Buying Auto Insurance in Alaska

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

It's illegal to drive without liability coverage in most of the state of 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. While the Last Frontier is known for its wide-open spaces, 52 percent of the miles driven by Alaskans are actually logged in cities. 

Wherever you roam, car insurance in Alaska is essential for protecting your vehicle—and yourself—in case of mishaps on the road, from fender benders to moose run-ins. 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?

Every state has its own auto insurance coverage requirements. In Alaska, most drivers are required to carry at least the following:

Keep in mind, these are just the minimum requirements in Alaska, and 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.

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.

How to find an agent who knows Alaska auto insurance

The award-winning insurance agents at AAA can help you find the right auto insurance for your needs. Visit your local Alaska AAA office to speak to an insurance agent in person, call us at (877) 323-4222, or request a quote online to get started.

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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.