Cheap Auto Insurance in Alaska for 2025 (Save Big With These 10 Companies!)

The best providers of cheap auto insurance in Alaska are USAA, State Farm, and Geico, offering insurance as low as $20 a month.

The top picks include the three companies offering competitive prices with good customer service for Alaskan drivers seeking a cheap auto insurance quote.

Our Top 10 Company Picks: Cheap Auto Insurance in Alaska

Understanding how car insurance in Alaska works, from state minimum car insurance requirements to factors affecting rates, can help you make an informed decision. Enter your ZIP code above to find Alaska’s best cheap auto insurance quotes.

#1 – USAA: Top Overall Pick

Pros

• Lowest Monthly Rates: In Alaska, USAA has the cheapest auto insurance monthly rate, according to our USAA auto insurance review, with rates starting at $20.
• Military Discounts: USAA offers excellent discounts for military families and is thus the best auto insurance company in Alaska for those looking to get cheap car insurance.
• Financial Rating: With an A++ rating from A.M. Best, USAA is highly reliable when handling claims from Alaska drivers.

Cons

• Limited Eligibility: It only covers military personnel and their families, making it inaccessible to many Alaska drivers.
• Primarily Online Support: USAA conducts most of its business online, making it hard for Alaskan drivers to get in-person help.

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#2 – State Farm: Best for Excellent Service

Pros

• Coverage Options: Indeed, auto insurance prices in Alaska start from just $22 a month. Review our State Farm auto insurance review for extra findings.
• High Level of Customer Service: They have a good reputation in customer service, which is an imperative consideration for all Alaskans.
• Discounts: Many discounts are available to Alaska drivers, including a good driver’s discount and a bundling discount.

Cons

• B Rating from A.M. Best: The B rating from A.M. Best raises some eyebrows about the financial strength of Alaska drivers.
• Higher Rates for Young Drivers: Younger drivers in Alaska, however, can expect to pay higher premiums, making it somewhat costly for them.

#3– Geico: Best for Competitive Rates

Pros

• Competitive Monthly Rates: In Alaska, Geico has superior rates for auto insurance, with premiums from $26.
• Strong Financial Reliability: With an A++ rating from A.M. Best, a Geico auto insurance review shows they’re a financially solid choice for Alaska drivers.
• User-Friendly Online Platform: Their online tools make managing policies easy for tech-savvy Alaska residents.

Cons

• Limited Local Agent Support: You may miss personal service, as Geico doesn’t have as many local agents in Alaska.
• Mixed Customer Satisfaction: Reviews reflect a mixed bag when it comes to Geico, which may limit its appeal to drivers in Alaska.

#4 – Travelers: Best for Flexible Coverage

Pros

• Flexible Coverage Options: Travelers lets you customize your coverage according to your needs, which is excellent for Alaska drivers.
• Monthly Rates: Their rates start at $32 monthly, making it a good option for auto insurance in Alaska.
• High Financial Stability: Travelers has an A++ rating from A.M. Best, so you can rest assured when filing claims in Alaska.

Cons

• Higher Costs for Customization: Customizing your coverage might lead to higher premiums for some Alaska drivers. Read our Travelers auto insurance review for more insights.
• Fewer Discounts Available: Compared to some other auto insurance companies, it offers fewer discounts. Therefore, it may limit your savings on low-cost auto insurance in Alaska.

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#5 – Progressive: Best for Innovative Discounts

Pros

• Good Safe Driving Discounts: Progressive’s Snapshot program rewards you for being a good driver, and you will have discounts for Alaska drivers.
• Reasonable Pricing: Starting at $33, Progressive is relatively inexpensive for auto insurance in Alaska.
• Many Coverage Options: Our Progressive auto insurance review highlights many coverage options tailored for auto insurance Alaska residents.

Cons

• Customer Service Differs: Customers have varying experiences with customer service through Progressive, an aspect of concern for a driver like one from Alaska.
• Claims: If you file a claim, expect to pay more premiums. Alaska drivers should keep this in mind.

#6 – American Family: Best for Personalized Options

Pros

• Tailor-made Insurance Plans: American Family only has individualized auto insurance plans for Alaska.
• Starting Monthly Rate: The rates begin from $36 per month; hence, American Family is relatively cheap for auto insurance in Alaska.
• Community-minded Principles: They uphold the principles of the community, which satisfy the needs of Alaskans.

