All vehicles registered in Alaska are required to have car insurance to protect drivers in the event of an accident. Basic knowledge of these requirements will help drivers avoid fines and penalties, stay safe while driving, and find the right car insurance.
Average cost of car insurance in Alaska
The National Association of Insurance Commissioners (NAIC) claim that the average person pays roughly $889.28 for car insurance in Alaska each year.
They broke this figure down to:
$550.04 is the average annual liability insurance expenditure.
$361.42 is the average annual collision insurance expenditure.
$141.68 is the average annual comprehensive insurance expenditure.
Young Drivers in Alaska
In the Land of the Midnight Sun, young drivers have higher premiums than their more experienced seniors. In our study, we discovered that a young driver can expect to pay an average of:
- $1052 for state minimum coverage1,
- $2041 for basic full coverage2 and
- $2749 for premium full coverage3.
Although in Alaska, experienced motorists primarily comprise the driving population, those new to the roads have higher risks of getting into accidents and causing collisions. This is one of the major factors that contribute to their high premiums.
Female Drivers in Alaska
For female motorists, having premium coverage can cost them just $99 per month. Those who live in Sitka, AK, with an estimated population of 8,863 (2015, latest data4) can enjoy this low monthly premium.
$538 for state minimum coverage,
$965 for basic full coverage and
$1406 for premium full coverage.
Senior Drivers in Alaska
Senior drivers boasting of a lengthy driving experience combined with good history can also expect reasonable rates in Alaska. Our study found that for senior drivers, the average premiums are:
- $468 for state minimum coverage,
- $856 for basic full coverage and
- $1272 for premium full coverage.
The methodology5 we used suggests that the more experienced a driver is, the lower his/her chances of getting involved in an accident or causing a traffic collision.
Minimum car insurance requirements
All drivers in Alaska are required to carry liability insurance for each registered vehicle as outlined in the state’s Mandatory Insurance Statues.
The minimum coverage limit for liability insurance in Alaska is $50,000/$100,000 for bodily injury/death and $25,000 for property damage.
Additional coverage is offered by most Alaska car insurance providers. It’s often a smart idea to invest in additional coverage as the minimum coverage limits sometimes don’t yield sufficient financial protection in the event of a serious accident.
Notably, liability insurance only covers damage to another person’s property and not your own. To give yourself another layer of protection, consider adding collision coverage, comprehensive coverage, uninsured motorist coverage, underinsured motorist coverage, and medical payments coverage to your car insurance package.
Remember that Alaska isn’t one of the 12 “no fault” states. It’s a tort state regarding car insurance where the driver (and their insurance provider) that is deemed responsible for the accident is required to pay for any damages.
Violations and penalties
Getting caught disobeying Alaska’s mandatory car insurance laws result in harsh penalties.
Your first violation results in a $500 fine. Each subsequent violation results in an additional $500 fine.
Your first violation also results in a 90-day suspension of your driver’s license. A one-year suspension is the result of your second violation. A third violation results in a three-year suspension.
If you’re deemed responsible for a driving accident without adequate insurance, the penalties are even more severe. You’ll immediately lose your license for up to three years and be labeled high-risk by Alaska car insurance providers in the future.
Driving safety in Alaska
Approximately 88% of drivers and front-seat passengers in Alaska wear seatbelts compared to the national average of 86%, according to the Centers for Disease Control and Prevention.
A study from the National Highway Safety Administration highlights the risks of driving under the influence, whether a seatbelt is used or not. The organization state that 22 out of 73 total driving fatalities, or 30% of the total, were caused by alcohol impaired driving.
The CDC put out another study that shows the total vehicle occupant death rate in Alaska is 5.4 per 100,000 residents.
Car insurance is required by law in Alaska. If you’re caught driving without it, you’ll face a steep penalty as well as suspension of your driver’s license.
Though the minimum liability insurance will protect you legally, it’s a smart idea to invest in more robust coverage such as collision insurance or comprehensive insurance.
|1||State minimum coverage includes the minimum liability insurance limits required in your state but excludes the following:
|2||Basic full coverage includes:
|3||Premium full coverage includes:
|4||Latest data: The U.S. census is conducted every 10 years as per requirement of the United States Constitution. The 23rd edition and the latest data is the 2010 United States Census. Source: https://en.wikipedia.org/wiki/2010_United_States_Census|
|5||Methodology: To achieve accurate results we obtained estimates for 10 cities in the state: 5 of the largest cities and 5 randomly picked smaller cities. For each city, we collected premiums for 3 levels of coverage: state minimum coverage, basic full coverage and premium full coverage. We used 3 different driver profiles for the case studies. For the young driver profile we used a 20-year-old single male or female with 1 year driving experience. Second, the profile fit that of a 35-year-old married female with 12 years of driving experience. The last profile we used in our studies is a male senior driver who was 68-year-old with 45 years of driving experience. The vehicle we used for all three driver profiles was a 2012 Honda Accord EX.|