Buying Auto Insurance in Alaska

Ready to drive across the Last Frontier? Learn the ins and outs of getting car insurance in Alaska.

Alaskans love getting behind the wheel to explore their state’s rugged beauty—from magical Glacier Bay National Park and Preserve to the awe-inspiring cliffs of Misty Fjords National Monument. Wherever you roam, car insurance in Alaska is essential for protecting your vehicle—and yourself. As you shop for auto insurance, take into consideration Alaska’s minimum coverage requirements, insurance laws, and average rates—and be sure to compare quotes before choosing an insurance provider.

What are Alaska car insurance laws?

In most of Alaska, driving without car insurance is illegal. If you can’t prove that you have auto liability insurance, your driver’s license could be suspended.

In certain islands, towns, and villages in Alaska—remote spots where there isn’t much traffic—residents aren’t required to register vehicles or buy auto insurance. However, even in these spots, drivers who have had violations within the last five years must get liability coverage.

What are Alaska’s minimum car insurance requirements?

In Alaska, most drivers are required to carry at least the following auto insurance coverage:

These are just the minimum requirements in Alaska. You can always choose to increase your coverage amounts or include additional optional coverage to beef up your policy. Consider getting uninsured motorist coverage, for example, to protect yourself against the 15 percent of uninsured drivers on Alaska’s roads. 

Because Alaska is so large and vast, drivers living in certain remote areas aren’t required to carry auto insurance. But keep in mind that Alaska is a No Pay, No Play state. That means if you drive without insurance and someone crashes into you, you’ll only be able to collect limited compensation from the guilty party—and you likely won’t be able to sue for any physical or bodily damage.

What are average Alaska car insurance rates?

In Alaska, the average car insurance rate is $134 per month, or $1,605 per year. Of course, your car insurance quote will depend on factors such as which policy you choose and its deductible, as well as your driving record and what kind of car you drive.

Is there a new-car insurance grace period in Alaska?

No. You need to buy car insurance before you drive your new vehicle off the lot.

Does Alaska have teen driving laws?

Drivers in Alaska must be a minimum of 14 years old in order to get an instructional permit. Teens must hold this learner’s permit for at least six months and complete 40 hours of supervised driving—which includes 10 hour of night or inclement weather driving, too—before they can apply for a license. Plus, until a teen driver turns 18, they have a provisional license, meaning they cannot drive from 1 a.m. to 5 a.m. (unless someone 21 or older is in the car with them), or have passengers younger than 21 years old in the vehicle.

New to Alaska vehicle registration

If you just moved to Alaska, you have 10 days (of establishing residency or employment in the state) to register and title your vehicle in person at an Alaska DMV location. (If you live more than 50 miles away from a DMV office, you can complete this process by mail.) To register and title your car, you’ll need to submit your current title; complete an application for your new title and registration; provide a notarized power of attorney, if your vehicle is leased or if you're signing on someone’s behalf; have your vehicle identity number (VIN) handy; and a form of payment for registration fees.

Alaska driving statistics

The average Alaskan spends 38 minutes a day commuting to and from work, according to the U.S. Census Bureau. Commuters in Knik-Fairview have the longest average commute at 1 hour and 18 minutes round-trip (all the better to catch up on podcasts). Meanwhile, Akutan residents have bragging rights for the shortest round trip commute at a scant 8 minutes.

With about 422,700 vehicles registered in Alaska in 2020, according to the Division of Motor Vehicles, accidents are bound to happen. Every year, more than 8,500 crashes result in property damage, with more than 4,200 causing injury, according to the Alaska Highway Safety Office.

Find an agent who knows Alaska auto insurance

AAA offers drivers in Alaska many insurance discounts. Our insurance agents are available to customize your car insurance and maximize your savings. Find AAA in Alaska.

Insurance premium does not include the price of Membership. The providers of AAA Auto Insurance in Alaska are Safeco, Umialik and Progressive. Products and their features may not be available in all states. All policies are subject to policy terms, underwriting guidelines and applicable laws. Multipolicy and other discounts vary based upon eligibility. Discounts not cumulative; certain restrictions apply.