Alaska Auto Insurance: Liability Coverage Explained
In Alaska, drivers are required to carry auto insurance to legally operate a vehicle. State law mandates minimum liability insurance to cover bodily injury and property damage if you are at fault in an accident.
State Liability Requirements
Required Liability Coverage:
- $50,000 bodily injury liability per person
- $100,000 bodily injury liability per accident
- $25,000 property damage liability per accident
Uninsured Motorist Coverage: 50/100
Personal Injury Protection (PIP): $2,500
Alaska Auto Insurance – State Minimum Requirements
Yes, the state requires all drivers to carry at least 50/100/25 liability coverage to drive legally. This means your policy must include:
- $50,000 for bodily injury per person
- $100,000 for bodily injury per accident
- $25,000 for property damage
Can You Increase Your Liability Coverage in Alaska?
Yes! While Alaska’s state minimum auto insurance is set at 50/100/25, many drivers choose higher Alaska auto insurance coverage for stronger protection.
Many Alaskans also add optional coverages for extra peace of mind, such as:- Uninsured/Underinsured Motorist (UM/UIM): Covers costs if you’re hit by a driver with no insurance or too little coverage.
- Medical Payments (MedPay): Helps pay for medical expenses, regardless of who is at fault.
Why Is Liability Insurance Important?
Liability insurance is more than just a state requirement. It provides essential protection for drivers in Alaska. Here are three key reasons why carrying liability coverage matters:
- Legal Requirement: Driving without insurance can result in fines, license suspension, or legal action.
- Financial Protection: If you’re at fault in an accident, liability insurance helps cover medical bills and property damage.
- Avoid Lawsuits: Without proper coverage, you could be sued and forced to pay out-of-pocket.
Need Affordable Auto Insurance in Alaska?
Make sure you’re covered! Get a free Alaska car insurance quote today and compare the best rates available.
State Minimum Liability Insurance: 50/100/25
| Coverage Type | Requirement |
|---|---|
| Liability Insurance (BI/PD) | Required (50/100/25) |
| Uninsured/Underinsured Motorist (UM/UIM) | Not Required |
| Medical Payments (MedPay) | Not Required |
| Personal Injury Protection (PIP) | Not Required |
Note: Uninsured/Underinsured Motorist and Medical Payments are optional coverages the State of Alaska offers.
If you choose to opt out of these additional coverages, you must sign a rejection form.
Otherwise, they will automatically be added to your liability insurance policy in Alaska, as required by law.
Alaska Auto Insurance: Cost For Liability Only (By City)
| City | Average Monthly Price |
|---|---|
| Susitna North | $106 |
| Farm Loop | $98 |
| Sterling | $99 |
| Dillingham | $104 |
| Anchorage | $95 |
| Sutton-Alpine | $97 |
| Chevak | $98 |
| Kenai | $93 |
| Big Lake | $110 |
| Tok | $99 |
| Gateway | $95 |
| Juneau | $103 |
| Soldotna | $91 |
| Ester | $86 |
| King Cove | $88 |
| Point MacKenzie | $107 |
| Deltana | $86 |
| Utqiagvik | $93 |
| Ketchikan | $102 |
| Seward | $110 |
Will Alaska’s State Minimum Auto Insurance Cover You?
Alaska has some of the highest minimum liability insurance requirements in the U.S. Drivers must carry 50/100/25 coverage, meaning:
- $50,000 per person for bodily injury
- $100,000 per accident for bodily injury
- $25,000 for property damage
In comparison, some states require as little as 10/30/10, which offers significantly less protection.
Is the Minimum Liability Coverage Enough?
While Alaska auto insurance at state minimum limits may be cheaper, it often isn’t enough to cover the costs of a serious accident.
When Should You Increase Your Liability Limits?
Increasing your liability coverage makes sense if you have higher financial risks or drive often in Alaska. Here are some situations where higher limits are recommended:
- Homeowners and high-asset individuals: If you own a home or valuable assets, raising your coverage to 100/300/100 or 250/500/250 can help protect you from lawsuits.
- Frequent drivers: The more time you spend on the road, the higher the chance of being in an accident.
- Concern about medical costs: Medical bills and repair expenses can easily exceed state minimums.
Find the Right Auto Insurance Coverage in Alaska
Want extra protection beyond Alaska’s minimums? Get a free Alaska auto insurance quote today and compare rates for affordable coverage.
Is Alaska a No-Fault State? Understanding Alaska Auto Insurance
No, Alaska is not a no-fault state. Instead, Alaska follows a tort-based insurance system, meaning that the driver responsible for the accident must pay for damages. If you’re injured in a crash caused by another driver, you have the right to sue for medical expenses, lost wages, and other damages that their insurance may not fully cover.
How Fault Works in Alaska Auto Accidents
- At-fault driver pays: The driver found responsible for the accident is liable for medical expenses and property damage (up to their insurance limits).
