Average Cost of Car Insurance in Alaska

The average cost of full coverage auto insurance in the country is $2,150 per year, and it is growing. Average cost of car insurance in Alaska shows similar rising trends. From 2014 to 2023, rates rose by 63.8%. Costs increased in 2024 due to several factors, such as supply chain problems, inflation, and accidents.

Although fewer claims resulted from less driving during the pandemic, accidents are more expensive due to rising labor, parts, and medical costs.

The price of auto insurance rose by 20.6% while the CPI grew by 3.1%. The American Property Casualty Insurance Association (APCIA) reports that, as anticipated, claims costs are rising faster than the CPI, leading to further rate increases in 2024.

Alaska Car Insurance Rates by City

Despite Alaska’s high cost of living, its drivers pay less for car insurance than the national average. Full coverage costs $2,405 annually, and minimum coverage costs $518. In contrast, the national averages are $2,299 for full coverage and $637 for minimum coverage. Several factors influence insurance costs, causing such differences.

One major factor determining the overall insurance premium price in Alaska is zip code, which is highly influenced by factors like accident rates and vehicle theft or vandalism. Population density also affects rates, with denser areas typically experiencing higher insurance premiums. The table below shows the average full-coverage car insurance premiums for different cities in Alaska:

City	Avg. monthly full coverage premium	Avg. annual full coverage premium
Cooper Landing	$194	$2,323
Ouzinkie	$183	$2,191
Perryville	$188	$2,254
Port Alsworth	$188	$2,251
Port Heiden	$193	$2,311
Anchor Point	$195	$2,340
Chefornak	$196	$2,352
Ketchikan	$154	$1,852
Kalskag	$191	$2,296
Nunapitchuk	$193	$2,310
Platinum	$191	$2,296
Moose Pass	$189	$2,270
Quinhagak	$192	$2,301
Saint Michael	$191	$2,297
Seward	$189	$2,267
Takotna	$192	$2,305
Dillingham	$193	$2,314
Saint George Island	$196	$2,357
Mc Grath	$192	$2,303
Nondalton	$188	$2,251
Red Devil	$191	$2,295
Sand Point	$191	$2,296
Sterling	$189	$2,268
Skagway	$155	$1,859
Wrangell	$160	$1,923
Angoon	$152	$1,829
Elfin Cove	$154	$1,849
Hoonah	$155	$1,858
Pelican	$154	$1,844
Tenakee Springs	$154	$1,844
Gustavus	$154	$1,844
Dutch Harbor	$191	$2,294
Kodiak	$183	$2,191
North Pole	$201	$2,408
Fairbanks	$201	$2,413
Barrow	$198	$2,376
Buckland	$197	$2,364
Manley Hot Springs	$198	$2,370
Ambler	$195	$2,336
Karluk	$183	$2,196
Manokotak	$193	$2,313
Pilot Point	$188	$2,251
Goodnews Bay	$196	$2,351
Anchorage	$212	$2,543
Bethel	$198	$2,379
Clam Gulch	$194	$2,330
Clarks Point	$193	$2,316
Kwigillingok	$192	$2,302
Nikolski	$192	$2,303
Wasilla	$205	$2,464
Eagle River	$205	$2,458
Togiak	$193	$2,315
Tuntutuliak	$194	$2,325
Eek	$196	$2,352
False Pass	$191	$2,297
Girdwood	$200	$2,394
Holy Cross	$190	$2,278
Kasigluk	$194	$2,333
Toksook Bay	$192	$2,302
Big Lake	$207	$2,478
Shageluk	$190	$2,282
Skwentna	$195	$2,342
Tuluksak	$192	$2,302
Trapper Creek	$195	$2,336
Grayling	$196	$2,353
Larsen Bay	$183	$2,196
Lower Kalskag	$192	$2,299
Ninilchik	$189	$2,269
Saint Paul Island	$192	$2,304
South Naknek	$188	$2,259
Seldovia	$190	$2,281
Sleetmute	$192	$2,307
Tyonek	$193	$2,313
Willow	$204	$2,443
Kasilof	$189	$2,272
Old Harbor	$183	$2,191
Arctic Village	$196	$2,355
Cantwell	$197	$2,367
Delta Junction	$197	$2,364
Healy	$196	$2,357
Lake Minchumina	$196	$2,350
Noatak	$195	$2,338
Northway	$197	$2,368
Nulato	$195	$2,340
Teller	$196	$2,347
Venetie	$198	$2,381
Atqasuk	$197	$2,358
Jber	$202	$2,418
Port Lions	$187	$2,245
Anaktuvuk Pass	$195	$2,339
Kivalina	$197	$2,369
Eielson Afb	$197	$2,362
Salcha	$200	$2,406
Chicken	$201	$2,416
Anderson	$199	$2,384
Point Lay	$196	$2,350
Noorvik	$194	$2,327
Tanana	$197	$2,367
Wainwright	$198	$2,375
Fort Greely	$199	$2,387
Ruby	$195	$2,337
Shaktoolik	$193	$2,318
Indian	$201	$2,406
Chignik Lake	$192	$2,309
Nikolai	$193	$2,311
Two Rivers	$201	$2,412
Hughes	$197	$2,370
Huslia	$197	$2,364
Shishmaref	$194	$2,327
Adak	$196	$2,352
Aleknagik	$192	$2,308
Chignik	$192	$2,307
Houston	$205	$2,462
Eagle	$198	$2,381
Kiana	$197	$2,360
Koyukuk	$194	$2,325
Nenana	$194	$2,333
Point Hope	$194	$2,329
Savoonga	$194	$2,333
White Mountain	$196	$2,354
Kongiganak	$199	$2,387
Atka	$197	$2,359
Akutan	$197	$2,358
Anvik	$196	$2,357
Chugiak	$206	$2,469
Cold Bay	$192	$2,299
Egegik	$192	$2,309
Iliamna	$188	$2,251
King Salmon	$188	$2,255

