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Cheapest Car Insurance Companies in Alaska (2019)

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When shopping for cheap auto insurance in Alaska, the sheer number of companies vying for your business can make it difficult to narrow down your choices. Our Geeks have made it their mission to help you save time by comparing insurance quotes from some of the top providers in the state.

Cheapest Car Insurance Companies in Alaska

Best Car Insurance Companies

Minimum Car Insurance Requirements

Penalties for Driving Without Auto Insurance

Alaska Car Insurance FAQs

Cheapest Car Insurance Companies in Alaska

The best way to find the cheapest car insurance premiums in Alaska is to compare quotes from the state’s top providers. Below, you’ll find our Geeks’ recommendations based on common driver profiles:

 

CompanyCheapest For
Liberty MutualSafe Drivers
USAADrivers in the Military
State FarmLow Annual Mileage
ProgressiveHigh-Risk Drivers
AllstateSenior Drivers

Best Car Insurance Companies in Alaska

We used complaint data and customer reviews to identify the best car insurance providers in Alaska. The table below provides a breakdown of our findings:

 

RankCompanyOur Rating
1ProgressiveA
2Liberty MutualA-
3AllstateB+
4USAAB

Minimum Car Insurance Requirements in Alaska

In Alaska, the minimum required car insurance coverage is:

  • Bodily Injury Liability Per Person: $50,000
  • Bodily Injury Liability Per Accident: $100,000
  • Property Damage Liability: $25,000

Penalties for Driving Without Auto Insurance in Alaska

As the cost of living continues to skyrocket, it’s tempting to ditch your auto insurance coverage to free up extra funds. But driving without insurance won’t just cost you more in the long run, it could also leave you stranded after your driving privileges are suspended.

Law enforcement officers in the state are always on the lookout for errant motorists. If you are stopped, it’s likely authorities will demand to see proof that your vehicle is insured up to the state’s minimum liability limits. However, even if you manage to fly under the radar on the road, the state’s electronic database will flag your vehicle as uninsured.

Regardless of how you are caught, you could face the following penalties:

First Offense

  • Possible driver’s license suspension
  • $100 in driver’s license reinstatement fees
  • Up to $500 in fines

Second or Subsequent Offense

  • 1-year driver’s license suspension
  • $250 in driver’s license reinstatement fees
  • SR-22 maintenance requirements for a period of 1 to 3 years
  • Up to $500 in fines

Alaska Car Insurance FAQs

What Is Alaska’s Mandatory Liability Insurance Law?

In Alaska, registered drivers are required to possess car insurance that fulfills certain minimum liability coverage requirements. The purpose of this insurance is to cover the cost of medical bills and property damage a driver causes in an accident. Alaska is a “fault” state, which means a driver who causes an accident is financially responsible for any damages that other people incur as a result.

Will My Liability Insurance Cover Other People Who Drive My Vehicle?

In Alaska, your mandatory liability insurance should apply if one of your family members was driving your vehicle at the time of the crash, or if you have allowed someone else to use your car. However, this might not be the case depending on the terms of your policy.

What Types of Auto Insurance Are Available in Alaska?

Liability coverage only pays for medical bills and property damage incurred by other people in accidents that you cause, up to your policy limits. If you cause a serious crash, these limits might not be enough to cover all the damages, and you might have to pay the difference out of your own pocket. Also, if you are hit by an uninsured or underinsured driver, your liability policy will not cover your losses.

If you invest in personal injury protection (PIP) coverage, it will pay at least a portion of your car accident-related medical bills no matter who caused the crash. Collision coverage will pay for repairs to your damaged vehicle after a crash, and uninsured/underinsured motorist coverage will pay for damages you incur after a crash with an uninsured/underinsured driver.

Should I Raise My Car Insurance Liability Limits?

This is not a straightforward question with a blanket yes-or-no answer. The coverage you need will depends on your own driving habits and circumstances. How old are you? What kind of driver are you? How often do you drive and how far? Do you travel mainly on highways or in residential areas? Do you regularly transport family members in your vehicle? How old is your vehicle and what is its value?

These and other questions are key to determining the amount of coverage you should purchase. But generally speaking, it’s a good idea to purchase coverage that exceeds the state’s minimum limits so you have more financial security in the worst-case scenario.

What If I Was Involved in an Accident and Uninsured?

Drivers who are involved in a crash in Alaska must provide proof of insurance to the Division of Motor Vehicles within 15 days of the accident. This applies to all parties, even those who did not cause the collision. If you are uninsured or fail to provide this proof within the allotted time period, your driver’s license could be suspended for 90 days for a first offense and up to a full year if you are a repeat offender.

What Constitutes Auto Insurance Fraud in Alaska?

Insurance fraud is categorized as either “hard” or “soft” fraud. A person may be accused of hard car insurance fraud if they deliberately stage a car accident, for example, or purposefully damage their vehicle and pretend another person was responsible.

Soft insurance fraud is usually more subtle and involves lying or distorting the truth. For example, if you claim after a car accident that your vehicle sustained major damage when you know it did not or demand compensation for injuries that were present before the crash, these would be typical cases of soft car insurance fraud.

How Are Car Insurance Premiums Calculated in Alaska?

Car insurance companies look at a range of criteria when determining premiums. Generally speaking, the better your risk profile, the lower your premium will be. Besides your driving record, the insurance company might consider your gender and marital status, as well as the make, model, and age of your car, and your credit history.

Your deductible will also have an effect on your insurance rates. This is the amount you are responsible for paying toward a car accident claim before your insurance coverage applies. The higher this amount, the lower your insurance premium will be.

What Terms Should I Know Before Buying Car Insurance in Alaska?

