Alaska Minimum Coverage Car Insurance: Requirements and Costs (November 2024)

Name: Alaska Minimum Coverage Car Insurance: Requirements and Costs (November 2024)
Item: Alaska Minimum Coverage Car Insurance: Requirements and Costs (November 2024)
Author: Mark Fitzpatrick

Alaska's minimum coverage liability limits are 50/100/25. The average annual cost for Alaska's state minimum car insurance is about $517 or about $43 per month.

By Mark Fitzpatrick

Reviewed by Mark Friedlander

Edited by Denise Cristobal

Updated: October 29, 2024

Advertising & Editorial Disclosure

Alaska's minimum car insurance requirements mandate that drivers carry liability coverage of $50,000 for bodily injury per person, $100,000 per accident and $25,000 for property damage. As an at-fault state, Alaska requires the driver who caused the accident to use their insurance to cover the damages and injuries sustained by other parties.

The average monthly cost for state minimum car insurance in Alaska is $43. Look for the cheapest car insurance in Alaska to ensure you're compliant with the law and also financially savvy.

TABLE OF CONTENTS

Alaska Minimum Coverage Requirements
Average Cost of Minimum Coverage Car Insurance in Alaska
Cheapest Companies in Alaska for Minimum Coverage
Add-On Coverages in Alaska
Penalties for Driving Without Insurance in Alaska
FAQ

Why Trust MoneyGeek? MoneyGeek analyzed data from Quadrant Information Services and the Alaska Division of Insurance to give you the most accurate cost data for a range of Alakas drivers.

These rates reflect the cost of minimum coverage car insurance requirements in Alaska as of November 2024.

7,908Quotes Analyzed

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Alaska Minimum Coverage Car Insurance Requirements

In Alaska, drivers are required to have a minimum amount of car insurance coverage to drive legally. The state minimums are as follows:

$50,000 for bodily injury liability per person
$100,000 for bodily injury liability per accident
$25,000 for property damage liability per accident

Alaska is a fault state, which means the minimum coverage is important to protect drivers from potential financial burdens if they are at fault in an accident. This affects the premiums you pay for car insurance in Alaska.

ARE COLLISION AND COMPREHENSIVE COVERAGE REQUIRED IN ALASKA?

Alaska does not mandate collision and comprehensive coverage as part of its minimum car insurance requirements. But when financing or leasing a vehicle, lenders typically mandate that you carry both collision and comprehensive insurance to protect their investment. These policies cover damages outside of accidents, such as weather damage, theft or animal collisions, which are particularly relevant in Alaska’s varied terrain and conditions.

Ultimately, anyone financing or leasing a car in Alaska will likely need to obtain collision or comprehensive insurance, although it's also a prudent consideration for owners of valuable vehicles outright.

What Does Minimum Coverage Cover?

What Liability Insurance Covers	What Liability Insurance Doesn't Cover
Injuries to others if you are at fault in an accident	Your injuries
Damage to another person’s property if you are at fault in an accident	Damages to your car
Some coverage for injuries caused by uninsured/underinsured drivers, depending on your policy	Property damage caused by uninsured/underinsured drivers unless additional coverage is purchased
	Repairs for weather-related accidents or if you were hit by an animal

The table reflects Alaska's minimum coverage auto insurance requirements, including bodily injury and property damage coverage. Remember, the specifics of your coverage are defined by your policy's terms and conditions.

Average Cost of Minimum Coverage Car Insurance in Alaska

Age is often the most influential factor affecting the cost of minimum car insurance rates. In Alaska, young drivers aged 22 to 29 face the highest premiums because insurers perceive them as higher risk due to less driving experience, which leads to greater chances of accidents.

The table below displays the average cost of minimum coverage in Alaska for different age groups, allowing you to compare and find the most affordable option based on your age.


22-29	$605	$50
30-59	$517	$43
60 +	$556	$46

Cheapest Companies for Minimum Coverage Car Insurance in Alaska

In Alaska, budget-conscious drivers can secure minimum coverage insurance at the most competitive rates from:

Progressive: $422 per year; $35 per month
Umialik Insurance: $501 per year; $42 per month

It's equally important to choose a policy that aligns with your individual needs when searching for the best car insurance in Alaska.

Data filtered by:Results filtered by:

Age Group:

Age Group:30-59


Progressive	$422	$35
Umialik Insurance	$501	$42
State Farm	$508	$42
GEICO	$521	$43
Allstate	$636	$53

Optional Add-On Coverages in Alaska

Alaskan drivers can enhance their protection with optional add-on coverages such as comprehensive, collision, uninsured/underinsured motorist and medical payments coverage. While these are not mandated by law, they provide valuable protection against myriad incidents that go beyond state minimum coverage. Such options cover costs for repairs, injuries and damages caused by drivers with insufficient coverage. Understanding how much car insurance you need can help you make an informed decision on these beneficial add-ons.

