Alaska Auto Insurance Laws, Minimums, Requirements

What mandatory insurance laws exist (ex: Must have proof of insurance with you in car, etc):

• Alaska requires that you must have a copy of your policy, certificate of self-insurance, or identification card in your immediate possession when you are driving a motor vehicle.
• If you are involved in an accident that results in bodily injury, death, or property damage exceeding $501, you will be required to show proof of insurance.
• You must carry limits of at least $50,000 per person, $100,000 per accident, and $25,000 for property damage.
• Alaska law requires that all companies make a written offer of Uninsured/Underinsured Motorists Coverage.

What is the Minimum Liability Coverage (Bodily Injury amounts per person, per accident, and property damage amounts):

If you buy automobile insurance in Alaska, your policy must include minimum liability coverage of:
 
$50,000 per person for bodily injury,
$100,000 per accident for bodily injury,
and
$25,000 for property damage

What are the Rental Car Insurance Requirements?

Alaska requires that your policy provide liability coverage at the minimum required liability limits for the use of a rental vehicle.  Your policy must extend your collision and comprehensive coverage to a rental vehicle.  If you do not carry collision and comprehensive coverage, the company must provide the option for you to purchase coverage for physical damage to a rental vehicle.

What are the rules pertaining to Uninsured/Underinsured Motorist Coverage?

Alaska law requires that all companies make a written offer of Uninsured/Underinsured Motorists Coverage.

What are the rules pertaining to the exclusion from coverage of a driver living in household?

Alaska law allows you the option of excluding a driver in your household from coverage. Your insurance company may request that you do this if a driver on your policy has proven to be a greater risk than the other covered drivers.  You may have a young driver away at school without a vehicle and may exclude them from coverage in an effort to lower the cost of your policy.  Before excluding a driver from your policy, you may want to determine if there are less restrictive ways of removing someone from your policy. While a driver is excluded under your policy, they have absolutely no liability coverage, but you may still have a liability exposure.

What are the rules regarding whether a driver has prior insurance? That is, how does state law handle it if a driver has no prior insurance or has let their previous insurance lapse?

In Alaska, if you currently have an automobile insurance policy or have had a policy in the past, you will need to provide the name of the company, the dates you were insured, and the liability coverage limits you carried.  Some companies will offer you a better price if you have carried liability limits higher than the minimum required limits.  If you have not owned a vehicle, were not legally required to carry insurance, and have not violated the Alaska Mandatory Insurance Act, lack of prior insurance coverage may not be considered as a factor. 

What are the rules and guidelines auto insurance companies must follow regrading the use of Personal Credit History in selecting applicants and setting rates?

You may be asked to provide information regarding any bankruptcy, judgments, or credit problems.  The insurance company may also ask your permission to obtain a credit report or will disclose to you that an insurance score will be used to complete the premium quote.  An insurance score is a number or rating that is based in whole or in part on a consumer’s credit history. Alaska law allows insurers to consider credit information in the selection of applicants and setting of rates.  Recent changes to Alaska law set limits on the types of credit information that may be used, what consideration it may be given, and how often it may be considered.  

Is the state a No Fault or Tort state? What does either mean to the policy owner?

The state of Alaska is not a no-fault state and therefore does not require its citizens to carry Personal Injury protection (PIP) insurance, Comp and Collision insurance, or uninsured motorist insurance.

What is the average auto insurance premium in this state? As of what year?

As of 2006, Alaska resident's average insurance premium was approximately $955, the 11th most expensive in the nation. This was down 1.3% from the previous year. The national average was $817.

Sources

Insurance Information Institute

Alaska Division of Insurance