Alaska Auto Insurance Guide

Whether you’re heading out of Anchorage on Seward Highway or cruising along Richardson Highway from Fairbanks to Valdez, driving in the Last Frontier can provide spectacular scenery and challenging conditions. Sightseeing or commuting, car insurance is crucial to being a responsible Alaska driver.

 

Auto Insurance Resources for AK State Residents

As of 2010, there are 481,487 licensed drivers in Alaska. The Insurance Research Council estimates that 18% of Alaska’s drivers are uninsured. In 2008, there were 3,293 car crashes, 55 of which were fatal. Of those fatalities 44% were alcohol-related. Uninsured and drug-impaired drivers are good reasons to be sure you have enough car insurance while living and driving in the Last Frontier.

 

Alaska State Minimum Car Insurance

Alaska is unique among the 50 states and has some unique conditions regarding automobile insurance. In many of Alaska’s remote areas, no vehicle registration or car insurance is required. However, unless you are exempt by law, you will need to carry a minimum amount of car insurance or face severe penalties. Alaska has a traditional tort-based system. Cause an accident and you can be sued. While Alaska does not require that you carry Uninsured/Underinsured Motorist coverage, additional personal liability or Collision and Comprehensive, if you own property or other valuable assets, you would be wise to supplement the minimum requirements shown below:

• $50,000 bodily injury per person per accident
• $100,000 bodily injury for all persons per accident
• $25,000 property damage liability

 

Alaska State Car Insurance Laws

Unless you are exempt, Alaska requires that you carry proof of Alaska auto insurance in your vehicle and produce it if a law enforcement officer asks to see it. Failure to do so will result in suspension of your driver’s license for anywhere between 90 days and one year on a first offense, although you may be able to obtain a limited license for work purposes during a suspension. Reinstating your license will cost $100 as will the application for a limited work license.

If you are involved in an accident, regardless of fault, and cannot show proof of insurance, you may also be fined.

Even if you live in an insurance-exempted location, if you have received any traffic violation carrying more than six points on it at anytime in the past 5 years, you will be required to carry proof of minimum coverage.

 

Regulating Agency and References

Alaska Division of Insurance
This agency is responsible for regulating vehicle insurance policies sold in Alaska. For more information, visit their website at http://www.commerce.state.ak.us/insurance/home.htm

Alaska Department of Administration Division of Motor Vehicles
This agency is responsible for licensing drivers and registering vehicles. You can learn more about Alabama auto insurance requirements, penalties and related information at http://doa.alaska.gov/dmv

National Association of Insurance Commissioners (NAIC)
This is an organization of insurance regulators from the 50 states, District of Columbia and the five U.S. territories. NAIC provides a forum for the development of uniform policies when appropriate. NAIC members are elected or appointed state government officials who regulate the conduct of insurance companies and agents in their respective states or territories. Visit NAIC at http://www.naic.org

Insurance Information Institute (III)
This organization’s mission is to improve public understanding of insurance – what it is and how it works. Visit III at http://www.iii.org/

 

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