Chris Tepedino is a feature writer that has written extensively about car insurance for numerous websites. He has a college degree in communication from the University of Tennessee and has experience reporting, research investigative pieces…

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Rachael Brennan has been working in the insurance industry since 2006 when she began working as a licensed insurance representative for 21st Century Insurance, during which time she earned her Property and Casualty license in all 50 states…

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Reviewed byRachael Brennan
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UPDATED: Jul 30, 2020

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Alaska auto insurance requires a base coverage of 50/100/25. Drivers looking for cheap car insurance in Fairbanks, AK have several possibilities. Some of the best Fairbanks, AK car insurance companies who provide affordable insurance are State Farm, Umialik, and Allstate. Allstate leads the way in offering Fairbanks, AK auto insurance with a $28/month premium.

Although Fairbanks is only the second largest city in Alaska, it best represents what most people think of when the State of Alaska comes to mind. It possesses a good mix of both modern culture and the independent frontier spirit that founded the city. Sitting atop the northernmost latitude of any US city, Fairbanks experiences nearly continuous daylight from May to July, and nearly six months of winter snow in the colder part of the year.

Fun fact: Did you know that Fairbanks is #14 on the list of “Top 101 cities with the largest temperature differences during a year?

Are you looking for auto insurance in Fairbanks, AK? At AutoInsuranceEZ.com, you can easily find the best insurance rates in your city. To find free car insurance quotes from the major providers today, key your zip code into the quote box on this page.

Auto Insurance Coverage Requirements in Alaska

For Alaska drivers, you must purchase at least this much coverage in order to drive legally:

CoverageRequirementsMost Common
Bodily Injury Liability50,000/100,000100,000/300,000
Property Damage Liability25,00050,000
Uninsured Motorist Bodily InjuryNot required50,000/0130,000
Medical PaymentsNot required5,000
CollisionNot required500 deductible
ComprehensiveNot required100 deductible

Remember that although purchasing less coverage might seem like a better deal, it could cost you in the long run. Liability insurance, for example, is extremely limited. It only covers you in the event that you cause an accident. So if someone else hits you, or severe whether damages your car, you’ll have to fix your vehicle 100% out-of-pocket.

For some drivers, the Alaska state average monthly insurance payment is around $129. However, with the right provider and a good driving record, you could get it for as low as $31/mo* in Fairbanks. But that all depends on a number of different factors. Comparing cheap auto insurance in Fairbanks, AK is your best method for finding a great deal.

Average Monthly Auto Insurance Premiums Legend: Fairbanks State Farm Umialik Allstate 5 10 15 20 25 30 $31 $33 $28

It seems as though Allstate Fairbanks is providing some of the lowest available rates  right now followed by State Farm (Fairbanks). But how do they rank in overall customer service?  Is their claims filing process easy and user-friendly? Do they place value on their clients? For example, Fairbanks, Alaska Progressive Auto Insurance has core values centered around their clients. If a provider has challenging process, then paying a low monthly rate might not be the best value in the long run.

Auto insurance providers contemplate several variables when figuring out insurance quotes, including geography, zip code, credit score, occupation, and current insurance coverage and limits. Additionally, premiums differ from provider to provider. To find out whether you’re still getting the most affordable rate, compare the cheapest car insurance in Fairbanks, AK.

Enter your zip code below to view companies that have cheap auto insurance rates.

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Major Car Insurance Factors in Fairbanks

Insurance companies take several factors into account when crafting an auto insurance policy. Unfortunately, a number of these variables are hard or impossible to modify, such as your gender or how long you’ve been driving. Other factors your car insurance company may consider include:

Your Zip Code

The cheapest car insurance is usually found in cities with a lower population density. Because there are fewer automobiles on the road, there are fewer opportunities for you to get into a major car accident with another driver. The population of Fairbanks is 32,324 and the median household income is $54,694.

Auto Insurance by Zip Code Legend: Anchorage Fairbanks Juneau Kenai Ketchikan State Farm Umialik Allstate 5 10 15 20 25 30 35 40 45 50 $41 $31 $31 $28 $26 $46 $33 $24 $27 $24 $50 $28 $32 $31 $32

 

Automotive Accidents

As the chart shows, fatal accidents for 2013 were very low for Fairbanks, AK. This means that insurance providers in your area aren’t likely to inflate their rates due to hazardous driving conditions. You may even be receiving a lower-than-average premium based on accident statistics across the country.

Fatal Accidents in Fairbanks, AK Legend: Fairbanks Fatal accident count Vehicles involved in fatal crashes Fatal crashes involving drunk persons Fatalities Persons involved in fatal crashes Pedestrians involved in fatal accidents 1 1 1 1 1

 

Auto Thefts in Fairbanks

Auto theft is a major problem, especially in densely populated cities. If your location and/or vehicle model put you at a greater risk for theft, you may have trouble finding low-cost car insurance. The total number of stolen vehicles in Fairbanks was 103 in 2013. While that may seem low, remember to take the small population of Fairbanks into account. For those who are concerned about auto theft, adding Comprehensive coverage to your policy will protect you in case your vehicle is vandalized or stolen. However, it will raise your rates.

