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Kat Tretina is a personal finance writer for Compare.com, specializing in insurance and debt management. For the past seven years, she’s been writing for several notable personal finance publications, including U.S News & World Report, NerdWallet, Forbes, Yahoo! Finance, Fortune, and more. She’s passionate about using her expertise to help people understand their financial options.
Kat earned her bachelor’s degree in English and Communications from Elizabethtown College and her master’s from West Chester University. She also holds certifications in financial education and student loan counseling.
Kat has been writing for Compare.com since 2025.
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Nick Versaw leads Compare.com's editorial department, where he and his team specialize in crafting helpful, easy-to-understand content about car insurance and other related topics. With nearly a decade of experience writing and editing insurance and personal finance articles, his work has helped readers discover substantial savings on necessary expenses, including insurance, transportation, health care, and more. As an award-winning writer, Nick has seen his work published in countless renowned publications, such as the Washington Post, Los Angeles Times, and U.S. News & World Report. He graduated with Latin honors from Virginia Commonwealth University, where he earned his Bachelor's Degree in Digital Journalism.
Updated
At Compare.com, it’s our mission to give you the tools to find the best (and most affordable) insurance for your unique needs and budget. We strive to provide information that’s helpful, clear, and unbiased, and we believe that comparing insurance companies should never put you at risk of spam. Our editorial team — which is made up of experienced writers, editors, insurance agents, and data analysts — has spent thousands of hours researching and creating the coverage overviews, side-by-side comparisons, and detailed reviews you see across our site.
While we make money through partnerships with some of the brands we discuss in our articles, our editorial team operates 100% independently, and these partners never influence or affect the topics, reviews, ratings, or recommendations we provide. We never guarantee favorable reviews or mentions in exchange for compensation from any brands or partners, and we uphold strict editorial standards to ensure our content is always independent, truthful, and unbiased.
In This Article
On average, State Farm offers the lowest car insurance rates in Alaska, averaging just $88 per month.
In Alaska, the average for full-coverage policies is $119 per month, which is significantly lower than the national average.
State Farm, USAA, and COUNTRY Financial are among our picks for the best insurance companies in the state.
Cheapest Car Insurance in Alaska by Driver and Coverage Type
Car insurance in Alaska is relatively inexpensive. That’s partially because the state has a low number of registered vehicles, and drivers in Alaska tend to cover fewer miles per year than drivers in other states.[1]
As you compare car insurance quotes, keep in mind that rates vary based on your age, gender, coverage selections, driver history, and credit.
The table below highlights the cheapest insurers for some common coverage types and driver profiles, according to Compare.com data:
Driver or Coverage Type | Cheapest Insurer |
|---|---|
| State-minimum coverage | State Farm |
| Full coverage | State Farm |
| Drivers with a speeding ticket | State Farm |
| Drivers with an at-fault accident | State Farm |
| Drivers with a DUI | State Farm |
| Teens | GEICO |
| Seniors | State Farm |
| Drivers with excellent credit | GEICO |
| Drivers with poor credit | GEICO |
The Overall Cheapest Car Insurance in Alaska
Car insurance rates can vary significantly by insurer, so you may find that you can save hundreds by changing your insurance company. In general, it’s a good idea to shop around at least once a year to avoid overpaying for insurance.
To help you find the most affordable coverage, we used Compare.com data to identify the cheapest car insurance options in Alaska in the table below:
Company | Average Monthly Premium |
|---|---|
| State Farm | $88 |
| GEICO | $90 |
| USAA | $99 |
| Allstate | $152 |
Cheapest Liability Car Insurance in Alaska: State Farm
In nearly every state in the country, state laws require drivers to have (at a minimum) liability insurance that covers injuries or property damage you cause to another driver and their passengers.
Liability-only car insurance costs less and meets state-minimum requirements, but it doesn’t provide any coverage for you or your own vehicle. It’s best for drivers with older or high-mileage vehicles on a tight budget.
In Alaska, the average cost of liability coverage is $79. Here’s a look at the cheapest liability policies in the state, according to Compare.com data.
Cheapest Liability Rates by Company
How much car insurance does Alaska require?
