Alaska Minimum Car Insurance Requirements, Penalties and Other Auto Insurance Laws

Alaska’s car insurance laws state that you have to carry a policy in areas where vehicle registrations are required. In more rural areas, you still need insurance if you receive traffic violations amounting to six points within five years, even if registration isn't mandatory. At the very least, your policy should comply with the minimum car insurance requirement of Alaska, which has 50/100/25 liability coverage. As a tort state, if you cause an accident in Alaska, you have to pay for the other driver’s costs from medical bills and property damage.

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What Is the Minimum Car Insurance Requirement in Alaska?

If you look up how much car insurance you need in Alaska, you’ll see the numbers 50/100/25. These are the minimum car insurance requirements in Alaska, which means your policy must cover the following:

  • Bodily injuries up to $50,000 per person
  • Bodily injuries up to $100,000 per accident
  • Property damage up to $25,000 per accident

Car insurance laws in Alaska only require you to purchase a liability-only policy. Although it protects you from the other driver’s expenses, it doesn’t provide coverage for your car — a full coverage policy, which includes collision and comprehensive insurance, does.


What Does This Minimum Coverage Mean?

Having liability coverage limits of 50/100/25 means that if you are at fault in an accident, your insurance pays for third-party medical bills up to $100,000. If more than one person sustains an injury, each individual has a coverage limit of $50,000. You also have property damage coverage of up to $25,000.

Remember that these are the minimum car insurance requirements only. You can always choose to increase your limits to have more protection. Expenses from an accident may cost more than this, which means you would have to use your savings for the remaining amount.

How Much Does the Minimum Car Insurance Cost in Alaska?

Insurance carriers factor in several things when calculating the cost of car insurance. Where you live in Alaska may affect your premium. Drivers residing in areas with higher crime rates often pay more each year since they have more risk exposure. Driving history is another area that significantly impacts your insurance rate in Alaska. If your driving record is clean, you’re more likely to pay less for car insurance. Insurance providers also consider your age, driving experience and credit score.

MoneyGeek compared car insurance policies from several providers and found that USAA offers the least expensive option at $328 per year on average. To purchase their policies, you have to be a member of a military family. GEICO’s policies, which are also affordable options, are more widely available, with an average annual premium of $453.

Cheapest Minimum Liability Car Insurance in Alaska

Cheapest Minimum Car Insurance in Alaska
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These prices are only estimates based on rates for an average Alaska driver and should not be used to compare insurance prices.

The rates shown for each company are for policies with the minimum car insurance requirement in Alaska — liability coverage of 50/100/25. The driver profile is a 40-year-old male driving a 2010 Toyota Camry with a good credit score and clean record.


What Is the Minimum Car Insurance Requirement in Alaska While Leasing a Car?

Car lease insurance requirements in Alaska are often set by the leasing company, not the state. Although your policy still must meet Alaska’s minimum car insurance requirements, your leasing company may ask for something more. If you want to drive a leased car, you’ll usually have to carry a full coverage insurance policy, which includes collision and comprehensive insurance. Most leasing companies in Alaska require minimum car insurance limits of 100/300/50.

If you want to find out the exact car insurance requirements for leasing companies in Alaska, it’s best to reach out to them directly for information.

There are several things to consider when determining how much insurance you need in Alaska. Having a policy with minimum liability coverage helps you avoid fines and penalties, but getting in an accident may be a different experience. Damages from collisions may be severe, and the minimum may not be enough, leaving you to use your savings for the remaining amount. MoneyGeek typically recommends getting full coverage insurance with limits of at least 50/100/50, giving you more protection on the road.

With 16.1% of all drivers in the state lacking insurance, Alaska ranks 14th-worst in the nation for uninsured motorists. If an uninsured driver hits you and you have a liability-only policy, your expenses aren't covered. It makes uninsured or underinsured motorist insurance a major consideration despite not being part of Alaska's minimum car insurance requirements.

Penalties for Driving Without Car Insurance in Alaska

Car insurance laws in Alaska are slightly different compared to other states. You’re only required to carry it in areas that require you to register your vehicle, such as Anchorage, Fairbanks, Juneau, Eagle River and Badger. For more rural areas, you only need to carry an insurance policy if you received a traffic violation of six points within the last five years.

Driving without insurance in an area of Alaska that requires it may lead to several penalties, such as:

  • A $500 fine for each conviction
  • License suspension up to a year if proof of insurance is not shown within 30 days of citation
  • A $100 fee to reinstate your driver’s license
  • Filing of SR-22

Repeat offenses result in higher fines and longer license suspensions.

Once you pay all the fines and serve the suspensions, you also need to file for an SR-22 to reinstate your driver’s license. Drivers who need an SR-22 form are considered high-risk, which results in higher insurance premiums. Typically, you need to carry your SR-22 for three years.

Frequently Asked Questions About Car Insurance in Alaska

Learn More About Car Insurance

About the Author


Mark Fitzpatrick is a senior content manager with MoneyGeek specializing in insurance. Mark has years of experience analyzing the insurance market and creating original research and content. He graduated from Boston College with a Bachelor of Arts and Johns Hopkins University with a Master of Arts.