|Alaska Statistics Summary||Details|
|Road Miles||Total in State: 16,129
Vehicle Miles Driven: 5,045 million
|Most Popular Vehicle in Alaska||F150|
|Driving Related Deaths||Speeding Fatalities: 26
DUI Fatalities: 22
|Full Coverage Average Premiums||Liability: $539.68
Full Coverage: $1,027.75
|Cheapest Insurance Provider||State Farm Mutual Auto|
Driving in Alaska can be quite adventurous depending on how much you enjoy the terrain.
Though your eyes would get to see majestic landscapes, you will have to drive on unpaved and snowy roads at some point in time while living there.
And, there’s a possibility of getting hit by a bear or moose also on those never-ending stretches of highway. Since there are obvious dangers on the road, you should research your car insurance coverage well before driving.
By reading this car insurance guide for Alaska, you would be well-informed about the minimum coverage requirements, rules of the road, state laws, best insurance companies, etc.
You can also start comparison shopping today by entering your zip code in our FREE online tool above!
Alaska Car Insurance Coverage and Rates
The first and foremost information that you need before asking for quotes from insurers is the coverage requirements and rates in your state.
Why is that important?
Because if you aren’t aware of the minimum coverage requirements, options for additional coverage, add-ons, different types of discounts, and, rates in your zip code, you might end up with a policy that’s unsuitable for you.
Also, in the event of an unfortunate accident, you must be reasonably covered to pay any personal injury and property damage expenses as well as know the law to avoid any scams.
Did you know that there are many remote areas in Alaska wherein vehicle registration and insurance is not a requirement? Click now to check the exempted areas in your state.
Like every other shopping experience, you have to dive deep through the internet to get the best coverage.
Without further ado, let’s get you started with details that would help in your car insurance buying process.
– Minimum Car Insurance Coverage Requirements in Alaska
Every state has a mandatory minimum liability coverage requirement for the safety of everyone on the road.
In Alaska, it’s illegal to drive without the minimum insurance coverage and if you attempt to do that, you would face a fine of up to $500 as well as loose driving rights for a year.
Now, you might think that why do you need to shell out your hard-earned money for premiums every year when you drive safely always? We have an answer to that question.
Why the mandatory minimum coverage?
The mandatory insurance law came into place because of the inability of a few people to pay-off damages in an accident caused by them. Also, the financial and legal costs from an accident run into millions at times.
Hence, car insurance policies were invented to make a collective pool of premiums from which insurers could pay damages from accidents.
The Alaska statutes section 28.22.101 requires motorists in Alaska to buy minimum liability car insurance coverage of:
- Bodily Injury/Death: $50,000 per person per accident, with a maximum limit of $100,000 per accident
- Property Damage: $25,000 per accident in total
In this basic coverage, the insurer would pay any medical costs for personal injury to drivers, passengers & pedestrians, and, property damages costs as per the limits of the coverage.
The state minimum liability coverage pays for the damages sustained by the no fault party, and wouldn’t cover your own personal injury and property damage costs if you’re the at-fault party.
Point to note: The car insurance limits mandated by the state of Alaska wouldn’t be enough to cover the cost of damage if you are involved in an accident with a luxury car or your car gets totaled by a moose attack.
We would talk about the different types of insurance coverage that you may consider to buy for better protection in the next few sections.
– Forms of Financial Responsibility in Alaska
Alaska’s financial responsibility law requires motorists to prove that they have the means to settle damages if involved in an accident while driving. Buying a car insurance policy is one way of proving financial responsibility, but there are other ways to prove that you have assets in reserve.
- Surety Bond: A bond assured by a licensed company which covers the minimum state requirement amount also serves as a proof of financial responsibility in Alaska.
- Self-Insurance: You can also get a self-insurance certificate from the DMV if you can prove that you would be able to pay the minimum coverage amount in the event of an accident, provided you have a minimum of 25 registered vehicles.
