7 Best Car Insurance Companies In Alaska With Cheapest Quotes and Good Services
7 Best Car Insurance Companies In Alaska With Cheapest Quotes and Good Services

Alaska is a state in the Western United States on the northwest extremity of North America. A semi-exclave of the U.S., it borders the Canadian province of British Columbia and the territory of Yukon to the east and has a maritime border with Russia's Chukotka Autonomous Okrug to the west, just across the Bering Strait. Since car insurance is essential and required if you want to own a car in the state, we have compiled a list of the best car insurance companies with cheap prices and good service in the article below.

Car insurance required in Alaska

Alaska is the largest state in the country and because of its remote and rugged climate, operating a vehicle here is much different for those accustomed to driving in the lower 48. Because roads only run to a relatively small portion of the state, much of Alaska is only accessible by plane or boat (like its capital, Juneau). For those who do drive the Alaska Highway or journey through Denali National Park, you have to have car insurance in Alaska.

Proof of Financial Responsibility

Before you may drive legally in Alaska, you must prove financial responsibility. The easiest way to do this is to buy car insurance. You must carry your AK car insurance card in your car at all times.

Registration and Insurance Exceptions for Alaska drivers

In areas of Alaska where registration isn't required, neither is insurance, with the exception of drivers who have gotten a ticket for a violation of six points or greater in the last five years. Drivers who fall into that category must have AK liability insurance. Check with the Alaska Division of Motor Vehicles to see if you live in an area that's exempt from required registration.

Alaska Car Insurance Coverages

There are certain coverages that are required to drive legally in Alaska. Before you get on the road, you must have at least the following minimum coverages:

Bodily injury liability: $50,000 per person and $100,000 per accident

Property damage liability: $25,000

Uninsured/underinsured motorist bodily injury: $50,000 per person and $100,000 per accident*

Underinsured motorist property damage: $25,000*

*Uninsured/Underinsured Motorist coverages can be rejected in writing.

Alaska auto insurance laws

In Alaska, drivers are required to maintain liability insurance coverage at minimum levels of:

  • Bodily Injury $50,000 per person
  • Bodily Injury $100,000 per accident
  • Property Damage $25,000 per accident

Optional coverage in Alaska (varies by carrier) includes:

  • Comprehensive
  • Collision
  • Medical Payments
  • Rental Car Reimbursement
  • Roadside Assistance
  • Uninsured/Underinsured Motorist Bodily Injury

If you select the minimum required coverage in Alaska, expect to pay a mean of $473 annually. This is less than the national average by 28%. If you choose higher-level car insurance coverage, you can select a policy with comprehensive and collision coverage, which will protect against damages caused by car-vs.-car crashes, auto theft, or weather incidents. However, better auto insurance carries a price: in Alaska, a comprehensive policy with a $1,000 deductible costs $1,037, 120% more than liability-only coverage. For a comprehensive policy with a $500 deductible, expect to pay 149% more than you would for basic liability-only coverage.

List of 7 best car insurance companies in Alaska with cheap price and good service

(According to The Zebra)

1. USAA

2. State Farm

3. Umialik

4. Progressive

5. GEICO

6. Safeco

7. Allstate

What are the best car insurance companies in Alaska?

1. USAA

Photo:  time.com
Photo: time.com

The United Services Automobile Association (USAA) provides a broad spectrum of insurance, banking, investments, retirement savings, mortgage loans and other member services. The major drawback is USAA’s products are restricted for active military members and their families along with veterans and cadets. If you belong to one of the aforementioned groups, then USAA could be your top consideration.

USAA’s casualty insurance, which includes auto insurance, is best-in-class with many rating agencies. Here’s a look at what you can expect from USAA.

