The Best Auto Insurance in Alaska

As of 2024, State Farm is the largest auto insurance provider in The Last Frontier.² It offers an impressive range of discounts specifically for safe drivers, including its Drive Safe & Save program, which rewards good driving habits with lower premiums. State Farm is our top pick for Alaskans, with great incentives for safe drivers, several coverage options, easy-to-use mobile features, and more.

Pros

• Largest car insurance provider in Alaska
• Offers a wide range of discounts

Cons

• Military discounts not available

Discounts for Save Drivers

State Farm offers a number of ways for safe drivers to save on their premiums, including their Drive Safe & Save telematics discount, Steer Clear discount for young drivers, and a defensive driving course discount.

Drive Safe & Save

State Farm’s biggest saving opportunity for drivers is through their Drive Safe & Save program. If you complete the program and exhibit safe driving habits, you can earn up to 30 percent off your car insurance when you renew your policy.

Here’s how the program works:

1. Download the app (available for both Android and Apple users).
2. Follow the app’s instructions.
3. Complete the setup after State Farm sends you a Bluetooth beacon.

Drive Safe & Save tracks behaviors like how many miles you drive each month, how hard you brake, how fast you accelerate, and other performance-based metrics to calculate your six-month score. If you drive less than 7,500 miles per year for personal usage, you could receive State Farm’s low-mileage discount. If you drive significantly more or exhibit poor driving habits, however, your premiums could increase.

More Great Discounts

State Farm doesn’t limit discounts to drivers with exceptional records or consistently great driving habits. Whether you’re a young driver, owner of a new vehicle, student with good grades, homeowner, or something else, chances are State Farm has a discount for you. Here are a few ways you can save with State Farm.

• Multiple vehicle discount: You can earn a multi-vehicle discount if you meet the following criteria.
  • You have at least two vehicles insured with State Farm.
  • You have at least two private passenger vehicles driven by individuals who reside at your address.
  • The other drivers in your policy must be related to you (spouse, child, adoptee, etc.), or you must own the vehicle jointly.
• Passive restraint discount: You can earn up to 40 percent off your insurance if you drive a 1993 or older vehicle with factory-installed airbags.
• Vehicle safety savings: If your car includes modern safety features, including driver assist technology, you may be eligible for a discount with State Farm.
• Anti-theft discount: You may qualify for a discount if your car includes anti-theft features, such as an alarm.
• Smart student discount: You might be eligible for this discount if you’re under 25, a full-time high school or college student, and meet the following criteria in your most recent school semester:
  • Rank in the top 20 percent of your class
  • Have a B average or higher
  • Made the dean’s list or honor roll
• Driver training discount: Under 21? You could earn a discount by completing a certified driver training program that includes classroom instruction, actual driving experience, or a mechanical device that simulates real driving.
• Driver away at school discount: If you have a young driver (25 or under) on your policy who is away at school with limited access to your vehicle, you could save on your premiums.
• Bundling: Like Allstate, State Farm offers customers incentives to bundle auto insurance with other types of insurance, such as renters, homeowners, condo, and life insurance.

All the Coverage You’ll Need

To drive legally in Alaska, you need minimum liability insurance with the following limits:

• $50,000 in bodily injury liability per person
• $100,000 in bodily injury liability per accident
• $25,000 in property damage liability per accident³

It’s often wise to purchase higher liability limits as well as additional coverages such as medical payments, collision, comprehensive, and uninsured/underinsured motorist coverage. State Farm also offers the following coverages:

• Payoff Protector program: The Payoff Protector program is State Farm’s version of gap insurance, which will pay off your loan/lease if your vehicle is totaled or stolen and you owe more than the car’s depreciated value. Note that you must have financed your vehicle with a State Farm loan to be eligible.
• Travel expenses coverage: If you get into an accident more than 50 miles away from home, State Farm will help pay for meals, lodging, and transportation.
• Personal umbrella coverage: Umbrella insurance helps pay for costs when your original limits are exhausted. It can help cover claims for auto insurance, homeowners insurance, lawsuits, and more.
• Rental car reimbursement: With rental car reimbursement, State Farm will reimburse you or pay for the rental while your car is in the shop.
• Classic car insurance: Classic cars require a specialized type of insurance because they appreciate in value over time, whereas most other vehicles depreciate over time. Not all insurance providers offer classic car insurance, so be sure to speak to your local agent if you own a classic or antique car.
• Emergency roadside service: If you run out of gas, have a flat tire, or need a jump start, State Farm will send an emergency roadside service member to help.
• Rideshare insurance: If you’re driving for a rideshare service, you need additional rideshare insurance to cover the entirety of your drive. Neither personal insurance nor Transportation Network Company (TNC) insurance will cover damages or injuries that occur while you’re waiting for your next passenger or while you’re driving to pick up a passenger.