You would be required to show proof of financial responsibility during these situations:
- Registration of car
- Reinstatement of driver’s license after suspension
- At the request of a police officer
- If you happen to be involved in an accident
– Premiums as Percentage of Income in Alaska
Since buying car insurance doesn’t make us happy and also involves a fixed financial outlay every month, we always want to know what percentage of our income we’re spending on premiums.
In 2014, the average premium charged by insurance companies was around 2.11 percent of the personal household disposable income. The full coverage average premium was $1,050.09, while the average income was $49,756.
As compared to 2013 and 2012, the percentage of premium to income was lower in 2014. Though there was a drop in income during 2013, average premiums witnessed a slight rise.
On the whole, the premium cost to income ratio in Alaska isn’t very high as compared to some states such as Michigan and Louisiana where premiums are almost 3.6 percent of the disposable income.
– Core Coverage Premiums in Alaska
In the previous section, we looked at what percentage of income is being spent by Alaskans on car insurance premiums. But, how much is that premium when broken down into different coverage types?
By law, you’re required to buy only the state minimum liability coverage, but in reality, you are recommended to buy additional coverage, such as collision, comprehensive, uninsured insurance, personal injury protection, etc.
The additional coverage options offer you a larger cushion to settle damages in the event of an accident. On the other hand, liability insurance only pays for other party’ expenses from an accident caused by you.
Before delving into the various options available to you for additional coverage, let’s look at the premium rates for liability, collision, and comprehensive insurance in Alaska.
|Type of Coverage||Annual Average Premiums|
Please note that the premiums listed in the table above are an indication of the rates in Alaska, and might differ significantly on the basis of your personal situation and factors.
In case you want to lower your premiums, here’s a short video on how to get the cheapest rates.
– Additional Car Insurance Coverage in Alaska
We have talked about liability coverage in detail multiple times now because you are required to settle damages caused by you in an accident irrespective of anything else. That’s the law!
But, who would pay your personal injury and property damage expenses if you’re the at-fault party? Also, has anyone told you that there are motorists who drive without any insurance coverage?
The answer to all those questions is additional car insurance coverage. Let’s understand the different options in the market.
- Uninsured/Underinsured Insurance: This coverage is a blessing if you get hit by a motorist who’s uninsured or underinsured because an uninsured motorist wouldn’t have the means to pay your damages, but this coverage option would.
- Personal Injury Protection: Irrespective of the fault, PIP pays for your personal injury expenses in an accident.
- Collison Coverage: There’s some chance that you might tread off that path and hit a tree on the Alaskan highway someday. If you collide with a tree or any other object, your collision coverage would pay for the repairs.
- Comprehensive Coverage: Circumstances beyond our control such as theft, fire, vandalism, and hurricanes may cause damage to your motor vehicle, and comprehensive coverage would pay for the repair of these damages.
The loss ratio for uninsured motorist coverage hovers around 50 percent in Alaska as we can see in the table above for three years. This means that insurers are paying around $50 in claim settlement for every $100 earned in premiums from this optional coverage.
Alaska ranks at number 11 among all the states in the estimated uninusred motorists category with around 15.4 percent motorists driving without any insurance in the state.
– Add-ons, Endorsements, and Riders in Alaska
Apart from the basic coverage types that you must buy to protect yourself, insurers also offer few add-ons and optional riders that would be of use under specific circumstances.
- Guaranteed Auto Protection (GAP)
- Personal Umbrella Policy (PUP)
- Rental Reimbursement
- Emergency Roadside Assistance
- Mechanical Breakdown Insurance
- Non-Owner Car Insurance
- Modified Car Insurance Coverage
- Classic Car Insurance
Add-ons like a mechanical breakdown or emergency roadside assistance can be quite useful in Alaska as you drive on unpaved roads without any service station in sight for miles.
– Premium Rates by Demographics in Alaska
|Company||Married 35-year old female||Married 35-year old male||Married 60-year old female||Married 60-year old male||Single 17-year old female||Single 17-year old male||Single 25-year old female||Single 25-year old male|
|State Farm Mutual Auto||$1,340.30||$1,340.30||$1,200.62||$1,200.62||$4,158.63||$5,390.65||$1,578.13||$1,615.68|
As per multiple studies, women are less likely to cause an accident than men, and men are considered riskier drivers. Although insurance companies might not accept it, but the premium rates for men are higher than women.
