Alaska car insurance: liability minimums, exempt communities and costs

Alaska's liability minimums and what they cover

Alaska is an at-fault state. When you cause a crash, your liability insurance pays for the other people's injuries and damage, up to your limits. State law sets those limits at:

• $50,000 for bodily injury or death of one person
• $100,000 for bodily injury or death of everyone hurt in one crash
• $25,000 for damage to other people's property

You can compare these limits with other states in the state minimums lookup. Either way, the minimum is only a floor. A crash with several injured people, or one involving a newer truck, can cost more than these limits pay, and you can be held personally responsible for the difference. Our liability coverage guide explains how limits work.

Liability insurance never pays for your own car. If you want your vehicle covered after a crash, or after damage from hitting an animal, falling objects or theft, you need collision and comprehensive coverage. A lender will normally require both on a financed vehicle.

Where insurance is not required: Alaska's exempt areas

Alaska's mandatory insurance law has an unusual exception: in areas where vehicle registration is not required, liability insurance is not required either. The Division of Motor Vehicles publishes the list of exempt communities.

The exemption has limits:

• It applies only inside the exempt area. Once you drive into a place where registration is required, the normal insurance rule applies.
• A driver who has received a ticket for a violation of 6 points or more within the last 5 years must carry liability insurance even in an exempt area.
• Being exempt from the law does not protect you from a lawsuit. If you cause a crash without insurance, you are still personally liable for the damage.

If you live in or move to a rural community, check the DMV list before deciding what to buy, and remember that a lender may still require coverage wherever the vehicle is kept.

Uninsured and underinsured motorist offers

Alaska does not force you to buy uninsured (UM) or underinsured (UIM) motorist coverage, but insurers must offer it in writing. You can reject it by signing. If your choice is not confirmed by your signature, the insurer must issue UM and UIM limits that match your liability limits.

The Insurance Research Council estimates that 12.5% of Alaska drivers were uninsured in 2023, below the national figure of 15.4%. That still leaves a real chance of being hit by someone with no coverage, or with only the minimum. Uninsured motorist coverage pays your injury costs in those cases.

What Alaskans pay compared with the rest of the country

Both Alaska averages are below the national average; the average expenditure is about $93 a month. These NAIC figures mix minimum-only policies with full coverage, so they are a guide to how the state compares rather than a quote. Where you garage the car matters, as do your driving record, your vehicle and how many miles you drive.

Speed, distance and road risk

Alaska has a small population, 737,270 people in 2025, spread over long distances. IIHS crash data for 2024 shows a mixed picture:

The death rate per person is below the national rate, but the rate per mile driven is above it, and the speeding-related share is well above the national share. Winter roads can add risk too; our post on winter driving and car insurance covers what different coverages pay for.

Proof of insurance on the road

Alaska requires you to carry proof of liability insurance whenever you drive and to show it to a peace officer on request. Driving without the required insurance may lead to suspension of your driver's license. In the Municipality of Anchorage, a vehicle without proof of insurance may be impounded, and the owner must follow the Anchorage Police Department's process to get it back.

If you are new to the state, our guide for new residents explains the steps for switching your policy and registration. To compare Alaska with other states, see the full car insurance by state list.