Best and Cheapest Car Insurance in Alaska for 2024 (10 Most Affordable Companies)

The best and cheapest car insurance in Alaska comes from USAA, State Farm, and Geico, with USAA offering the top pick for military families due to exclusive savings.

State Farm and Geico follow closely with affordable rates for safe drivers and customizable policies.

Company	Rank	Monthly Rates	A.M. Best	Best For	Jump to Pros/Cons
	#1	$20	A++	Military Savings	USAA
	#2	$22	B	Safe Driving	State Farm
	#3	$26	A++	Customized Policies	Geico
	#4	$32	A++	24/7 Support	Travelers
	#5	$33	A+	Specialized Coverage	Progressive
	#6	$36	A	Cost Savings	American Family
	#7	$37	A+	Loyalty Discount	Nationwide
	#8	$44	A	Accident Forgiveness	Farmers
	#9	$46	A+	Personalized Policies	Allstate
	#10	$56	A	Loyalty Rewards	Liberty Mutual

This article explores rates, discounts, and factors that make these companies the top choices. Compare their options to find the best fit for your needs in Alaska.

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What You Should Know

• USAA offers the best rates for military families, starting at $20/month
• Top providers offer affordable rates and custom policies for safe drivers
• Compare the best and cheapest car insurance in Alaska to find the right coverage

#1 – USAA: Top Pick Overall

Pros

• Exclusive Military Discounts: USAA offers special rates and discounts for military families, which is a great advantage for Alaska's significant military population. Learn more in our USAA review.
• Affordable Coverage in Remote Areas: Provides competitive pricing for military personnel stationed in rural and remote parts of Alaska.
• Great for Retired Military Residents: USAA’s tailored coverage options are ideal for retired military personnel living in Alaska, offering long-term benefits.

Cons

• Limited Eligibility for Non-Military Residents: Only military members and their families can qualify, excluding most of Alaska's population.
• Fewer Alaska-Based Offices: USAA has limited physical branches in Alaska, which can be inconvenient for those who prefer in-person services.

#2 – State Farm: Best for Safe Driving

Pros

• Safe Driver Discounts: State Farm provides excellent discounts for Alaska’s safe drivers, rewarding those with clean driving records.
• Reliable Coverage for Alaskan Road Conditions: State Farm policies cater to Alaska’s unique driving challenges, like icy roads and long winters.
• Accident-Free Rewards: Safe drivers in Alaska can earn lower premiums year after year through accident-free driving incentives. Discover our State Farm review for a full list.

Cons

• Fewer Alaska-Specific Customizations: State Farm’s policies don’t offer as many Alaska-specific customizations compared to other providers.
• Limited Options for High-Risk Drivers: State Farm may not be the best choice for Alaskans with a history of accidents or traffic violations.

#3 – Geico: Best for Customized Policies

Pros

• Highly Customizable for Alaska’s Driving Needs: Geico’s policies allow Alaska drivers to tailor coverage based on urban or rural driving environments. For more information, check out our guide, "Liability vs. Full Coverage: Car Insurance Explained."
• Flexible Coverage for Seasonal Drivers: Geico offers customizable options for Alaska residents who only drive seasonally due to harsh winter conditions.
• Add-Ons for Alaska’s Outdoor Enthusiasts: Geico provides unique coverage add-ons for Alaskans who use their vehicles for outdoor activities, like RVs and off-road vehicles.

Cons

• Fewer Physical Branches: Geico has limited physical presence in Alaska, which might inconvenience those preferring face-to-face interactions.
• Limited Discounts for Alaska-Based Policies: Geico offers fewer discounts specifically designed for Alaskan residents compared to other insurers.

#4 – Travelers: Best for 24/7 Support

Pros

• 24/7 Support for Alaska’s Time Zone: Travelers’ round-the-clock customer service is a boon for Alaskans dealing with time zone differences, which you can check out in our Travelers review.
• Reliable Assistance in Remote Regions: Their 24/7 support ensures that drivers in Alaska’s most isolated areas can always get help when needed.
• Constant Availability During Long Winters: With extreme weather conditions common in Alaska, Travelers’ 24/7 service is essential for winter emergencies.

