How Much Is Alaska Car Insurance?

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Driving in the Land of the Midnight Sun

Alaska, America’s largest, third least-populous, and most sparsely populated state, doesn’t require car insurance everywhere, which contributes a little to higher average rates than you find in many other places around the country. Some of the state’s weather and road conditions make driving riskier, too.

But living in “The Last Frontier” doesn’t lock you into paying high rates every month. We have lots of tips and ideas for you on this page about how to lower your premium. And it just so happens that SmartFinancial is an innovative platform for comparison shopping to find the lowest rates.

Answer a few simple questions for us—it only takes a few minutes—and we instantly deliver carrier-neutral quotes from leading auto coverage providers in Alaska. It’s easy, fast, and free, no strings attached! There’s no better way to get the best policy at the best possible price.

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Alaska Auto Insurance Rates

There’s no single car insurance carrier that offers all drivers the best rate. Premiums are determined based on many individual factors, such as your age, sex, marital status, location, driving record, and the type of vehicle you drive. And, on top of that, each carrier has its own formula for how much it prioritizes these sort of considerations.

The simplest way to find the lowest possible rates is to compare insurers using the same coverage limits, options, and discounts. SmartFinancial offers a simple, efficient tool for comparison shopping. Simply answer a few questions and receive competing quotes, allowing you to find the lowest price for coverage that’s tailored to your needs.

Start now by selecting your location from the list below. If you don’t see it there, click here instead.

Legalities 101

Alaska is one of very few places in the U.S. where not all registered vehicles necessarily have to be insured by an auto policy with minimum liability coverage. It depends where you live, but more on this shortly.

It’s strongly advisable to buy a policy, though, even if you’re not required to. Accidents are a fact of life for the majority of drivers sooner or later. The resulting costs can be considerable, both for property damage and medical expenses. Even if you’re not mandated to have car insurance, you’re still liable for the costs you cause in a crash.

At these times, it’s easy to appreciate that coverage is an investment, not just another drain on your monthly budget.

Alaska Driving Safety

The weather and road conditions in Alaska can create some significant hazards for motorists. Still, the state has a relatively low fatality rate. Remember that it’s important to drive at a safe speed for current conditions, even though that may sometimes be well below the posted speed limit. And buckling up saves lives, so always do it, and make sure child passengers are properly secured (more on this a bit further below).

Alaska Driving Safety Stats

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Total number of crash fatalities in 2015
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Number of pedestrian deaths in 2015
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Number of motorcyclist deaths in 2015

Driving Green

Going green isn’t just important for the health of your state; adopting eco-friendly habits benefits the whole planet and makes a difference in the lives of future generations. Also, for those who decide to be a little more environmentally conscious about their vehicle choices or driving habits, there may be some more immediate incentives.

  • Auto Insurance Discounts

    By driving green and choosing an eco-friendly vehicle, you may qualify for substantial discounts on your auto insurance premiums. Some companies offer savings of 10 to 30% if you purchase a hybrid, alternative fuel vehicle, or economy car. Low-mileage discounts and pay-as-you-drive options are also often available. Plus, some insurers offer savings if you convert an existing vehicle into one that’s more environmentally friendly. Speak with your carrier for details.

  • State and Federal Tax Incentives

    Alaska offers a tax break to those who purchase ethanol fuel. Fuels blended with alcohol are discounted by $0.06 per gallon compared to other fuel types. And, if that’s not incentive enough to go green, the Federal government offers sizable tax credits for purchasing a hybrid, plug-in hybrid, electric, diesel, or alternative fuel vehicle. Consult your tax prep professional or the IRS before next tax season rolls around.

  • Other Green Driving Benefits

    If saving money isn’t enough, sleep better knowing that by driving green, you’re helping to save the planet. Even if you can’t afford to buy a hybrid or other eco-friendly car right now, you can still take steps to reduce your carbon footprint. Things like keeping up with your car maintenance, carpooling when possible, walking when errands are nearby, and educating yourself on environmental issues will all go a long way toward helping the environment. And there are savings here, too, as you can extend the life of your vehicle and prevent major problems requiring expensive repairs.

