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Alaska Car Insurance

The state of Alaska is the largest state in the US; many people live there and the scenery is gorgeous! For people who are moving to the state, or already live there, insurance requirements and costs are essential to be aware of. In some cases, day-to-day life in the state of Alaska is quite a bit different than other places, though, like almost every other state, Alaska has requirements for car insurance. Auto insurance is required by law to drive legally. Known for its tourism, industry, and more, Alaska living can be quite an adventure at times. Learn the requirements for driving in Alaska, as well as different strategies to save money on car insurance in this article.

Auto Insurance Requirements In Alaska

Getting around in the state of Alaska is best done with a vehicle. Having the ability to drive in the state is a smart plan. People who are looking to visit friends, get to work, see their families, or partake in their hobbies will need a car. Due to Alaska’s Mandatory Insurance Law, drivers need to have a valid car insurance policy in the state to drive legally. Drivers should research specifically where they are moving to, however, there are some areas where registration is not mandated. In places where vehicle registration this is the case, the law that requires them to have liability auto insurance may not apply.

For all other areas in the state, drivers will need to have a valid policy, and a plan that includes the minimum limits required by law. If you live in or are moving to any of the larger cities in the state, including Fairbanks, Anchorage, Eagle River, Badger, or Juneau, you will be in an area that requires an auto insurance plan to drive legally. There are other types of proof of financial responsibility that meet the requirements in Alaska, though these are hard for most people to obtain financially.

Driving in Alaska requires people to have minimum limits of $50,000 per person of bodily injury auto insurance coverage. In addition, $100,000 of bodily injury liability insurance is required per accident, and property damage liability coverage of at least $25,000 is also mandated.

Average Cost Of Coverage In Alaska

There are many reasons that car insurance policies in the state of Alaska are above the average cost-wise in the United States. First, many states require lower minimum limits for automobile insurance plans. This affects the averages. There are other variables relating to the state being so far north, and the cost for repairs in the state, and more, have an effect on what a person will pay for their automobile insurance. Comparing auto insurance policies from multiple companies is essential to help you save money, and some companies are more ingrained in the state than others. Getting free car insurance quotes here from multiple companies is essential to saving money.

Some auto insurance providers have a more significant presence in specific cities as well, something to consider when getting quotes for car insurance. On average, auto insurance plans in the state of Alaska cost just under $1,600 annually. Many factors affect what a person will pay for their plan, and some of them can be improved upon to help a person save even more money on their policy.

Age Annual Rate with Parents Annual Rate Alone
16 $4,371 $5,424
17 $4,154 $4,815
18 $3,997 $4,105
19 $3,593 $2,985

Cheapest Car Insurance Companies In Alaska

The cheapest auto insurance companies in the state include USAA, State Farm, Geico, 21st Century, and there are others that people should get quotes from as well. Knowing where to start your search for the cheapest auto insurance companies in Alaska is essential, but there are other companies in the state that it can be beneficial to get quotes from as well. This is why you can get quotes from multiple companies here at General.

Automobile insurance providers use different formulas to determine what a person will pay for car insurance from their company. Depending on where you live, your age, driving record, and numerous other variables, a person’s rates can vary from one company to the next. These are a few of the reasons that comparing prices is so beneficial.

Rank Company  Avg. Premium (annual)
1 USAA $1,038
2 State Farm $1,096
3 Progressive $1,504
4 GEICO $1,794
5 Safeco $2,481
6 Allstate $2,946

Unique Car Insurance Rules And Penalties In Alaska

People without the minimum requirements for automobile insurance in the state of Alaska can be faced with fines, fees, and penalties. Penalties for driving without insurance in Alaska are hefty. For a first offense, there is a fine of $500 and a possible driver's license suspension. Each subsequent offense will have another $500 fine, and the suspension given can be longer. Those who are responsible for an accident can also end up paying for the damages caused, which can have a significant effect on a person’s finances, savings, and life. Reinstatement fees and additional requirements for proving and maintaining your car insurance policy may be given as well, adding to the cost, and also the time spent maintaining the proper paperwork.

Violation Avg. Annual Auto Insurance Rate % Insurance Rate Increase $ Insurance Rate Increase
Hit and Run $1,979 65% $781
Refused Breathalyzer/Chemical Test $1,821 52% $622
DUI $1,821 52% $622
Racing $1,730 44% $532
Reckless Driving $1,765 47% $567
Driving with a Suspended License $1,717 43% $518
At-Fault Accident $1,806 51% $607
Driving with an Open Container $1,449 21% $251
Operating a Vehicle Without Permission $1,477 23% $278
Passing a School Bus $1,538 28% $339
Improper Passing $1,477 23% $278
Following Too Closely $1,477 23% $278
Speeding $1,440 20% $242
Failure to Stop at a Red Light $1,477 23% $278
Illegal Turn $1,477 23% $278
Driving Wrong Way/Wrong Lane $1,477 23% $278
Failure to Yield $1,477 23% $278
Speeding in a School Zone $1,440 20% $242
Driving Too Slowly $1,440 20% $242
Distracted Driving $1,465 22% $267
Driving with Expired Registration $1,280 7% $82
Failure to Show Documents $1,280 7% $82
Not-at-Fault Accident $1,252 4% $54
Failure to Use Child Safety Restraint $1,198 0% $0
Failure to Wear a Seat Belt $1,198 0% $0
Driving Without Lights $1,198 0% $0

How To Get The Cheapest Car Insurance In Alaska

There are many ways for people to save money on car insurance, and the most recommended one is comparing rates. Here, you have all of the tools you need to compare prices from multiple different auto insurance providers and save. In addition, people can choose to raise their deductibles or lower the amount of insurance coverage they are purchasing an order to pay less on premiums. Keep in mind, however, that you need to be able to afford and pay for your deductible for your auto insurance provider to cover the rest of the expenses needed. You will also want to make sure that you have enough coverage to pay for damages that may occur.

Many people choose to get additional types of car insurance beyond the minimum limits required by law. This can help them save money in the long run, especially if they are in an accident and need the additional assistance. Auto insurance discounts are also available. Some of the car insurance discounts out there include multicar policies, policy bundling, pay in full discounts, good driver discounts, and others. The tools at General can help you save the most on automobile insurance. Get free car insurance quotes now, come get your savings.

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