ALASKA CAR INSURANCE REQUIREMENTS

Alaska law requires that the owner of a vehicle must maintain liability insurance in effect that provides for the following minimum amounts: $50,000 for bodily injury or death of any one person, $100,000 for bodily injury or death for any accident, and $25,000 for property damage. Failure to have liability insurance in effect may result in suspension of a driver's license. A driver is required to certify that there is a policy in effect, as required by law.

MANDATORY CAR INSURANCE AND FINANCIAL RESPONSIBILITY NOTICE
If the actual or estimated damages of any one person’s property involved in the crash exceeds $501.00, or if there is any personal injury or death, you are subject to the Alaska mandatory insurance and financial responsibility laws.
The mandatory insurance laws require you to file proof of insurance with the State of Alaska. Failure to do so will result in the suspension of your driver’s license.
The financial responsibility laws require a person to show financial responsibility by one of the following methods:
 (1) an automobile liability insurance policy in effect at the time of the crash
 (2) a release of liability
 (3) a settlement agreement and proof of future financial responsibility (SR22 insurance)
 (4) a deposit of security and proof of future financial responsibility (SR22 insurance)
 (5) a finding of no liability by the court in a civil action (a finding of not guilty of a traffic citation does not apply).

Failure to show financial responsibility by one of the listed methods will also result in the suspension of your driver’s license for a period of 3 years if there is a possibility you are liable.

After any suspension you must show future financial responsibility (SR22 insurance), and pay a reinstatement fee of $100.00 to $500.00, in addition to the fee for the license being requested, to have your driving privileges restored. A notice of suspension returned by the post office because of an incorrect address on your driver license or DMV records will not invalidate the suspension if the notice was mailed to the last address you provided to DMV.

Mandatory Insurance Suspension

Alaska has both Mandatory Insurance and Financial Responsibility laws. The purpose of these laws is to ensure that drivers and owners of vehicles using the streets and highways are financially responsible for any damage or injury caused by motor vehicle collisions and to remove financially irresponsible drivers from the highways.

The AK mandatory auto insurance law requires the operator or owner of a motor vehicle subject to registration to have motor vehicle liability insurance in effect when the vehicle is driven on a highway, vehicular way or area, or other public property in the state. The owner's or driver's motor vehicle liability insurance policy must meet the minimum coverage amounts required by law.

A driver who has been involved in a collision, regardless of fault, is required to show proof of motor vehicle liability insurance if the collision resulted in personal injury or death, or damage to property exceeding $500.00. A driver may show proof by completing the Certificate of Insurance form provided by the investigating police office at the collision scene. The form is also available from any Division of Motor Vehicles Office.

The Division of Motor Vehicles must suspend the driver's license, privilege to drive or privilege to obtain a license of drivers who fail to provide proof of liability insurance. The suspension period can be 90 days to 1 year depending on prior license actions. The license suspension will occur even if the driver is not at fault in the collision.

A person may apply for a limited work purpose license during the suspension period. The application for mandatory insurance limited license may be obtained at any Division of Motor Vehicle Office. There is not a fee for this specific type of limited license due.

Drivers must reinstate their privilege to drive at the end of their suspension period.

A person's license may also be suspended for non-compliance with the Financial Responsibility law.