Cons

• B Rating from A.M. Best: The B rating from A.M. Best may raise concerns about financial stability for those exploring an American Family auto insurance review for Alaska car insurance.
• Fewer Discounts Available: They also offer fewer ways to get a discount than some other companies, which can limit your discounts on Alaska car insurance rates.

#7 – Nationwide: Best for Comprehensive Coverage

Pros

• All-inclusive Plans: Nationwide gets strong marks for its full coverage car insurance in Alaska that protects drivers from a wide variety of hazards on the road.
• Monthly Prices: Nationwide provides budget-friendly options for Alaska car insurance rates, starting at just $37 per month.
• Strong Financial Rating: Nationwide holds an A+ rating with A.M. Best, making it one of the safest bets for the people of Alaska.

Cons

• Higher Rates for Younger Drivers: Younger drivers could experience steeper premiums in our Nationwide auto insurance review. Comparing quotes may help you find the best rate in Alaska.
• Limited Local Agents: Low number of local agents complicates it for the drivers of the state to have one-on-one help with things like the average cost of car insurance in Alaska.

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#8 – Farmers: Best for Customizable Policies

Pros

• Customizable Insurance Policies: Farmers allow Alaskan drivers to customize their auto insurance to meet their needs, which is worth noting in a Farmer’s auto insurance review.
• Monthly Rates: With rates as low as $44 a month, Farmers is a good choice for affordable auto insurance in Alaska.
• Many Coverage Choices: They offer a choice that suits the different types of needs of Alaska motorists, including Alaska car insurance requirements.

Cons

• Higher Premiums: Farmers’ rates are possibly higher than those of some of its competitors, which may deter price-conscious Alaskan drivers.
• Customer Reviews: A few customers reported mixed service experiences with Farmers. This can be something to explore, particularly with respect to Alaska car insurance laws.

#9 – Allstate: Best for Multi-policy Savings

Pros

• Good Multi-Policy Discounts: Alaska drivers who combine auto insurance with other types of policies can get decent discounts from Allstate.
• Lowest Starting Rates: The lowest rates start at $46 a month, making it very competitive for auto insurance in Alaska.
• Strong Agent Network: Allstate has numerous local agents, making sure Alaska residents get excellent personal service.

Cons

• More Expensive Average Prices: Your Allstate premiums may be more expensive than those of other cheap auto insurance providers in Alaska.
• Mixed Claims Experiences: Some customers have noted issues with claims handling, so it’s good to check an Allstate auto insurance review and compare it to car insurance quotes in Alaska.

#10 – Liberty Mutual: Best for Bundling Discounts

Pros

• Affordable Bundling Discounts: Liberty Mutual offers good savings for Alaska drivers who bundle auto insurance coverage with other types of insurance coverage.
• Monthly Rates: Liberty Mutual’s $56 monthly rates provide tailored coverage options for Alaska residents. This is something to consider when reading the Liberty Mutual auto insurance review.
• Flexibility in Payment Plans: There is flexibility in payment options for Alaska drivers to facilitate the cost management of auto insurance.

Cons

• Higher Premiums than Competitors: Liberty Mutual might not be the most budget-friendly choice for cheap auto insurance in Alaska.
• Limited Local Agent Network: Fewer local agents may result in less personalized support for drivers in Alaska, which is important when seeking cheap car insurance in Alaska.

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Alaska Auto Insurance Coverage and Rates

The average auto insurance cost in Alaska varies depending on the provider and the level of coverage chosen. Minimum coverage rates range from $20 with USAA (for eligible members) to $56 with Liberty Mutual, while complete coverage options range from $60 with USAA to $164 with Liberty Mutual.

Alaska Auto Insurance Monthly Rates by Provider & Coverage Level

Other providers include State Farm, Geico, and Progressive, each offering low-price quotes to consumers who wish for affordable yet substantial coverage. Alaska’s wildlife risks demand the right kind of insurance. This guide covers minimum coverage requirements, financial responsibility, core coverage options, and additional liability protections.

Alaska Auto Insurance Monthly Rates by Provider & Driving Record

It also covers the driving record rates in Alaska and other demographics like location and income, which will go on to affect the premiums. Auto insurance companies in Alaska use these factors to determine your rates, helping you find the best coverage for your budget.