Car Insurance Laws

Being a Minimalist

Not all areas in Alaska require drivers to carry insurance, but in places where vehicle registration is necessary, so is auto coverage. The minimum insurance limits for these areas are $50,000 of bodily injury liability coverage per person and $100,000 per accident, and $25,000 of property damage liability

For drivers in areas without registration or insurance requirements, you will be held accountable by the Financial Responsibility law to pay for any costs associated with injuries or property damage you cause to someone else. Additionally, if you’ve gotten a ticket for 6 points or greater in the last five years, you must purchase insurance, no matter where you live.

For a list of exceptions to the insurance requirement, please see the State of Alaska Division of Motor Vehicles.

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$ 50,000
Bodily injury coverage per person

Maximum payment for serious or permanent injury or death to a single person

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$ 100,000
Bodily injury coverage per accident

Coverage for multiple people injured in a single accident

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$ 25,000
Property damage per accident

Maximum payment for all damaged property in an accident caused by you

Maximizing Your Return on Investment

Alaska is the largest state in the nation by land area, with a rugged climate and inclement weather. These make operating a motor vehicle much different and more dangerous than in other states. If you’re involved in an auto accident, do you want to risk your savings or other assets?

While liability insurance is mandatory in Alaska, it may not cover all your expenses if you’re involved in a crash. Fortunately, you can add optional coverages to your policy to make sure you have the level of protection you need.

Optional coverage in Alaska

  • Collision
  • Comprehensive
  • Auto Disability
  • Gap Coverage
  • Medical Payments
  • Roadside Emergencies
  • Speeding Tickets
  • Travel Expenses
  • Accidental Death
  • Car Break Ins
  • Rideshare Coverage
  • Rental Reimbursement
  • Loss of Use
  • Glass Repair Services
  • Accident Forgiveness
  • Custom Equipment
  • New Car Replacement

Carrying an adequate amount of auto insurance is necessary to protect yourself and your family against the unexpected. Car insurance is one of those expenses that seems unimportant until the day you need it. Don’t risk everything you own!

If you’re worried about the cost of optional coverages, take a look at 12 Things You can Do to Lower Your Auto Insurance Premium for some practical ideas on how to offset the expense of add-ons.

Alaska car insurance companies

The Hartford
State Farm
Western National

A lot goes into calculating insurance rates, and different people will receive different quotes on the same coverage, even from the same carrier. Always do your homework when shopping around for a new auto insurance policy to make sure you’re getting the coverage you need at the best rate possible.

SmartFinancial makes it easy to see what’s available to you from leading car insurance companies in Alaska. It’s fast and free, so click here to get started now.

Car Safety for Alaska Kids

Alaska Car Seat Regulations

Alaska’s car seat safety law requires that children less than 1 year of age or less than 20 pounds be secured in a Federally approved, rear-facing car seat. Once they’ve outgrown this requirement, children ages 1 to 4 should be placed in a forward-facing car seat with a 5-point harness.

Children 4 to 8 years old who are less than 65 pounds and under 4′ 9” must ride in a car seat or booster seat. Generally, at some point between 8 and 12 years of age, children outgrow booster seats. When this happens, and when the child can be properly secured with the vehicle’s seat belts, a child restraint seat is no longer necessary. However, children should continue to ride in the back seat as long as possible.

Leaving Children Unattended in a Vehicle

There is no law in Alaska specific to leaving children unattended in vehicles, but that doesn’t mean the practice is safe. And even without a law, if an unattended child is reported, law enforcement will respond to check on the child and assess the situation. Depending on the age of the child, weather, and other factors, the parents could be subject to criminal charges. It is up to the attending officer to determine whether the child is in danger.

No matter what the law, Alaska temperatures can reach into the 80s or 90s during the day and to dangerously low numbers during colder months. These temperatures pose threats to children in a vehicle after only a few minutes. Plus, unattended children are at risk of accidental injury and kidnapping. If you spot a young kid left unattended in a vehicle and you believe that child is in danger, call 9-1-1.

