Updated: December 10, 2024
Advertising & Editorial Disclosure
Alaska's minimum car insurance requirements are 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 of state minimum car insurance is $43. Choosing the cheapest car insurance in Alaska helps you stay legal while saving money.
Why Trust MoneyGeek? We analyzed data from Quadrant Information Services and the Alaska Division of Insurance to get the most accurate cost data for various Alaska drivers.
These rates reflect the cost of minimum coverage car insurance requirements in Alaska as of December 2024.
Alaskan drivers must have a minimum car insurance coverage to drive legally. The state minimums are as follows:
Alaska is a fault state, so minimum coverage protects drivers from financial burdens if they cause an accident. This impacts car insurance premiums in the state.
Alaska doesn't mandate collision and comprehensive coverages as part of its minimum car insurance requirements. However, lenders typically require collision and comprehensive insurance to protect their investment when financing or leasing a vehicle. These policies cover damage outside of accidents, such as weather damage, theft or animal collisions, which are relevant in Alaska’s varied terrain and conditions.
Drivers financing or leasing a car in Alaska typically need collision or comprehensive insurance. It's also a smart choice for owners of valuable vehicles.
What Liability Insurance Covers | What Liability Insurance Doesn't Cover |
|---|---|
Injuries to others if you're at fault in an accident | Your injuries |
Damage to another person’s property if you're at fault in an accident | Damage 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.
Age significantly impacts minimum car insurance rates. In Alaska, drivers aged 22 to 29 pay the highest premiums because insurers view them as higher risk due to less experience and a greater chance of accidents.
The table below shows Alaska's average cost of minimum coverage by age group, helping you find the most affordable option for your age.
| 22-29 | $605 | $50 |
| 30-59 | $517 | $43 |
| 60 + | $557 | $46 |
In Alaska, drivers can secure minimum coverage insurance at the most competitive rates from:
When searching for the best car insurance in Alaska, it's equally important to choose a policy that aligns with your coverage needs.
| Progressive | $422 | $35 |
| Umialik Insurance | $501 | $42 |
| State Farm | $508 | $42 |
| GEICO | $521 | $43 |
| Allstate | $636 | $53 |
Alaskan drivers can boost their protection with optional coverages like comprehensive, collision, uninsured/underinsured motorist, and medical payments coverage. These aren't required by law but offer extra security for repairs, injuries, and damages caused by underinsured drivers. Understanding how much car insurance you need helps you decide if these add-ons are worth it.
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're at fault or damage that exceeds 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 damage from events like theft, fire or hail | Damage 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 |
The cost of driving without insurance in Alaska varies based on your 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:
Follow Alaskan law by maintaining minimum coverage insurance to avoid severe penalties. Staying insured keeps you legal and protects you on the road.
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 Division of Motor Vehicles (DMV) will become aware of a lapse in insurance coverage through its monitoring systems. You could face license suspension or fines if 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 required state minimum car insurance. Secure coverage promptly to maintain legal driving status.
Your car insurance policy in Alaska may have been canceled due to a few reasons:
Find answers to common questions about Alaska's minimum car insurance requirements, which you must have to drive legally.
Alaska requires minimum auto insurance coverage of $50,000 for bodily injury per person, $100,000 per accident and $25,000 for property damage per accident. Ensure your policy meets these standards to stay legally and financially protected. Optional coverages like uninsured/underinsured motorist coverage offer extra protection and can be discussed with your insurer.
Alaska requires minimum automobile liability coverage to help cover the costs of damage or injuries you may cause in an accident. This financial responsibility protects both the at-fault driver from lawsuits and the victims by providing baseline compensation for their losses.
In Alaska, comprehensive insurance isn't legally required for 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. Also, lenders may require comprehensive insurance if you're financing or leasing your vehicle to safeguard your investment.
Driving uninsured in Alaska carries serious consequences. Offenders may face fines of up to $500, license suspension for up to a year and vehicle impoundment. Repeat offenses can lead to harsher penalties. Also, uninsured drivers are personally responsible for all costs of accidents 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.
