Save up to 15% on your car insurance rates*

Get multiple quotes from national carriers

*Savings will vary from driver to driver.

AD

Alaska Car Insurance & Minimum Coverages

Alaska is the largest state in the United States, and covered in beautiful, rugged terrain. It may surprise you to learn, then, that despite the rough roads in the state, not everyone is required to have Alaska car insurance.

In this guide, we’ll take a look at who does and does not need car insurance in The Last Frontier, and what the best options are if you do.

Alaska Car Insurance Minimum Requirements

If you live in an area of Alaska that requires a vehicle to be registered, you need to carry insurance on your vehicle. The minimum insurance requirements are quite easy and inexpensive to purchase and maintain.

In order to register a vehicle in Alaska, you will need:

  • $50,000 per person and $100,000 per accident for bodily injury or death.
  • $25,000 for property damage.

That’s it! That’s all there is to it. Because of the low requirements for insurance, Alaska is also one of the cheapest states in the nation for insurance.

Remember that not everyone in Alaska is required to have auto insurance. Visit Alaska’s DMV website for a list of exempt regions.

What is the Average Cost of Car Insurance in Alaska?

Minimum coverage in Alaska costs, on average, about $42 per month. Because of its affordability, many Alaska drivers opt to get comprehensive coverage. The average cost of full coverage is just $84 per month.

Your age, driving history, credit, vehicle, and other factors may impact the price of your monthly premiums. The coverage you select, too, will raise or lower your monthly Alaska car insurance bill. Be sure to shop around to get the best rate based on your personal situation.

Why is Car Insurance So Cheap in Alaska?

Car insurance in Alaska is ranked 21 out of 50 for affordability in the United States.

Your monthly premium is inexpensive because the coverage requirements are so low. Alaska is also an at-fault state, meaning the driver who caused an accident is responsible for paying associated costs. This, too, makes your monthly payment lower.

Lapses in Alaska Car Insurance

If you’re caught driving in Alaska without auto insurance, you can face one or more legal repercussions. A $500 fine will be assessed for each offense. Your first offense may mean your driver’s license is suspended for 90 days. Subsequent offenses may result in suspension for up to three years!

Reinstating your driving privilege is not cheap, either. You’ll need to pay a fee and re-take your driving exam. The fee gets higher and higher with each offense, too. So, as you can see, it’s best to keep your insurance policy up to date to avoid costly fines and even license suspension.

Best Auto Insurance in Alaska

Alaska drivers were surveyed to determine which carrier has the best insurance in Alaska. The average 30-year-old with a good driving record listed the following as the best providers:

  • GEICO
  • State Farm
  • Umialik
  • Progressive
  • Allstate

Of course, just because these are the best-ranked auto insurance providers in Alaska doesn’t mean they’ll be the best for you. Shop around for the best rate based on your credit history, driving record, desired coverage, and discounts available to you.

Check with your financial institution or associations you’re a member of to see if they offer discounts on car insurance. You may be able to get an even better deal on insurance than with the five companies listed above.

Facts About Car Insurance in Alaska

Interested to learn some facts about driving and insurance in Alaska? Here are a few you might be interested to learn.

  • The only way to access Alaska’s highways from the lower 48 states is via the 1,520-mile-long Alcan.
  • There are many private and public campgrounds along Alaska highways. You can pull right up to a campsite and stay the night.
  • Alaska averages 500 moose-related auto crashes each year, and that’s just what is reported!
  • In Alaska, snowmobiles are required to be registered but are not required to be covered by insurance.

Conclusion: Car Insurance in Alaska

Before you bring your car to Alaska, you’ll need to do a little research. Does the area you’ll be living in require auto insurance? It’s best to check with the DMV to be sure.

With that said, Alaska car insurance is so inexpensive it may be worth the extra each month to cover your vehicle. Poorly maintained roads, many unpaved, can do damage to your vehicle. Carrying insurance can help take the stress out of caring for your car.