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Best Cheap Car Insurance in Alaska for 2020

Jan. 2, 2020
Auto Insurance, Insurance
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Exploring many options is the best way to score cheap car insurance in Alaska. Auto insurance rates can vary by hundreds of dollars depending on the companies you shop.

NerdWallet looked at rates from the six biggest insurers in the state and found the cheapest options for several driver types.

Cheapest for good drivers in Alaska

For an Alaska driver with good credit and a clean driving record, these are the cheapest insurance companies we found, along with their average rates for full coverage:

  1. Umialik: $1,047 per year.
  2. State Farm: $1,167 per year.
  3. Allstate: $1,346 per year.
  4. Geico: $1,354 per year.
  5. Progressive: $1,438 per year.
Drivers with no recent accidents or violations can get cheaper car insurance rates for having good credit. For this calculation, NerdWallet averaged rates for 40-year-old men and women with a clean driving record and good credit. In terms of driving and credit history, a large portion of drivers are closest to this profile, which carries standard "full coverage" insurance, including comprehensive and collision, along with state-required coverage. Prices shown include a good driver discount, when available from the insurer.

Cheapest for minimum coverage in Alaska

For bare-bones car insurance, these are Alaska’s cheapest options and average rates, assuming clean driving and credit histories:

  1. Allstate: $390 per year.
  2. Geico: $422 per year.
  3. Umialik: $423 per year.
  4. State Farm: $450 per year.
  5. Progressive: $728 per year.
We calculated these numbers by averaging rates for 40-year-old good drivers (earning them a discount if the insurer offers one) who have only the minimum mandatory insurance in their state. Such light coverage isn't typically recommended since it might not cover all the bills resulting from a car accident, but it's better than nothing — especially if you can't afford much more. If you're looking for the cheapest possible insurance you can get, though, you'll still want to get quotes from at least three auto insurers.

Cheapest for good drivers with poor credit

For an Alaskan driver with a good driving history and a blemished credit record, here are the cheapest insurance companies we found, ranked by their average rates for full coverage:

  1. Geico: $1,465 per year.
  2. Umialik: $1,556 per year.
  3. Allstate: $1,725 per year.
  4. State Farm: $2,164 per year.
  5. Progressive: $2,201 per year.
If you have a spotty credit history, it's important to shop around to find the cheapest auto insurance rates you can. Poor credit can have a bigger effect on car insurance premiums than even a DUI conviction or a recent at-fault crash, but prices vary by insurer. To calculate these figures, NerdWallet averaged rates for 40-year-olds with a clean driving record and associated good driver discount, if the insurer offered one. They had poor credit as reported to their insurer, and standard "full coverage" car insurance.

Cheapest for drivers with one at-fault crash

When a driver in Alaska has recently caused a wreck, the cheapest insurers and average rates for full coverage are:

  1. Umialik: $1,047 per year.
  2. State Farm: $1,484 per year.
  3. Geico: $1,939 per year.
  4. Allstate: $1,941 per year.
  5. Progressive: $2,471 per year.
After a relatively minor crash, some auto insurers will charge a lot more than others for coverage. To get these figures, we averaged rates for 40-year-olds with typical "full coverage" insurance and one recent at-fault crash costing $10,000 in property damage. Your rates will remain high for three to five years after you cause an accident or have a moving violation — and you still may be rejected for coverage from certain companies, including those above. If you fall into this category, be sure to shop for new insurance rates just after the three-year and five-year anniversaries of your infraction.

Cheapest insurance after a DUI in Alaska

Drivers in Alaska with a recent DUI on their record may want to consider these insurance companies, which showed the cheapest average rates for full coverage:

  1. Umialik: $1,047 per year.
  2. State Farm: $1,709 per year.
  3. Progressive: $1,731 per year.
  4. Allstate: $1,847 per year.
  5. Geico: $2,664 per year.
A conviction for driving under the influence, or DUI, generally results in higher auto insurance premiums than before. NerdWallet analyzed rates for 40-year-old drivers and standard “full coverage” car insurance with a recent DUI conviction to see which companies were cheapest. Be warned that you may be rejected for coverage, including from the companies listed above. Rates can vary by hundreds between carriers after a DUI, and some penalize for longer than others, so it’s important to shop around for the best available price right after you see a price hike and each year after that.

