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Alaska Car Insurance: Insurance Optional?

Written by Todd Clay. Posted in Research Last Updated: 11/26/2017

This “North to the Future” state only requires Alaska car insurance in certain areas.

State Regulator Information 800-467-8725 www.dced.state.ak.us/insurance
Insurance Premium

Avg. Annual Premium: $ 1,132

National Average: $1,318

Mandatory Car Insurance Coverage Bodily Injury Liab.:$50k/100k
Property Damage Liability: $25k
Alaska Car Insurance

The stars in the Alaskan sky aren’t the only thiings elevated in the state.

Alaska is our nation’s last untamed state. You have a greater chance of running in to a large wild animal here instead of a person, than in any other state. This makes the rules of survival different here, which in turn carries over to their laws as well.

Alaska is the only state in the nation that makes insurance optional in certain parts. For the parts that are required to have insurance, the limits are high and the penalties for not complying are steep

Alaska Car Insurance is Not Required

Alaska has certain parts of their state where they do not require insurance to be purchased on vehicles. These areas that do not require insurance are the same ones that do not require the vehicles being used to have a vehicle registration either. There is a very long list of all the areas that are exempt from registration and insurance.

You can find the full list of exempt areas on the Alaska Division of Motor Vehicles website.

However, even if you live in one of these exempt areas you can still be required to carry insurance if you have been a bad driver. Bad drivers in Alaska are defined as those that have had a violation or ticket in the last 5 years that was worth 6 points or more.

The High Limits of Alaska Car Insurance

For those that are required to carry Alaska car insurance on their vehicle, Alaska has some of the highest requirements in the nation. They require that $50,000 in bodily injury liability insurance be carried for a single person that you may injure in an accident. The total amount of bodily injury liability coverage for all persons that you may injure is $100,000 and no less.

Even though the requirements for the bodily injury are high compared to other states, the property damage liability sits at $25,000. While this is very high compared to the states that only require $5,000, it feels on the low side of what you may need if you were to damage someone else’s property. Remember, you always have the option of purchasing more Alaska car insurance than what is required to provide yourself with adequate coverage.

Penalties for No Alaska Car Insurance

If you are caught without Alaska car insurance, you will not be driving for a while. First, your license will be suspended. This suspension can be for as little as 90 days and up to a year depending on other violations on your record. A suspension also extends to even being able to obtain your license if you do not have one.

You can apply for a limited license with the Alaska Division of Motor Vehicles. This license will allow you to drive to work only, during your suspension period.

If you are pulled over and cannot provide proof of Alaska car insurance to the office that pulls you over, you will also be finding a new way to get home. Being caught without Alaska car insurance automatically gets your car impounded on-sight.

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Todd Clay

Todd Clay is a former insurance agent with the largest insurance company in the United States. He earned his Bachelor’s from the University of Texas. He’s worked in several fields but has specialized in insurance, financial-related information, and technology. He blogs at Car Insurance Guidebook.

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