Understanding auto insurance terminology can often feel like learning a second language. Below, you’ll find our quick guide to the most important terms you’ll encounter when shopping for coverage:

Accident Forgiveness: A feature included as part of some policies preventing your auto insurance rates from increasing after your first at-fault car accident.

Claims Adjuster: An individual responsible for evaluating and settling claims.

Collision Coverage: Your basic policy only covers property damage and injuries sustained by other parties in an accident you caused. Most motorists choose to purchase collision coverage, a policy feature that will reimburse you any damage to your vehicle caused by a crash involving another vehicle or object.

Declarations page: The opening page of your policy document summarizing important details about your vehicle, coverage limits, and policy features.

Fault State: In fault states, the driver who caused the accident is liable for any damages sustained by the other parties involved. This is what is known as a “fault” system for handling auto insurance claims. However, you can still purchase “no-fault” addon features to your basic policy that will kick in to compensate you for certain types of loss regardless of who was at-fault.

Insurance Card: Official proof of insurance issued by your provider. Our Geeks suggest keeping this card in your vehicle at all times.

Personal Injury Protection (PIP): A form of “no-fault” coverage that will compensate your injury-related expenses in an accident, including medical treatment costs and lost wages.

Proof of insurance: In Alaska, authorities accept both printed and digital evidence of a current policy when verifying your coverage.

What Is SR-22 Insurance?

When your license is revoked or suspended for violating the state’s mandatory insurance laws, you may be required to first comply with SR-22 maintenance requirements before your driving privileges are restored. As part of this process, you will have to purchase so-called “SR-22 insurance”. Typically, this type of “high-risk” coverage will cost you more than a standard policy.

Your new provider will then file a form/certificate with the state Department of Transport confirming you are covered up to the state’s mandatory minimum liability limits. You can now apply to reinstate your driver’s license.

Be warned: If you let your coverage fall off due to a missed payment or cancellation, your insurer is required to inform authorities of a lapse in your insurance. Not only could your license and vehicle’s registration be suspended again, but you have to restart the SR-22 maintenance period from square one.

How Can I Reduce My Insurance Premiums in Alaska?

It’s no secret that insurers reward safer drivers. Simply by maintaining an accident-free driving record you’ll score cheaper rates than the average road user. You can also lower your rates by:

  • Purchasing a vehicle equipped with modern safety features
  • Completing a driving safety course with an approved organization
  • Maintaining consistent or unbroken coverage for a few years
  • Avoiding points on your license

Some providers offer discounts to specific types of drivers. For example, pensioners, military veterans, and low-mileage motorists may qualify for lower rates. Our Geeks also suggest bundling your car insurance with your home and life insurance policies as part of one unified plan to score even further savings. Use our Quote Comparison Portal to start weighing your options.

How Does Alaska’s Points System Work?

Alaska’s points-based traffic violation system aims to identify dangerous drivers and keep them off the road. Every time you are convicted of a traffic violation in Alaska, you will have points added to your record. These points can lead to a license suspension and other punishments. They can also drive your insurance premium through the roof.

Your license will be suspended if you are given:

  • 12 points in a year, or
  • 18 points in a two-year period.

Most traffic violations fall into a range of 2 to 10 points. Violations that are likely to lead to crashes or fatalities are assigned higher points values. For example, you could earn up to 4 points if you are caught following another car too closely or not stopping or yielding when required to do so. If you are caught driving while uninsured, you could be given 6 points.

Drivers will be given 10 points if they are involved in dangerous driving offenses such as:

  • Driving under the influence
  • Fleeing from a police or traffic officer
  • Taking part in a street race
  • Vehicular manslaughter

Staying points-free is one of the most effective ways to keep your car insurance premium as low as possible because it shows you are a low-risk policyholder. For every 12 months that you do not accrue new points, 2 points will be removed from your record. That time period begins on the date of your last conviction.

What Should I Do After a Car Accident in Alaska?

1. Stay where you are.

Leaving the scene of an accident that results in a death, injury, or significant property damage may result in criminal charges. If necessary, move your vehicle out of the way of oncoming traffic to prevent further accidents.

2. Draw attention to the scene.

Other drivers may not notice the stalled or damaged vehicles up ahead. Warn them by placing reflective triangles or flares on the road.

3. Attend to the injured.

Look for injuries and contact emergency medical services if necessary. Do not move a victim if he or she appears to have been critically injured.

4. Exchange information.

Approach the other drivers and share your:

  • Name
  • Address
  • License number
  • License plate number
  • Telephone number
  • Car insurance company

5. Contact the authorities.

In Alaska, if a crash occurrs within a municipality, the drivers should get in touch with the local police department. Otherwise, contact the Alaska State Troopers.

6. Don’t skip the paperwork.

Notify your car insurance company immediately. Failing to report the accident could lead to a denial of your claim.

Alaska Car Accident Statistics

In 2017, Alaska experienced 79 traffic fatalities in 75 crashes. This marked a 6% decrease in fatalities and a 4% decrease in fatal crashes from 2016, according to the Alaska Department of Transportation and Public Facilities: Alaska Highway Safety Office.

Between 2003 and 2012, 222 people were killed in crashes involving a drunk driver in Alaska, according to research collected by the Centers for Disease Control and Prevention.

In Alaska, five motorcyclists, 12 pedestrians, and 84 cyclists were killed in road accidents, and a total of four fatal crashes involving large trucks took place in 2016, according to the National Highway Traffic Safety Administration.
 

 

cheapest car insurance in alaska

Still have questions about car insurance? Visit our blog for helpful FAQs.

 
 

 

cheapest car insurance in alaska

Still have questions about car insurance? Visit our blog for helpful FAQs.