Cons

• Higher Rates for 24/7 Service: The premium for 24/7 access can make Travelers more expensive than other insurers in Alaska.
• Limited Physical Presence: Despite 24/7 support, the lack of local offices in Alaska can make in-person claims or queries difficult.

#5 – Progressive: Best for Specialized Coverage

Pros

• Specialized Coverage for Unique Driving Environment: Progressive offers tailored policies for Alaska's rugged and diverse driving conditions.
• Coverage for Alaska’s High-Risk Drivers: Progressive is well-known for accepting higher-risk drivers, which is beneficial for those in Alaska with challenging driving records.
• Specialized Accident Forgiveness: Progressive’s accident forgiveness feature helps Alaska drivers avoid rate increases after a first-time incident, which is covered in our Progressive review.

Cons

• Higher Rates for Rural Alaskan Drivers: Alaskans in rural areas may see higher premiums due to their specialized coverage needs.
• Complex Policy Options : The vast array of specialized coverages can make it difficult for Alaska drivers to choose the most suitable policy.

#6 – American Family: Best for Cost Savings

Pros

• Affordable Premiums: American Family provides competitive rates specifically tailored for Alaska residents, helping families save money on their car insurance.
• Discounts for Alaskan Drivers: The company offers various discounts for Alaskan policyholders, including those for bundled policies and safe driving, making it easier to lower costs.
• Flexible Payment Plans: American Family offers flexible payment options that cater to Alaskan customers, allowing for easier budget management. Read more in our review of American Family.

Cons

• Limited Availability in Remote Area: American Family’s coverage may not be as accessible in Alaska’s most remote areas, potentially leaving some residents without options.
• Claims Process Duration in Alaska: Some Alaskan customers report longer wait times for claims processing, which can be frustrating during critical times.

#7 – Nationwide: Best for Loyalty Discount

Pros

• Significant Loyalty Discounts: Nationwide offers impressive discounts for long-term policyholders in Alaska, rewarding loyalty effectively and encouraging customer retention.
• Strong Financial Stability: Nationwide is known for its robust financial ratings, providing Alaskan policyholders with confidence that claims will be paid when needed.
• Community-Based Programs: Nationwide engages with local Alaskan communities through programs that enhance public safety and driver education. For a complete list, read our Nationwide review.

Cons

• Limited Physical Presence: Nationwide may have fewer local agents in Alaska, making it harder for some residents to receive in-person assistance.
• Potential for Rate Increases: Policyholders in Alaska may experience rate increases upon renewal, which can be discouraging for loyal customers.

#8 – Farmers: Best for Accident Forgiveness

Pros

• Accident Forgiveness: Farmers provides accident forgiveness policies specifically tailored for Alaskan drivers, allowing them to maintain lower premiums after a first accident. See our Farmers review for details.
• Local Knowledge of Alaskan Roads: Farmers understands the unique driving conditions in Alaska, which helps in offering more relevant coverage options tailored to local drivers.
• Variety of Coverage Options: Farmers offers a wide range of coverage options that cater to the diverse needs of Alaskan drivers, including options for recreational vehicles.

Cons

• Higher Premiums for New Policies: First-time customers may face higher premiums, especially if they have a less-than-perfect driving history.
• Claims Experience Variation: Some Alaskan customers have reported inconsistencies in claims processing, which can be a concern after an accident.

#9 – Allstate: Best for Personalized Policies

Pros

• Tailored Coverage for Alaskan Needs: Allstate excels in providing personalized policies that are specifically designed for the unique circumstances and driving conditions in Alaska.
• Innovative Tools for Alaskan Drivers: Allstate offers innovative online tools and mobile apps that help Alaskan policyholders customize their insurance experience effectively. Discover more in our Allstate review.
• Comprehensive Discounts Available: Allstate provides a variety of discounts for Alaskan drivers, including safe driving, multi-policy, and loyalty discounts, enhancing overall affordability.