In Alaska, your car insurance policy must meet these minimum requirements:[2]
$50,000 in bodily injury liability protection per person
$100,000 in bodily injury protection per accident
$25,000 in property damage liability
Keep in mind that insurance professionals generally recommend buying more liability coverage than your state’s minimum requirements. If you cause an accident that totals someone’s new car or results in serious injury, your financial liability could easily exceed state minimum coverage.
In some remote areas of Alaska, you don’t have to register a vehicle — and you don’t have to buy car insurance. You can find the list of exemptions on the Alaska Division of Motor Vehicles website.
Cheapest Full-Coverage Car Insurance in Alaska: State Farm
A full-coverage car insurance policy combines multiple forms of coverage. In general, full-coverage policies satisfy state minimum liability requirements and also include comprehensive and collision insurance.
Comprehensive coverage pays for repairs related to non-collision damage, such as dents from a hailstorm.
Collision coverage pays for repairs if you’re in an accident and your car is damaged.
In Alaska, full-coverage policies average $119 per month. Keep in mind that if you’ve financed or leased your vehicle, your lender or leasing company will likely require you to buy full coverage.
The following table shows the lowest average rates for full-coverage policies in Alaska, according to Compare.com data:
Cheapest Full-Coverage Rates by Company
Cheapest Car Insurance for Teen Drivers: GEICO
Due to their inexperience behind the wheel, teen drivers are more likely to be in serious crashes, so they tend to pay much higher rates for coverage.[3] In Alaska, teens pay an average of $178 per month for car insurance.
But you may be able to find cheaper coverage by shopping around or by adding a young driver to an existing policy rather than purchasing stand-alone coverage. The table below shows the best rates for teen drivers in Alaska, based on Compare.com data:
Cheapest Rates for Teens
Cheapest Car Insurance for Senior Drivers: State Farm
Seniors tend to drive fewer miles than other age groups.[4] Since they spend less time on the road, they have a lower risk of an accident, and they usually pay less for car insurance than any other age group.
In Alaska, the monthly average cost of coverage for senior drivers is $77. Despite already having low rates, seniors can often lower their prices even more by shopping around.
Here’s a look at the cheapest coverage for seniors, based on our data:
Cheapest Rates for Seniors
The Cheapest Car Insurance for Drivers by Driving Record
Drivers who’ve never been in an accident or gotten a speeding ticket usually have much cheaper rates than drivers with violations on their driving records. A single speeding ticket or driving under the influence (DUI) conviction can cause your rates to skyrocket over what you would pay with a clean driving record.
Rates improve over time, and you may find that you can find cheaper coverage by switching companies.
The table below shows the cheapest insurance options in Alaska for drivers with recent tickets, at-fault accidents, or DUIs, according to Compare.com data:
Company | Average Monthly Premium |
|---|---|
| State Farm | $134 |
| GEICO | $141 |
| USAA | $153 |
| Allstate | $236 |
Company | Average Monthly Premium |
|---|---|
| State Farm | $127 |
| GEICO | $128 |
| USAA | $145 |
| Allstate | $222 |
Company | Average Monthly Premium |
|---|---|
| State Farm | $164 |
| GEICO | $166 |
| USAA | $185 |
| Allstate | $283 |
Cheapest Car Insurance for Drivers by Credit
Alaska allows companies to use credit-based insurance scores during the underwriting process, so having poor credit can cause you to pay more for car insurance.[5] In general, Alaskans with good credit pay an average of $78 per month for coverage, while those with poor credit pay an average of $123.
Every company weighs credit information differently, so shopping around may help you find cheaper coverage, even if you have less-than-stellar credit. Some insurers don’t consider credit at all. The table below shows the least expensive insurance options for Alaskans based on credit:
Company | Average Monthly Premium |
|---|---|
| GEICO | $70 |
| State Farm | $70 |
| USAA | $83 |
| Allstate | $126 |
Company | Average Monthly Premium |
|---|---|
| GEICO | $111 |
| USAA | $120 |
| State Farm | $125 |
| Allstate | $187 |
How to Get the Cheapest Car Insurance in Alaska
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Car insurance protects you financially, so it makes sense to look for the best coverage at a price you can afford. You can take steps to lower your insurance premiums, including:
Sign up for usage-based insurance (UBI). UBI policies use your driving habits and vehicle use to determine your rates. Since Alaska drivers tend to drive fewer miles than those in other states, you could slash your premiums by enrolling in a UBI policy and driving safely.
