Compare Cheap Auto Insurance in Alaska

• The average cost of full coverage auto insurance in Alaska is $1,842 annually. Minimum coverage is $469 annually.
• USAA is the cheapest insurance provider in most categories but limited to military members, veterans and their families. GEICO also tends to have cheaper-than-average rates in Alaska, except for drivers with certain prior incidents, like at-fault accidents or DUIs.
• USAA and State Farm rank above average in customer and claims satisfaction scores, compared to other insurers.

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• Cheapest full coverage auto insurance in Alaska: GEICO ($1,359 annually) and USAA ($1,370 annually)
• Cheapest minimum coverage: USAA ($343 annually) and GEICO ($393 annually)
• Cheapest with a teen driver: State Farm ($3,749 annually) and USAA ($4,182 annually)
• Cheapest with a speeding ticket: GEICO ($1,701 annually) and USAA ($1,782 annually)
• Cheapest with an at-fault accident: USAA ($1,879 annually) and GEICO ($2,162 annually)
• Cheapest with a DUI: USAA ($1,971 annually) and Progressive ($2,297 annually)
• Cheapest with low credit: USAA ($2,262 annually) and GEICO ($2,538 annually)

Along with its competitive rates, USAA ranks highest in both customer and claims satisfaction. However, since USAA is only available to military members, veterans and their families, State Farm also stands out as a strong alternative, scoring above average in both customer and claims satisfaction. In addition to price, customer satisfaction is important to consider when choosing your insurance provider, as it can make all the difference, especially in moments you need it the most, like after an accident.

1. Bundle policies: Many insurance companies offer a significant discount to customers who bundle multiple policies. If you buy another policy type in addition to auto insurance, like homeowners or renter’s insurance, you can save money while keeping everything under one provider for added convenience.  
2. Shop around: The first quote you get isn’t necessarily the cheapest; compare rates from at least three providers to find the best deal. Knowledge is power and the more informed you are, the more empowered you are to confidently choose coverage that fits your needs and budget. 
3. Ask your agent about discounts: Check with your insurance provider to see what kinds of discounts you qualify for based on your personal profile. Many companies offer good student discounts, safe driver rewards, military discounts and more. You might be surprised by how much you can save, so it’s always worth asking.  
4. Enroll in a telematics or usage-based program: If you’re a safe driver, signing up for a telematics program to track your driving, such as Progressive Snapshot and State Farm Drive Safe and Save, can help you lower your premium. These programs track your driving habits, including speed, braking and mileage, and reward responsible driving with discounts. If you drive safely or infrequently, this could be an effective way to save money on your insurance.  
5. Improve your credit score: In most states, higher credit translates into lower auto insurance rates. While improving your credit takes time, it’s a smart long-term strategy for lowering your premium. 
6. Raise your deductible: Opting for a higher deductible can help lower your premium, but it’s important to make sure you can comfortably afford the out-of-pocket deductible cost if you need to file a claim.  

With an average annual premium of $2,156, Anchorage has the highest auto insurance rates in Alaska — about 17 percent higher than the statewide average of $1,842. The city’s higher population density and increased traffic contribute to these elevated costs. Fairbanks follows closely behind with an average annual premium of $2,020 while smaller cities like Sitka and Ketchikan have lower rates at $1,548 and $1,544.

In Alaska, the minimum car insurance requirements are as follows:

• Bodily injury liability: $50,000 per person and $100,000 per accident
• Property damage liability: $25,000 per accident

While underinsured/uninsured motorist coverage is not mandatory, insurers must offer it and you can choose to reject it or lower the limits. Since Alaska is an at-fault state — meaning the driver responsible for the accident is responsible for the damages — opting for higher coverage limits than the state minimum is recommended. Adding comprehensive and collision coverage can help protect you from out-of-pocket expenses in case of an accident, vehicle theft or damage from events like extreme weather or moose collision. Additionally, while medical payments coverage is optional in Alaska, it can be a valuable addition to your policy, as it helps cover medical expenses for you and your passengers, regardless of who is at fault.