Alaska Car Insurance

While many people think of Alaska as a vast and barren tundra, residents know it’s pretty much paradise in the summer and full of adventure year round. With its great distances and remote towns, Alaskans rely heavily on their cars and trucks to survive, and with so much riding on one’s livelihood, car insurance is essential to Alaskans’ lifestyle. To make understanding and navigating the territory of auto insurance easier for the farflung people of Alaska, The Simple Dollar has put together an easy guide for all things related to car insurance across The Last Frontier.


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Stats in Your State

To compare the price of auto insurance in Alaska along with the rest of the Northern states and the U.S. in general, read through the graphs and charts compiled below. You’ll find useful information to help you understand how your premiums compare with Alaska’s average car insurance costs.

Auto Insurance Premiums

The harsh winters of the North contribute to difficult road conditions and dangerous highways, whiteouts, and other hazards, not to mention the abundant wildlife roaming across Alaska’s roads. All of these caused Alaska car insurance rates to be higher than the national average between 2000 and 2008.

Traffic Fatalities over time

Alaska’s low population made its traffic fatalities number in the double digits between 2005 and 2011, with no distinct trend across the years.

Auto Repair Costs

Alaska residents, often characterized by their durable transportation, have historically paid much less for auto repairs than the rest of the country. In 2010, the average Alaska car owner paid $339.06 for repairs, nearly $17 less than nationwide drivers. This gap was narrowed in 2011, but Alaskans still paid about $5 less than the average American for vehicle repair expenses.

Rules in Your State

Whether you’re navigating your way from Juneau to Anchorage or all the way out to the Arctic Circle, you’ll need to know the rules in Alaska for insurance, DUIs, and new drivers. The Simple Dollar has compiled this information and broken it down so drivers can easily check to make sure they’re in compliance with Alaska’s laws.

Alaska Minimum Required Car Insurance

Minimum Limits for Liability Insurance:

  • $50,000 of bodily injury or death to another person in one accident
  • $100,000 of bodily injury or death of two or more people in one accident
  • $25,000 of injury to or destruction of property of others in one accident.

If you’re asking yourself, “Is Personal Injury Protection required in Alaska?,” the answer is no. Medical coverage for auto insurance is not required by Alaska state law, but many drivers choose to buy the additional coverage to pay for their injuries in case of a serious accident.

Required Proof of Insurance for Alaska Drivers

You must carry a card issued by your insurer with the following information on it:

  • Name of insurance company
  • Insurance policy number
  • Effective date and expiration date of policy
  • Accurate description of the year, make and model of a registered vehicle
  • Name of insured driver

Alaska Licensing Facts for New Drivers: Alaska’s Graduate License

The learner’s permit age for Alaska drivers is 14 years old, which means a large portion of Alaskan teens are getting behind the wheel of their family’s car or truck a whole year ahead of the rest of the country’s population. Keeping your teen in line with state regulations is essential to making sure their transition to a full license is steady and safe.

Hardship License for Minors?

Learner’s Permit Age:
14 years old. New teen drivers must log at least 40 hours of practice, must hold their permit for at least 6 months, and must reach age 16 before they may apply for their license.

Restricted License Age:
16 years old. At age 16, new drivers are allowed to have a restricted license. This means they are not allowed to have passengers under the age of 21 for the first six months, and no driving between 1:00 am and 5:00 am for the first six months, or until they reach age 18, whichever comes sooner.

Full License (Unrestricted) Age:
16 years, 6 months.

Unfair Claims Settlement Acts or Practices

The Alaska State Legislature defines specific unfair claims practices for Alaska insurers, and prohibits insurers from using such practices in insurance settlements with their customers or claimants. If you suspect your insurer has been using underhanded practices against you, use the consumer complaint resource below to file a complaint.

Standards for settlements of motor vehicle claims

In addition to listing the prohibited practices, the state legislature sets forth the standards for fair settlements of motor vehicle claims. Read through them to better understand the technical side of how your insurance claim should be handled.


The long winters in Alaska contribute to a high incidence of alcoholism, which in turn makes drunk driving a serious concern for Alaskan residents. The DUI laws for Alaska are listed below.

Administrative license suspension 1st offense? 90 days
Restore driving privileges during suspension? Limited driving privileges may be restored after 30 days if the driver demonstrates special hardship.
Are ignition interlocks mandatory for first offenders for the following offenses? Yes
Are ignition interlocks mandatory for repeat offenders for the following offenses? yes
Fine for first offense? Minimum $1,500
Jail sentence for first offense? 3 days

Representatives & Resources in Your State

While Alaskans can often rough it and survive just fine on their own, sometimes we all need assistance from a government resource to help with a claim, or simply to learn more about Alaska car insurance. The resources below provide paths to reliable information from government agencies.

Alaska Division of Insurance
9th Floor State Office Bldg.
333 Willoughby Avenue 99801
Juneau, Alaska 99811-0805
(907) 465-2515
Get Directions
Consumer Complaint Resource
If your insurer has been unfair, is attempting to deny your claim, or is making your claim very difficult, you should consider filing a complaint against them through the Division of Insurance. The link above makes this process easy for consumers.
Consumer Guide to Choosing an Insurer
The Department of Insurance has provided a general guide for consumers to compare different Alaska insurance companies and choose a plan that’s right for them.
Alaska Consumer Guide to Auto Insurance Premiums Comparison Guide
Comparing car insurance premiums in Alaska is simple and straightforward with the Alaska Department of Insurance premiums comparison guide.

Alaska DMV
Alaska Department of Administration (ADOA): Division of Motor Vehicles
State of Alaska
Division of Motor Vehicles
1300 W Benson Boulevard, STE 900
Anchorage AK 99503-3696
Get Directions

National Association of Insurance Commissioners
The NAIC provides general information and data about the insurance industry across the U.S. Since insurance is regulated at the state level, though, it’s best for consumers to rely on state specific resources for detailed information about insurance.