Average Car Insurance Costs by Age and Gender in Alaska

Several factors influence individual car insurance rates in Alaska. If you have a teen or young driver, you might lower your premium by listing them on your policy instead of having them get their own. Typically, the young driver must live at home to qualify. The table below shows the average rates for young drivers in Alaska listed on their parents’ policy versus those with their own policy:

Age Avg. annual premium for drivers on their parents’ policy Avg. annual premium for drivers on their policy.

Age	Avg. annual premium for drivers on their parents’ policy	Avg. annual premium for drivers on their policy	Avg. annual premium difference for drivers on their policy
16	$4,620	–	–
17	$4,359	–	–
18	$3,964	$6,594	66 percent more
19	$3,762	$5,078	35 percent more
20	$3,548	$4,637	31 percent more

Car Insurance Rates in Alaska by Credit Score

In some states, car insurance companies cannot use your credit history to determine premiums, but Alaska allows it. As a result, Alaskans with lower credit scores typically pay higher premiums. Statistics indicate that drivers with poor credit file more claims, prompting insurers to charge higher rates to offset this risk:

Credit Tier	Avg. Annual Premium in AK	Percentage Change from AK Average Annual Premium
Poor	$4,148	72%
Average	$2,604	8%
Good	$2,405	0%
Excellent	$2,092	-13%

Cheapest Car Insurance Companies in Alaska

Based on data provided by Quadrant Information Services, several research studies identify GEICO and USAA as among Alaska’s most affordable car insurance providers, closely followed by Umialik, Allstate, and State Farm.

However, Beem deserves an honorable mention in the realm of car insurance. Unlike traditional insurers, Beem operates as a marketplace for insurance policies, allowing users to select the best policies at competitive prices.

Beem facilitates the acquisition of personalized car insurance quotes from leading industry providers, ensuring that users receive tailored options in just five minutes. By comparing rates from various carriers in one convenient platform, Beem empowers users to find the most suitable coverage while potentially saving hundreds of dollars annually.

Trusted by over 5 million individuals for secure money transfers, bill payments, and budgeting tools, Beem’s partnerships with leading insurance providers guarantee access to the best quotes tailored to individual needs. With Beem, users can unlock significant discounts by driving safely, saving up to $1000 annually.

Cost for Driving Record in Alaska

Incidents on your driving record, like tickets, accidents, and DUIs, could cause an insurance company to view you as a high-risk driver. The more likely a company thinks you are to file a claim, the higher your premium will be.

A DUI can be one of the most serious driving infractions in terms of cost and coverage, as not all insurers will write policies for drivers with a DUI conviction. Additionally, you may need an insurer that issues SR-22 certificates, further increasing your insurance costs and limiting your options. Three common instances that affect insurance costs are:

At-fault accident

Being responsible for an accident can lead to a significant spike in annual premiums compared to maintaining a clean driving record. With a clear history, Alaskan drivers typically pay an average annual premium of $2,405. However, this figure jumps to $3,182, reflecting a 32% increase, for those with at-fault accidents on their record.

Speeding ticket

Even minor speeding violations can elevate rates, indicating risky driving behavior. Alaskan drivers with a clean record typically pay $2,405 annually. However, a speeding ticket conviction increases this to $2,790, a 16% rise. Multiple violations can result in further premium hikes, portraying the driver as habitually reckless.

DUI

A DUI conviction results in substantial rate hikes, portraying the driver as high-risk. While those with a clean driving history pay an average of $2,405 annually in Alaska, a DUI conviction raises this to $3,511, reflecting a 46% increase. Insurers charge higher premiums due to the increased likelihood of severe accidents and claims associated with DUIs.

How Much is Car Insurance For Good and Poor Credit Scores in Alaska?

In Alaska, auto insurance premiums vary significantly based on credit scores. Drivers with good credit scores typically pay around $2,405 annually for full coverage. In contrast, those with poor credit scores face much higher premiums, averaging $4,148 annually, a 72% increase compared to the rate for drivers with good credit.

This substantial difference is because insurers associate lower credit scores with a higher likelihood of filing claims, prompting them to charge higher rates to mitigate the perceived risk. Therefore, maintaining a good credit score can lead to significantly lower car insurance costs in Alaska.

Conclusion

In conclusion, national trends driven by inflation, supply chain disruptions, and increased accident expenses are reflected in Alaska’s escalating auto insurance premiums. While having a spotless driving record is essential to getting cheaper insurance, other elements like age, credit score, and geography all considerably impact costs. 

New platforms like Beem allow consumers to obtain personalized quotes from top insurers. These platforms let consumers make informed selections and save hundreds of dollars annually while finding affordable coverage despite these obstacles. As car insurance remains a necessity, leveraging tools like Beem can help Alaskans navigate the complexities of the insurance market and secure the best coverage at competitive prices.

FAQs on Average Cost of Car Insurance in Alaska