Driving Alaska’s Dalton Highway with snow-capped peaks in the distance captures the wild, remote spirit of the state. But even in the Last Frontier, staying legal on the road means knowing the car insurance requirements for Alaska. Whether you live in Anchorage or a small rural village, this guide explains what coverage is required and the rules that make Alaska different from most states.
Alaska Liability Coverage Explained
Alaska requires all drivers to maintain liability coverage with at least:
- Bodily Injury: $50,000 per person / $100,000 per accident
- Property Damage: $25,000 per accident
This is often referred to as “50/100/25” coverage.
Alaska’s Optional Insurance Options
Alaska’s tough driving conditions make optional coverages especially valuable. Here’s what each can do for you:
- Collision: Pays for damage to your own car after a crash, whether it’s on Anchorage’s busy Glenn Highway or a snow-packed rural road.
- Comprehensive: Protects against non-crash damage, like moose collisions, falling trees, or weather-related damage common in Alaska.
- Medical Payments (MedPay): Helps cover hospital bills for you and passengers after an accident, important in remote areas where emergency transport is costly.
- Roadside Assistance: Covers towing, dead batteries, or lockouts—especially useful in Alaska where being stranded could mean being miles from the nearest town.
- Rental Reimbursement: Pays for a rental car while yours is repaired—helpful in Alaska cities with limited public transportation options.
While not required, these coverages offer extra protection against Alaska’s unique risks.
- ✔️ Minimum coverage: $50,000/$100,000/$25,000
- ✔️ Must carry proof of insurance when driving
- ✔️ Optional UM/UIM coverage must be offered by insurers
- ❌ No electronic verification system in place
- ⚠️ Fines and license suspension for uninsured driving
Unique Driving Risks in Alaska
Driving in Alaska presents challenges most drivers in the lower 48 don’t face. Insurance isn’t just a legal requirement—it’s a safeguard against high costs from unexpected hazards:
- Wildlife collisions with moose or bears
- Ice, snow, and whiteout conditions
- Remote roads with limited towing or repair services
- Long distances between towns and hospitals
These risks make it smart to consider optional coverage, even if you qualify for a rural exemption.
Can You Drive In Alaska Without Insurance?
Failure to maintain required insurance can result in the following penalties:
- Fines up to $500
- License suspension: 90 days (first offense), 1 year (repeat offenses)
- SR-22 filing required for reinstatement
- Reinstatement fees between $100 and $500
Driving uninsured in Alaska carries serious consequences. Always keep coverage active.
How To Protect Yourself If Someone Has No Insurance
This coverage isn’t mandatory, but insurers must offer it. You can reject it in writing. Minimum offer limits are:
- UM/UIM Bodily Injury: $50,000 per person / $100,000 per accident
- UM/UIM Property Damage: $25,000 per accident
Alaska Proof of Insurance
You must carry valid proof of insurance and present it during a traffic stop, vehicle registration, or accident. Acceptable forms include:
- Insurance ID card
- Self-insurance certificate (for fleets or qualifying individuals)
- Liability bond or certificate of deposit with DMV
Rural Exemptions in Alaska
Some areas of Alaska are exempt from mandatory insurance laws. To qualify:
- The community must have fewer than 500 residents
- There must be no local law enforcement presence
Even in exempt areas, liability insurance is highly recommended. If you travel to non-exempt zones, coverage is required immediately.
Real-World Example
John lives in a remote village with no police presence and fewer than 500 people. He doesn’t need to carry insurance under Alaska’s rural exemption. However, when John drives into Anchorage to visit family, he’s legally required to have proof of coverage. If stopped by law enforcement or involved in an accident, he could face fines and license suspension without it.
How Alaska Compares to Neighboring States
| State | Minimum Coverage | UM/UIM Required? |
|---|---|---|
| Alaska | 50/100/25 | Offered, not required |
| Washington | 25/50/10 | Must be offered |
| Oregon | 25/50/20 | Required |
Recent Legislative Updates
As of 2025, there are no changes to Alaska’s minimum insurance requirements. Still, drivers should monitor any pending legislation or DMV announcements for future updates.
Frequently Asked Questions About Alaska Car Insurance
Does Alaska require car insurance?
Yes, in most areas. Alaska mandates liability coverage unless you qualify for a rural exemption.
What are the minimum liability coverage limits?
$50,000 for bodily injury per person, $100,000 per accident, and $25,000 for property damage (50/100/25).
Can I drive uninsured in a rural Alaska village?
Yes, but only if the village has fewer than 500 residents and no police. Otherwise, you must carry insurance.
Does Alaska use electronic insurance verification?
No. Alaska still relies on physical proof of insurance during traffic stops or accidents.
What happens if I’m caught without insurance?
You may face fines, license suspension, SR-22 requirements, and steep reinstatement fees.
What happens if I hit a moose without comprehensive coverage?
Without comprehensive insurance, you’ll likely pay repair costs out of pocket. Collisions with wildlife are common in Alaska and can cause severe damage.
Does Alaska require SR-22 after a DUI?
Yes. Drivers convicted of DUI in Alaska must file an SR-22 and maintain it for a set period to reinstate their license.
Can I use out-of-state insurance in Alaska?
Yes, as long as it meets Alaska’s minimum coverage requirements. Always verify your policy covers you while living or driving in Alaska.