Alaska Car Insurance Laws & Requirements (2023)

WRITTEN BY: Julia Matseikovich


In the state of Alaska, you’re required to have car insurance to operate a motor vehicle. If an officer pulls you over, you must have proof of insurance. The document is available digitally, or you’re able to have a hard copy in the vehicle. We’ll walk you through the ins and outs of Alaska car insurance laws and requirements.

Alaska car insurance minimum requirements

Alaska car insurance laws make it clear that you must carry a car insurance policy to operate a motor vehicle. Alaska’s minimum car insurance requirement is 50/100/25 liability coverage. If you’re at fault in an accident in Alaska, you’re financially responsible for the other driver’s costs from property damage and medical bills.

Alaska’s car insurance requirements are as follows:

  • $50,000 bodily injury coverage per person
  • $100,000 bodily injury per accident
  • $25,000 property damage per accident

Liability coverage in Alaska

Alaska law has specific liability insurance coverage required to operate a motor vehicle.

The minimum liability required:

  • $15,000 for bodily injury per person
  • $30,000 for bodily injury per accident
  • $10,000 for property damage per accident

State-mandated auto insurance limits you should know

An insurance limit in Alaska is the bare minimum amount of auto insurance you must carry to be considered legal. These limits are the most an insurance company pays in case of a claim.

The liability limits are in three different numbers to reflect the individual’s limit for bodily injury per accident. Per person, and property damage per accident.

  • Property damage per accident shows the maximum amount paid out for property damage caused in an at-fault accident.
  • Bodily injury coverage per person is the maximum amount a car insurance provider pays for a single person’s injuries in an at-fault accident.
  • Bodily injury coverage per accident is the limit your insurer pays for injuries in an at-fault accident.

These are minimum insurance coverage amounts in Alaska, but most car insurance companies always recommend higher full coverage amounts.

Are Alaska’s minimum requirements providing enough coverage?

Alaska’s required insurance limits are much higher than other states. Increasing those limits depend on your budget. Drivers with more assets have more to lose in an at-fault accident if it exceeds their limit.

It’s best to increase your limits so you’re not underinsured instead of sticking to the mandatory insurance limit. An accident with multiple vehicles exhausts the minimum limit of $25,000 quickly.

Penalties for driving without proof of insurance in Alaska

Alaska car insurance laws are different from other states. You’re only required to carry car insurance in areas where your vehicle is registered, such as Fairbanks, Eagle River, Juneau, Anchorage, and Badger. In rural areas, you only need to carry an insurance policy if you’ve had traffic violations of six points in the past five years.

Driving without insurance in Alaska may lead to the following penalties:

  • $100 fee to reinstate your driver’s license
  • $500 fine for each conviction
  • License suspension of up to a year if proof of insurance isn’t proven within 30 days
  • Filing of an Alaska SR-22 with the Division of Motor Vehicles (DMV)

Repeat offenses result in longer driver’s license suspensions and higher fees.

Alaska’s optional car insurance coverage

You’re only required to have liability coverage in Alaska. But most car insurance companies offer additional coverage options. The following are common add-ons available through most insurers:

  • Comprehensive: Comprehensive coverage protects your vehicle against non-collision damages such as theft, hail, and animal damage.
  • Collision: This covers you in a collision with another vehicle or object, such as an animal.
  • Medical payments: medical payment coverage covers medical and funeral costs for you and any passengers in the car.
  • Uninsured Motorist Coverage: This covers you if you’re in an accident with a motorist that doesn’t carry liability insurance.
  • Roadside Assistance: Roadside assistance typically helps fix flat tires, battery jumps, towing, etc.
  • Rental Car Reimbursement: If your vehicle is unable to be driven after an accident, the coverage pays for a rental until your car is fixed.

Why it’s important to follow Alaska car insurance laws and requirements

Alaska insurance laws protect you, other drivers, and your assets. It’s illegal to go against these laws, and it gives you peace of mind that you aren’t held liable for damages and injuries that you cause. Increasing your coverage limit is always a good idea to ensure you’re properly covered. 

The best way to find cheap car insurance is to call around and compare rates with different companies.

How much does the minimum car insurance cost in Alaska?

Many factors come into play when determining your car insurance rate. You’ll likely pay more if you live in an area with a high crime rate. You’ll likely pay less for auto insurance if you have a clean driving record. Insurance providers also consider driving experience, age, and credit score.

USAA offers the cheapest car insurance in Alaska at $328 yearly. It’s only available to military members and their families. GEICO is the second cheapest auto insurance with an insurance premium of $453 yearly.

Cheapest minimum liability car insurance in Alaska

The following five insurance providers have the cheapest liability car insurance in Alaska. 

State Farm$46

Minimum car insurance requirement in Alaska when leasing a car

Leasing companies typically set car lease insurance requirements in Alaska. Your policy must meet Alaska’s minimum car insurance requirements; your leasing company might require more. 

If you have a leased car, you must have a full coverage insurance policy, including comprehensive and collision insurance. Most leasing companies in Alaska require you to have minimum car insurance limits of 100/300/50.

With 16.1% of drivers in the state lacking insurance, it’s considered one of the worst states for uninsured motorists. If an uninsured motorist hits you, your expenses aren’t covered. Alaska’s minimum car insurance requirements don’t include underinsured motorist insurance.


Is car insurance required in Alaska?

Car insurance is required in Alaska, where car registrations are necessary, such as Badger, Anchorage, Eagle River, Juneau, and Fairbanks. There are some areas where you don’t need to carry insurance unless you have received a violation with six points in the past five years.

What is the cheapest car insurance in Alaska?

USAA offers the cheapest car insurance in Alaska at $328 yearly. It’s only available to military members and their families. GEICO is the second cheapest auto insurance with an insurance premium of $453 yearly.

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

Not all areas in Alaska require you to register your car. If you live in one of the five largest cities in Alaska, you must have proof of insurance to register your vehicle.

What information is needed to get car insurance in Alaska?

You’ll need a few things to get car insurance in Alaska. You must provide your insurance company with your driving history, credit score, and vehicle specifications. Knowing these things ahead of time helps you determine the coverage you need.

Does insurance follow the car or driver in Alaska?

In Alaska, insurance follows the car, not the driver. Regardless of the driver, if you’re at fault in an accident, your policy covers you and the other driver’s medical costs and damages. There are add-ons that your insurer offers to provide more protection if needed, especially if you have a rental car.

Get Coverage That Meets Alaska’s Car Insurance Requirments

Purchasing cheap car insurance in Alaska through an auto insurance provider is easy. Ensuring you have the minimum amount of insurance required in Alaska is essential.

If you’re ready to get the cheapest auto insurance in Alaska, it’s important to compare rates by calling and getting different quotes. We have a helpful tool to find the best car insurance.