Global and third-party rating agencies put USAA ahead of the competition. From its financial health to its consumer satisfaction, USAA insurance is one of the best insurance companies in the industry. According to the Satmetrix Net Promoter Benchmark Study, USAA is ranked as a leader in the auto insurance industry from 2010-2018. The Net Promoter Score is issued by NICE Satmetrix, a trusted industry standard in gauging the loyalty of a company’s customer experience. A high score suggests that a certain organization provides superior service compared to its competitors and is used to predict revenue growth.

USAA auto insurance coverage options

USAA offers a variety of basic auto insurance coverage options: liability coverage, uninsured motorist coverage, collision, and comprehensive. We've outlined below some of USAA's average rates as well as some unique coverage options and add-ons for policyholders.

USAA extended benefits

This covers lost wages, essential disability services, and death benefits in the event of a collision.

USAA roadside assistance

This optional coverage provides lockout services, gas delivery, tire change, and towing service if your vehicle will not start. Learn more about roadside assistance programs.

Rental reimbursement

This is a tiered coverage that provides rental car reimbursement costs, depending on your chosen coverage tier. If your vehicle is damaged by a covered loss, i.e., not routine maintenance, you can use this coverage for a pre-determined time, up to a predetermined amount, based on your coverage level.

Accident forgiveness

If you stay accident-free for five years as a USAA customer, your premium won’t increase after your first at-fault accident. See more information on how accident forgiveness works.

2. State Farm

Photo: WGLT
Photo: WGLT

State Farm dominates in the auto insurance space with a market share of 16%. The insurance company's coverage spans the U.S. Those who prefer a more personal experience can easily get in contact with State Farm's network of agents. This popular insurance company also boasts good ratings from reputable third parties, with positive assessments of its customer satisfaction and financial outlook.

Coverage options and discounts for State Farm car insurance are comparable with those offered by other large companies — but those looking for an impressive selection of add-ons and extras could be found wanting.

State Farm Auto Insurance Coverage

With State Farm car insurance, you can get all the standard types of car insurance offered by most companies. These include:

Liability auto insurance (bodily injury/property damage)

Collision insurance

Comprehensive car insurance

Medical payments (MedPay)

Personal injury protection (PIP)

Uninsured/underinsured motorist coverage (UM/UIM)

It should be noted that BI/PD is required by almost all states. Some states also require medical coverage or UM/UIM. All no-fault states require PIP since it covers the driver no matter who is at fault.

Car Insurance Extras

You can get a number of add-ons with State Farm, which is one reason why State Farm insurance reviews so well. These add-ons include:

Rental and travel expense coverage: With a Car Rental Expense, State Farm will cover a rental car while your car is being repaired after a covered claim (up to the limits you choose). With Travel Expenses, State Farm will pay for meals, lodging, and transportation (up to $500) if you get in an accident more than 50 miles from home and can’t get home. The insurance provider also covers a return trip to pick up your car. Finally, State Farm auto insurance can pay up to $500 toward a deductible after you have an accident in a rental car.

Rideshare insurance coverage: If you drive for Uber or Lyft, you should add this option to your policy. That’s because a standard auto insurance policy doesn’t cover commercial use of your vehicle. You are usually covered by the rideshare company when you are driving to pick up a person or drop them off, but you aren’t covered when you are waiting to accept a trip from the app.

State Farm roadside assistance: State Farm offers emergency road service that includes one hour of labor at the breakdown site, towing to the nearest repair shop, fluid delivery, jump-starts, spare tire installation, and lockout services.

3. Umialik

Umialik is an Alaska-based insurance company with 35 years of experience covering drivers, businesses, and homeowners across the state. The Anchorage-headquartered company sells insurance through independent insurance agents.

As one of Alaska’s largest and most popular homegrown insurance companies, Umialik aims to provide effective insurance products to policyholders with all different needs.

What Is Umialik?

Umialik Insurance Company has covered people and businesses across Alaska for over 35 years. The company works exclusively through independent insurance agents. You talk to an agent in your local community, and that agent works with you to find the best policies and products through Umialik.