Take a course. State law requires insurers to give drivers a discount if they’re age 55 or older and complete a vehicle accident prevention course. If you meet that age requirement, this discount can save you money.[6]
Look for discounts. Most insurers provide car insurance discounts to help customers lower their rates. Available discounts often include ones for homeowners, good students, and safe drivers. You can also save by bundling renters or home insurance with your auto policy.
Adjust your deductible. Raising your deductible (from $250 to $500, for example) will cause your monthly or annual premium to decrease.
Compare quotes from several companies. Coverage and premiums can vary by insurer, so request quotes from several insurance companies to find the best rates and coverage options.
Our Picks for the Best Auto Insurance in Alaska
Several insurance companies issue policies in Alaska, including well-known household names like State Farm. No one company is suitable for every driver, but we identified these three as leading insurers in Alaska based on their coverage options, rates, and customer satisfaction ratings:
| User Reviews | 4.3 |
|---|---|
| Our Rating Compare.com's ratings are determined by our editorial team. The objective formula used in these reviews weighs several important factors to consider when choosing financial products and services, including customer satisfaction ratings, ease of use, and a number of other components. | 4.5 /5 |
| Liability Only Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages. | $99/mo |
| Full Coverage Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible. | $149/mo |
Customers appreciate the prompt customer service and claims handling but are frustrated by the significant and frequent price increases.
Customers appreciate the prompt customer service and claims handling but are frustrated by the significant and frequent price increases.
Although Alaska has a relatively small population, a large percentage of Alaskans are veterans. In fact, Alaska has a higher share of veterans than any other state, according to the Alaska Department of Labor and Workforce Development.
With such a high percentage of veterans, USAA is an excellent option for Alaska residents. It boasts lower-than-average rates, so switching insurance companies could help you save money.
USAA also gives some extra benefits to service members, such as on-base discounts for storing your car at a military base. For Alaska residents, that’s a helpful perk if you’re storing your vehicle at Fort Wainwright or Joint Base Elmendorf-Richardson.
Among the cheapest average rates
Extra benefits for service members
Telematics program available
Eligibility limited to veterans, service members, and family members
Low Trustpilot rating
Fewer discounts than some competitors
| User Reviews | 3.9 |
|---|---|
| Our Rating Compare.com's ratings are determined by our editorial team. The objective formula used in these reviews weighs several important factors to consider when choosing financial products and services, including customer satisfaction ratings, ease of use, and a number of other components. | 4.7 /5 |
| Liability Only Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages. | $88/mo |
| Full Coverage Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible. | $132/mo |
Customers appreciate the helpful agents and prompt claim handling, but many are unhappy with the constant rate increases, even for safe drivers. Some also reported poor customer service.
Customers appreciate the helpful agents and prompt claim handling, but many are unhappy with the constant rate increases, even for safe drivers. Some also reported poor customer service.
State Farm is the largest car insurance company in the country, according to the National Association of Insurance Commissioners (NAIC). In Alaska, State Farm has a large network of insurance agents available, with offices in 13 cities, including Anchorage, Juneau, Kodiak, and Wasilla.
Plus, the company has a strong reputation for customer service. J.D. Power ranked State Farm above the industry average in its 2025 U.S. Auto Claims Satisfaction Study.
Strong J.D. Power customer satisfaction ratings
Large network of insurance agents
Telematics program available
Gap insurance not available
Accident forgiveness not available
Higher rates for drivers with violations on their records
| AM Best AM Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor). | A+ |
|---|---|
| Our Rating Compare.com's ratings are determined by our editorial team. The objective formula used in these reviews weighs several important factors to consider when choosing financial products and services, including customer satisfaction ratings, ease of use, and a number of other components. | 4.5 /5 |
| Liability Only Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages. | $42/mo |
| Full Coverage Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible. | $76/mo |
COUNTRY Financial is a regional insurer that operates in 19 states, including Alaska.
For Alaska drivers, COUNTRY Financial is typically among the cheapest insurance options. Its average premiums tend to be significantly lower than the state average. And it has multiple discount programs available, including some unusual ones, such as discounts for engaged couples and people whose parents are COUNTRY Financial customers.
Many available discounts
Agents in several Alaska cities
Much cheaper-than-average rates
Gap insurance not available
Mixed customer reviews on Trustpilot
Customers complain about mobile app
Alaska Auto Insurance FAQs
As you shop for a car insurance policy in Alaska, here’s some more information to help you choose an insurance company with confidence:
How much is car insurance in Alaska?