Cons

• Complex Policy Structure: The variety of options and customization might overwhelm some Alaskan customers, making it difficult to choose the right coverage.
• Limited Options for High-Risk Drivers: Drivers with a poor record may find it challenging to secure coverage options that fit their needs within Allstate’s offerings.

#10 – Liberty Mutual: Best for Loyalty Rewards

Pros

• Attractive Loyalty Rewards: Liberty Mutual offers rewards programs that benefit long-term policyholders in Alaska, helping to lower costs over time for loyal customers.
• Strong Reputation for Customer Satisfaction: Liberty Mutual has built a solid reputation among Alaskan residents for quality customer service and satisfaction.
• Flexible Policy Adjustments: Alaskan drivers can easily adjust their policies to meet changing needs, whether due to life changes or shifting local conditions. Gain insights from our Liberty Mutual review.

Cons

• Potential Complications With Claims: Some customers in Alaska report challenges with the claims process, including communication issues that can delay resolutions.
• Inconsistent Availability of Loyalty Rewards: Not all policies may qualify for loyalty rewards, which can limit the benefits for some Alaskan customers.

Comparative Monthly Car Insurance Rates in Alaska: Minimum vs. Full Coverage

When searching for the best and cheapest car insurance in Alaska, it’s important to consider monthly rates for both minimum and full coverage options. USAA offers the most affordable rates at $20 for minimum coverage and $60 for full coverage, making it an excellent choice for military families.

The following table provides a comprehensive overview of monthly rates for car insurance in Alaska, highlighting both minimum and full coverage options from various insurance companies. For more insights, check out our guide, "Liability vs. Full Coverage: Car Insurance Explained."

Insurance Company	Minimum Coverage	Full Coverage
	$46	$135
	$36	$105
	$44	$127
	$26	$76
	$56	$164
	$37	$108
	$33	$97
	$22	$65
	$32	$93
	$20	$60

With various insurance providers offering different rates, it's important to compare your options to ensure you get the best coverage for your needs without breaking the bank. This guide highlights the monthly premiums from several top insurance companies, making it easier for Alaskans to make informed decisions about their car insurance.

Maximizing Savings: Discounts on Car Insurance in Alaska

The table below highlights various discounts offered by leading car insurance companies in Alaska, providing consumers with opportunities to save on their premiums. Each insurer features unique discounts tailored to different situations, such as Allstate's Safe Driver and Multi-Policy discounts, and American Family's incentives for good drivers and low mileage. Check out our ranking of the top providers: Best Low-Mileage Car Insurance Companies

Insurance Company	Available Discount
	Safe Driver Discount, Multi-Policy Discount, Anti-Theft Discount, New Car Discount, Early Signing Discount
	Good Driver Discount, Multi-Vehicle Discount, Auto Safety Features, Low Mileage Discount, Loyalty Discount
	Good Student Discount, Multi-Car Discount, Safety Equipment Discount, Homeowners Discount, Affinity Group Discount
	Good Driver Discount, Multi-Policy Discount, Anti-Theft Discount, Defensive Driving Course Discount, Military Discount
	New Car Discount, Vehicle Safety Features, Multi-Policy Discount, Paperless Discount, Early Shopper Discount
	Safe Driver Discount, Anti-Theft Discount, Accident-Free Discount, Family Plan Discount, Defensive Driving Course Discount
	Multi-Policy Discount, Continuous Insurance, Snapshot Discount, Homeowner Discount, Sign Online Discount
	Good Driving Discount, Multi-Line Discount, Vehicle Safety Discount, Good Student Discount, Drive Safe & Save Discount
	Safe Driver Discount, Multi-Car Discount, Hybrid/Electric Vehicle Discount, Home Ownership Discount, New Car Discount
	Safe Driver Discount, Multi-Policy Discount, Military Discount, Family Discount, Garage Parking Discount

Farmers rewards good students and homeowners, while Geico offers military discounts and defensive driving incentives. Liberty Mutual promotes early sign-ups and paperless billing, Nationwide emphasizes accident-free driving, and Progressive focuses on continuous insurance. Overall, this list is a valuable resource for Alaskans seeking to maximize savings on their car insurance.

