Alaska Auto Insurance Quotes and Coverage Guide

Alaska Motor Vehicle Insurance Questions & Answers

Q: Is auto insurance mandatory?

A: Yes and no. For the majority of Alaskans, your auto insurance coverage must provide $50,000 injury liability for one person in an accident, $100,000 for two or more injuries in an accident, and $25,000 to take care of any property damage in an accident. This is called 50/100/25 in insurance-speak, and has nothing to do with the IQs of your relatives, the figural dimensions of hippos, or the size in weight of the last three fish your Uncle Abner purportedly caught last summer.

There are certain areas, however, in Alaska, where neither registration nor insurance is required. The list of these locations is shown below. The great big exception is this: If a driver has received a ticket for a violation of 6 points or more -- no matter where he or she is living -- within the last 5 years, that driver must have liability insurance.
Q: Is Alaska a "tort" state?

A: Yes, which means that you are financially responsible for the damage and injury you cause to one or more people in a wreck and includes lost wages, medical expenses, and any pain and suffering. Liability coverage helps insure you against the costs of all these catastrophes and is required by law. Although Alaska has the highest liability insurance minimums in the country, it’s a good idea to remember just how much it cost you the last time you had to take your kid in to get that bean extracted from his nose. Imagine what it would cost if someone was really hurt and had to spend a few days in the hospital! Or if more than one person was hurt? Or if you jumped the curb while admiring your newly pierced nose in the rear-view mirror and hit Acme Widget Company’s phone box, disabling all their phones and computers, thereby causing x-number of dollars in lost revenue? Suddenly those 50/100/25 numbers don’t sound so high, do they?

Q: What type of insurance is required to purchase and maintain an Alaska tag and registration?

A: Alaska's minimum liability coverage of 50/100/25 is required by law, but proof is not mandatory upon application. The clerk will not shine a spotlight she keeps hidden under the counter on you and accuse you of being a liar in front of everyone standing behind you in line, but if this worries you, you can learn about registering your car, getting your plates, and then print out the forms online at http://www.state.ak.us/dmv.  Then you can just mail everything in and avoid the clerk completely. The application itself carries a signature line in which you certify under penalty of law that you carry a mandatory insurance policy that will be maintained during the entire registration period of your vehicle. But don’t lie; it’s really bad karma – and you might get caught.

Q: Can I maintain my current policy issued in my previous state of residence?

A: No. Since you’ve got to register your car within 10 days if you’re serious about staying in Alaska (living or working there, or both), you’ve also got to certify you have insurance – Alaskan insurance. If you’re just visiting, your policy from whatever state you’re from will cover you for 60 days. This will serve as a great excuse to leave your mother-in-law’s house if you’ve been there for an extended visit and can’t convince your wife two months has been way long enough.

Q: What if I fail to keep insurance on my vehicle that I’ve registered in Alaska?

A: Even though you won’t get exiled to the coldest part of the state and left to fend with a book of matches and a live chicken, failure to have liability insurance in effect may result in suspension of your driver's license – 90 days for the first offense and a year for the second. In Anchorage, you can even get your car impounded. So, unless you’re willing to hoof it for a while, it’s best to just do the right thing and pay that car insurance premium.

Q: I own several vehicles but do not operate some of them. Do I need insurance for the inoperative ones?

A: Every vehicle in Alaska is required to be registered unless specifically exempted by law. So don’t even go there if you’re thinking of telling the authorities that other car in your front yard is really just a plaything for your child or pet monkey. Oh, one other thing: Camper shells are exempt, but it’s kind of hard to operate them on a flat surface unless you hook up the sled dogs.

Q: How can I own a vehicle and not need insurance?

A: To get out of needing insurance, you have to be exempt from registration laws, and to be exempt from registration laws, you have to live in one of those areas listed above. Otherwise, overcome your delusions of grandeur, stop thinking you can beat the system, and buy that insurance.