Umialik Insurance Company is a member of the Western National Insurance Group, a collection of eight insurance companies serving regional communities across 19 states. As a subsidiary of Western National Insurance Group, Umialik offers the benefits of an Alaska-based company with the financial stability of a major insurer.

Western National Insurance Company is a Minnesota-based insurance company founded in 1900. Originally launched as the Mutual Creamery and Cheese Factory Fire Insurance Company of Minnesota, Western National Insurance Company purchased Umialik as part of a series of mergers and acquisitions between 2007 and 2016.

Today, Umialik operates with a mission “to act with integrity in the service of others,” according to Umialik.com. The company offers a wide range of insurance products and services to businesses, individuals, and families across Alaska.

Here’s how Umialik’s auto insurance works for drivers in Alaska:

Liability Coverage: Drivers in Alaska can buy liability coverage to meet or exceed the state’s minimum requirements. Umialik’s liability coverage includes bodily injury liability coverage and property damage liability coverage.

Collision and Comprehensive Coverage: Collision and comprehensive coverage are two types of coverages available through Umialik as part of a full coverage car insurance policy. These coverages are optional in the state of Alaska (and all other states), but they provide additional protection for your vehicle from accidents, theft, vandalism, and more.

Rental Reimbursement Coverage: Umialik can cover the cost of renting a car if your ordinary vehicle is damaged or being repaired after a covered event.

Roadside Assistance Coverage: Umialik offers roadside assistance coverage to cover unexpected breakdowns, fuel deliveries, and other roadside service, up to a certain limit. You can add roadside assistance to your policy for a few extra dollars per month. Umialik also refers to this coverage as towing and labor coverage or Highway Emergency Loss Protection (HELP) coverage.

Auto Glass Coverage: Umialik offers auto glass coverage, allowing you to make a claim to repair or replace glass on your vehicle, including broken or chipped windshields. Umialik lets you add full glass coverage to your policy for a few extra dollars per month.

Auto Loan / Lease Gap Coverage: Umialik offers auto loan or lease coverage, also known as gap coverage. This coverage covers the difference in the value of your vehicle and the amount remaining on your loan or lease.

New Vehicle Replacement Cost Coverage: Umialik offers new vehicle replacement cost coverage. If your new vehicle is a total loss after an accident, then Umialik may pay for the cost of replacing that vehicle with a newer option.

Medical Payments and Personal Injury Protection Coverage: Alaska does not require drivers to carry medical payments coverage or personal injury protection (PIP) coverage. However, Umialik offers these coverages as an optional add-on, compensating you for medical bills and other expenses after an accident.

4. Progressive

Photo:  Cosmopolitan
Photo: Cosmopolitan

The Progressive Corporation is an American insurance company, the third-largest insurance carrier, and the No. 1 commercial auto insurer in the United States. The company was co-founded in 1937 by Jack Green and Joseph M. Lewis and is headquartered in Mayfield Village, Ohio, USA. The company insures passenger vehicles, motorcycles, RVs, trailers, boats, PWC, and commercial vehicles. Progressive also provides home, life, pet, and other insurance solutions through select companies. Progressive has expanded internationally as well, offering auto insurance in Australia.

Progressive is among the more affordable providers on the market, though USAA, Erie, Auto-Owners, State Farm and Geico can be cheaper for some drivers. Here’s how Progressive ranks on cost against a variety of popular car insurance companies.

Car Insurance Provider

Average Annual Cost Estimate

USAA

$1,013

Erie

$1,113

Auto-Owners

$1,229

State Farm

$1,339

Geico

$1,352

Progressive

$1,397

Nationwide

$1,533

Travelers

$1,617

Farmers

$2,032

The Hartford

$2,166

Allstate

$2,430

Of course, your car insurance prices depend on a variety of factors, and you may find very different rates. If you have poor credit, you’ll pay more for car insurance unless you live in California, Hawaii or Massachusetts. And if you have a poor driving record or are a young driver, your insurance options will be more expensive. Here are a few more full coverage rate estimates for Progressive according to different driving profiles.

