Alaska Auto Insurance

Requirements of Motorists under AK State Law

Everyone has an opinion about insurance. Some people believe it is a conspiracy to con hardworking people out of money. You can not imagine how much you need insurance until you something happens that you were not prepared for.

Weather its a car accident, a flu, a fire,or a theft these things happen all the time. You never know if or when something might happen to you. Don't be caught off guard by life's unpredictable events.

There are certain "requirements" that are applicable to each state and varies accordingly. We have attempted to compile all of the relevant information in to this single resource to help visitors know what is expected of them in regards to insurance.

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Alaska Car Insurance Requirements

Coverage Minimum - 50/100/25

Coverage Explanation - Car insurance coverage in Alaska must provide a minimum of $50,000 for injury liability for one person in an accident, $100,000 for all injuries in an accident, and $25,000 for property damage in an accident.

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Important Alaska Auto Insurance Laws!

1. All vehicles registered or operated in AK are required to be covered by a liability insurance policy.

2. Alaska law requires you to report to the police any accident that results in death, injury, or damages of $2,000 or more.

Important to Note:

Coverage is also provided for any person using your car with your permission. Under Alaska auto insurance law, the insurance company will also cover you and any family member living with you when you are driving a vehicle owned by someone else.

Alaska auto insurance law does not require that you purchase uninsured motorists coverage, but your insurance company is required to offer you, in writing, a variety of policy limits.

Regardless of your liability limits, you may purchase UM/UIM (underinsured/uninsured motorist) in amounts up to $1,000,000/$2,000,000 for bodily injury and $25,000 for property damage. In accordance with Alaska auto insurance law, if you do not want this coverage or if you want less coverage than your liability limits, you must state this in writing.

If you do not refuse uninsured motorist coverage in writing, it will automatically be added to your policy at the limits of your liability coverage. If you reject this coverage in writing, keep in mind that under Alaska auto insurance law, your insurer does not have to offer it to you on any renewal policy unless you request it.

Named Driver Exclusions

Before a company decides to insure you, it must consider the driving records of all members of your household. If one family member has a poor driving record, it could affect the auto insurance premiums for the whole family. Effective July 1, 1997, Alaska law gives the named insured the right to specifically exclude a family member from coverage under the insurance policy. This is referred to as a named driver exclusion.

While it may be tempting to exclude a driver with a poor driving record from your insurance policy in order to reduce the premium (for example, if the driver is a student away at college for a large portion of the year), it is important that you be aware of the risks associated with the exclusion. Once a driver is specifically excluded from the insurance policy, any damages caused by that driver will not be covered by the insurance company. In the example above where a young driver is away at college, excluding the student from the parents' insurance policy means that the student could not drive the parents' car while home on vacation without becoming an uninsured driver. Similarly, the student would run the risk of being uninsured while driving any other car, such as one belonging to a friend. If an excluded driver drives without insurance, they would not only be in violation of the law, they would be exposing themselves and the named insured to a large, uninsured, liability.

Source: Alaska Division of Insurance

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