Car Insurance in Alaska

Posted & filed under States.

Alaska QuarterAlaska Auto Insurance Requirements

Reviewed by Dr. Christine Berry

Every driver in Alaska is legally required to be covered by a current auto insurance policy. Minimum coverage requirements in Alaska are somewhat higher than other states, partially due to the high cost of living in the state. The State of Alaska Division of Insurance requires that motorists have the following minimum coverage on every vehicle:

Table Showing Alaska Car Insurance Minimum Requirements - 2012
(Source: The State of Alaska Division of Insurance)

Motorists who are unable to obtain automobile insurance from a private insurer may be eligible for coverage under the Alaska Automobile Insurance Plan. The plan assigns applicants to private insurance companies doing business in Alaska. For more information, call AIPSO at 1-800-227-4659.

Drivers who do not carry a valid state insurance card face civil fines and suspension of driver’s license up to 90 days for a first offense, and must present proof of coverage prior to reinstatement.

Factors Influencing Car Insurance Premiums in Alaska

Alaska offers residents the option of excluding family members from an auto insurance policy. If one family member has a poor driving record, it could affect the auto insurance premiums for the whole family. 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”.

Finding cheap car insurance in Alaska tends to be easier than in most states, as Alaska ranks fairly low in average car insurance costs. While there are a variety of factors that go into underwriting auto insurance, Alaska insurance laws give good drivers the opportunity to qualify for cheap car insurance in comparison to other states. The average auto insurance premium for residents in Alaska is $897, which is more expensive than most other states.

Tips for Obtaining Cheap Car Insurance in Alaska

  • Use Alaska’s “named driver exclusions” – if one family member has a particularly bad driving record, consider dropping their coverage
  • Take an “accident prevention course” – Alaska law requires companies to give a discount to any primary driver who is over age 55 and who voluntarily completes a motor vehicle accident prevention course approved by the Division of Motor Vehicles
  • Ask about discounts for anti-theft devices
  • Insure all motor vehicles (boats, snow machines, etc.) with the same carrier

Alaska Statistics

Auto Theft: Alaska enjoys one of the lowest rates of auto theft in the nation, and the rate has been decreasing consistently over the past 15 years:

Chart Showing Declining Trend in Per Capita Auto Theft in Alaska from 1996 to 2010         Chart Showing Decline in Overall Auto Theft in Alaska from 1996 to 2010

Table Showing Alaska Auto Theft Statistics from 1996 to 2010
(Sources: Alaska Department of Public Safety, Crime Reported in Alaska annual reports; U.S. Census Bureau)

Automobile Accidents: The total vehicle miles traveled in Alaska have remained fairly constant in recent years, as have the number of deaths in car crashes.  The number of auto fatalities has remained essentially flat over the past several years, but is on a slight downward trend.

Table of Automobile Fatality Rates in Alaska from 2006 through 2010

(Source: National Highway Safety Traffic Administration)

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