Is car insurance required in Alaska?

Car insurance is required in Alaska for areas where car registrations are necessary — these are Anchorage, Badger, Fairbanks, Eagle River and Juneau. In more rural areas, you don’t necessarily need to carry insurance unless you received a traffic violation with six points within the last five years.

Do you need car insurance to register a car in Alaska?

Unlike other states, not all areas of Alaska require you to register your car. It is typically required if you are from one of the five largest cities in Alaska. In these areas, you will need proof of insurance to register your vehicle.

What is “basic” car insurance in Alaska?

Basic car insurance typically refers to policies that have the minimum car insurance required in Alaska. In compliance with car insurance laws in Alaska, you must have at least liability coverage with 50/100/25 limits.

Does insurance follow the car or driver in Alaska?

As a rule of thumb, insurance follows the car in Alaska, not the driver. Regardless of who is driving, if you are at fault in an accident, your policy still covers the other driver’s medical and repair costs up to your limit. There are some insurance providers, however, that offer add-on coverages that allow you to be protected even when you’re using a rented car. It’s one of the few cases wherein car insurance follows the driver in this state.

Can you get car insurance without a license in Alaska?

Yes, it’s possible to get car insurance without a license in Alaska. You have to be prepared, though, that the process may be more challenging than usual. Typically, a driver’s license is one of the first things insurance providers ask for. Though getting insurance if you don’t drive may sound illogical, it comes with its advantages. If you have a private driver or cannot drive due to a medical condition, having insurance guarantees you’ll be protected if you get into an accident and are at fault, even if it’s someone else behind the wheel.

Is Alaska a no-fault state and what does this mean?

Alaska is a tort — or at-fault — state. It means that being at fault for an accident in Alaska requires you to shoulder the other driver’s costs from injuries. You'll also pay for the cost of repairs if the accident results in property damage.

Is PIP coverage required in Alaska?

You're not required to have personal injury protection coverage in Alaska. Being a tort state, if you get into an accident and aren’t at fault, the other driver covers your medical expenses and property damage costs.

Does Alaska require uninsured motorist insurance?

Although Alaska does not include uninsured motorist insurance in its minimum car insurance requirements, it may be worth considering. It is particularly true if you don’t carry a full coverage policy. You may find that you’re not covered if the driver who hits you isn’t insured. 16.1% of drivers in Alaska do not have coverage, making it the 14th-worst state for uninsured drivers.

Does Alaska allow for diminished value compensation after an accident?

Alaska is considered a diminished value state, which means you can file a claim for the difference between your car’s market value before and after the accident. The statute of limitation for the claim is two years from when the accident occurred. Alaska is one of the few states where, if an uninsured driver hits you, you can claim diminished value against your uninsured motorist insurance. It also applies if you were a victim of a hit-and-run.

How do car insurance requirements change after a DUI in Alaska?

If you have a DUI conviction, you have to file an SR-22 to reinstate your license, which proves to the state that your policy meets at least the minimum car insurance requirements of Alaska. Filing an SR-22 alerts insurance providers that you are a high-risk driver, resulting in significantly more expensive premiums. Drivers are required to carry their SR-22 for three years on average. In Alaska, this changes based on the number of your convictions: Five years from the ending date for the first offense 10 years from the ending date for the second offense 20 years from the ending date for the third offense Lifetime for the fourth offense

What is a CARCO inspection and is it required?

In some states, drivers need to complete a pre-insurance inspection before purchasing comprehension and collision insurance. It prevents fraudulent claims by ensuring there are accurate records of the vehicle before the policy takes effect. CARCO is the leading company that collects data and furnishes insurance companies with reports. There are only five states that require CARCO pre-insurance inspections. These are Florida, Massachusetts, New Jersey, New York and Rhode Island.

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.

TABLE OF CONTENTS

Minimum Car Insurance Requirements in Alaska
How Much Does Minimum Car Insurance Cost?
Penalties for Driving Without Insurance in Alaska
FAQs

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 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.

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 Mark Fitzpatrick

Mark Fitzpatrick is a senior content director at MoneyGeek with over five years of experience analyzing the insurance market, conducting original research and creating content that can be personalized for every buyer. He has been quoted on insurance topics in several publications, including CNBC, NBC News and Mashable.

Mark 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 economics and insurance knowledge to bring transparency around financial topics and help others feel confident in their money moves.

sources

Department of Administration. "Mandatory Insurance and Financial Responsibility." Accessed July 12, 2021.
Department of Administration. "SR-22 Insurance." Accessed July 12, 2021.
DiminishedValue.Net. "Alaska Diminished Value and How It Affects You." Accessed July 12, 2021.
Insurance Information Institute. "2020 Insurance Fact Book." Accessed July 11, 2021.
Insurance Information Institute. "Facts + Statistics: Uninsured motorists." Accessed July 11, 2021.
Kelly Blue Book. "Penalties for Driving Without Car Insurance by State." Accessed July 11, 2021.
Nolo. "Alaska Car Insurance Laws." Accessed July 12, 2021.