Cheapest insurance after a ticket in Alaska

For an Alaskan driver with a recent on-record speeding ticket, the cheapest average rates for full coverage come from these insurers:

  1. Umialik: $1,047 per year.
  2. State Farm: $1,348 per year.
  3. Geico: $1,455 per year.
  4. Allstate: $1,581 per year.
  5. Progressive: $1,884 per year.
Getting a speeding ticket will result in higher car insurance rates from most companies for three to five years. To see who has the cheapest rates, we calculated average car insurance rates for 40-year-old drivers with “full coverage” insurance and a recent ticket for speeding 16 mph over the limit. Though these larger companies were the cheapest we found on average, others may be cheaper for you, so be sure to get at least three quotes before deciding on a carrier.

Cheapest for couples and families in Alaska

When you need insurance for multiple cars and drivers, a different lineup of companies may be cheapest. You can often get a discount for insuring more than one car, but companies aren’t all the same in how they calculate rates and price breaks. For this reason, it’s a good idea to shop for insurance quotes and compare prices after any big life event like getting married, moving or adding a teen driver. To find out who’s cheapest for two-vehicle households in Alaska, we analyzed rates for a couple with and without a teen driver.

Cheapest for a married couple in Alaska

For a husband and wife in Alaska who are both 50 years old, with good credit and driving histories, these are the cheapest insurance companies and average rates for full coverage on two vehicles:

  1. Progressive: $1,795 per year.
  2. Umialik: $1,837 per year.
  3. Geico: $1,935 per year.
  4. State Farm: $2,131 per year.
  5. Allstate: $2,237 per year.
Couples who live together can save on auto insurance by combining policies, whether they are married or not, because they can earn multi-car and multi-driver discounts. Once they tie the knot, rates can dip further, but not because of discounts — insurers see married people as less risky and so charge them lower rates. Our hypothetical 50-year-old couple’s clean driving record also earns them both a good driver discount.

Cheapest for families with a teen in Alaska

For a 50-year-old married couple in Alaska plus an 18-year-old driver, here are the cheapest insurers and average rates for full coverage on two vehicles:

  1. Umialik: $3,229 per year.
  2. Geico: $3,454 per year.
  3. Progressive: $3,971 per year.
  4. State Farm: $4,166 per year.
  5. Allstate: $4,388 per year.
Adding a teen with two years’ driving experience to a married couple's policy is sure to cause a big jump in rates. Since different insurers tend to see a teen’s inexperience in different ways, we analyzed rates to see which companies had the cheapest car insurance for teens. These rates are averaged for 50-year-old couples with male and female 18-year-old drivers.

Cheapest for young drivers in Alaska

When you’re in your 20s, insurance companies may not offer you their cheapest rates, but some will be more of a bargain than others — and that means you can save money by shopping around. Insurers typically view young people as more risky and charge them higher prices than drivers with more experience. However, each insurer considers age and driving background differently, so the bottom line varies by company. We looked at rates for 25-year-olds in Alaska to see which insurers are cheapest for young drivers.

Cheapest full coverage for young good drivers

For full coverage, these are the cheapest insurance options for young drivers in Alaska with clean credit and driving records, ranked by their average rates:

  1. State Farm: $1,393 per year.
  2. Umialik: $1,410 per year.
  3. Allstate: $1,512 per year.
  4. Progressive: $1,588 per year.
  5. Geico: $1,825 per year.
Drivers in their 20s can have a hard time finding cheap car insurance, and that's even truer when they need full coverage. The rates above are averages for 25-year-old male and female drivers with comprehensive and collision coverages, which are often required for drivers with active auto loans or leases. These rates reflect a good driver discount. Young drivers, like all drivers, should check several quotes to find the cheapest for the coverage levels they need.

