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Alaska Auto Insurance

Although car insurance in Alaska has become cheaper in recent years, Alaska remains one of the most expensive States in which to insure your car. Vehicle drivers in Alaska frequently have to cope with adverse weather – which leads to a greater number of collisions – and a drinking culture which results in a higher number of driving under the influence (DUI) accidents and, consequently, higher auto insurance premiums.

In areas of Alaska where vehicle registration is not required, you only need to have vehicle insurance if you have accrued 6 or more points through driving violations in the previous five years, and the only other methods of legally avoiding auto insurance in Alaska is to post a bond of $50,000 with the Division of Motor Vehicles (DMV) or self-insure by proving you can pay cash for any damages you are responsible for.

Alaska Car Insurance Requirements

Alaska has the highest minimum car insurance requirements of any State in the USA. This is primarily because not all communities will have a hospital or an auto repair shop in the immediate area, and it may be expensive to transport injured drivers and damaged cars to where they can get attention.

The current minimum auto insurance requirements came into force in November 2008

$50,000 for injury/death to one person

$100,000 for injury/death to more than one person

$25,000 for damage to property

Alaska Auto Insurance Laws

The laws relating to auto insurance in Alaska require that you have a copy of your car insurance policy, bond receipt or certificate of self-insurance in your immediate possession when driving any motor vehicle. Additionally, if you are involved in an accident that results in bodily injury, death or property damage exceeding $501.00, you will be required to show proof of insurance.

Failure to have car insurance in Alaska can result in the suspension of your driver’s license and, before it can be reinstated, proof of financial responsibility must be supplied to the DMV and reinstatement fees of up to $500.00 (depending on the offence) have to be paid. An SR-22 filing, which provides proof of financial responsibility, may be obtained from your insurance company in Alaska, and must be filed with the DMV for three years following an accident in which you were uninsured.

Recommended Alaska Car Insurance Coverage

Although the minimum car insurance requirements in Alaska are the highest in the country, it is recommended that you take advantage of the additional coverage options which are available. The rate of uninsured/underinsured drivers is also one of the highest in the country (at 13%) and the State law requires that all Alaskan auto insurance companies include a written offer of uninsured/underinsured motorists cover in your car insurance quote.

Other coverage options which are recommended for car insurance policies in Alaska are collision coverage (in case you should total your car against a lamppost due to an icy road), comprehensive coverage (required by law for financed and leased vehicles), medical payments coverage (so you do not have to wait for blame to be assigned before receiving medical treatment) and roadside assistance – especially if you live in an area where the nearest auto repair shop could be several hours away.

Cheap Alaska Car Insurance Quotes

With so many different levels of car insurance coverage, finding the most suitable auto insurance quote in Alaska can be time consuming and frustrating. The best Alaskan car insurance quotes can often be found online, where auto insurance companies will offer a discount due to lower overheads.

However, you should be aware that the cheapest car insurance in Alaska is not always the most suitable, and you may discover that the cheapest auto insurance in Alaska requires that you pay high deductibles or limits your annual mileage.

Therefore, when you start to gather car insurance quotes in Alaska, make sure that you know the levels of each type of auto insurance coverage you require. State law in Alaska also allows you to exclude a driver in your household from your Alaska auto insurance, so if you have a young driver in your family who is away at school, you can remove them from your Alaskan car insurance policy and reduce your auto insurance premiums.

Alaska Car Insurance Ratings

Alaska auto insurance companies are also entitled to access and consider your personal credit rating before setting your car insurance rate. The type of credit information that can be accessed by car insurance companies in Alaska is limited by Alaska Statute 21.36.460, but maintaining a good credit score is one of the most important factors to receiving a favorable auto insurance quote in Alaska. Other factors which affect your car insurance in Alaska include:-

