It’s no secret that everything is expensive in Alaska. Its cost of living is the fifth highest in the country. Alaskans pay more for everything, from bread to houses and auto insurance is no exception.
But you don’t have to accept a high insurance bill! It is possible to find cheap Alaska car insurance. We’ll tell you how.
What Are Alaska’s Auto Insurance Requirements?
Every state has its own minimum auto insurance requirements, and Alaska’s are pretty high — second only to Maine. If your vehicle is required to be registered, you must have:
- $50,000 in bodily injury liability per person and $100,000 per accident: Bodily injury liability is the part of your insurance that pays for injuries suffered by other people in an accident you’re legally responsible for
- $25,000 in property damage liability: This pays for damage to other people’s cars or property in an accident you’re responsible for
How Do I Know if I’m Exempt from Alaska’s Insurance Laws?
In Alaska, car insurance is not mandatory in areas where registration is not required. These exempt areas include many smaller communities throughout the state, from Adak to Yes Bay; get the full list here. There’s one big exception, however. If you’ve received a ticket for a traffic violation of 6 points or more within the last five years, you must carry liability insurance, no matter where you live.
Why is Alaska Auto Insurance so Expensive?
According to the Insurance Information Institute, Alaska ranks 14th among all 50 states for the average individual expenditure on car insurance. That’s probably because the state minimum insurance limits are so high. They can consider:
- Where you live: Rural rates tend to be lower than those for city residents; that’s why Anchorage car insurance is expensive.
- Your age, gender and marital status: Younger drivers pay more
- Your driving history: Can’t get away from this one, we’ll explain a bit more in this article
- Your credit history: Alaska law allows insurers to consider credit information when setting rates, although certain limits apply
- The miles you drive: The more you’re on the road: the more likely you are to have an accident
- Prior insurance coverage: You may get a better deal on your Alaska car insurance if your past liability limits were higher than the minimum. But if you don’t have prior coverage because you weren’t legally required to, you won’t get dinged
There’s some good news, however. In 2015, Alaska banned the practice of price optimization, which means insurers can’t set your rates based on what they know about your other consumer habits.
Which Company Offers the Cheapest Auto Insurance in Alaska?
Because car insurance is such a personalized product, there’s no single company that offers everyone the lowest rates. The best way to find a policy you can afford is to compare auto insurance quotes side by side. And the easiest way to compare quotes is to use Compare.com! While quote comparisons are not yet available for Alaska, we’ll add them soon. You can enter your email address here and be the first to know when our Alaska quote comparison engine is up and running.
What is the Best Way to Compare Auto Insurance Quotes?
To get multiple quotes in minutes, you just have to enter some basic information, such as your address, your occupation, and your vehicle. We’ll never ask you for any sensitive personal or financial info, such as a social security number or credit card number.
Once you’ve done that, we’ll ask you to select the level of coverage you want: state minimum, Basic, Plus or Premium. Don’t worry, you’re not committing to anything! It’s just a way to compare the prices for different amounts of insurance.
If you want the absolute cheapest Alaska car insurance, choose state minimum coverage. We’ll show you quotes for a no-frills policy that meets Alaska’s 50/100/25 state minimum requirements. Then, compare quotes and pick the lowest one. Easy.
Do I Need More Than the Alaska State Minimum Insurance?
Because the liability limits are so high, you may not need any more than the minimum to protect yourself. It really depends on your personal risk tolerance and your financial situation — if you have significant savings or financial assets, you should get enough liability insurance to protect them in case of a lawsuit. You may also want additional coverages, such as:
- Comprehensive and collision: This coverage protects your car by paying to repair or replace it after it sustains damage from a collision, hail, flooding, hitting a moose, etc. If you drive a beater, you may be able to drop collision/comprehensive and save some money, but a newer car needs this coverage
- Uninsured/underinsured motorist coverage: Just over 15 percent of Alaska drivers have no insurance. If one of these uninsured drivers hits and hurts you, you could end up with big medical bills — and even if you sue, there’s no guarantee you’ll get paid. If you carry uninsured motorist coverage, you’ll be protected
- Personal injury protection (PIP) coverage: PIP coverage is designed to pay your own medical bills after a crash. If you have great health insurance, you may not need it; but if you have a high-deductible plan, PIP can come in handy
It’s tough to strike a balance and find the cheapest AK auto insurance that gives you enough protection. Compare.com can help you pick the perfect policy. Once you’ve gotten your super-cheap quotes for state minimum coverage, try upgrading to the Basic and Plus levels to see how much more you’ll pay.
You can also click “Customize coverage” to create a personalized insurance plan. Increase or decrease your deductibles, add or delete towing and rental car coverage, and choose specific limits for different parts of your coverage.
What Happens if You Drive Uninsured in Alaska?
Nothing good! Alaska law says you must carry proof of liability insurance in your vehicle. If you don’t have this proof when a police officer asks for it, you may get a citation and/or have your vehicle impounded. Driving without insurance can result in a $500 fine and suspension of your license for 90 days up to three years, depending on the number of violations.
Alaska also has a financial responsibility law that requires you to pay for any property damage or injuries to other people when you’re at fault in a collision. If you can’t pay, your driver’s license will be suspended for up to three years. So don’t drive uninsured! Compare.com will help you find the cheapest Alaska insurance.