Cheapest minimum coverage for young good drivers

For Alaska’s minimum required insurance, the cheapest companies and average rates for 25-year-old drivers with good driving and credit histories are:

  1. Allstate: $427 per year.
  2. State Farm: $508 per year.
  3. Umialik: $564 per year.
  4. Geico: $569 per year.
  5. Progressive: $744 per year.
Since young people often have fewer assets to protect with liability insurance, they can usually get away with lower coverage limits. For an age group with relatively high insurance rates on average, that's good news, keeping rates as low as possible. For this price set, we averaged rates for 25-year-old male and female drivers who have clean driving records, good credit and bare-bones insurance coverage.

Poor credit and minimum coverage

For a young driver in Alaska with spotty credit and a good driving record, the cheapest insurance companies and average rates for minimum coverage are:

  1. Allstate: $517 per year.
  2. Geico: $569 per year.
  3. Umialik: $827 per year.
  4. State Farm: $927 per year.
  5. Progressive: $1,123 per year.
Poor credit is common for younger folks just starting out, who may still be building their credit files. That can increase rates further, so it's extra important to shop around and compare as many insurance quotes as possible to find the cheapest you can get. For these prices, we averaged rates for 25-year-old male and female drivers with no recent accidents or violations (earning them a good driver discount), minimum coverage car insurance, and credit in the "poor" tier as reported to an insurer.

Cheapest for minimum coverage after a crash

When a young Alaskan driver has caused a recent accident, here are the cheapest insurers we found and their average rates for minimum coverage auto policies:

  1. Umialik: $564 per year.
  2. Allstate: $646 per year.
  3. State Farm: $658 per year.
  4. Geico: $713 per year.
  5. Progressive: $1,215 per year.
To get prices for this group, we averaged rates for 25-year-old male and female drivers with good credit and a recent at-fault crash costing $10,000 in property damage. Since car insurance is often pricier after a crash, and especially so for young drivers, we assumed minimum required insurance in the state to contain costs for our hypothetical driver. Depending on your situation, you may still be rejected for coverage, including from the companies listed above. If you've caused a crash, no matter your age, be sure to check auto insurance quotes just after the third and fifth anniversaries of your incident, when insurers often adjust rates downward.

Cheapest for minimum coverage after a DUI

For a 25-year-old driver in Alaska whose record includes a recent DUI, the cheapest average rates we found for minimum insurance came from these companies:

  1. Umialik: $564 per year.
  2. Allstate: $614 per year.
  3. State Farm: $762 per year.
  4. Progressive: $879 per year.
  5. Geico: $914 per year.
Young drivers with a recent DUI on their records will need to be diligent to find the lowest car insurance rates they can get — it's likely that many companies' rates will be quite expensive. Depending on the circumstances, you may be rejected for coverage, including from the companies listed above. But spending the time to shop around for quotes can help you find the lowest price from a company available to you. For this analysis, we averaged rates for male and female 25-year-old drivers with a recent DUI conviction. They had good credit and minimum required car insurance, which helps keep rates down.

Cheapest for minimum coverage and a ticket

For a young driver in Alaska with a recent speeding ticket, these are the cheapest insurers we found and their average rates for minimum coverage:

  1. Allstate: $515 per year.
  2. Umialik: $564 per year.
  3. Geico: $593 per year.
  4. State Farm: $594 per year.
  5. Progressive: $938 per year.
Getting a speeding ticket is never fun, and neither is the higher car insurance bill you may receive months later. At that point, it's time to shop around for better rates, and it wouldn't hurt to repeat on your third and fifth ticket anniversaries, when insurers may adjust rates downward. We analyzed rates for 25-year-old male and female drivers with a recent speeding violation for going 16 mph over the speed limit to see prices for this group.

