Alaska Car Insurance

Alaska Car Insurance Laws

Alaska is a unique state, and its insurance laws are unique, too.

Along with Maine, Alaska has the highest minimum required bodily injury liability limits in the U.S. Every driver must carry a minimum of $50,000 in bodily injury liability coverage, up to $100,000 per accident, and $25,000 in property damage liability coverage.

For drivers who don't own a home or have substantial savings to protect, that could be plenty of coverage.

Another point that makes Alaska special: It doesn't require insurance coverage in every corner of the state. Many villages and hamlets don't require registration or insurance. The Alaska DMV publishes an annual list of areas without insurance requirements -- but be warned, it changes: For instance, Alaska decided that in 2012, vehicles, snowmachines and ATVs driven on Kotzebue's public roads must now be insured.

• SR-22 for life: In Alaska, anytime your license is suspended, revoked or limited, you are required by the state to obtain an SR-22 filing as part of your car insurance policy. For most offenses, you must carry the SR-22 for three years, but in certain circumstances one can be required to carry the SR-22 filing for five, 10, or 20 years -- and in extreme cases (fourth DWI or an unsatisfied judgment) for life.
• Coverage lapse: A lapse in coverage can send your car insurance rates skyrocketing in most states. But in Alaska, if you haven't owned a car, weren't legally required to carry insurance and haven't violated the Alaska mandatory insurance act, your lack of prior insurance coverage cannot be considered as a factor in rating your policy.
• Uninsured motorist penalties for Alaska: You may be fined from $500 to $1,000, sentenced to 90 days in jail, your license may be suspended and you may be required to file an SR-22 form if you're in an accident.
• Electronic proof of insurance: Alaska is one of 31 states that allow drivers to show proof of insurance on a smartphone during a traffic stop.

Largest car insurance companies for Alaska by market share