How to Find the Most Affordable Car Insurance in Alaska

Fran
Lucy Lazarony
June 30, 2020

The average cost of car insurance in Alaska is $1,152 annually. That’s more than 19 percent below than the U.S. average, so the folks in Alaska already know a thing or two about affordable car insurance. But there are plenty of ways to get an even lower car insurance rate. We’ll discuss those tips and strategies a bit later. But first let’s take a closer look at car insurance in Alaska.

State Minimum Insurance

Liability coverage helps pay for the other person’s expenses if you are at fault in an accident. Every state sets its own minimum liability requirements.

In Alaska, the minimum liability requirement is bodily injury liability coverage of $50,000 per person, bodily injury liability coverage of $100,000 per accident and property damage liability coverage of $25,000 per accident. This minimum coverage costs $473 annually.

More Complete Policy

In Alaska, if you choose an auto insurance policy with collision and comprehensive insurance coverages and you choose $1,000 deductibles your policy would cost $1,037.

Collision is the coverage that helps to repair or replace your car if it’s damaged in an at-fault accident with another vehicle or object such as a fence or a tree. Comprehensive auto insurance covers events that aren’t covered by collision coverage. These events include fire, theft, vandalism and damages from weather such as a hailstorm, a windstorm, a hurricane or a tornado.

A deductible is the amount you pay out of your own pocket when making a claim. A high deductible gives you a lower insurance premium. Both collision and comprehensive auto insurance coverages require deductibles. And if there is a loan on your car, your lender may require that you carry both collision and comprehensive coverages.

Alaska Is an At-fault State

When it comes to insurance, Alaska is an at-fault state. This means Alaskan drivers are responsible for any damage they cause to another vehicle. Who is at fault in an accident is determined by an insurance adjuster.

Cheapest and Most Expensive Cities in Alaska

The city in Alaska with the most expensive car insurance is Anchorage with a $1,501 annual premium. The city in Alaska with the cheapest car insurance is Ketchikan with a $1,020 annual premium. Anchorage is Alaska’s largest city and it is located in the south-central part of the state. Ketchikan is set in the southernmost entrance to Alaska’s Inside Passage, a network of waterways that go through beautiful stretches of wilderness.

How to Save Money on Car Insurance

Now that you know a little bit more about car insurance in Alaska, we are ready to look at ways to lower a car insurance premium. The good auto insurance deals in Alaska can be even better if you follow these tips.

Bundle your insurance. Bundle your auto insurance with another insurance policy such as a homeowners insurance and you will save money.

Keep a clean driving record. Being a safe and responsible driver will save you money on car insurance. So avoid at-fault accidents, speeding tickets, moving violations and DUIs and you’ll have a lower car insurance premium. Good drivers have good auto insurance rates. So be sure to ask for a good driver discount. You’ve earned it.

Insure more than one car. Insure more than one car with the same auto insurance company and you’ll save money on your auto premiums.

Pay once or twice a year. Rather than pay monthly car insurance bills, pay the entire annual amount or six-month amount. Your premium is lower when you pay just once or twice a year.

Check anti-theft and safety features. Having certain anti-theft or safety features on your car will lower your car insurance. So be sure to check with your insurance company about safety and anti-theft features in your car. You could save money.

Check for memberships. Members of particular professional organizations or affiliate groups get discounts on car insurance. So open up your wallet and see what kind of savings you can find.

Maintain your insurance coverage. You’ll pay higher insurance rates if you don’t maintain continuous coverage with your auto insurance. So stick with your insurance coverage and save money.

Choose a high deductible. Choosing a higher deductible for your collision and comprehensive coverages will save you money on your premium. Let’s say you choose a $1,000 deductible, you will pay less than a customer who opts for a $250 deductible. Just be sure to tuck away the money for that $1,000 deductible. Place it in a bank account and don’t touch it. That way the money will be there if you need to make an auto claim.

Build up your credit score. Good credit means good auto insurance rates. And bad credit means higher auto insurance rates. Auto insurance companies use credit information when determining risk pools and pricing premiums. So have good credit and enjoy good insurance rates. If your credit is not so good you can improve it by bringing all your accounts current and paying down debt. Both things will give your credit score a boost.

Women pay less. If you are a woman, you’ll pay less for auto insurance. Women make fewer claims than men and are rewarded with lower auto insurance rates.

Low-mileage drivers. If you have a heavy commute to work each day, you’re going to pay more for your auto insurance. Low mileage drivers pay less for their auto insurance premiums. So drive a little less and save money on your car insurance.

Drivers over 25 pay less. You’ll pay less for auto insurance when you are older than the age of 25. The reason? Drivers under the age of 25 pay more for car insurance because they are more likely to be involved in accidents. Once you reach the age of 26, you will pay less on your car insurance premium.

Live in a safe neighborhood. The neighborhood where you live affects your auto insurance. If you live in a neighborhood with high accident claims and high auto theft you will pay more for your auto insurance. If you live in a neighborhood with few accidents and low crime, you will pay less for auto insurance.

Get married. If you are married, you will pay less for car insurance. There is a correlation between being married and exhibiting safe driving behavior. Because of this, married drivers pay less for auto insurance than singles.

Shop around. The best way to save money on auto insurance is to shop around. You’ll want to check out quotes from several different insurance companies. SmartFinancial makes it easy to do. Just enter the type of insurance you are looking for and a zip code to get started.

Answer a few, quick questions and you’ll be comparing auto rates in Alaska in no time. SmartFinancial has access to hundreds of car insurance companies. So you are bound to find the insurance coverage and the price that you want. So shop smart, shop around and enjoy driving in the Last Frontier State.

Get a Free Auto Insurance Quote Online Now.

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