Add-On Coverage	What It Covers	What It Doesn't Cover
Uninsured/Underinsured Motorist Coverage	Medical expenses, lost wages and repair costs if you're hit by a driver with no or insufficient insurance.	Damage to your vehicle if you are at fault or damages that exceed policy limits.
Personal Injury Protection (PIP)	Medical expenses, lost income and funeral costs for you or your passengers regardless of who's at fault.	Vehicle damage or injuries to the other driver.
Roadside Assistance	Services like towing, flat tire changes and jump-starts when your car breaks down.	Cost of parts or repairs needed after the tow.
Gap Insurance	Pays the difference between your car's current value and what you still owe if it's totaled or stolen.	Vehicle depreciation or overdue loan payments.
Rental Car Reimbursement	The cost of a rental car while your vehicle is being repaired after a covered event.	Fuel, insurance or other rental extras.
Collision Coverage	Repairs to your car after an accident, regardless of fault.	Damage due to theft, vandalism or natural disasters.
Comprehensive Coverage	Repairs to non-collision damages from events like theft, fire or hail.	Damages from a collision or personal injuries.
Towing and Labor Coverage	Towing and basic roadside assistance labor costs at the site of your vehicle's breakdown.	More extensive repairs needed at a garage.
Custom Parts and Equipment Coverage	Safeguards aftermarket enhancements like custom wheels or stereo systems.	Original parts that came with your vehicle.
Accidental Death Coverage	Offers a payout if you or a passenger dies or experiences certain injuries in a car accident.	Non-accidental death or injuries.
Classic Car Insurance	Agreed-upon values for your unique vehicle, tailored for vintage or collector cars.	Regular use like your daily commute.

Penalties for Driving Without Insurance in Alaska

The cost of driving without insurance in Alaska can vary depending on whether you have a previous record of this violation. Penalties may be more lenient for those caught the first time, while repeat offenders face harsher consequences. Additional penalties for driving without insurance in Alaska could include:

Vehicle impoundment: Your vehicle may be held somewhere, adding extra fees to retrieve it.
Suspension of vehicle registration: The state may suspend your car's registration.
License suspension: Your driving privileges may be taken away for a period.
Requirement to file an SR-22 form: You could be mandated to carry this certificate as proof of future financial responsibility.

Follow Alaskan law and drive with minimum coverage insurance to ensure your safety and avoid these severe penalties. Driving protected keeps you in line with the law and provides security on the road.

What to Do if Your Policy Is Canceled

After your car insurance policy is canceled in Alaska, immediately seek new coverage and refrain from driving uninsured to comply with state law. Negotiation or contacting an insurance agent can sometimes result in reinstating the policy or finding suitable alternatives. Driving without insurance is illegal and can result in severe penalties.

The Alaska DMV will become aware of a lapse in insurance coverage through its monitoring systems. You could face license suspension or fines if you're caught without minimum coverage. Ensure that the DMV has up-to-date insurance information to avoid these consequences.

If traditional insurance options are unavailable, Alaska drivers can explore other insurers or seek high-risk insurance pools that may offer coverage. Although Alaska does not have a state program like TexasSure, drivers must ensure they have at least the state minimum car insurance required. Secure coverage promptly to maintain legal driving status.

WHY WAS MY POLICY CANCELED?

Your car insurance policy in Alaska may have been canceled due to a few reasons:

Non-Payment of Premiums: If you fail to pay your insurance premiums on time, the company can cancel your policy.
License Suspension or Revocation: Losing your driving privileges also means losing your eligibility for car insurance.
Fraud or Misrepresentation: Providing false information or lying on your application can lead to cancellation.
Too Many Claims: Filing many claims in a short period can make you a high risk for insurers, leading to cancellation.
Violation of Policy Terms: Failure to follow the agreed-upon terms in your policy can also result in cancellation.

FAQ: Alaska Minimum Coverage Car Insurance

Here, you'll find answers to common questions about Alaska's minimum car insurance requirements, which you must have to drive legally.

What is the minimum car insurance coverage in Alaska?

In Alaska, the minimum coverage auto insurance requirements are $50,000 for bodily injury liability per person, $100,000 for bodily injury liability per accident and $25,000 for property damage liability per accident. Ensure your policy meets these legal standards to stay financially protected on the roads. Additional coverages like uninsured/underinsured motorist coverage are optional and can be discussed with your insurance provider for more comprehensive protection.

Why does Alaska require minimum automobile liability coverage for motorists?

Alaska mandates minimum automobile liability coverage to ensure that you can cover costs associated with damages or injuries you may cause in an auto accident. This financial responsibility requirement protects the at-fault driver from potential lawsuits and the victims by providing a baseline compensation for their losses.

Do you need comprehensive insurance in Alaska?

In Alaska, you are not legally required to have comprehensive insurance as part of your auto coverage. State law only mandates that drivers carry minimum coverage, which includes bodily injury liability and property damage liability. However, comprehensive insurance offers protection against non-collision incidents such as theft, vandalism or natural disasters, which could be beneficial given Alaska's unique weather conditions and wildlife.

Lenders may require comprehensive insurance if you're financing or leasing your vehicle to safeguard their investment.

What happens if you drive uninsured in Alaska?

Driving uninsured in Alaska results in serious consequences. Offenders may face fines up to $500, license suspension for up to a year and vehicle impoundment. Repeat offenses can lead to harsher penalties. Additionally, an uninsured driver is personally responsible for all costs associated with an accident they cause.

About Mark Fitzpatrick

Mark Fitzpatrick is a Licensed Property and Casualty Insurance Producer and MoneyGeek's Head of Insurance. He has analyzed the insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. He has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.

Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.

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