Finding the Most Affordable Teen Car Insurance Rates in Alaska

In Alaska, monthly car insurance rates for 18-year-old drivers vary significantly between companies and genders. Geico offers the most competitive rates, charging just $81 for females and $94 for males, while State Farm follows closely with $73 for females and $94 for males. American Family provides affordable options as well, with rates at $107 for females and $145 for males. Allstate charges $204 for females and $150 for males, while Liberty Mutual's rates are $195 for females and $234 for males.

Insurance Company	Age: 18 Female	Age: 18 Male
	$204	$150
	$107	$145
	$213	$224
	$81	$94
	$195	$234
	$111	$142
	$198	$223
	$73	$94
	$194	$270
	$81	$90

Farmers offers higher premiums at $213 for females and $224 for males. Nationwide's rates are $111 for females and $142 for males, while Progressive charges $198 for females and $223 for males. Travelers has some of the highest premiums, with $194 for females and $270 for males, while USAA presents a competitive rate at $81 for females and $90 for males.

Young drivers should carefully compare rates across different companies, as significant savings can be found, especially with options like Geico and State Farm. Finding the right coverage at an affordable price is crucial for navigating both costs and safety on the road. Here are six safety tips for for driving at night.

The Most Affordable Car Insurance Rates for Married Couples in Alaska

Drivers can find a variety of affordable car insurance options with monthly rates that cater to different budgets. Geico leads the pack with a competitive rate of $30, closely followed by State Farm at $28 and USAA at $33. Other affordable choices include Travelers at $37, American Family at $45, and Progressive at $46.

Insurance Company	Rates
	$59
	$45
	$56
	$30
	$69
	$48
	$46
	$28
	$37
	$33

Nationwide offers coverage for $48, while Farmers and Allstate are priced at $56 and $59, respectively. Liberty Mutual is the highest at $69. These options provide a solid mix of coverage and affordability for Alaskan drivers. For detailed information, refer to our comprehensive report titled "14 Ways To Get Cheap Car Insurance"

Affordable Car Insurance Rates for Seniors in Alaska

When considering car insurance options in Alaska for a 65-year-old female and male, several companies offer competitive monthly rates. Geico stands out as the most affordable option at $26, followed by USAA at $20. State Farm offers a low rate of $22, while American Family and Nationwide provide solid choices at $35 and $36 respectively.

Insurance Company	Age: 65 Female	Age: 65 Male
	$46	$46
	$35	$35
	$43	$43
	$26	$26
	$55	$55
	$36	$37
	$37	$33
	$22	$22
	$31	$31
	$20	$20

Progressive presents rates of $37 for females and $33 for males. Other notable rates include Farmers at $43, Allstate and Travelers at $46 and $31, and Liberty Mutual at $55. These monthly rates allow you to effectively compare options and choose the best car insurance coverage tailored to your needs. Take a look at our list of the leading providers: Best Car Insurance Companies for Seniors

Top Areas for Car Insurance in Alaska

The cheapest area in Alaska for car insurance is Port Alexander. This table presents the monthly rates for various cities, highlighting affordable living options across the region.

City	Rates
Angoon	$89
Douglas	$97
Gustavus	$105
Hoonah	$102
Kake	$93
Pelican	$94
Petersburg	$95
Port Alexander	$83
Sitka	$86
Tenakee Springs	$94

Port Alexander offers the lowest rate at $83, followed by Sitka at $86 and Angoon at $89. Kake and Tenakee Springs have rates of $93 and $94, respectively, while Pelican matches Tenakee Springs at $94. Petersburg’s rate is $95, with Douglas at $97, Hoonah at $102, and Gustavus at $105.

These figures provide valuable insights for those considering a move or investment in these areas. For more insights, check out our resource, "32 Genius Ways to Save Money."

Priciest Locations for Car Insurance in Alaska

Alaska residents may see the most expensive car insurance rates if they live in the area of Chugiak. The cost of car insurance may be more expensive in certain areas of Alaska based on the factors of driving behavior in the area, frequency of accidents and crime rate.