Alaska is currently home to 62,744 veterans who make up almost 9 percent of the state’s population.⁴ If you’re an active military member, veteran, or a military dependent, USAA is our top car insurance choice for you. It offers some of the most affordable rates in the country, highly ranked customer service scores, and excellent member benefits such as financial advice and car rental discounts.

Pros

• Cheapest rates in Alaska
• Special perks and discounts for military members

Cons

• Only available to military families and veterans

Cheapest Car Insurance Company

With an average annual rate of $1,213, USAA offers the cheapest car insurance in Alaska. And you can get those rates even lower depending on how much coverage you have or what discounts you’re eligible for.

Here are a few ways you can save with USAA:

• Storage discount: Save up to 60 percent on your car insurance if you keep your vehicle in storage while you’re deployed out of state.
• Good student discount: Teens with B averages or higher may be eligible for this discount.
• Military base discount: Earn up to 15 percent off your comprehensive coverage premium when you store your vehicle on a military base.
• Bundling discount: Bundle your auto insurance with USAA homeowners or renters insurance, and you can earn up to 10 percent off your car insurance.

• Safe driver discount: Get 10 percent off your car insurance by signing up with USAA’s safe driving program, SafePilot. Complete the program and earn up to 30 percent off your premiums.
• New car discount: You may be eligible for this discount If your new car is less than 3 years old.
• Parent discount: You can earn up to 10 percent off your premiums if your parent(s) has USAA.
• Automatic payments: Set up automatic payments and earn 3 percent off your car insurance.

Excellent Third-Party Ratings

Third-party rating systems ensure auto insurance providers are able to meet their financial obligations to customers, like fulfilling claims and upholding their service standards. USAA is consistently ranked among the best in the auto insurance industry for customer service, financial security, claims satisfaction, and more.

• Standard & Poor’s (S&P): S&P assesses auto insurance providers’ creditworthiness and ability to meet their financial obligations.
• AM Best Rating: AM Best assesses the financial strength and creditworthiness of more than 16,000 insurance companies, providing customers with valuable feedback about the likelihood that an insurer will default on their obligations.
• J.D. Power U.S. Claims Satisfaction Study: The J.D. Power Claims Satisfaction Study measures customer satisfaction with auto insurance claims processes, focusing on factors like claim handling, settlement, communication, and overall service experience.

Affordable Rates for Teens

If you’re a teen in Alaska, you can get a learner’s permit as early as age 14 and a provisional license by 16. It’s important to note that teens and young drivers face the highest insurance premiums because younger drivers tend to get into more accidents and file more claims. If you’re the parent of a teen driver, you can bring your costs down by encouraging your child to avoid at-fault accidents and maintain a clean driving record.

In Alaska, the average cost of auto insurance for teen drivers is $4,104 per year. A policy from USAA costs $845 less than this, at $3,259 per year.

Those looking for cheap teen driver policies who do not have military affiliation should consider State Farm, our second cheapest provider for teens in Alaska. State Farm’s rates are also below the national average for teens, at $3,749  annually, or $327 per month.

If you want to keep your insurance rates as low as possible, take advantage of Allstate’s opportunities to bundle multiple policies. With Allstate, you bundle your auto insurance premium with homeowners, renters, off-road vehicle insurance, and more.

Pros

• Multiple discounts for young drivers
• Offers rideshare insurance

Cons

• Not the cheapest provider

Best for Bundling

Customers can get a quote for bundled policies using Allstate’s easy online quote tool. In many instances, you can bundle a new Allstate insurance policy with an existing policy at any time.  If you choose to bundle with Allstate, you can access all your policies through one online system.