Basic vs. Comprehensive Auto Policy Legend: Basic Coverage Comprehensive Coverage State Farm Umialik Allstate 5 10 15 20 25 30 35 40 $31 $41 $33 $41 $28 $36

 

Your Credit Score

For most insurance companies, especially the large national ones, having a low credit score means you can expect to pay 50-75% higher premiums each month. However, local providers (such as Umialik) often provide coverage for an affordable price, regardless of credit score.

Auto Insurance by Credit Score Legend: Excellent Credit Poor Credit State Farm Umialik Allstate 5 10 15 20 25 30 35 40 45 50 $33 $33 $26 $52 $26 $34

 

Your Age

Studies have shown that inexperienced teenage drivers are more likely to get into an accident than older adults. Because of this, it costs much more to purchase automotive insurance for young drivers. If you are a teenager, ask your provider about Drivers Ed or Good Student discounts.

Auto Policy Age Comparison Legend: 34 Year Old 17 Year Old State Farm Umialik Allstate 5 10 15 20 25 30 35 40 45 50 55 60 $31 $63 $33 $61 $28 $47

 

Your Driving Record

If you can keep a clean driving record, you can secure the lowest possible rate on your automotive insurance policy. Unfortunately, the more violations you add to your record, the more expensive your insurance will become. You may even lose your coverage completely depending on your provider, and the severity of the violations.

Driving Violations Legend: Perfect Record Minor Speeding Ticket DUI/Reckless Driving Major At-Fault Accident State Farm Umialik Allstate 5 10 15 20 25 30 35 40 $31 $33 $33 $36 $33 $33 $33 $33 $28 $33 $40 $41

 

Your Vehicle

Luxury vehicles are, naturally, more expensive to insure. They are more expensive to repair, they require that you purchase a more comprehensive policy, and they are more likely to be stolen by thieves. Compact, fuel-efficient sedans, on the other hand, are much less expensive to insure.

Car Insurance by Make/Model Legend: 2015 Honda Accord 2012 Porche Boxster Spyder State Farm Umialik Allstate 5 10 15 20 25 30 35 40 45 $31 $45 $33 $41 $28 $43

 

Minor Car Insurance Factors in Fairbanks

Did you know that many of the factors below can have an impact, however small, on your monthly rate? It’s true:

Your Marital Status

If you are insuring yourself as an individual, there is very little difference between costs for single vs. married motorists. However, married couples can save a lot of money by taking advantage of bundling discounts. You can bundle your auto policies together, add your homeowner’s insurance, and more.

Your Gender

Insurance company data shows that there really isn’t a big difference in risk from one gender to another. Most major providers don’t even charge different rates based on gender anymore. However, the few companies that still do only charge about a 2-3% difference. And whether or not that difference punishes males or females largely depends on the company providing the policy.

Your Driving Distance to Work

Most workers in Fairbanks only have a 10-15 minute driving commute. Nearly 20% of drivers choose to carpool to work, while more than 60% get to work by driving their own car by themselves.

Feel free to drive as many miles as you want per year, and for whatever reason – driving more miles, or only commuting for pleasure won’t make a huge dent in your monthly premium. However, business vehicles generally have about 10% higher insurance rates, so be wary of that fact.

Your Coverage and Deductibles

Want to save money on your insurance each month? Try raising your deductible. A higher deductible means you will be charged lower monthly premiums by your insurance company. However, it also means that your repairs will be more expensive if the worst occurs.

Education in Fairbanks, AK

It’s common knowledge that the more education you have, the more you can save on car insurance. In Fairbanks, the average motorist has either a high school diploma or at least a year of college under their belt. It doesn’t matter if you have a good job or a high salary – if you don’t have a college degree or better, you could end up paying more for your automotive insurance.

Though seemingly remote, Fairbanks is home to the major public university UAF (University of Alaska Fairbanks). You can get a variety of degrees from this university, ranging from a simple bachelor’s to a master’s or even a doctorate. The university instructs its students in a wide variety of subjects with particular emphasis on engineering and natural sciences.

Unfortunately for most insurance companies, a simple internet search can reveal many of their trade secrets. But even with the proper information, it can still be difficult for you as an individual to figure out your risk profile and find low-cost insurance. Make sure you do your due diligence before you commit to your next car insurance policy.

How We Conducted Our Car Insurance Analysis

*We calculated our average rate based on the following metrics: a married, 34 year old male with good credit, a 12-month history of maintaining auto insurance, a clean driving record, who owns his own home. Miles driven annually were based on the national average. The average rate was also calculated based on a financed 2015 Honda Accord with a pre-installed anti-theft device.

Sources:

Alaska Division of Insurance

Alaska Department of Financial Institutions

Department of Highway Safety and Motor Vehicles

City-Data.com

Census.gov 

To find companies that offer the Lowest Rates in Fairbanks, Alaska auto insurance enter your zip code in the box below.