Whether you are a new driver or buying a new vehicle, auto insurance represents a significant expense. You need at least the minimum amount of required car insurance to drive legally in Alaska. The state mandates that drivers have at least $50,000 per person and $100,000 per accident for bodily injury liability and $25,000 per accident for property damage liability. Use this guide to get the facts you need to become a smart shopper for car insurance in Alaska.
Best Insurance Companies in Alaska
Insurance website ValuePenguin surveyed customers in Alaska to learn their level of satisfaction with their car insurance providers. These companies had the highest percentage of customers who rated their customer satisfaction as excellent and were satisfied with the settlement of a recent claim, respectively:
- Allstate: 47%, 72%
- Progressive: 34%, 74%
- GEICO: 42%, 64%
- State Farm: 46%, 73%
- USAA: 62%, 72% (available only to military families)
ValuePenguin also compiled details from J.D. Power and Associates on claims satisfaction, AM Best on financial strength, and the National Association of Insurance Commissioners on customer complaints. They report these respective scores for claims satisfaction, financial strength, and customer complaints by company:
- Allstate: 876, A+, 0.66
- GEICO: 871, A++, 1.01
- Progressive: 856, A+, 0.67
- State Farm: 881, A++, 0.66
- USAA: 890, A++, 0.68
Umialik was rated only for financial strength and received an A+ in the category.
WalletHub made recommendations about the best auto insurance providers in Alaska based on claims procedures, customer satisfaction ratings, and premium affordability. Based on these metrics, the finance website recommends Farmers Insurance, State Farm, The Hartford, National General, and Esurance for Alaska motorists. Farmers, National General, and The Hartford all have an A+ rating from the Better Business Bureau (BBB). Esurance currently has an A- rating from the BBB.
Most Affordable Auto Insurance Companies in Alaska
Insurify reported on the most affordable monthly coverage rates for drivers in Alaska by city. They found that State Farm charges the lowest average premium of $65 for drivers in Anchorage, Palmer, and Wasilla and $45 or less for drivers in Sitka, Juneau, Ketchikan, and Kenai. Allstate offered the lowest rates of $44 per month for drivers in Fairbanks. GEICO had the lowest average rate of $69 per month for drivers in Kodiak.
ValuePenguin reports the average annual rates for minimum Alaska coverage from these car insurance providers:
- Allstate: $424
- GEICO: $521
- Progressive: $807
- State Farm: $334
- USAA: $340
- Umialik: $520
Minimum liability coverage only pays for the costs incurred by other drivers if you cause a crash. You need comprehensive and collision coverage, sometimes called full coverage, to cover your own expenses after an accident.
Average Alaska Auto Insurance Rates by Driver Age
According to ValuePenguin, drivers in their teens pay at least $3000 more for auto insurance on average than adult drivers. The average premium for an 18-year-old Alaskan driver is $383 per month or $4594 per year. Teens can save by choosing Umialik, which offers average rates of $268 per month or $3217 per year, about 30 percent lower than average.
These are the average annual rates by insurance company for minimum and full coverage for a teen driver in Alaska:
- Allstate: $950, $5896
- GEICO: $1699, $4773
- Progressive: $3205, $6914
- State Farm: $1155, $4081
- Umialik: $1262, $3217
- USAA: $832, $2682
According to NerdWallet, these are the most affordable minimum coverage rates by company for Alaska drivers in their 20s.
- Allstate: $1266 per year
- GEICO: $598 per year
- State Farm: $764 per year
- Progressive: $1266 per year
- Umialik: $713 per year
Rates go down for drivers in their 30s, who pay these average annual rates in Alaska for full coverage:
- Allstate: $3464
- GEICO: $1074
- Progressive: $1446
- State Farm: $1209
- Umialik: $1262
Average Alaska Auto Insurance Rates by Marital Status
According to ValuePenguin, single drivers pay about $108 more per year on average than married drivers do. The website lists the most affordable average monthly and annual premiums by company for married drivers:
- Progressive: $119, $1430
- State Farm: $106, $1276
- Umialik: $122, $1460
The average quote for married drivers in Alaska was $122 per month and $1468 per year.
Average Alaska Auto Insurance Rates by Credit Score
Drivers who have low credit scores in Alaska will find the lowest average rates with GEICO. Drivers who have poor credit and live in the state pay an average of 38 percent more than drivers who have excellent credit. These are the average monthly and annual rates for poor credit Alaska drivers by company:
- GEICO: $134, $1613
- State Farm: $156, $1869
- Umialik: $159, $1908
Most Affordable Alaska Auto Insurance Rates after an Accident or a Violation
ValuePenguin found that Umialik has the cheapest average rates for drivers with previous at-fault accident claims. This provider charges $1460 a month for motorists in this group on average compared to the overall state average of $2132 for drivers with accident histories. State Farm is also a good option with an average annual premium of $1521. GEICO charges $2333 per year for drivers who have had an at-fault collision.
Alaska allows drivers who live in regions that do not require vehicle registration to forgo insurance. However, you do not qualify for this provision if you have six or more driver’s license points in the past five years, according to Bankrate. Check the state website to determine whether this applies to your residence. Keep in mind that if you do not buy car insurance and cause an accident, you must pay for injury and property damage out of pocket, and the other driver can sue you for his or her expenses.
Check this out if you need additional information, resources, or guidance on car insurance.
Sources:
Who Has the Cheapest Car Insurance Quotes in Alaska? | valuepenguin.com
Best car insurance in Alaska for 2021 | bankrate.com
Best Car Insurance in Alaska | wallethub.com
Cheap Auto Insurance Quotes in Alaska (2021) | insurify.com
Car Insurance | caranddriver.com
Car Registration Fees: Quick Guide | caranddriver.com
Best Cheap Car Insurance in Alaska for 2021 | nerdwallet.com
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