Cheap for military families

If you’re an active member of the military or a veteran — or have an immediate family member who is — you’ll likely get a very good price with USAA, an option that isn’t available to the general public. For that reason we don’t rank it within the categories above, but USAA had one of the three cheapest average rates in Alaska for every driver category listed above.

» MORE: Best car insurance for veterans and military

Recap: Cheapest car insurance in Alaska

  • Good drivers: Umialik.
  • Minimum coverage: Allstate.
  • Poor credit: Geico.
  • After an at-fault crash: Umialik.
  • After a DUI: Umialik.
  • After a speeding ticket: Umialik.
  • Married couples: Progressive.
  • Families with a teen: Umialik.
  • Young good drivers: State Farm.
  • Minimum coverage for young good drivers: Allstate.
  • Minimum coverage for young drivers with poor credit: Allstate.
  • Minimum coverage for young drivers after a crash: Umialik.
  • Minimum coverage for young drivers after a DUI: Umialik.
  • Minimum coverage for young drivers after a ticket: Allstate.

» MORE: Compare car insurance

Minimum car insurance requirements in Alaska

Alaska car insurance policies must include liability insurance, which covers others’ property damage and injuries if you cause a crash.

Here are the minimum liability insurance limits you must select in Alaska:

  • $50,000 bodily injury liability per person.
  • $100,000 bodily injury liability per crash.
  • $25,000 property damage liability per crash.

If you live in an area in Alaska where vehicle registrations aren’t required, car insurance is optional. You can find a list of those areas through Alaska’s state website.

Note that drivers with six or more violation points on their record within the past five years need liability insurance regardless of where they live.

Even if car insurance isn’t required for you, it’s usually a wise purchase. After all, if you cause a crash and don’t have coverage, you could end up having to pay for others’ injury treatment and property damage out of pocket.

For more details on how your coverage options and limits work, visit NerdWallet’s guide to minimum car insurance requirements by state.

Alternative car insurance for high-risk drivers

If you’re denied car insurance on the voluntary market — because of past crashes or violations, a gap in your insurance or other reasons — you can apply for a policy through the Alaska Automobile Insurance Plan.

For more help getting cheap car insurance in Alaska, try NerdWallet’s car insurance comparison tool.

Methodology

For our “good driver” profile, NerdWallet averaged rates from the largest insurers in the state for 40-year-old men and women in all ZIP codes with 12,000 annual miles driven. The policy includes:

  • $100,000 bodily injury liability per person.
  • $300,000 bodily injury liability per accident.
  • $50,000 property damage liability per accident.
  • $100,000 uninsured motorist coverage per person.
  • $300,000 uninsured motorist coverage per accident.
  • Collision coverage with a $1,000 deductible.
  • Comprehensive coverage with a $1,000 deductible.
If required, minimum additional coverages were added and "good driver" discounts were automatically applied. Our “young driver” had all the same characteristics, but average rates were for 25-year-old men and women. We used a 2016 Toyota Camry LE for all single drivers. We used the same assumptions for all other driver profiles, with the following exceptions:

  • For drivers with minimum coverage, we adjusted the numbers above to reflect minimum required coverage by law in the state.
  • We changed the credit tier from “good” to “poor” as reported to the insurer to see rates for drivers with poor credit.
  • For drivers with one at-fault crash, we added a single at-fault crash costing $10,000 in property damage.
  • For drivers with a ticket, we added a single speeding violation for driving 16 mph over the speed limit.
  • For drivers with a DUI, we added a single drunken driving violation.
Couples in our analyses were 50-year-old men and women with good credit and clean driving histories, averaged across all ZIP codes with the same policy outlined above. To see rates for families with a teen, we added an 18-year-old licensed two years ago, averaging rates for male and female teens. For couples and families we added a 2016 Nissan Rogue S to create a two-car household.

In all cases, a paperless discount, e-signature discount and electronic funds transfer discount were automatically applied. These are rates provided by Quadrant Information Services. Your own rates will be different.