- State minimum coverage may not be enough: Alaska requires 50/100/25 liability limits, but damages can exceed these amounts. If the at-fault driver has only the minimum coverage, their insurance may not fully cover your losses.
- You can be sued for additional costs: If your liability coverage is too low, you could be held personally responsible for damages beyond your policy limits.
Why Higher Liability Limits Matter in Alaska
Find the Right Auto Insurance in Alaska
If you’re involved in an accident where the other driver’s coverage isn’t enough, you might be left paying out-of-pocket. Consider increasing your limits to 100/300/100 or higher to protect yourself from unexpected costs.
Make sure you have enough coverage to protect yourself on the road. Get a free Alaska car insurance quote today and compare your options!
Alaska Auto Insurance: Who Has the Lowest Liability Price? (By City)
| City | Company |
|---|---|
| Delta Junction | National General |
| Funny River | Geico |
| Deltana | Progressive |
| Willow | The General |
| Ester | Progressive |
| Nikiski | The General |
| Ketchikan | Geico |
| Point MacKenzie | Progressive |
| Hooper Bay | Progressive |
| Palmer | Progressive |
| Kotzebue | The General |
| Gateway | Geico |
| Butte | The General |
| Kalifornsky | The General |
| Metlakatla | Farmers |
| Bear Creek | Progressive |
| Fritz Creek | Progressive |
| Sterling | Progressive |
| Haines | Progressive |
Alaska Auto Insurance – Optional Coverages
While Alaska law only requires 50/100/25 liability coverage, many drivers choose to add optional coverages for extra protection. If you’re financing a vehicle, your lender may also require full coverage insurance to protect their investment.
What Optional Coverages Are Available in Alaska?
- Comprehensive Coverage – Pays for non-collision damage, such as theft, fire, vandalism, or weather-related incidents.
- Collision Coverage – Covers repairs or replacement of your vehicle after an accident, regardless of fault.
- Uninsured/Underinsured Motorist (UM/UIM) – Protects you if you’re in an accident with a driver who has no insurance or too little coverage.
- Medical Payments (MedPay) – Helps cover medical expenses for you and your passengers, regardless of fault.
- Roadside Assistance – Provides towing, battery jumps, and other emergency services.
- Rental Reimbursement – Covers the cost of a rental car if your vehicle is in the shop after a covered claim.
Average Cost of Full Coverage Auto Insurance in Alaska
Adding comprehensive and collision coverage increases the cost of your policy. On average, full coverage auto insurance in Alaska costs around $1,400–$1,800 per year, depending on factors like your driving record, vehicle type, and location.
Get the Right Auto Insurance in Alaska
| Company | Average Monthly Price |
|---|---|
| State Farm | $179.00 |
| Geico | $186.00 |
| Allstate | $163.00 |
| USAA | $158.00 |
| Liberty Mutual | $158.00 |
| Farmers | $168.00 |
| Nationwide | $183.00 |
| American Family | $171.00 |
The average cost for full coverage car insurance in Alaska falls between $158 and $186 per month, depending on the company and driver profile.
Need full coverage car insurance or extra protection beyond the state minimum? Get a free Alaska car insurance quote today and compare your options!
Drivers may choose additional coverages such as Uninsured Motorist and Medical Payments, which are still considered part of liability insurance. If a vehicle is being financed, lenders may require full coverage, which includes Comprehensive and Collision protection.
Other optional coverages that can provide extra peace of mind on an auto insurance policy include:
- Roadside Assistance – Helps with towing, battery jumps, or lockouts.
- Rental Reimbursement – Pays for a rental car while your vehicle is being repaired after a covered claim.
- Gap Insurance – Covers the difference between your vehicle’s loan balance and its actual cash value if it’s totaled.
Average Cost of Liability Insurance in Alaska
Wondering how much liability insurance costs in Alaska? Rates vary based on your driving history, age, and location. Below is a breakdown of the average costs for both low-risk drivers and those with violations.
What Affects Your Liability Insurance Cost in Alaska?
- Driving History – A clean record leads to lower rates, while tickets or DUIs increase premiums.
- Age & Experience – Younger drivers typically pay more due to higher risk.
- Location – Urban areas like Anchorage may have higher rates than rural parts of Alaska.
- Coverage Limits – Increasing your liability limits beyond 50/100/25 will raise your premium but provide better financial protection.
Find Affordable Liability Insurance in Alaska
Looking for cheap liability insurance in Alaska? Compare rates from top providers and get a free quote today to see how much you can save!
| Low End Cost for Liability | High End Cost for Liability |
|---|---|
| $110.00 | $180.00 |
| $80.00 | $145.00 |
| $110.00 | $180.00 |
| $100.00 | $145.00 |
| $110.00 | $180.00 |
| $110.00 | $180.00 |
| $110.00 | $180.00 |
| $110.00 | $180.00 |
| $90.00 | $145.00 |
All Insurance companies are able to offer various prices for their drivers because of discounts, driving history, and their preferred business. For example, some Insurance companies specialize in ‘high risk’ drivers, and are able to offer cheaper prices for those drivers than other companies may be able to.