• Homeowners Insurance: Homeowners and auto insurance is one of Allstate’s most popular bundles. Customers who bundle these types of insurance can save up to 25 percent on their premiums.
• Renters: Auto insurance customers who rent rather than own their homes can still save with Allstate. Renters insurance can be bundled with Allstate auto insurance for around only $4 a month.

• Condo: Those who bundle auto insurance with condo insurance can save by adding policies to their bundle. Allstate offers additional discounts for setting up automatic payments, for condos fitted with protective protection devices, and for customers who recently purchased a condo.
• Motorcycle: Whether you have one motorcycle or multiple bikes, you may be eligible for a discount bundling motorcycle and auto insurance.
• Off-road: If you’re one of the many Alaska drivers who drives a snowmobile, ATV, dune buggy, dirt bike, or golf cart, bundling your off-road vehicle insurance with your auto insurance can help save you money.
• Term life insurance: Term life insurance offers financial protection for you and your family for a predetermined amount of time, from 10 to 40 years. By bundling term life insurance with your auto insurance policy with Allstate, you can save on both.

24/7 Roadside Assistance

Allstate has three price points and roadside assistance models for its drivers. You can become a motor club member, add roadside assistance as an insurance add-on, or call for assistance on a pay-per-use basis. Here’s how the three models differ in terms of their starting prices:

Here are some of Allstate’s basic roadside services:

• Trip interruption: Allstate will reimburse you for meals, transportation, and lodging if your car becomes undrivable and you’re at least 100 miles away from home on a trip.
• Hazard reimbursement: Allstate will reimburse you for tire and wheel damages due to road hazards.
• 24-hour roadside assistance: Get help with towing, vehicle lockouts, jump start fuel deliveries, flat tire assistance, and more.
• Motorcycle and RV coverage: Extend coverage to your motorcycle or RV.
• Member discounts: Roadside service members benefit from discounts on oil changes, auto parts, travel costs, and more.

Classic Car Coverage

Allstate’s classic car insurance provides specialized protection tailored to the needs of classic car owners. This coverage ensures that your vehicle is safeguarded with agreed value coverage, flexible usage limits, and comprehensive protection for damage, theft, or accidents. This includes:

• Agreed Value Coverage: Your vehicle is insured for its full appraised value, with no depreciation applied in case of a total loss.
• Flexible Usage: Coverage allows limited leisure driving while maintaining your classic car’s value.
• Restoration Protection: Covers damages that occur during restoration projects
• Optional Spare Parts Coverage: Protects the cost of essential spare parts

Allstate classic car insurance applies to a variety of vintage and collectible vehicles, including:

• Antique cars (over 25 years old)
• Classic cars (10 to 24 years old)
• Exotic and luxury vehicles
• Muscle cars
• Vintage trucks
• Modified or custom cars
• Rare or limited-edition models

GEICO offers some of the most affordable full- and minimum-coverage policies in Alaska. Whether you’re a driver with a clean record or a high-risk driver, GEICO is likely to offer some of the best deals in the state. GEICO also offers a range of discounts, including their driver affiliation discounts for customers belonging to their partner organizations, which helps lower  premium rates even further.

Pros

• Cheap rates
• Numerous discounts

Cons

• Limited local agents

Affordable Coverage

A full-coverage policy from GEICO in Alaska typically costs $1,342 annually, or $112 a month. This is around $370 less a year than the statewide average. Minimum coverage from GEICO is also significantly cheaper than the statewide average, at just $431 per year. GEICO is our second-cheapest minimum-coverage provider after USAA.

Affordable Rates for High-Risk Drivers

If you have a DUI, insurance companies categorize you as a high-risk driver, meaning your premiums will likely increase significantly. Speeding tickets and accidents also cause premiums to go up. After USAA, GEICO offers some of the most affordable rates in the state of Alaska for drivers who classify as high-risk.

DUI Driver Rates

A typical policy from GEICO for a driver with a DUI costs $2,333 a year, or $194 a year. That’s more than $330 cheaper per year than Allstate, our most expensive provider for DUI drivers in Alaska.