City	Rates
Anchorage	$127
Big Lake	$122
Chugiak	$128
Eagle River	$127
Girdwood	$122
Indian	$125
Jber	$124
Palmer	$122
Sutton	$120
Wasilla	$118

These factors can cause Alaska car insurance rates to be more expensive in certain cities and even areas within the city. The table below displays the most expensive areas in Alaska for car insurance for a single adult.

Understanding Minimum Car Insurance Coverage and Limits in Alaska

Alaska requires drivers to purchase liability insurance. The state’s minimum coverage limits are detailed below, but you should keep in mind that these are called minimums for a reason. These amounts likely would not be enough to cover you in a costly accident, so it’s wise to consider purchasing higher limits. The coverage limits are just a starting point, you may want to increase these limits to get better protection.

Alaska drivers also should consider purchasing some of the optional insurance coverages available in the state. Comprehensive coverage will protect your vehicle from damages caused by things like hail, theft and vandalism, as well as other non-accident related damages. Did you know that Anchorage has the highest car theft rate per capita in the country?

Claim Type	Portion of Claims	Cost per Claim
Rear-End Collisions	28%	$7200
Parking Lot Accidents	20%	$5000
Vandalism	12%	$4500
Vehicle Theft	10%	$9000
Weather-Related Incidents	10%	$6800

Purchasing collision coverage would cover the damages to your car after a collision with another car, a collision with a stationary object or a single-car accident.

Additional optional coverages include medical payments, roadside assistance and uninsured/underinsured motorist coverage. You can learn more about all these coverages here.

Full coverage usually costs more for drivers with incidents on their driving record because they represent higher risk to insurers. Insurers also see drivers with low credit score as riskier drivers and charge higher rates to drivers with poor credit.

Here is a list of Alaska's minimum coverage requirements:

• Bodily Injury Liability: $25,000 per person and $50,000 per accident
• Property Damage Liability: $25,000 per accident

Bodily injury liability provides coverage for injuries sustained by the other vehicle’s driver and passengers if you are held responsible for an accident. This coverage also kicks in to defend you in the event of any legal claims.

Property damage liability provides coverage in the event you damage someone else’s property in a car accident, most commonly the other vehicle, but also things like a home or fence.

Uninsured Motorist Coverage Requirements in Alaska

Alaska does not require drivers to obtain uninsured/underinsured motorist coverage, but this protection is worth considering. Uninsured/underinsured motorist coverage is available for both bodily injury liability and property damage liability. It provides coverage if you are in an accident caused by a driver without insurance or without sufficient insurance coverage, or a hit-and-run driver.

The vehicle theft rate in the area is rated C, indicating a moderate level slightly above the national average. Traffic density is rated B, suggesting medium levels with occasional congestion during peak hours.

Category	Grade	Explanation
Average Claim Size	B	Claims are generally average compared to other states
Traffic Density	B	Medium traffic density, with occasional congestion during peak hours
Uninsured Drivers Rate	C	Slightly higher-than-average rate of uninsured drivers, common in Alaska's urban areas
Vehicle Theft Rate	C	Moderate vehicle theft rate, slightly above the national average
Weather-Related Risks	C	High risk due to severe winter weather and icy roads

Weather-related risks also receive a C grade due to severe winter conditions and icy roads. Average claim sizes are rated B, reflecting typical claim amounts relative to other states. Finally, the rate of uninsured drivers is rated C, highlighting a slightly higher prevalence of uninsured motorists, particularly in urban regions of Alaska.

If you're looking to maximize your savings on auto insurance, taking advantage of available discounts can be a smart move. Below is a list of some of the top auto insurance discounts, graded based on their potential savings and popularity among major providers.

Discount Name	Grade	Savings	Participating Providers
Bundling (Auto + Home)	A	25%	Allstate, State Farm, Progressive, Nationwide
Multi-Car Discount	A	25%	Progressive, Geico, State Farm, USAA
Good Student Discount	A	20%	Geico, Allstate, State Farm, Progressive
Low Mileage Discount	A-	20%	State Farm, Nationwide, Liberty Mutual, Geico
Safe Driver Discount	B+	30%	State Farm, Allstate, Farmers, USAA
Defensive Driving Discount	B+	20%	Liberty Mutual, State Farm, Farmers
Anti-Theft Device Discount	B	15%	Geico, Progressive, Nationwide
Automatic Payment Discount	B	10%	Geico, Progressive, Allstate, USAA

By exploring these discounts and working with participating providers, you can potentially reduce your auto insurance premiums and get the coverage you need at a more affordable rate. Be sure to check with your insurance company to see which discounts you qualify for.