In Alaska, men and women above 30 are paying similar premiums, however, the gap in rates is evident in the 17-25-year-old category. The rates for single 17-year-old males are significantly higher than the females.
|Company||Demographic||Average Annual Rate||Rank|
|Progressive Direct||Single 17-year old male||$7,248.95||1|
|Allstate F&C||Single 17-year old male||$6,679.06||2|
|Progressive Direct||Single 17-year old female||$6,507.31||3|
|GEICO General||Single 17-year old male||$5,955.63||4|
|State Farm Mutual Auto||Single 17-year old male||$5,390.65||5|
|USAA||Single 17-year old male||$5,168.23||6|
|Allstate F&C||Single 17-year old female||$5,100.22||7|
|GEICO General||Single 17-year old female||$4,667.64||8|
|USAA||Single 17-year old female||$4,660.59||9|
|State Farm Mutual Auto||Single 17-year old female||$4,158.63||10|
|Allstate F&C||Single 25-year old male||$2,634.39||11|
|Allstate F&C||Single 25-year old female||$2,407.00||12|
|GEICO General||Single 25-year old male||$2,247.33||13|
|USAA||Single 25-year old male||$2,188.18||14|
|Allstate F&C||Married 35-year old female||$2,133.71||15|
|Allstate F&C||Married 35-year old male||$2,133.71||15|
|GEICO General||Married 35-year old female||$2,118.66||17|
|GEICO General||Single 25-year old female||$2,094.53||18|
|Progressive Direct||Single 25-year old female||$2,075.99||19|
|USAA||Single 25-year old female||$2,065.08||20|
|Progressive Direct||Single 25-year old male||$2,053.77||21|
|Allstate F&C||Married 60-year old female||$2,037.18||23|
|Allstate F&C||Married 60-year old male||$2,037.18||23|
|GEICO General||Married 60-year old female||$1,999.69||25|
|GEICO General||Married 60-year old male||$1,902.76||26|
|Progressive Direct||Married 35-year old female||$1,846.21||27|
|Progressive Direct||Married 35-year old male||$1,631.16||28|
|State Farm Mutual Auto||Single 25-year old male||$1,615.68||29|
|Progressive Direct||Married 60-year old male||$1,588.18||30|
|State Farm Mutual Auto||Single 25-year old female||$1,578.13||31|
|Progressive Direct||Married 60-year old female||$1,551.21||32|
|USAA||Married 35-year old female||$1,439.39||33|
|USAA||Married 35-year old male||$1,435.84||34|
|USAA||Married 60-year old female||$1,341.61||35|
|State Farm Mutual Auto||Married 35-year old female||$1,340.30||36|
|State Farm Mutual Auto||Married 35-year old male||$1,340.30||36|
|USAA||Married 60-year old male||$1,334.71||38|
|State Farm Mutual Auto||Married 60-year old female||$1,200.62||39|
|State Farm Mutual Auto||Married 60-year old male||$1,200.62||39|
– Premium Rates by Zip Code in Alaska
Any typical conversation with an insurance agent for quote starts with questions specific to your profile and one of the foremost things they ask is your zip code.
Why is Zip Code important?
A lot of times you would have observed that rates in your city vary from zip code to zip code. Using your zip code, insurance companies can fetch data about car thefts, vandalism, accident rates, weather conditions, etc. in your zip code, factors that help them determine the final rate.
We have collated the rates for every zip code/city in Alaska and you can use the search box to look for rates in your area.
|Zipcode||Grand Total||Rank||Compared to Average (+/-)||City|
|99755||$2,798.16||55||$44.07||DENALI NATIONAL PARK|
|99660||$2,775.31||84||$21.22||SAINT PAUL ISLAND|
|99756||$2,768.06||125||$13.97||MANLEY HOT SPRINGS|
|99591||$2,766.60||130||$12.51||SAINT GEORGE ISLAND|
– Most Expensive/Least Expensive Cities by Premiums Rates in Alaska
We have also collated data for the most expensive and cheapest cities in Alaska by premium rates.
