Alaska Car Insurance Requirements in 2026

Alaska car insurance requirements at a glance

Coverage	Minimum Requirement in Alaska
Bodily-injury liability	$50,000 per person/$100,000 per accident
Property-damage liability	$25,000 per accident

Alaska car insurance requirements explained

Alaska’s mandatory auto insurance helps pay damages, including pain and suffering, if you cause a car accident that damages someone else’s property or results in bodily injury.^[1] Alaska’s minimum liability coverage requirements are among the nation’s highest because of the state’s unique climate and road conditions. As of 2020, only 35% of public roads in Alaska were paved.^[2]

Drivers in hundreds of remote communities, including Allakaket, Kobuk, Sleetmute, and Wainwright, may be exempt from vehicle registration and insurance requirements under certain conditions.^[3]

Alaska bodily injury liability insurance requirements

In Alaska, minimum liability limits for bodily injury are $50,000 per person and $100,000 per accident. For example, if an accident you cause while driving through Fairbanks injures two people and each has $75,000 in expenses, your insurance would cover $50,000 in expenses for each person, limited to $100,000 per accident. You’d pay any remaining expenses out of pocket.

Alaska property damage liability insurance requirements

Alaska has a $25,000 minimum liability limit for property damage. If your accident in Fairbanks causes $35,000 in damage, your insurance would cover $25,000 of it. You’ll be responsible for any extra expenses.

Alaska uninsured/underinsured motorist (UM/UIM) insurance requirements

Uninsured and underinsured motorist coverage is optional in Alaska. If a driver with no insurance or insufficient coverage injures you or damages your property, UM/UIM coverage will help pay for the damages. Insurers must offer UM/UIM coverage separately from liability insurance. State data shows that 30% of Alaskan drivers are uninsured, so this coverage may be worth adding.^[4]

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Are Alaska’s car insurance requirements sufficient for most drivers?

Alaska’s minimum limits are fairly high, so they may be enough for some drivers. But it may not be enough for Alaskans whose assets would be at risk if expenses from an at-fault accident exceeded the minimum-coverage limits. That might be the case in multi-vehicle collisions and any collision resulting in severe injuries or fatalities.

Consider increasing your policy limits as shown in the following table.^[5]

Coverage	Recommended Limit
Bodily injury liability	$100,000 per person/$300,000 per accident Better for high-net-worth drivers
Property damage liability	$50,000 Better for drivers in congested areas where multi-vehicle accidents are more common
UM/UIM	$50,000 per person/$100,000 per accident

Other car insurance requirements to be aware of in Alaska

Auto lenders and leasing companies usually require drivers to have full coverage on their financed/leased vehicles. This additional insurance covers your car’s market value and helps you continue your payments even if you damage or total the vehicle in a crash.

Full coverage includes collision coverage for crashes involving other vehicles, and comprehensive coverage for other mishaps, such as fallen trees and run-ins with deer and moose. Notably, the Alaska Department of Fish and Game estimated that there were 800 moose collisions in 2023, with more than half of documented collisions occurring in Matanuska-Susitna and the Kenai Peninsula.

How Alaska’s car insurance requirements influence rates

Alaskan drivers pay an average of $59 each month for liability-only insurance and $97 for full coverage. Alaska’s minimum coverage limits are high compared to other states, so claim amounts are potentially high, too. Insurers factor that risk into their rates.

Imagine driving along Tongass Ave. in Ketchikan when a car slides down an icy side road and into your new $40,000 car, totaling it and leaving you with a $75,000 hospital bill. The other driver’s insurer would have to pay $25,000 toward the car and $50,000 for your medical bills, assuming the other driver has minimum coverage.

Cheapest state-minimum required car insurance in Alaska

The below rates in Alaska are estimated rates current as of: Wednesday, September 30 at 5:00 PM PDT. 

Insurance Company	Average Monthly Quote
State Farm	$70
GEICO	$72
USAA	$78

Disclaimer: Table data sourced from real-time Alaska car insurance quotes from Insurify's 500+ partner insurance providers and quote estimates from Quadrant Information Services. Actual car insurance quotes in Alaska may vary based on the policy buyer's unique driver profile.

Alaska car insurance laws and related programs

Alaska is an at-fault state, which means the at-fault driver’s insurance company pays the claim, up to policy limits. Drivers who can’t find coverage because of their driving records might be able to get an insurer assigned to them through the Alaska Automobile Insurance Plan.^[6]

Alaskans older than 55 can qualify for mandatory premium discounts by taking a driver’s education course approved by the Alaska Division of Motor Vehicles. The discount lasts for three years after course completion.^[7]

Keep in mind that if your insurance claim for injuries and property damage doesn’t cover the full costs, you might be able to sue for those additional amounts. Alaska’s statute of limitations gives you two years to file your suit.^[8]

Drivers in certain remote areas of Alaska are exempt from having to register their cars and carry insurance, because of the lack of traffic. The state releases a list every year for residents to check if they need insurance.

Penalties for driving without insurance in Alaska

Failing to carry proof of insurance and maintain coverage can result in stiff penalties, according to the Alaska Department of Motor Vehicles (DMV). This includes:

• Mandatory $500 fine for each conviction

• License suspension of at least 90 days for a first offense within 10 years

• License suspension for at least one year for a second or subsequent offense within 10 years

• Impoundment (in Anchorage only)

• Restriction from collecting noneconomic losses, such as pain and suffering in an accident that occurred while you were driving without insurance

If your license reinstatement is conditional upon submitting an SR-22 certificate of insurance, you’ll typically need to submit the policy binder or application for the binder within 30 days of license reinstatement, and maintain your SR-22 insurance for three years. Your insurer will notify the Alaska DMV if your policy lapses.

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Other car insurance coverages worth considering in Alaska

Alaska’s minimum liability insurance leaves you to pay the full cost of your own medical bills and property damage. Add one or more of the following coverage options for better protection:

• 

  Uninsured/underinsured motorist

  Covers your injuries and damage caused by a driver with no insurance or insufficient insurance, or who can’t be identified. This offsets the risk posed by Alaska’s high number of uninsured/underinsured motorists.

• 

  Collision

  Covers your vehicle, up to its market value, in an at-fault accident. It can be useful if you drive on congested roadways such as Knik-Goose Bay Rd. or in snowy/icy conditions.

• 

  Comprehensive

  Covers damage caused by mishaps other than car accidents. Consider it if you drive where moose crossings are common.

• 

  Roadside assistance

  Pays for towing and other emergency road services if you break down.

• 

  Personal injury protection (PIP)

  Covers your medical expenses, lost wages, and household services.

Alaska car insurance requirements FAQs