Alaska – Factors that Affect Auto Insurance Rates


In Alaska, there are several factors that affect the auto insurance policy premium rates. The insurance companies consider the risks involved with the person purchasing the auto insurance policy. If the risks are higher in their perception, they would demand higher insurance rates. If they assess that the risks are comparatively lesser, then they would offer lower insurance rates. The factors that affect insurance rates in Alaska are presented here briefly.

Age of the Driver

Insurance companies hold that persons below the age of 25 are a very big risk, compared to people over 25. This is because persons below 25 are usually more reckless in their driving and they also tend to drive faster. Due to the exuberance of the youth, they try to take more risks in driving. Hence, insurance companies would hike the insurance rates for persons below 25. Moreover, insurance companies consider people between 50 and 65 as the safest drivers, since they would drive cautiously and would not take any kind of risk in driving. Still, the insurance companies would look at the health status of such persons when they determine the insurance rates.

Gender and Marital Status

Insurance companies consider women and married persons as lesser risk than single males. Hence, single males would be required to pay higher interest rates, compared to married persons and women.

Driving Record and Violations

When you apply for auto insurance, the insurance companies would take a very close look at your past driving record. If you had been involved in a few accidents or had several traffic violations like reckless driving, speeding, etc., then they would consider you as a high risk. Your insurance rates would be quite steep. However, you would be able to convince your insurer for a lower rate when you apply for renewal, if you improve your driving record during the tenure of the current auto insurance.


Insurance companies correlate the occupation with apparent risk. A call taxi driver driving around constantly would definitely be considered as a greater risk than a personal bank who would be sitting around in the desk the whole day. The amount of driving each day and the distance of driving are crucial factors in the assessment of risk.

Vehicle Type

If you have a cheaper car, insurance companies would straightaway offer you a lower premium, since the maintenance costs would be lower and even replacement cost when the car is totaled in an accident would be lesser. On the other hand, a flashy SUV with 24” rims would naturally attract a higher insurance rate.

Other Miscellaneous Risks

Insurance companies consider a few other risks like credit rating, years of driving experience, installation of theft protection and burglar alarm devices, safety devices, etc. The lesser risk assessment in the eyes of the insurance company, the lower would be your insurance rates in Alaska.