Here’s a list of the 25 cities with the highest premium rates in Alaska.
|Group||Zipcode||Commute and Annual Mileage||Annual Average Premium||City|
|Allstate||99567||25 miles commute. 12000 annual mileage.||$3,964.83||CHUGIAK|
|Allstate||99577||25 miles commute. 12000 annual mileage.||$3,964.83||EAGLE RIVER|
|Allstate||99567||10 miles commute. 6000 annual mileage.||$3,805.12||CHUGIAK|
|Allstate||99577||10 miles commute. 6000 annual mileage.||$3,805.12||EAGLE RIVER|
|Progressive||99504||10 miles commute. 6000 annual mileage.||$3,794.17||ANCHORAGE|
|Progressive||99504||25 miles commute. 12000 annual mileage.||$3,794.17||ANCHORAGE|
|Allstate||99645||25 miles commute. 12000 annual mileage.||$3,723.14||PALMER|
|Allstate||99652||25 miles commute. 12000 annual mileage.||$3,723.14||BIG LAKE|
|Allstate||99654||25 miles commute. 12000 annual mileage.||$3,723.14||WASILLA|
|Allstate||99674||25 miles commute. 12000 annual mileage.||$3,723.14||SUTTON|
|Progressive||99508||10 miles commute. 6000 annual mileage.||$3,636.12||ANCHORAGE|
|Progressive||99508||25 miles commute. 12000 annual mileage.||$3,636.12||ANCHORAGE|
|Allstate||99501||25 miles commute. 12000 annual mileage.||$3,618.43||ANCHORAGE|
|Allstate||99502||25 miles commute. 12000 annual mileage.||$3,618.43||ANCHORAGE|
|Allstate||99503||25 miles commute. 12000 annual mileage.||$3,618.43||ANCHORAGE|
|Allstate||99504||25 miles commute. 12000 annual mileage.||$3,618.43||ANCHORAGE|
|Allstate||99505||25 miles commute. 12000 annual mileage.||$3,618.43||JBER|
|Allstate||99506||25 miles commute. 12000 annual mileage.||$3,618.43||JBER|
|Allstate||99507||25 miles commute. 12000 annual mileage.||$3,618.43||ANCHORAGE|
|Allstate||99508||25 miles commute. 12000 annual mileage.||$3,618.43||ANCHORAGE|
|Allstate||99513||25 miles commute. 12000 annual mileage.||$3,618.43||ANCHORAGE|
|Allstate||99515||25 miles commute. 12000 annual mileage.||$3,618.43||ANCHORAGE|
|Allstate||99516||25 miles commute. 12000 annual mileage.||$3,618.43||ANCHORAGE|
|Allstate||99517||25 miles commute. 12000 annual mileage.||$3,618.43||ANCHORAGE|
|Allstate||99518||25 miles commute. 12000 annual mileage.||$3,618.43||ANCHORAGE|
Alaska’s biggest city, Anchorage, makes it to this list quite a few times.
Now, let’s look at the list of cities with the lowest premiums rates in Alaska.