Rates for Drivers with a Recent Accident

Drivers who have been in a recent accident looking for a policy from GEICO can expect to pay around $1,988. This is near the statewide average of $1,880 per year, or $157 per month.

Rates for Drivers with a Recent Speeding Ticket

GEICO is our cheapest provider in Alaska for drivers with a recent speeding ticket, with an average policy totalling $1,524 a year, and only $127 a month. This is around 8 percent less than the statewide average of $1,653 per year, or $138 per month.

Driver Affiliation Discounts

Along with discounts for certain vehicle equipment, customer loyalty, and good driving habits, GEICO also offers driver affiliation discounts. These include:

• Emergency deployment discount: Military members who are deployed into an imminent danger zone could receive a discount of up to 25 percent on their auto insurance policy with GEICO.
• Federal employee (Eagle) discount: If you’re one of Alaska’s 16,000 federal employees,¹⁰ you may be eligible for a discount up to 12 percent.
• Military discount: Along with their emergency deployment discount, GEICO offers military members additional discounts on their insurance premiums.
• Member and employee discounts: GEICO has partnered with over 500 organizations, including professional companies, fraternities, sororities, and other alumni organizations. Members of these partner organizations may be eligible for a discount on their auto insurance with GEICO.

According to the US Small Business Administration, in 2023, 91 percent of businesses in Alaska qualified as small businesses.¹¹ Alaska offers commercial insurance for business vehicles in every city in Alaska. In addition to commercial coverage, Progressive offers rideshare coverage. 

Progressive is also a great choice for those who prefer to manage their auto insurance policies online because of their highly rated digital services.

Pros

• Online quotes
• Strong digital tools

Cons

• Not the cheapest

Commercial Coverage

Vehicles used for business fall outside the scope of traditional auto insurance. So if you own a business and operate a business vehicle, you’ll need a commercial insurance policy. Whether you’re a plumber, painter, landscaper, or a pizza delivery service, Progressive’s commercial coverage stands out for several reasons:

• 24/7 policy service: Progressive allows customers to review their policies, adjust their coverages, and pay their bills outside of regular business hours.
• Specialized claims adjusters: Progressive employs claims adjusters who specialize in commercial auto insurance, to help make the commercial claims process as efficient as possible.
• Other forms of business coverage: Customers can take advantage of other business coverage offerings from Progressive, including general liability, professional liability, and workers’ compensation.

Business owners can take advantage of a range of discounts offered by Progressive to lower the cost of their commercial insurance premiums.

Rideshare Coverage in Alaska

Progressive is also a great choice for rideshare drivers operating in Alaska, thanks to optional add-on rideshare coverage.

If you’re one of Alaska’s rideshare drivers, you may not be aware that rideshare drivers typically experience a “gap” in coverage. This refers to the time you are waiting to be matched with a rideshare customer: Your personal auto insurance no longer applies, and the coverage offered by your rideshare company has not yet gone into effect.

Progressive’s rideshare coverage works by extending the coverage included in your existing insurance policy into the rideshare period.

During the period you are waiting to match with a rider, Progressive’s rideshare insurance may provide the following types of coverage:

• Bodily liability
• Property damage
• Comprehensive
• Collision
• Uninsured/underinsured motorist
• Personal injury protection
• Roadside assistance and trip interruption
• Rental car interruption

During the time you are transporting a passenger, Progressive’s rideshare coverage may provide roadside assistance and rental car reimbursement. Your Transportation Network Provider (TNC, or rideshare company), typically provides the other types of coverage you need during this time. Check with your rideshare company about the coverage provided.

Strong Digital Tools

Along with State Farm and GEICO, Progressive has the highest-rated app of any of our providers. With their sleek, easy-to-use app, Progressive customers can:

• Review their policies and coverage information.
• Pay their premiums by credit, debit, or checking account.
• View their insurance ID cards.
• File a claim.
• Request roadside assistance.
• Explore more of Progressive’s products.

Progressive also ranks No. 1 of all eligible providers in the 2024 J.D. Power Digital Experience Survey for Service, meaning Progressive customers are highly satisfied with the company’s app and website. USAA scored higher than Progressive by six points, but is technically ineligible for the study due to their limited availability.