Progressive Average Annual Cost Estimate

National Average Annual Cost Estimate

35-year-old driver with good credit and driving history

$1,397

$1,732

24-year-old driver with good credit and driving history

$2,029

$2,363

35-year-old driver with poor credit

$2,514

$3,123

35-year-old driver with a recent accident

$2,471

$2,646

35-year-old driver with a DUI

$2,572

$3,188

5. GEICO

Photo:  Insurance Journal
Photo: Insurance Journal

The Government Employees Insurance Company is an American auto insurance company with headquarters in Chevy Chase, Maryland. It is the second-largest auto insurer in the United States, after State Farm. GEICO is a wholly-owned subsidiary of Berkshire Hathaway that provides coverage for more than 24 million motor vehicles owned by more than 15 million policy holders as of 2017. GEICO writes private passenger automobile insurance in all 50 U.S. states and the District of Columbia. The insurance agency sells policies through local agents, called GEICO Field Representatives, over the phone directly to the consumer via licensed insurance agents, and through their website. Its mascot is a gold dust day gecko with a Cockney accent, voiced by English actor Jake Wood from 2005 until his termination due to a pay dispute in 2015. GEICO is well known in popular culture for its advertising, having made numerous commercials intended to entertain viewers.

Geico Auto Insurance Discounts

Geico offers a wide array of auto insurance discounts for its customers. Geico offers accident-free discounts, good student discounts and new vehicle discounts, and more.

Anti-theft system discount. Got a car with a built-in anti-theft system? You’ll save as much as 23% on your car insurance with Geico.

Airbag discount. Save as much as 23% on your car insurance if your car or truck has airbags.

Anti-lock brakes discount. Receive a 5% discount for having anti-lock brakes on your car.

New vehicle discount. If a car or truck is three years old or newer, you could save as much as 15% on Geico car insurance.

Daytime running headlights discount. If your car or truck has daytime running lights as part of its standard equipment, you could get a discount of 3%.

Accident-free discount. If you’ve had an accident-free driving record for five years, you may earn a discount of as much as 22%.

Defensive driving discount. When you complete a defensive driving course, you might qualify for an auto insurance discount from Geico.

Driver’s education course discount. If a young driver completes a driver’s ed class, you may get a discount on your car insurance.

Good student discount. Full-time students who maintain a “B” average or better can save as much as 15%.

Military discount. Retired military, active military members and members of the National Guard can save as much as 15%.

Membership and employee groups discount. You could get an additional discount from Geico for being a member of any of more than 500 groups and organizations.

Multi-vehicle discount. When you insure two or more cars with Geico, you could be eligible for up to 25% off.

Multi-policy discount. When you have your car insured by Geico and you also have homeowners, renters, condo or mobile home coverage with Geico, you may qualify for a discount.

More Insurance from Geico

In addition to home and auto insurance policies, Geico sells other coverage to protect you from financial loss. If you are in the health care or wellness industry, the Geico Insurance Agency sells medical malpractice insurance to help defend you in case of a medical malpractice lawsuit.

If you enjoy packing your bags and traveling around the world, the Geico Insurance Agency sells travel insurance. This coverage can help cover expenses caused by problems like missed connections, flight delays, and lost luggage.

Other policies sold by Geico include business insurance and pet insurance.

6. Safeco

Photo: Safeco
Photo: Safeco

Safeco Insurance, a member of Liberty Mutual Group, is an American insurance company. It held the naming rights to the Seattle Mariners baseball stadium Safeco Field from its opening in 1999 through the end of the 2018 season.

While Safeco policies include these standard types of coverage, the company also offers these unusual features that set it apart from most insurers:

First aid reimbursement up to $10,000 for first aid administered after an accident.

Accident forgiveness: After a certain number of years with no accidents or violations, Safeco won’t raise your rates after your first accident.