  • Your zip code – Where you live in the State of Alaska will influence how much your car insurance premiums will cost. A resident of a small, remote community is less likely to be involved in an accident than a resident of a large, urban town where there are many more cars on the road.
  • Age, Sex and Marital Status – Young, single males are statistically more likely to be involved in an accident than any other demographic group and auto insurance rates in Alaska reflect this. Your car insurance premiums can be reduced if you take a “Young Drivers” course or “Driving Defensively” course
  • Driving History and License Status – Car insurance companies in Alaska will want to know how long each person on your car insurance policy has been driving, if there has been any involvement in accidents, any “moving” violations, any revocations of license and if there is a need for an SR-22.
  • Year, Make and Model of Vehicle – Car insurance rates in Alaska are also based on statistics compiled by the insurance industry of the frequency of theft and accident claims, the cost to repair a vehicle and their safety performance. You can reduce your auto insurance premiums in Alaska if you have additional security devices installed in your vehicle.
  • Vehicle Usage – Auto insurance rates in Alaska will vary depending on whether you use your car for pleasure, for commuting back and forth to work each day or in the course of your business. When getting a car insurance quote in Alaska, it is often better to add your estimated annual mileage as commuting distances can vary greatly.

Most Stolen Cars and Vehicles in Alaska

The National Insurance Crime Bureau (NICB) publishes a list each year of the top ten most stolen cars and vehicles.  Nicknamed “Hot Wheels”, if your car appears on this list, you may have to pay a higher premium for your auto insurance in Alaska.

These were the top ten most stolen cars and vehicles stolen in Alaska in 2009.

1.       Ford F150 Pick Up

2.       Chevrolet Pick Up

3.       Dodge Ram

4.       Honda Civic

5.       Subaru Legacy

6.       Ford Taurus

7.       Ford F250 Pick Up

8.       Chevrolet C/K 1500

9.       Ford Explorer

10.   Honda Accord

Typical Alaska Car Insurance Rates

Only two districts (Anchorage and Fairbanks) appears in the NICB “Hot Spots” list of the American districts in which your car is most likely to get stolen, and both of these cities are outside of the 100 most notorious cities. Despite the low car theft rate, because of the reasons mentioned above (weather conditions, drunken driving and high rate of uninsured drivers), auto insurance rates in Alaska remain high.

The list below is the average annual insurance premium paid in Alaskan cities in 2009. If you live outside of an urban area, you can anticipate your car insurance in Alaska will be cheaper – subject to your own personal circumstances.

Car insurance in Juneau – $1,452

Car insurance in Ketchikan – $1,476

Car insurance in Sitka – $1,716

Car insurance in Kodiak – $1,931

Car insurance in Fairbanks – $1,946

Car insurance in Kenai – $2,077

Car insurance in Anchorage – $2,095

Alaska Car Insurance Companies

The following list is a full selection of auto insurance providers in the State of Alaska. Those which we have reviewed are underlined, and you will be able to read why we consider them to be the best insurance companies in Alaska by clicking on their links.

What we consider the best auto insurance company in Alaska may not necessarily be the best for your requirements. Different car insurance companies in Alaska will provide preferential rates for young drivers or retired citizens, so use the free insurance quote facility at the top of the page to find out just how much you could be saving on your car insurance in Alaska.

AIU GEICO Progressive
Allstate Hartford Response
American Family Horace Mann Safeco
American Home Assurance Infinity State Farm
American International Insurance Company of the State Teachers
American Modern of Pennsylvania Twin City Fire
AMICA Liberty Mutual USAA
Country Markel
Federal Metropolitan
First National National General
Foremost National Interstate
Garrison National Union Fire

When applying for auto insurance in Alaska, if you already have a car insurance policy – or have had one in the past – you will need to provide the name of the company, the dates that you were insured and the liability coverage that you carried. Some auto insurance companies in Alaska will offer you better rates if you have previously carried higher liability limits than the minimum required.

A further point worth considering when applying for car insurance in Alaska is if you have not previously owned a vehicle or were not previously required to carry insurance, and have not violated the Alaska Mandatory Insurance Act, you cannot be penalized by a car insurance company in Alaska for lack of prior insurance coverage.

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