Factor	Value
Accidents per Year	1,200
Claims per Year	900
Average Claim Cost	$6,000
Percentage of Uninsured Drivers	16%
Vehicle Theft Rate	300 thefts/year
Traffic Density	High
Weather-Related Incidents	Low

The area experiences 1,200 accidents annually, resulting in 900 claims, with an average claim cost of $6,000. Approximately 16% of drivers are uninsured, contributing to the risk profile. Vehicle theft is a concern, with 300 thefts reported each year. Despite high traffic density, weather-related incidents remain low, indicating a relatively stable driving environment.

The Calculation of Car Insurance Rates in Alaska

When searching and comparing quotes from the best auto insurance companies in Alaska, it can be frustrating trying to understand how your insurance rates are calculated. While there is no exact formula that each car insurance company uses when providing you a quote, there are many factors that do contribute to the insurance price you pay. Among the factors that auto insurers consider are:

Among the factors that car insurers consider are:

• Age, Gender, and Marital Status
• Driving Record and Mileage
• Location and Credit Score
• Car's Make, Model, and Year
• Types of Car Insurance Coverages

Investigating different insurance options is the best way to find the cheapest auto insurance in Alaska. Alaska auto insurance rates can vary greatly depending on the company.

One of the biggest misunderstandings when it comes to insurance rates is that the history of drivers in your area also contributes to how much you pay. For instance, even if you go two years without an accident, if there were a lot of accidents near you recently, your rates might still go up. Why is that the case? Check our five steps to take after a car accident.

Insurance companies disperse risk across all policyholders so that when it comes time to pay a claim, they have enough money to pay out. But imagine a scenario where they only raised rates for drivers with an accident. For drivers who had an expensive claim, the drivers simply wouldn't be able to afford the raised rates that are based off how much their auto insurer had to pay after an accident. So instead, insurance companies slightly increase rates across the board to offset the costs, though of course the at-fault driver may see a larger increase.

Effective Strategies for Reducing Car Insurance Costs in Alaska

At the end of the day, we’d all like to have the best coverage at a cheap, affordable price from one of the best Alaska car insurance companies. While you never want to sacrifice quality to save a couple of dollars, there are some different ways you can lower your car insurance premium.

Here are six ways you may be able to lower your car insurance rates:

• Bundle your car insurance with other policies.
• Consider raising your deductibles.
• Pay your car insurance policy in full.
• Try usage-based car insurance.
• Shop for better insurance rates.

By applying these tips, you can effectively reduce your car insurance costs and ensure you get the best value for your coverage. Start exploring these strategies today to save money.

Clearsurance's Ratings and Rankings for Alaska's Top Car Insurance Companies

Consistent with its mission towards greater transparency, Clearsurance does not keep its rating and ranking formulas in a black box. Our algorithm analyzes a range of inputs from our independent community of insurance customers, including:

• Price
• Customer Service
• Claim service
• Likelihood to renew

The algorithm also takes into account the percentage of what customers say the company does well vs. the percentage of what customers say the company could do better. Check out our resource, "When to File a Car Insurance Claim."

The Clearsurance customer ratings and rankings are derived entirely from customer reviews and ratings.

Car Insurance Guide

Whether you’re buying your insurance director going through an agent, understanding the different car insurance coverage options is a must. Do you know what is covered by comprehensive coverage? you familiar with uninsured motorist coverage? Do you know how a deductible works?

We want to make sure you’re equipped with a proper knowledge of car insurance, so check out our car insurance guide. Looking for more educational information about car insurance? Check out our car insurance blog for more information and topics related to car insurance.

Find the best comprehensive car insurance quotes by entering your ZIP code below into our free comparison tool today.