Some Insurance companies prefer drivers without any violations and may give discounts for paying in full, and bundle products with their auto to get them cheaper prices.
Alaska Auto Insurance Cost for Female Drivers
Insurance prices are determined by several ‘rating factors’, one being Gender. Female drivers are proven to be safer, and result in fewer accidents. Insurance companies do not pay out as much in claims for female drivers, which in return gives females cheaper insurance prices.
Insurance prices are determined by several ‘rating factors’, one being Gender. Female drivers are proven to be safer, and result in fewer accidents. Insurance companies do not pay out as much in claims for female drivers, which in return gives females cheaper insurance prices.
| Carrier | Average Cost |
|---|---|
| 21st Century | $131 |
| Dairyland | $133 |
| Mendota Ins. Company | $133 |
| Acceptance RTR | $135 |
| AssuranceAmerica | $140 |
| Progressive Insurance | $142 |
| GAINSCO | $149 |
| Geico | $151 |
| National General | $151 |
| The General | $156 |
Liability Insurance in Alaska – How to maximize your discounts and lower your insurance premium
Insurance companies are able to offer a wide array of insurance discounts, even on liability-only policies. There are several discounts such as paperless, auto pay discount, accident-free discounts, safe driver discounts, bundling discounts, and so many more!
It is important to check several insurance companies while looking for cheap liability insurance in Alaska, to ensure you are getting the best price and the best discounts! The more discounts you are eligible for, the more money you will save on your liability insurance policy.
Alaska Auto Insurance: Should I Upgrade To Full Coverage? Cost By City
| City | Price |
| Sand Point | $180 |
| Salamatof | $151 |
| Craig | $160 |
| King Cove | $175 |
| Knik-Fairview | $164 |
| Hooper Bay | $162 |
| Chevak | $175 |
| Susitna North | $146 |
| Ridgeway | $167 |
| Badger | $148 |
| Sterling | $148 |
| Fishhook | $180 |
| Seward | $179 |
| Nikiski | $148 |
| Wasilla | $180 |
| Soldotna | $148 |
| Meadow Lakes | $171 |
| Nome | $156 |
| Cordova | $155 |
| Funny River | $181 |
| Homer | $146 |
| Nunapitchuk | $175 |
| Dillingham | $176 |
| Valdez | $162 |
| North Pole | $155 |
| Cohoe | $159 |
| Palmer | $155 |
| Steele Creek | $172 |
| Skagway | $162 |
| Healy | $155 |
| Diamond Ridge | $146 |
| Savoonga and Buffalo Soapstone | $158 |
| Tok | $173 |
| Big Lake | $168 |
| Tanaina | $174 |
| Kenai | $180 |
| Petersburg | $178 |
| Ketchikan | $169 |
| Sutton-Alpine | $179 |
| Gateway | $179 |
| Unalaska | $171 |
| Sitka | $163 |
| Fritz Creek | $165 |
| Talkeetna | $165 |
| Kodiak Station | $169 |
| Lazy Mountain | $175 |
| Farmers Loop | $150 |
| Haines | $150 |
| Houston | $169 |
| Fairbanks | $162 |
| Anchor Point | $182 |
| Chena Ridge | $170 |
| Juneau | $178 |
| Salcha | $157 |
| Wrangell | $171 |
| Point MacKenzie | $149 |
| Bethel | $171 |
What types of auto insurance are common in Alaska?
Auto insurance in Alaska generally includes:
Liability coverage
Personal injury protection (PIP)
Uninsured / underinsured motorist coverage
Collision coverage
Comprehensive coverage
These help Alaskan drivers protect themselves, their vehicle, and others in various accident scenarios.
Source: Alaska Division of Insurance
What is required for auto insurance in Alaska?
Alaska law requires drivers to carry minimum liability insurance limits of $50,000 bodily injury per person, $100,000 bodily injury per accident, and $25,000 property damage liability.
Drivers must carry proof of motor vehicle liability insurance at all times and present it on demand.
Why choose our services for Auto Insurance in Alaska?
Our Alaska-based agency delivers personalized auto insurance solutions, competitive rates, and dedicated service tailored to each vehicle owner’s situation. Let us help you compare policy options, get an online or phone insurance quote, and manage your policy service from A to Z.
What We Do at A Plus Insurance
Homeowners, renters, and mobile home owners: make sure you have the protection you need.
OTHER HELPFUL LINKS: SUGGESTIONS
| Additional Alaska Insurance |
|---|
| More Information on Juneau, AK Insurance |
| Motorcycle Insurance Guide | Alaska |
| SR22 Insurance | Alaska |
| Progressive Insurance in Alaska |
Last Updated on by Brian Muse