Diminishing deductible: If you don’t make a car insurance claim, Safeco will reduce your collision deductible each year by $100, up to $500 or five years.

In addition, you can choose from several coverage options if they’re available in your state, including:

Rideshare coverage: If you drive for a company like Uber or Lyft, your personal policy is suspended while you use the app. Meanwhile, the ridesharing company’s insurance is limited between rides. Safeco can cover the gap for less than $10 per month for most drivers in states where this coverage is available.

New car replacement: If your car is totaled or stolen and is less than one year old, Safeco will pay to replace it with a comparable new car.

Personal property coverage pays out if your belongings are damaged in an accident or stolen from your car. Typically, this is covered by renters or homeowners insurance if you have it.

An emergency assistance package includes roadside assistance and personal property protection, plus up to $100 for expenses and up to $500 for meals, lodging and transportation if you’re in an accident more than 25 miles from home.

Gap coverage: If your car is totaled or stolen, Safeco pays the difference between how much is left on your loan or lease and the value of your car.

Electronic key and lock replacement pay to replace lost or stolen electronic keys, remote control pads, and locks, with no deductible.

CD and DVD replacement pays out when your audio-visual media such as DVDs, CDs, and videotapes are damaged or stolen.

Custom equipment coverage will protect equipment that was not installed at the factory or dealership, including permanently installed audiovisual equipment, a modified or custom engine, roll bars, custom wheels, murals, and decals.

Pet coverage pays for veterinary expenses or a death benefit if your cat or dog is injured or dies in a collision.

7. Allstate

Photo: Allstate
Photo: Allstate

Allstate Insurance was founded in 1931 as an auto insurance company. The first policy, costing $41.60, was a 12-month policy for a 1930 Studebaker. Wondering about the name Allstate? The name came from a car tire in the Sears catalog. Today Allstate ranks at No. 4 for private passenger auto insurance, behind State Farm, Geico and Progressive.

Allstate Car Insurance

Allstate sells insurance for cars, RVs, ATVs, motorcycles and boats. For those who have classic cars and want to protect their antique cars, Allstate also sells classic car insurance. Optional coverage types include:

Roadside assistance

Medical payments

Uninsured and underinsured motorist

Sound system insurance

Rental reimbursement

Personal injury protection

For drivers worried about a rate increase after an accident, Allstate offers accident forgiveness insurance as another add-on to your policy. Ths coverage “forgives” an accident and it won’t result in a premium increase, even if the accident was your fault.

If you just bought a new car, you might want to consider new car replacement insurance. If your car is two model years old or less, this coverage replaces your car with a new car of the same make and model if it was totaled in an accident covered by your policy.

Other add-ons offered by Allstate include rideshare insurance and additional car insurance for drivers who are going south of the border to Mexico, according to Forbes.

Allstate Car Insurance Discounts

Allstate offers several discounts, especially for safe drivers. Parents of teen drivers can take advantage of discounts like the smart student discount and the teenSMART driver education program. You can also get discounts on car features like anti-lock brakes and anti-theft devices. Other Allstate auto insurance discounts include:

Multiple policy discount: If you have more than one Allstate policy, you could save money off your premiums.

Early signing discount: If you sign your policy seven or more days before it becomes effective, you could receive a discount.

Responsible payer discount: If you haven’t received a cancellation notice within the past year, you can get a discount.

Anti-lock brake discount. Driving a car with anti-lock brakes will save you money on your car insurance.

New car discount: If you are the first owner of a car that is the current model year or one year prior, you could save money on your premium payments.

Anti-theft discount. If you have an anti-theft device in your car, you’ll save money on your car insurance premium.

EZ plan pay discount: Get a discount by setting up an automatic payment plan.

Allstate eSmart discount: By signing up for an ePolicy and going paperless, you can get a discount.

FullPay discount: You can save by paying your annual premium in full.

Safe driving club discount: If you meet certain safe driving requirements, you could qualify for the safe driving club and earn a discount.

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