|Group||Zipcode||Commute and Annual Mileage||Average Annual Premium||City|
|USAA||99901||10 miles commute. 6000 annual mileage.||$1,895.02||KETCHIKAN|
|USAA||99903||10 miles commute. 6000 annual mileage.||$1,895.02||MEYERS CHUCK|
|USAA||99918||10 miles commute. 6000 annual mileage.||$1,895.02||COFFMAN COVE|
|USAA||99919||10 miles commute. 6000 annual mileage.||$1,895.02||THORNE BAY|
|USAA||99921||10 miles commute. 6000 annual mileage.||$1,895.02||CRAIG|
|USAA||99922||10 miles commute. 6000 annual mileage.||$1,895.02||HYDABURG|
|USAA||99923||10 miles commute. 6000 annual mileage.||$1,895.02||HYDER|
|USAA||99925||10 miles commute. 6000 annual mileage.||$1,895.02||KLAWOCK|
|USAA||99926||10 miles commute. 6000 annual mileage.||$1,895.02||METLAKATLA|
|USAA||99927||10 miles commute. 6000 annual mileage.||$1,895.02||POINT BAKER|
|USAA||99928||10 miles commute. 6000 annual mileage.||$1,895.02||WARD COVE|
|USAA||99901||25 miles commute. 12000 annual mileage.||$1,964.98||KETCHIKAN|
|USAA||99903||25 miles commute. 12000 annual mileage.||$1,964.98||MEYERS CHUCK|
|USAA||99918||25 miles commute. 12000 annual mileage.||$1,964.98||COFFMAN COVE|
|USAA||99919||25 miles commute. 12000 annual mileage.||$1,964.98||THORNE BAY|
|USAA||99921||25 miles commute. 12000 annual mileage.||$1,964.98||CRAIG|
|USAA||99922||25 miles commute. 12000 annual mileage.||$1,964.98||HYDABURG|
|USAA||99923||25 miles commute. 12000 annual mileage.||$1,964.98||HYDER|
|USAA||99925||25 miles commute. 12000 annual mileage.||$1,964.98||KLAWOCK|
|USAA||99926||25 miles commute. 12000 annual mileage.||$1,964.98||METLAKATLA|
|USAA||99927||25 miles commute. 12000 annual mileage.||$1,964.98||POINT BAKER|
|USAA||99928||25 miles commute. 12000 annual mileage.||$1,964.98||WARD COVE|
|USAA||99689||10 miles commute. 6000 annual mileage.||$2,033.02||YAKUTAT|
|USAA||99801||10 miles commute. 6000 annual mileage.||$2,033.02||JUNEAU|
|USAA||99811||10 miles commute. 6000 annual mileage.||$2,033.02||JUNEAU|
Best Car Insurance Companies in Alaska
When we say best car insurance companies in Alaska, we mean the ones that you can rely on to pay your claims when you actually need them. They might not have the cheapest rates, but you should choose an insurer based on their financial ratings, customer reviews, complaints data, etc.
An insurance policy might be an unwanted purchase for you, but you must carefully assess and thoroughly research your insurer before committing to a policy.
When you’re stuck on a highway with a mechanical breakdown, your insurer should attend to your need without any delay. And, you can ensure that by looking at the customer satisfaction data of insurance companies.
In the next few sections, we would look at factors that would help you decide your insurance company in Alaska.
– Financial Ratings of Leading Insurance Companies in Alaska
Your insurance company collects premiums from you, makes a collective pool, and then disburses money for claims from that pool among those who need it.
Long-term financial viability of your insurer should be a major factor in your buying decision. Any new entrant in the market without extensive knowledge about the management of premiums and disbursements wouldn’t be able to settle your claims in the long-run.
Similarly, old players in the market might not always have the assets to manage a large payout in the event of a catastrophe in your location.
Financial ratings can tell you the long-term viability of an insurer. We have collated the A.M. Best ratings for the leading insurers in Alaska.
A.M. Best ratings assess the financial viability of a business in the long-run after a thorough analysis of its assets and debt-paying ability in the future. Any rating of A+, A, and B+ means good financial standing in the market.
|Insurance Companies||A.M. Best Rating|
|State Farm Group||A++|
|Allstate Insurance Group||A+|
|Liberty Mutual Group||A|
|Country Insurance & Financial Service Group||N/A|
|Hartford Fire & Casualty Group||A+|
|Tiptree Financial Group||A-|
|Horace Mann Group||A|
– Insurance Companies with Best Customer Ratings in Alaska
Existing customers of insurance companies can be a reliable source to talk about the quality of services provided by an insurer.
Once you have shortlisted the companies for your car insurance policy, you must conduct web research for the customer ratings of these insurers.
Customer ratings can offer you insights such as, the overall satisfaction level, other similar insurers in your location, reasons people bought a policy from a specific insurer, their intent to renew with the same insurer, etc.
These granular pieces of information can provide you the information you need to make a final decision on the insurance company you go with.
