What is the Average Cost of Car Insurance in Fairbanks?

Fairbanks, Alaska became a booming town in the early 1900s when gold was struck nearby. The Alaska Highway, the railroad, and the Trans-Alaska Pipeline have significantly contributed to the growth and expansion of the city. It’s also home to the Fort Knox Gold Mine.

Most people associate Fairbanks with its renowned aurora borealis, which is a significant tourist attraction for the area. It’s home to 30,917 residents and the Denali National Park. Many people visit the charming town for its location, amenities, and culture.

Another perk to Fairbanks is that residents only drive 13.3 minutes to work on average. The national average commute is around 27 minutes. Even though their drive time is short, it’s still imperative for you to carry at least the state-required minimum car insurance in case of an accident or theft.

What are the Insurance Requirements in Fairbanks?

The Department of Administration Division of Motor Vehicles lists the mandatory car insurance coverage for the State of Alaska as:

  • $50,000/$100,000 for bodily injury or death
  • $25,000 for property damage

Not maintaining the proper insurance could result in your license being suspended and the impounding of your vehicle. Proof of the required insurance coverage must be in the driver’s possession whenever they operate a motor vehicle.

There are areas in Alaska where vehicle registration is not necessary. Individuals who reside there are not required to purchase insurance unless they have violations that have resulted in six or more points in the last five years. Those individuals who do must also maintain minimum insurance coverage.

Liability insurance covers the other driver, their passengers, and property if the insured causes an accident. It will also help the insured driver with legal fees if a lawsuit results from an accident. Insurance coverage is specific to the vehicle and will not follow the individual. When an insured driver operates a motor vehicle not belonging to him, his insurance will not cover that vehicle or the other party if an accident occurs.

Comprehensive car insurance is strongly recommended if you can fit it into your budget. It not only satisfies the minimum requirements set by the state for the other driver’s property and injuries, but it will cover you and your vehicle as well. Even if you were in a wreck and at fault, or if your car is stolen, you would still be covered with comprehensive insurance. With liability only, you have no coverage for yourself or your vehicle if you are the cause of an accident or the victim of theft.

Most Expensive and Least Expensive Insurance Rates by Zip Code

Cheap Car Insurance in Fairbanks by Insurer

Saving money is smart, but it should not be at the expense of your insurance coverage. For example, don’t take on a high deductible in exchange for a low monthly payment if you cannot afford to pay the deductible in the event of an accident. When selecting an insurance company, be sure to choose the rate and coverage that you need from a company that has good ratings from other policyholders. Think about those things while you review our list of the cheapest car insurance companies in the area.

Use this guide to compare auto insurance quotes from the best companies.

Low Cost Auto Insurance for Bad Credit in Fairbanks

Alaska permits car insurance companies to use an individual’s credit score to determine whether or not they will be covered. It also helps determine how much they will pay for their policy premium. Drivers with a higher FICO score will pay lower rates than a driver with a low score.

However, you can find a better score by reviewing the policies of various companies to find the one that works for you.

Want to know how your credit score affects your insurance rates, click here to learn more.

Full Coverage Vs. Liability, Which is Best For You?

What is Liability Only Coverage?

Liability-only coverage means that you are only paying to cover the cost of damage that you do to other people and their property in the event you are at fault in an accident. It covers the costs of medical bills for people you injure or repair costs for property you damage.

It is a good idea to carry more liability insurance than these minimum amounts required by the state of Alaska because you will be personally financially liable if you are in an accident and cause more damage to people or property than the state’s minimum required coverage levels.

What does Full Coverage Insurance Cover?

Full coverage insurance not only covers the cost of the people and things you might harm when you are in an accident that is your fault. It also covers the cost of any repairs that your property or vehicle might need if you are in an accident that is your fault.

There are two main types of coverage beyond liability coverage:

Collision – This type of insurance covers the cost of repairs to your vehicle or your property that you might damage in an accident in which you are at fault.

Comprehensive – This type of insurance covers the repair costs for your vehicle when one of those unusual things happen that are outside of your control, like weather-related damage to your vehicle, theft, vandalism, and deer stepping in front of your vehicle as you drive.

Top Factors and Differences Between the Types of Coverage

Liability and Full coverage policies have many distinctions but the chief one is that under a liability policy your car is not covered. If you are in an accident and are found at-fault, your liability policy will cover the other driver and her passengers. A full coverage policy, on the other hand, covers damage done to your car as a result of a wide range of accidents, even if you are at-fault. These policies also differ when it comes to premium payments.

Average Annual Car Insurance Rates in Alaska by City

Additional cities in Alaska you can check out.

Ways to Lower Your Auto Insurance Rates

There are many ways that you can save on auto insurance in Fairbanks:

  • Shop around:

    It could not be clearer. The smallest difference in our driver demographics between the most expensive and the bargain insurance rate was over $1,100 yearly. It is a good idea to shop around yearly, especially if your policy rate goes up, since insurance carriers can change their rates whenever they feel it’s necessary.

  • Avoid accidents and moving violations:

    These will increase your rate, sometimes substantially.

  • If you have an accident or moving violation:

    It is often a good idea to spend a little bit of money now and attend traffic school, rather than have these violations stay on your driving record for years.

  • Insure your home and car with the same company:

    If you can insure your home or apartment and your vehicles with the same insurance carrier, you can also save money, as there is often a discount for bundling multiple services.

  • Look for discounts :

    Often, there are good driver rates for those with no moving violations or student driver rates. Sometimes, your insurance agent will not tell you about these discounts, but you can find them online.

  • Rates are influenced by the type of vehicle :

    Insurance rates are much higher if you carry full liability and have a vehicle you are paying off. Sometimes it is best to buy a new car and just maintain it thoroughly. Eventually, you will have no car payment, and you can eventually drop the collision insurance. When cars get to a certain age, you will not receive enough back from the insurance company if your car is totaled in an accident to justify buying the collision insurance each year.

Learn more about driver discounts for car insurance rates here.

Here are Some of the Typical Factors that Affect Your Fairbanks, AK Car Insurance Premiums

Because of the traffic issues in the area, “State” car insurance rates can be quite high based on the area you live in. The risk factors are higher where there is more traffic, so the area is one important factor in your auto insurance rates. As we have seen, other factors that affect your car insurance rate include your age, marital status, how many cars and drivers you have in your household, your driving record, what type of coverage you need, the age and type of your vehicle, the insurance agency, and the average mileage you drive each year. These factors can make huge differences in how much money you have to spend each year on automobile insurance.

Since insurance rates can fluctuate from company to company, it is imperative that drivers thoroughly educate themselves about automobile insurance and shop around in order to find the very best deal. You literally can save a thousand or more dollars per year by getting quotes from several carriers.

Compare insurance company rates for drivers with a bad record here.

Helpful Fairbanks, Alaska Vehicle Resources:

Live Traffic and Accidents

DMV (Find Locations, Vehicle Registration, Titles and Insurance Info)


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