Alaska Auto Insurance

The state's car insurance laws are fairly strict. All the more reason to examine your policy, and see if you can get a better deal elsewhere.


This page:

  • Explains AK insurance regulations and requirements

  • Describes how Alaska auto insurance rates are decided

  • Shows you how to save more money by comparing multiple quotes

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A brief look at the auto insurance laws in effect in your state

Alaska is known as a tort state, which means that you are financially responsible for the damage and injury you cause to another in an auto accident. Liability coverage helps insure you against these costs, and it is required by law.

The state's liability minimums are the highest in the country, at 50/100/25. (That's $50,000 per person for injuries you cause to the other party, up to $100,000 for all, and $25,000 for damage you cause to the other party's property.)

Even though Alaska requires safer minimums than most states, you still may want to consider buying higher levels of coverage. After all, accidents can get very expensive, especially if the other party seeks reimbursement for lost wages or "pain and suffering". (Although, obviously, keep in mind that higher coverage rates mean higher premiums).

Alaska auto insurance companies will also offer optional coverages such as medical payments, collision, comprehensive, and uninsured and underinsured motorists coverage.

You may want to consider purchasing any or all of these coverages, especially uninsured and underinsured motorist coverages. These policies will help cover the cost of your injuries and property damage should you be struck by a driver with inadequate liability insurance.

How Alaska car insurance rates are set

The price of auto insurance is decided by the behavior of the state's drivers as a whole. Alaska auto insurance companies take the cost of insuring all drivers (this includes what they pay out for injury and damage, legal and administrative fees, and the cost of prosecuting insurance fraud) and divide it up among the drivers.

But these costs aren't spread around evenly. Instead, Alaska car insurance providers calculate how much a certain "category" of driver costs them, and decide premiums based on that. The "category" you're in is decided by your driving record, your age, where you live, and the kind of car you drive, among other things.

Of course, not all auto insurance providers use the same categories and calculations, so the same set of characteristics (yours!) will be seen very differently by different insurance companies. And they'll quote you different rates.

What this means for you, is that you need to shop around. It's the fastest easiest way to save on an Alaska auto insurance policy.

Where to compare Alaska auto insurance quotes

The following web sites will help you find multiple Alaska car insurance quotes: (these links will open in a new window)


  • Netquote is very helpful because it allows you to speak with a local agent who can help you tailor your policy according to Alaska's legal (and geographic) requirements.

  • Geico - Great for those who are having a hard time finding insurance.

More AK car insurance advice and help

If you want more help designing your AK auto insurance policy, read our guide to setting safe and reasonable car insurance coverage levels. It may help you save more money by helping you establish safe coverage levels that won't cost you a bundle.

To find out more about AK auto insurance laws and regulations, visit the official website of the Alaska Division of Insurance.

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