The Complete Guide to Alaska Car Insurance

Lemonade is on the way to the Last Frontier and we’ll let you know as soon as we arrive! In the meantime, we’ll help you navigate all things AK car insurance like rates, requirements, and throw in smart shopping tips.

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How much does car insurance cost in Alaska?

Car insurance in Alaska averages $170/month for full coverage, but your actual rate depends on where you live, what you drive, and your driving record.
Here’s what drivers pay in major cities:

City	Average cost of car insurance
Anchorage	$205
Fairbanks	$187
Juneau	$146
Badger	$187
Knik-Fairview	$199

Source: ValuePenguin

Why is car insurance so low in Alaska?

Alaska drivers face unique risks that drive insurance costs

Uninsured drivers

16.1% of drivers in Alaska are uninsured vs. 13% nationally, but other factors keep premiums lower here.

Car theft

FBI data shows there were 1,822 reported motor vehicle thefts in 2024 in AK, down 8% from the previous year.

Natural disasters

AK has a relatively low FEMA disaster rating of 29, lowering comprehensive coverage costs, though earthquake and cold wave are still threats.

What car insurance do I need in Alaska?

All Alaska drivers must carry minimum insurance coverage to legally drive.
Here’s what the state requires:

Required minimum coverages for Alaska drivers	Minimum amount required	What’s covered	What’s not covered
Bodily injury liability	$55,000 (per person) $100,000 (per accident)	Medical bills, lost wages, and other costs when you hurt someone else in an accident	Your own injuries, damage to your car, amounts above your policy limits
Property damage liability	$25,000	Damage you cause to other people’s cars, fences, buildings, and property	Damage to your own car, your own property, amounts above your policy limits

What additional car insurance coverages are offered in Alaska?

Beyond state minimums, these optional coverages provide
extra protection for Alaska drivers

Collision coverage

Pays to repair or replace your car if it's damaged in an accident with another vehicle or object like a fence or guardrail.

Comprehensive coverage

Covers damage to your car from non-collision events like theft, vandalism, hail storms, flooding, or hitting an animal.

Rental car reimbursement

Pays to cover alternative transportation while your car's being repaird. Specific coverage varies by insurer

What does (and doesn’t) car insurance cover in Alaska?

Car insurance protects you financially in many situations, but it does not cover everything.

Vandalism
Fire damage
Weather damage
Theft
Injuries to other people
Damage to property
Damage from a collision
Fender benders
Rental car reimbursement
Towing
Roadside assistance
Windshield damage

Your insurance won’t cover oil changes, engine problems, stolen personal items like your purse, or damage from off-roading on the tundra

What happens if I drive without insurance in Alaska?

Alaska takes uninsured driving seriously, and the penalties add up fast.

Fines

Flat $500 fine every single time you get caught – first offense or fifth, doesn’t matter.

Suspension

First offense gets you 90 days without your license. Do it again? That’s a full year of walking.

Jail time

Alaska keeps it simple – no jail time for driving without insurance. Just fines and suspensions.

What do you need to get a car insurance quote in Alaska?

You’ll need some basic information like your driver’s license number and your car’s VIN, but with the right details handy, getting quotes is quicker than your morning coffee run. Here’s your checklist:

Your Details

Driver's license number
Social Security number (for credit check)

Your Car

VIN number (found on your dashboard or door frame)
Current registration or title

Your History

Any accidents or tickets from the past 5 years
Current insurance company and policy number (if you have coverage)

Your Preferences

How much coverage you want
Deductible amount you're comfortable with
Monthly budget range

How does car insurance work in Alaska?

Think of car insurance as a financial safety net for when things go wrong on the road.

Pick your protection

Shop around and choose coverage that fits your budget.

Make payments

Keep up with monthly payments and you’re covered.

When S%!t happens

File a claim, pay your deductible, and your insurer covers the rest up to your limits.

Alaska car insurance FAQs

Is Alaska a no-fault state?

No, Alaska isn’t a no-fault state. Alaska uses at-fault insurance, where whoever caused the accident pays for damages. If you’re injured, you can file a claim against the other driver’s insurance or take them to court. You don’t need Personal Injury Protection (PIP) coverage here.

Do I need insurance to register a car in Alaska?

Yes, Alaska requires proof of auto insurance to register a vehicle. You must carry at least the state’s minimum liability coverage, and insurance info is verified during registration. Your car can’t be legally registered without meeting these requirements.

What are the top risks for driving in Alaska?

Alaska presents extreme driving conditions year-round. Extended periods of snow, ice, and darkness create treacherous road conditions, while large wildlife like moose and caribou pose serious collision risks. The state’s remote highways mean that crashes often occur far from emergency services, potentially leaving drivers stranded for hours in harsh conditions.

How long do I have to report an accident in Alaska?

In Alaska, accidents involving injury, death, or property damage of $2,000 or more must be reported to police immediately. If an officer doesn’t investigate the crash, you must submit a written report within 10 days. This report is typically filed with the Alaska Department of Transportation. Insurance companies may have shorter reporting expectations.

What are the top safety tips for driving in Alaska?

In Alaska, winter prep is everything. Get yourself winter tires and stock your car with emergency supplies. Moose are huge and hard to spot in low light, so scan constantly. Those long dark winters and icy roads don’t mess around, so take it slow. And always tell someone where you’re headed when you’re driving remote routes.

All coverage is subject to individual policy limits, terms, and conditions. Any hypothetical examples used in Lemonade editorial content are purely expositional.
*Uninusured driver rate sourced from ValuePenguin: https://www.valuepenguin.com/auto-insurance/uninsured-motorist-statistics sourced February, 2026
**Theft rate sourced from the FBI’s crime data explorer: https://cde.ucr.cjis.gov/LATEST/webapp/#/pages/explorer/crime/query sourced February, 2026
***Disaster risk rating sourced from FEMA’s Disaster Resilience Hub: https://resilience-fema.hub.arcgis.com/datasets/national-risk-index-states-expected-annual-loss/explore sourced February, 2026