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Driving without car insurance in Alaska is a bigger risk than you may think. In addition to steep fines and the loss of your driver’s license, you will have to pay for any damages you cause in an accident out of your own pocket.
If you are caught driving without auto insurance in Alaska, your driver’s license could be suspended for 90 days—and that’s for a first offense. For a second offense within 10 years, the license suspension increases to one year. If you cause a collision while uninsured, the maximum suspension period increases to three years. You will also have to pay a $500 fine.
You may be required to obtain an SR-22 insurance policy to get your driver’s license reinstated after suspension. Form SR-22 is a certificate that proves a driver has the financial means to pay for damages caused in an accident. Your insurance company will have to certify your SR-22 insurance with the Division of Motor Vehicles and will have to inform the DMV if the policy is cancelled or terminated.
Minimum Insurance Requirements in Alaska
The state of Alaska has both Financial Responsibility laws and Mandatory Insurance laws in place. These laws were enacted to ensure drivers can pay for property damage and injuries they cause in accidents.
The Mandatory Insurance Law requires drivers to carry liability insurance that meets the minimum coverage limits, which are $50,000 for injuries caused to one person in a collision, $100,000 for total bodily injuries caused in an accident, and $25,000 for property damage.
Alaska’s Financial Responsibility Law requires drivers to provide proof of insurance if asked to do so by police during a legal traffic stop. Having proof of insurance shows that you have met Alaska’s car insurance requirements and financial responsibility laws.
Proof can be provided in the form of an official insurance identity card, a copy of your declarations page, or a liability certificate from your insurer. Many states accept digital representations of insurance policies, but unfortunately, this is not an option for drivers in Alaska.
If you fail to provide proof of your liability insurance, your vehicle may be impounded. If this happens, you will have to contact the Anchorage Police Department to recover your vehicle. You will be required to provide the vehicle’s registration documents and pay a fine. The severity of the fine depends on a range of factors including prior convictions and whether you were charged with an offense when you were caught driving without insurance.
Exceptions to Alaska’s Penalties for Driving Without Car Insurance
Certain areas in Alaska are exempt from the Mandatory Insurance Law. According to the Division of Motor Vehicles’ website, car insurance is not required in areas where registration is not required. Places such as Hooper Bay, Deering, and Twin Hills fall into this category.
Bear in mind that if you have been cited for a traffic violation within the past five years, you must have valid liability insurance at all times, regardless of your region.