Car insurance is a necessary expense if you intend to own and operate a vehicle. Without car insurance, you legally cannot leave a dealership with a car.

And if you live in Alaska, how will you be able to enjoy the state’s scenic roads without car insurance? We understand that car insurance is an additional payment, but as you may or may not know, car insurance in Alaska is quite affordable.

So, exactly how much is car insurance in Alaska?

As you’ll see, it is quite a bit less than the national average. In this article, you’ll find out how much car insurance costs in Alaska. You’ll also find out the key factors affecting how much you will pay for your car insurance policy in The Last Frontier.

How Much Is Car Insurance In Alaska?

The answer to that question is “it depends.” That is because many factors affect how much car insurance premiums are in the state of Alaska. 

But to give you an idea, the average cost of car insurance premiums in the state of Alaska in 2022 ranges from around $980 to $1,150 per year.

This makes Alaska’s car insurance rates lower than the national average, which is a little under $1,500 per year. 

Type Of Coverage

If you are only planning to have minimum coverage, Alaska’s average car insurance rate in 2022 ranges between $370 to $550 per year. The amount of car insurance coverage you will be having is a factor that affects the rates of your car insurance. 

On the other hand, the average cost of car insurance premiums in Alaska in 2022 ranges from $985 to $1,600 for full coverage

Insurance Provider

The car insurance provider you choose is another factor that affects how much you’ll pay for car insurance premiums in Alaska. 

The car insurance company that offers the cheapest rates for the minimum coverage is USAA. Their premiums per year are only around $270 for minimum coverage. 

On the other hand, the most expensive car insurance rates for minimum coverage come from Progressive. Their car insurance premiums cost a little over $900 per year for minimum coverage. 

As for the cheapest car insurance for a full coverage policy, that also comes from USAA. Those rates are right around $620 per year for the average driver. Meanwhile, the most expensive full coverage for car insurance comes from Allstate, which is a little over $3,500 

Age

Another thing that will affect the car insurance rates in Alaska is your age. Alaska’s cheapest car insurance rates are premiums for drivers in their 50s.

Their yearly premiums are only around $960 on average for full coverage. As is the case in most states, the younger the driver, the more expensive the premiums. For example, the car insurance premiums for 17 years old are a little over $4,800 per year, while for 30 years old, they are only around $1,100. 

Driving Record

Another factor influencing auto insurance premiums in Alaska is a driver’s driving history. The average annual premium for drivers who have been involved in an accident ranges from $1,750 to $1,975. Meanwhile, if the driver is arrested and charged with a DUI, their vehicle insurance costs will climb to almost $1,700 annually.

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