It is important to be aware of the Alaska car insurance laws. First, car insurance is mandatory in Alaska’s settled areas. However, there are some areas that do not require registration or mandatory insurance. These areas have limited access to the rest the state and few roads. To protect yourself from an accident, even if you don’t live in these areas, you should still consider buying insurance policy.
Important to remember is that Alaska has minimum requirements for car insurance in areas where it is required. These limits are commonly written as 50/100/25. This refers to the minimum amount of liability insurance that you must have to drive legally.
Alaska has lower car insurance than many other states. The national average price for a minimum coverage policy in Alaska is $563 annually. In Alaska, the average is $340. On average, a full coverage policy with collision and comprehensive coverage will cost $1,434.
Alaskan laws regarding car insurance
Alaska requires that you have minimum liability coverage. This is often written as 50/100/25.
- $50,000 per accident per person. Liability for bodily injury/death
- Accident liability of $100,000 per person for bodily injury/death
- $25,000 for property damage
Alaskan Liability Insurance
The liability limits are a way to ensure that your insurance covers medical expenses for any person who is hurt in an accident at fault. The insurer will pay $100,000 if more than one person is hurt.
If you cause property damage to another vehicle, such as a mailbox or fence, the property damage will be used to cover repairs or replacement costs.
This liability coverage covers the other vehicle and all passengers in it. It does not cover your car or you. You will need optional collision and comprehensive coverage if you are involved in an accident that is at fault.
Alaska’s auto insurance requirements may be higher than those in other states. However, they might not be sufficient if you are involved in an accident that is serious. Alaska has high medical costs, so you may need to use up your minimum coverage quickly. It is worth purchasing more than the minimum coverage, such as 100/300/50, if you have the funds.
Is Alaska a no-fault state?
Alaska is not considered a state of no-fault. No-fault states allow insurers to pay claims on behalf of policyholders, regardless of fault. No-fault laws were created to limit the amount of claims that are brought before the courts, particularly those with smaller amounts. You would need to have personal injury protection (PIP), coverage to cover medical bills in a state that does not allow for fault.
Alaska doesn’t follow this system so you don’t have to carry any insurance that could cover you or your passengers in the event of an accident. This coverage is highly recommended, although it is not mandatory. You can avoid significant out-of pocket expenses in the event you are involved in an accident at fault. This can happen to anyone, regardless of how safe they are.
Alaskans who drive without insurance face severe penalties
Drivers without proof of insurance will be subject to a $500 fine and could have their license suspended. Depending on previous infractions, the suspension could last for up to 90 days or one year.
An SR-22 may be necessary to get your license reissued. This document proves you have the financial resources to pay for damages and must be certified by your insurance. You may be charged fees to reinstate your license.
Alaska offers additional auto insurance options
Alaska’s auto insurance requirements are higher than other states. However, they might not be sufficient to fully cover you if you were involved in an accident that is serious. There are many options available to you from insurance companies that can provide financial protection in the event of an injury or mishap.
- Collision insurance does not cover your vehicle. Liability Insurance does not cover your vehicle. However, collision coverage will cover damage to your vehicle in an accident at fault.
- Comprehensive: comprehensive covers damage not caused by collisions, such as theft or vandalism, and natural events. Comprehensive coverage covers damage to your vehicle if a tree falls on it in a windstorm.
- Medical payments These help pay for injuries sustained in an at-fault car accident or pedestrian injuries.
- Coverage for uninsured or underinsured motorists: More that 15% of Alaskan drivers don’t have insurance, either because they live far from home or because they drive illegally. If you are in an accident with an uninsured motorist, this coverage will cover your injuries and damages. This coverage will pay for any claims that the other driver has not insure.
- Gap coverage If your car is totaled, and you file a claim to your insurer, you’ll be issued a check for its depreciated worth. This coverage will cover the difference between your car’s total value and the amount you owe.
Questions frequently asked
Which Alaskan car insurance company is best?
For reasonable rates, there are many car insurance agencies who offer Alaskan insurance policies. Compare prices and customer service to find the best deal for you.
What is Alaska’s cheapest auto insurance?
It can be difficult to find the lowest car insurance rates in Alaska. The company offering the lowest rates for your neighbor may not offer the same for you. To find the best price for you, call several insurance companies or request online quotes. For more information, visit our Cheapest Auto Insurance in Alaska 2021 Page.
Are Alaska’s minimum requirements sufficient for me?
Alaska insurance law requires that you have a minimum of 50/100/25. This is quite high. However, you may have to pay out-of-pocket expenses if there is a serious accident. You should have as much liability coverage as possible. Medical costs can quickly escalate and $25,000 for damage to property might not be sufficient if you own a large SUV, truck or luxury vehicle. An alternative is to buy 100/300/50 coverage which is very common for Alaskan drivers.
