Alaska Car Insurance

In the state of Alaska, drivers must have, at a minimum, liability insurance to cover the potential for an event in which they are found legally responsible for a collision or accident involving their vehicle. Alaska residents have the option of buying an insurance policy from an insurance company, or getting an authorization for self-insurance from the Division of Motor Vehicles. The minimum amount of liability required is as follows:

Required Coverages in Alaska:

  • Bodily Injury Liability Per Person: $50,000
  • Bodily Injury Liability Per Accident: $100,000
  • Property Damage Liability: $25,000

Drivers are required to carry proof of insurance on them at all times. If a driver is involved in an accident with damage that exceeds $501, he or she must show their proof of insurance. According to Alaska’s Automobile Insurance Guide, if you do not have adequate coverage, your license can be suspended. It will only be reinstated if you prove your financial responsibility, and if you pay all associated fees. To prove financial responsibility, you will need to purchase an SR-22 policy and file it with the Division of Motor Vehicles. This policy must be held for three years after the date of revocation.

Determining Your Rate in Alaska

The average rate of car insurance in the state of Alaska is $897, according to the Insurance Information Institute, which is higher than the national average of $785. To determine the cost of your policy, insurance companies will look at a variety of factors, as outlined in the state Automobile Insurance Guide. These factors include age, marital status, sex, geographical location, your driving history, how much you use your vehicle, prior coverage, and your credit history.

Having a poor credit history and poor job stability may interfere with your ability to obtain adequate coverage. Fortunately, Alaska provides an automobile insurance plan for high-risk drivers who cannot obtain coverage through the insurance market. High-risk drivers can contact the Alaska Automobile Insurance Plan regarding their situation and the AAIP will then connect the drivers with an insurance company that will provide them with specialty coverage.