On average, drivers in Alaska pay $99 per month for car insurance. The average monthly cost of liability insurance is $79, and the average cost of full-coverage insurance is $119, according to Compare.com data. Keep in mind, though, that if you’re a good driver, you might qualify for lower-than-average car insurance premiums. And, if you’re a high-risk driver, your rates will likely be higher.
What’s the cheapest auto insurance company in Alaska?
We found that State Farm has the lowest average rates in Alaska. On average, its customers pay $88 per month for coverage.
What’s the best car insurance company in Alaska?
No one company is best for every driver. The best fit for you will depend on your location, age, driving history, and credit. In general, we found that USAA, State Farm, and Country Financial are among the leading insurers in the state.
Is car insurance in Alaska expensive?
Not really. Thanks to the low number of vehicles on the road, car insurance in Alaska is relatively inexpensive. On average, drivers pay $99 for car insurance, significantly less than the national average of $137.
Is minimum coverage enough in Alaska?
In Alaska, a policy meeting state-minimum requirements may not be adequate. Nearly 13% of drivers in the state are uninsured, according to the Insurance Information Institute (Triple-I), so you may need additional coverage. A policy with collision, comprehensive, and uninsured/underinsured motorist coverage (UM/UIM) may make better sense.
Is it normal to pay $200 per month for car insurance?
Not really. If you’re paying $200 per month for coverage in Alaska, you’re getting a much higher-than-average rate. But that rate may make sense based on your vehicle, driving history, and specific location.
Methodology
Data scientists at Compare.com analyzed more than 50 million real-time auto insurance quotes from more than 75 partner insurers in order to compile the rates and statistics seen in this article. Compare.com’s auto insurance data includes coverage analysis and details on drivers’ vehicles, driving records, insurance histories, and demographic information.
All the rates listed in this article have been collected from a combination of real Compare.com quotes and external insurance rate data gathered in collaboration with Quadrant Information Services. Compare.com uses these observations to provide readers with insights into how auto insurance companies determine their premiums.
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Sources
- U.S. Department of Transportation, Federal Highway Administration. "Highway Statistics Series."
- Alaska Division of Motor Vehicles. "Mandatory Insurance."
- Youth.gov. "Driver Safety."
- Federal Highway Administration. "Average Annual Miles per Driver by Age Group."
- State of Alaska Division of Insurance. "What Alaskans Need to Know About Credit Use."
- Alaska Division of Insurance. "Common Auto Insurance Discounts."
Compare.com's #1 goal is to save you money. We publish resources that are based on hard-hitting data and years of industry experience to help you make more informed decisions with your wallet.
- All of Compare.com's content is written and reviewed for accuracy by a team of experienced writers and editors who are experts on the topics they cover.
- None of Compare.com's content is ever influenced by the companies and brands we partner with.
- Compare.com's editorial team operates independently of any of the company's partnership or business development interests. We publish unbiased information strictly for the benefit of our readers.
- All of the content you see on Compare.com is based on comprehensive analysis and all data is gathered and vetted from trustworthy sources.
Learn more about us, our team, and what makes us tick.
)
Kat Tretina is a personal finance writer for Compare.com, specializing in insurance and debt management. For the past seven years, she’s been writing for several notable personal finance publications, including U.S News & World Report, NerdWallet, Forbes, Yahoo! Finance, Fortune, and more. She’s passionate about using her expertise to help people understand their financial options.
Kat earned her bachelor’s degree in English and Communications from Elizabethtown College and her master’s from West Chester University. She also holds certifications in financial education and student loan counseling.
Kat has been writing for Compare.com since 2025.
)
Nick Versaw leads Compare.com's editorial department, where he and his team specialize in crafting helpful, easy-to-understand content about car insurance and other related topics. With nearly a decade of experience writing and editing insurance and personal finance articles, his work has helped readers discover substantial savings on necessary expenses, including insurance, transportation, health care, and more. As an award-winning writer, Nick has seen his work published in countless renowned publications, such as the Washington Post, Los Angeles Times, and U.S. News & World Report. He graduated with Latin honors from Virginia Commonwealth University, where he earned his Bachelor's Degree in Digital Journalism.
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