What Alaskans pay for car insurance

Alaska's bill compared with the nation's

Each year the National Association of Insurance Commissioners (NAIC) publishes what insurers took in per insured car in every state. For 2023, the latest year available by state, the Alaska average expenditure was $1,113, up 10% from $1,014 in 2022. That figure includes liability-only cars. A car insured for liability, collision and comprehensive together cost $1,262 on average.

Two lines pull Alaska below the national average. Liability came to $624, about 15% under the U.S. figure, even though Alaska's legal minimum is double the 25/50 bodily injury limits many states set. Comprehensive, at $180, was about 24% lower. Collision was close to the U.S. average. Where you live and drive still matters a great deal; see how location shapes a premium.

The coverage Alaska law requires

The Alaska Division of Motor Vehicles lists the minimum under Alaska Statute 28.22.101: $50,000 per person and $100,000 per accident for bodily injury or death, and $25,000 for property damage, written 50/100/25. In areas where vehicle registration is not mandatory, insurance isn't required either; the DMV publishes the list of exempt communities. A driver with a ticket totaling 6 points or more in the past five years must carry liability insurance even there.

• Uninsured and underinsured motorist coverage must be offered. The Division of Insurance guide explains that if your choice isn't confirmed by your signature, the policy is issued with these limits matching your liability limits. The Insurance Research Council estimated 12.5% of Alaska drivers were uninsured in 2023.
• Medical payments is optional. It pays medical and funeral costs for people in your car without a finding of fault.
• Collision and comprehensive are optional under state law; a lender can still require them.

Lowering or rejecting uninsured motorist limits reduces the premium, but it also caps what you can collect from a driver with no insurance. Our page on limits and deductibles explains the trade-off.

Rates, credit and the state's role

Insurers file their personal auto rates and rating rules with the Alaska Division of Insurance. The division's filing checklist says the effective date must be at least 30 days after the division receives the filing. The division doesn't set prices: its consumer guide notes that rates vary among companies, which is why quotes for the same driver can differ.

Alaska law allows insurers to consider credit information when they choose applicants and set rates, with requirements and restrictions under AS 21.36.460. According to the division's guide, you can dispute the credit information used and ask for an exception if extraordinary life circumstances damaged your credit. See how credit-based insurance scores work.

Options for hard-to-place drivers

If regular insurers won't write you, the Alaska Automobile Insurance Plan assigns applicants to private insurance companies doing business in the state. Ask an agent to apply, or call the plan office run by AIPSO at (800) 227-4659. Expect to pay more than in the voluntary market; our guide to assigned-risk plans covers how to work your way back out.

How to pay less in Alaska

1. 1 Collect several quotes on identical coverage. Rates vary among companies, so the same limits and deductibles can carry very different prices.
2. 2 Claim the senior course discount if you qualify. State law requires insurers to give a discount to drivers over 55 who voluntarily complete an approved motor vehicle accident prevention course. More in our guide to the defensive driving course discount.
3. 3 Weigh a higher deductible. Use the deductible break-even calculator to see how many claim-free years it takes to come out ahead.
4. 4 Call for help. The Division of Insurance's consumer services staff can be reached at (907) 269-7900, or (800) 467-8725 toll-free in Alaska outside Anchorage.

Questions drivers ask