Auto Insurance Requirements in Alaska

Alaska requires drivers to carry liability auto insurance unless they live in an area where registration is not required. However, even if registration isn't required, you'll have to carry auto insurance if you were ticketed for a violation of six points or more within the past five years.

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Registration and auto insurance are required in the five largest cities: Anchorage, Fairbanks, Juneau, Eagle River and Badger. You can purchase liability auto insurance in Alaska to meet the Financial Responsibility and Mandatory Insurance Law, or you could choose an alternate form of insurance to meet Alaska's requirements.

Much of The Last Frontier State is not accessible by roads: You even have to fly or take a boat to reach Alaska's capital, Juneau. If you happen to be pulled over in an area where registration and insurance are required, you'll have to present proof of insurance — either an insurance ID card or electronic proof of insurance on your smartphone or tablet. If you fail to provide proof of financial responsibility, you could be fined or your vehicle could be impounded.

Alaska car insurance requirements and minimums

In areas of Alaska where auto insurance is mandatory, your policy must at least include bodily injury and property damage coverage. State law requires you to buy liability coverage equal to or exceeding the following limits:

Bodily injury (BI): $50,000/person, $100,000/accident

Requirements

Covers

Does not cover

Property damage (PD): $25,000/accident

Requirement

Covers

Cheapest companies in Alaska for minimum liability

Geico

Geico

State Farm

State Farm

Allstate

Allstate

Optional car insurance coverage in Alaska

The two types of coverage above are just the bare minimum; you can always get more protection if you'd like. You can purchase higher limits or extra types of protection, such as the optional ones below. They may get tacked onto your policy automatically and can be worthwhile to further protect your assets, but you can always reject optional coverage from insurers in Alaska.

Uninsured/underinsured motorists (UM/UIM): An estimated 16% of drivers in Alaska are uninsured. If an uninsured motorist is responsible for a collision you're in or you're the victim of a hit-and-run, you won't be able to file a claim with the driver's insurer to cover any medical expenses or property damage. Uninsured motorists coverage pays for any losses that the other motorist cannot. For a collision with an underinsured motorist (a driver who may have just the minimum limits of bodily injury and property damage insurance), your underinsured motorists coverage will cover the difference between the liable party's policy and your purchased limits. UM/UIM coverage will pay for damages that result from the accident, such as your personal injuries, physical damage to your vehicle, and property damage. Alaskan drivers can purchase UM/UIM with limits of up to $1,000,000 per person and $2,000,000 for bodily injury if two or more people are injured in an accident.

Physical damage: This consists of collision and comprehensive coverage. Regardless of liability, collision and comprehensive coverage will cover the costs of car repairs. While collision coverage pays for the cost to repair your car after a direct impact with another car, comprehensive coverage pays for damage caused by an incident other than a car crash (such as a tree falling on your car or a hailstorm).

Medical payments coverage (MedPay): MedPay can cover medical and funeral expenses resulting from an accident, regardless of whether you were at fault. MedPay covers you (the driver), family members, and other passengers in the vehicle at the time of the accident. MedPay can also pay for the costs of hospital visits and stays, doctor's visits, surgeries and X-rays, EMT and ambulance fees, funerals, and more. MedPay coverage is usually sold up to a limit of $5,000.

Alternative proof of financial responsibility

Apart from getting auto insurance, you can meet the requirements of the Financial Responsibility and Mandatory Insurance Law with an alternate form of financial responsibility. Here are the alternatives:

Surety bond: Alaska accepts surety bonds as proof of financial responsibility. A surety bond is a contract between a driver and a licensed surety company that says if the driver cannot pay for the damages resulting from an accident, the surety company will pay in the driver's place. Your bond must cover damages for the minimums for bodily injury and property damage mandated by Alaska law. After the surety company pays a claim, you will then have to reimburse them. You will be given a certificate to serve as your proof of insurance once your bond is issued.

Self-insurance: If you have more than 25 cars registered under your name, you could apply to be a self-insurer. In order to qualify for self-insurance, you must prove to the Alaska Division of Motor Vehicles (DMV) that you will be able to pay at least $125,000 for a judgment for property damage, bodily injury, or both. If the DMV believes you have provided satisfactory proof of financial responsibility, you will be issued a certificate of self-insurance for property damage,bodily injury, or both.