– Customer Complaints Data of Leading Insurers in Alaska
|Insurance Companies||Total Complaints (2017)|
|State Farm Group||1482|
|Allstate Insurance Group||163|
|Liberty Mutual Group||222|
|Country Insurance & Financial Service Group||15|
|Hartford Fire & Casualty Group||9|
|Tiptree Financial Group||2|
|Horace Mann Group||11|
Another data point that you can look at before buying a policy is the number of complaints against an insurance company. If everything else looks good on paper, the complaint data can give you an idea about the satisfaction levels among customers.
In the table above, State Farm Group has the highest number of customer complaints, however, it also has the largest market share in Alaska. Rather than looking at the absolute number of complaints, you should look at the proportion of complaints to an insurer’s market share.
You also have the option to cancel your car insurance policy mid-term if you aren’t satisfied with the services of your insurer.
– Alaska’s Premiums Rates by Insurance Providers
|Insurance Company||Average Annual Premiums||Compared to State Average (+/-)||Percentage Change (+/-)|
|State Farm Mutual Auto||$2,228.12||-$525.97||-23.61%|
– Alaska’s Premium Rates by Coverage Level
|Insurance Company||Coverage Type||Annual Average Premiums|
– Alaska’s Premium Rates by Credit History
|Insurance Company||Credit History||Annual Average Premiums|
If you have a poor credit history, insurance companies would penalize you with higher premiums as you can see in the table.
As per the State of Credit survey in 2017 by Experian, the average vantage score of Alaskans was 668 while the national average was 675.
Vantage score, developed by Equifax, Experian, and, TransUnion, is a credit-rating model for consumers that scores them in the range of 300-850.
While the vantage score in Alaska is close to the national average, Alaskans have the highest average balance on their credit cards in the US.
– Alaska’s Premium Rates by Driving Record
|Insurance Company||Driving Record||Annual Average Premiums|
|GEICO||With 1 DUI||$4,320.46|
|GEICO||With 1 accident||$3,044.11|
|GEICO||With 1 speeding violation||$2,096.36|
|Allstate||With 1 DUI||$3,541.83|
|Allstate||With 1 accident||$3,541.27|
|Allstate||With 1 speeding violation||$2,987.51|
|Progressive||With 1 DUI||$2,911.35|
|Progressive||With 1 accident||$3,512.71|
|Progressive||With 1 speeding violation||$3,086.55|
|USAA||With 1 DUI||$3,231.71|
|USAA||With 1 accident||$2,473.74|
|USAA||With 1 speeding violation||$2,182.92|
|State Farm||With 1 DUI||$2,228.13|
|State Farm||With 1 accident||$2,424.84|
|State Farm||With 1 speeding violation||$2,228.13|
|State Farm||Clean record||$2,031.37|
In other states, a driving record with driving under the influence of alcohol increases your premiums significantly. However, most of the insurers in Alaska charge higher premiums from those with a record of an accident in their driving history.
– Leading Insurance Companies in Alaska
As we have learned a lot about insurance companies and their premium rates in Alaska, let’s look at the leading players in the auto insurance market of Alaska and their overall share.
These six insurance companies capture the major share of the market in Alaska, with the largest chunk being held by the State Farm Group.
|Rank||Insurance Companies||Direct Written Premiums||Loss Ratio||Market Share|
|1||State Farm Group||$133,816||77.95%||28.55%|
|4||Allstate Insurance Group||$59,507||45.56%||12.70%|
|6||Liberty Mutual Group||$16,337||63.73%||3.49%|
|7||Country Insurance & Financial Service Group||$14,042||65.14%||3.00%|
|8||Hartford Fire & Casualty Group||$10,332||66.49%||2.20%|
|9||Tiptree Financial Group||$4,938||20.10%||1.05%|
|10||Horace Mann Group||$4,748||67.08%||1.01%|
– Number of Insurance Companies in Alaska
|Type of Insurer||Number|
State Laws in Alaska
Knowing about the laws of your state with respect to car insurance and driving helps you to keep your insurance rates low.
