Car Insurance in Alaska
Alaska requires drivers to carry at least 50/100/25 in liability coverage — bodily injury limits that are double the typical 25/50 floor in most states. As an at-fault state, the driver who causes a crash is responsible for the other party’s injuries and damage.
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Alaska at a glance
Data as of 2023Average cost
$1,113/yr
≈ $93/mo
vs U.S. average
-13%
below the national avg of $1,282/yr
Required minimums
50/100/25
BI / BI per accident / PD ($K)
Source: NAIC (2023). Annual average expenditure per insured vehicle.
Alaska requires drivers to carry at least 50/100/25 in liability coverage — bodily injury limits that are double the typical 25/50 floor in most states. As an at-fault state, the driver who causes a crash is responsible for the other party’s injuries and damage.
Because Alaska’s long distances and harsh weather drive up claim costs, the higher minimums make sense — and shopping multiple carriers is the easiest way to keep your premium reasonable.
Alaska minimum car insurance requirements
Alaska requires $50,000 of bodily injury liability per person, $100,000 per accident, and $25,000 in property damage liability. Uninsured motorist coverage is included by default but can be waived in writing. Lenders typically require collision and comprehensive coverage on financed or leased vehicles.
Alaska has higher bodily injury minimums (50/100) than most states. Uninsured motorist coverage is required for most policies but can be rejected in writing.
How much does car insurance cost in Alaska?
The average driver in Alaska pays $1,113 per year for auto insurance — that's 13% below the U.S. national average of $1,282/yr. Lower-than-average rates often reflect lower traffic density, fewer claims per insured vehicle, or less stringent coverage requirements.
Alaska vs the national average
13% below the national average of $1,282/yr.
Source: NAIC (2023). Annual average expenditure per insured vehicle.
How Alaska premiums have changed since 2019
Auto insurance costs in Alaska have risen 12% over the past five years. The 2022–2023 jump mirrors a national trend: rising repair costs (vehicle complexity and parts inflation), more frequent severe accidents, and higher litigation costs pushed premiums up faster than overall inflation.
5-year trend: Alaska vs national average
Alaska is up 12% from $991 in 2019 to $1,113 in 2023.
Source: NAIC Auto Insurance Database Report (2022/2023), Table 4 — Average Expenditure.
Types of car insurance coverage
A Alaska policy is built from a few core coverages. Liability is required; the rest are optional but often worth it.
| Coverage | What it covers | Required? |
|---|---|---|
| Liability | Injuries and property damage you cause to others | Required (state minimum) |
| Collision | Repairs to your own car after a crash | Optional* |
| Comprehensive | Theft, fire, weather, vandalism, animal strikes | Optional* |
| Uninsured motorist | Your costs if the at-fault driver has no insurance | Varies by state |
*Collision and comprehensive are usually required by your lender if you lease or finance your vehicle.
Driving without car insurance in Alaska
Driving uninsured in Alaska can be costly. Penalties typically include fines, suspension of your license and registration, and reinstatement fees. If you cause an accident while uninsured, you can also be held personally responsible for the other party's injuries and damage. You may also be required to file an SR-22 certificate to reinstate your license.
How to find cheaper car insurance in Alaska
Rates for the same driver can vary widely between insurers in Alaska, so comparing several quotes is the most effective way to save. A few other ways to lower your premium:
- Raise your deductible if you can cover it in a claim
- Ask about every discount you qualify for
- Keep a clean driving record and good credit (where the state allows it as a rating factor)
- Reconsider collision and comprehensive on an older vehicle
For more, see our guides on how to lower your premium and what affects your rate.
Coverage requirements last verified May 29, 2026. Always confirm current minimums with your state’s Department of Insurance.
Alaska car insurance FAQs
Common questions about auto insurance in Alaska
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