Alaska has breathtaking drives and you can safely say that it is one of the most beautiful places on earth. It also is on the bucket list of millions to visit. The good news is that auto insurance in Alaska is about 19% cheaper than the National average. Though it is not the cheapest state to insure your car, you can shop around to make sure that you get the best deal.

One reason that auto insurance in Alaska is higher than what would be expected for a rural state is that the minimum state coverage rate is high. Where most states require minimum liability coverage of 25/50/10, Alaska has a minimum liability coverage 50/100/25 (we will explain the numbers below).

Another reason is that labor cost in Alaska is higher than the National average. On an average Alaska’s labor cost is about 30% higher than it is in the US. In addition to that, the cost of auto parts in Alaska is on an average 16% higher than the nation. This increases repairing cost. Since the climate is harsh and the geography is diverse, the overall cost of repair increases.

Since Alaska is a state with a rugged climate and is very remote, driving in Alaska is very different from driving in the rest of the country. It is the largest state in the country. Since only a small portion of the state can be accessed by roads, the number of cars in the state is very low compared to the size of the state.

Alaska has a higher minimum coverage limit as compared to most of the states in the U.S. Car insurance in Alaska should have liability insurance which covers injuries and property damage if you are at fault during an accident.

You can check the minimum insurance liability limits in Alaska below:

  1. $50,000 per person bodily injury liability.
  2. $100,000 per crash bodily injury liability.
  3. $25,000 per crash property damage liability.

There are many parts of Alaska where vehicle registrations are not necessary. If you live and use your car in those parts, car insurance is not needed. You can check the list of those parts on Alaska’s website. If in the past 5 years, you have six or more violation points on your record, you will need liability insurance even if you live in those areas.

Though car insurance may not be necessary where you live, it makes sense to take it as if you get into an accident which is your fault, you will not have to pay from your pocket. Since most states have liability insurance, it is easy to check for the best car insurance in Alaska online. You can also check the best car insurance companies in the United States.

Factors that Determine Auto Insurance in Alaska

Even within Alaska, the auto insurance rates vary. The highest auto insurance rates are in Anchorage and the lowest are in Juneau on an average. There are many factors on which your premium will depend on other than the location. As I mentioned above, since labor and auto parts are costlier in Alaska as compared to the rest of the country, factors like the age of your car, the make, and model, etc are important. Your driving record and age is important.

Types of Coverage for Car Insurance in Alaska

The coverage types and amounts that you choose are important. There are many coverage options that you can opt for like comprehensive and collision coverage. The more the coverage options you choose, the higher will be your insurance premium as the insurance company has to bear more risk.

If you only plan to drive through the town you are in, it makes sense to take the minimum liability coverage. If you drive a lot in rural parts or in the forest, it makes sense to take comprehensive coverage as that coverage will protect you from vandalism, theft, or animal collision. Since the possibility of natural disasters is high, you can opt for comprehensive coverage even if you live in an urban area.  Legally, insurance companies in Alaska have to give you the option of uninsured/underinsured motorist liability coverage if you want to opt for it.

Finally, it makes sense to check the insurers rating on NAIC (national association of insurance commissioners) before you decide on your car insurance in Alaska. They give unbiased ratings and reviews.

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