Minimum Requirements in Alaska

To legally drive, drivers are required to carry a minimum liability insurance in Alaska. This minimum coverage, called 50/100/25, or $50,000 in injuries of one person, $100,000 in injuries of several people, and $25,000 in property damage. Liability insurance covers expenses for others involved in an accident you cause.

However, the lowest level of insurance required by Alaska may max out quickly in a serious accident, leaving the responsible motorist on the hook for the rest. Alaska, with nearly 15% of drivers uninsured, comes in at 11th for uninsured motorists, having the importance of UM/UIM auto insurance coverage.

This coverage protects drivers hit by someone lacking sufficient insurance. Alaska’s insurance laws require strict minimums, but many drivers only carry the cheapest Alaska auto insurance that meets federal standards, which may fall short of state requirements.

Alaska is an “at-fault” state, meaning the responsible driver must cover damages. To manage costs, many drivers choose full coverage or the cheapest option available based on their Alaska auto insurance quotes. UM/UIM coverage is another option that protects against uninsured or underinsured drivers.

Alaska Auto Insurance Rates by Company in Alaska

This is State Farm in Alaska, the one that stands out among the best insurance rates. For an average monthly premium, it offers $186. Other affordable Alaskan car insurance companies include USAA and Geico, which, on average, offer rates of $205 and $240.

Auto Insurance Discounts From the Top Providers in Alaska

Progressive and Allstate are also available options in Alaska, though their rates are higher, averaging $255 and $262 monthly. Drivers can benefit from discounts offered by top Alaska car insurance companies to lower premiums. Common savings options include safe driver, multi-policy, good student discounts, and the popular anti-theft device discount.

Certain companies offer proprietary savings; Geico, for example, provides discounts for members of the military, while Liberty Mutual and Nationwide reward accident-free driving and cars with safety features. Progressive’s Snapshot program offers savings too for good coverage habits and paying in full.

Comparing car insurance quotes Alaska drivers receive helps them find the lowest rates and available discounts based on their driving history, location, and coverage needs.

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Auto Insurance Premiums as a Percentage of Income in Alaska

A little over $4,146 is the average monthly disposable personal income (DPI) in Alaska. DPI is the cash someone has available to spend or save after taxes. The average price of car insurance in the state is approximately $88 per month, equal to about 2% of the average DPI.

With $4,146 available monthly for essentials, the auto insurance premium takes a significant portion of that income, around $100 a month, and potentially more for drivers with a poor driving history. Additionally, knowing how to deduct your car insurance from your taxes can help alleviate some of these expenses.

Alaska has its own set of regulations, including the Alaska minimum car insurance requirement, which to legally operate any vehicle in the state. Saving for the future is also an important consideration, with American Consumer Credit Counseling advising that consumers save at least 20 percent of their income.

For Alaska residents, choosing cheap auto insurance Alaska providers offer can lower monthly expenses and free up more of your income—making it easier to save around $829 each month and improve your overall financial stability.

Required Forms of Financial Responsibility in Alaska

In Alaska, drivers must have automobile liability coverage and proof of financial responsibility to comply with state laws.

This includes the required minimum coverage of 50/100/25, which car insurance companies in Alaska can help you meet.

• Maintain Required Coverage: All drivers must carry the minimum automobile liability coverage of 50/100/25. You must also provide proof of insurance, which can be a valid insurance card, a copy of your policy, or an insurance binder.
• Provide Proof After an Accident: If you’re involved in an accident resulting in personal injury, death, or property damage exceeding $500, you must show proof of insurance.
• Avoid License Suspension: Failure to provide proof of insurance can lead to the suspension of your license for 90 days to a year. To avoid this, always carry proof of insurance when driving.

Carrying the right policy and documents not only keeps you compliant with state laws but also helps you lock in cheap car insurance that Alaska drivers can legally rely on without risking fines.

Choosing the Right Cheap Auto Insurance in Alaska

Cheap auto insurance in Alaska typically comes with first-party liability coverage with bodily injury and property damage coverage. This kind of policy fulfills state minimum car insurance requirements but won’t cover your vehicle. It’s ideal for older cars or drivers who don’t drive very much.

If you want additional protection, such as collision or comprehensive coverage, you’ll have to pay extra.Always compare quotes, check for available discounts like safe driver or multi-policy, and review what’s actually covered before choosing a policy.

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