. Comparing quotes from several providers might help you find the coverage you need at a lower price.
• Compare discounts: Just like every company has different rates, every company also offers a different selection of discounts. Taking advantage of as many discounts as you can might help you save.
• Increase your deductibles: If you have full coverage, your auto insurance policy has two deductibles: one for comprehensive and one for collision. Your collision deductible generally has more of an impact on your premium. Typically, the higher your deductible, the less expensive your car insurance will be. However, raising your deductible to get a cheaper rate can be risky. Since you will have to pay your deductible if you file a claim for damage to your vehicle, be sure that you choose an amount you can afford.
• Increase your credit score: Statistically, drivers with low credit scores are more likely to file a claim than drivers with higher credit scores. Taking steps to raise your credit score may help you to lower your auto insurance premium.
• Bundle your insurance plans: Insurers often reward customers who have more than one policy with their company. If you have multiple vehicles in your household, insuring them with the same provider will probably qualify you for a multi-car discount. Similarly, you may get a discount if you bundle your home and auto insurance policies with the same company.

Talking to a licensed auto insurance agent could be a good place to start your car insurance search. An agent may be able to guide you while choosing coverage and help you find the options you need at a price that fits your budget.

Frequently asked questions

These are sample rates and should only be used for comparative purposes.