Alaska requires every driver to carry auto insurance. The minimum requirement for Alaska drivers is $50,000 per person for bodily injury, $100,000 per accident for bodily injury, and $25,000 per accident for property damage liability. All coverages are limited to the terms and liabilities of your auto insurance company, so be sure to speak with one of their representatives and clarify the terms of each offered coverage.

Bodily injury liability: If you are at fault in an accident, bodily injury coverage will cover the other party’s injuries, death, loss of wages, and pain and suffering costs up to the purchased limit. However, it does not cover the injuries, death, loss of wages, and pain and suffering costs of you or anyone else on your policy. You will need to additionally purchase Medical Payment coverage for your policy or use your own health insurance if you want assistance paying any medical costs for yourself and/or your dependents. In the event you are sued by the other party, bodily injury liability will also cover the expense of your auto insurance company representing you in court.

Property damage liability: When you cause accidental damage to another person’s property — be it a car, fence, pole, wall, etc — with your vehicle, property damage liability will cover the cost of repairing the damaged property. Property damage liability will also cover any legal costs that may ensue from the accident. Any additional costs exceeding your coverage amount could leave you paying for repairs out of pocket or by liquidating any assets you currently hold. If you want coverage of your own vehicle’s damage in an accident, you will need to purchase Collision coverage.

Alaska operates under a tort auto insurance system; it does not acknowledge the no-fault system. This means in the state of Alaska by law the at-fault driver in an accident and their auto insurance company are responsible to pay for the medical expenses and property damage of the other motorist in addition to possibly compensating for additional damages, i.e. pain and suffering and/or loss of wages. Take this law into consideration when deciding how much coverage you want to purchase for your auto insurance policy, making sure to protect yourself from having to pay out of pocket if you or one of your dependents are ever in this situation.

You must show proof of insurance any time you are pulled over for a traffic stop by a state officer or in the event of an accident. If you are in an accident, you will be required to show proof of insurance if there was any personal injury, death, or if the damage done to any property exceeds the amount of $500. Lack of auto insurance in either scenario will result in a suspension of your driver’s license for 90 days to one year, depending on your prior driving record. Note that even if you are not at fault for the accident, your driver’s license will be suspended upon failure to produce proof of auto insurance.

Alaska Auto Insurance Requirement Chart:

• Bodily Injury Liability: $50,000/$100,000 Limit
• Property Damage Coverage: $25,000 Limit

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