Car Insurance FAQ

Is my credit score a factor when obtaining car insurance in Alaska?

Yes, insurance providers in Alaska can use your consumer credit information to decide whether or not to issue a policy and how much to charge you. Information in your credit report is used to determine how likely you are to file a claim. The higher risk you’re considered, the more you’re charged.

Does Alaska offer a good-driver discount?

While different insurance companies have different guidelines when it comes to identifying good drivers, most require several years free of accidents and moving violations. If you think you may qualify for a good-driver discount, speak with your insurance provider. And, while you’re at it, see what other discounts you may qualify for, such as:

  • Anti-Theft Device
  • Anti-Lock Brake
  • Accident Free
  • Vehicle Safety
  • Utility Discount
  • Resident Student
  • Passive Restraint
  • New Car
  • Multiple Policy
  • Multiple Car
  • Home Ownership
  • Good Student
  • Full Pay

Does Alaska allow the use of digital insurance cards?

If your vehicle is registered in a place where insurance is mandatory, you must have proof of insurance to show law enforcement upon being pulled over or after being involved in an accident. This proof of coverage can be in the form of a standard plastic or paper ID, or in digital form on your mobile device. Failure to provide proof of insurance in some form will result in a driver’s license suspension, unless you submit proof of coverage to the DMV within 15 days.

What happens if my coverage lapses?

Failure to maintain proper insurance in Alaska may result in suspension of your driver’s license. You may also face impounding of your vehicle and fines if your coverage lapses for any reason.

What are Alaska's blood alcohol concentration (BAC) percentage limits under the state's driving under the influence (DUI) laws?

It’s against the law to drive in Alaska at the following BAC percentages:ges:

.08%+ at 21 years old or older
.04%+ for commercial vehicle drivers
Any for under 21 years old

Alaska has a zero-tolerance policy for drivers under 21. If you’re 14 to 21 years old and have any measurable BAC when operating a motor vehicle, boat, or aircraft, you may face penalties that include fines, alcohol programs, jail time, and loss of your driver’s license.

What are the chemical test refusal penalties in Alaska?

Like other states, Alaska has an implied consent law. When you signed for your driver’s license, you agreed to submit to a chemical test if you’re suspected of driving under the influence. Refusal to submit to a preliminary breath test when asked by law enforcement is an infraction in the state of Alaska, and you may face fines, installation of an ignition interlock device, jail time, or other penalties.

What are the consequences of being convicted of a DUI?

The penalties for driving under the influence of alcohol or drugs in Alaska are severe, and may include fines, court costs, probation, revocation of your driver’s license, installation of an ignition interlock device, increased insurance premiums, mandatory participation in an alcohol education program, jail time, and more. Considering how inexpensive a taxi is and how priceless a human life is, the choice to never drink and drive should be easy.

Does Alaska offer driver improvement courses to reduce my insurance premium?

Alaska’s Division of Motor Vehicles approves numerous classroom and online driver improvement courses that motorists can take to remove points from their record, dismiss traffic tickets, and qualify for auto insurance discounts with most carriers. These courses build better driving habits and refresh your driving skills, so it makes sense that insurance companies want to reward voluntary participation.

Is there any way I can reduce the cost of my Alaska car insurance?

The simplest way to reduce your Alaska car insurance costs is to ask your provider about discounts for good driving, eco-friendly vehicles, anti-theft devices, automatic payments, and more. You can also lower the cost of your premium by eliminating unnecessary coverage, maintaining a good credit score, opting for a higher deductible, and by taking a little time to shop around and compare quotes.

What is uninsured motorist coverage and is it required in Alaska?

Uninsured motorist (UM) coverage is not required in Alaska but is recommended in the amounts of $50,000 bodily injury per person and $100,000 bodily injury per accident, along with property damage coverage in the amount of $25,000. This type of insurance protects motorists and passengers who are involved in an accident with an uninsured driver or one who flees the scene. Alaska requires this type of coverage to be rejected by the policyholder in writing.

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