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.

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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 in Alaska. 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 car insurance option in Alaska 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.

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.

If you're instead looking for a policy that balances quality with affordability, MoneyGeek also ranked the top car insurance companies in Alaska.

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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

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About Mark Fitzpatrick


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Mark Fitzpatrick has analyzed the property and casualty insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. Currently, he leads P&C insurance content production at MoneyGeek. Fitzpatrick has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.

Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.


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