There are many laws and to-do’s inside the pages of your DMV website, driver’s handbook, and car insurance documentation. You aren’t required to remember everything on the go, but it’s always recommended to know the basics.
Specifically, laws related to insurance for high-risk drivers, restrictions on cellphone usage, teen driving, penalties for driving without insurance, etc. are some of the laws that can save you a lot of hassle later on.
– Car Insurance Laws in Alaska
Car insurance laws are in effect mainly for two reasons:
- To protect everyone on the roads through mandatory liability coverage that pays for third-party damages in the event of an accident
- To make sure that insurance companies adhere to the laid-down principles for determining premium rates and offer coverage to everyone, barring few exceptions
Behind the premium rates that you are charged, insurance companies utilize the combined experience of underwriters and actuaries to design a rating model.
The rating model of insurers uses many factors to determine your premiums, such as your car’ make and model, age, marital status, physical address, driving history, vehicle usage, etc.
When there are these many factors and calculations involved, there has to be a regulatory body for consumer protection. The Division of Insurance in Alaska oversees the operations of insurers and drafts laws.
Now, let’s look at some laws that might impact you while driving.
– Windshield Coverage Laws in Alaska
Any cracks or chips on windshields can lead to personal injuries if not taken care of immediately. Though most of the states have specific laws for repair of windshields, Alaska doesn’t talk about windshield repair or replacement.
However, before buying car insurance, make sure that your insurance policy has windshield coverage in order to avoid any unnecessary expenses in the future.
– High-Risk Insurance in Alaska
What happens if you’re a high-risk driver in the sense that you tend to be involved in accidents and speeding violations quite frequently?
You would end up making regular claims for damages leading to an unusually high loss ratio for your insurer. At times, insurers might have to make more payments for claims than they receive in premiums.
Hence, insurers have the right to refuse coverage in case they deem a motorist as a high-risk driver.
You can look at this short video to understand – what kind of motorists are considered high-risk.
How can you buy coverage if you’re a high-risk driver then?
To be fair to everyone, Alaska offers coverage to high-risk drivers under the Alaska Automobile Insurance Plan.
The Alaska Automobile Insurance Plan works like an association where every insurer (with a license to operate in Alaska) has to participate and offer coverage to a specific percentage of motorists directly proportional to its market share.
How does the Alaska Automobile Insurance Plan work?
Once an eligible motorist applies for coverage under the plan, he/she is assigned an insurer from the pool with whom the motorist would get a guaranteed coverage for a period of three years.
If State Farm’ market share is 28 percent in Alaska, they would have to offer coverage to 28 percent of the high-risk drivers in the pool. Through this plan, the risk is shared amongst all the insurers in the state.
Note: Though you would get coverage under this plan, the premiums tend to be quite high.
– Automobile Insurance Fraud in Alaska
Fraudulent claims by customers cost over $80 billion annually to the insurance industry overall, as per estimates by the Coalition Against Insurance Fraud.
Auto insurance fraud is considered to be one of the most expensive white-collar crimes in the US which increased auto claims payments by $5.6 billion-$7.7 billion in the year 2012.
Payment towards fraudulent auto claims accounted for 13-17 percent of overall payments made for auto crashes.
What comes under the definition of auto insurance fraud?
Any attempt to conceal information or provide incorrect information to your insurer with an intention to benefit by way of wrongful claims settlement is known as insurance fraud.
Fraudulent claims can arise from:
- Providing false information in your application to get a better rate
- Inflating your damages in an accident to get a higher settlement
- Staging auto accidents to earn from insurance claims
- Staging car theft or damage by fire to claim the car’s original value
Since auto insurance frauds are rampant everywhere, there are strict laws and penalties to combat the occurrences. Do remember that your insurer might also wrongly deny your request for a claim in which case you can file a complaint with the Division of Insurance.
|Fraud||Penalty||Type of Crime|
|False information on an application||Up to $2,000 fine or jail time of up to 90 days or both||Class B Misdemeanor|
|Fraudulent acts under the amount of $500,000||Up to $10,000 fine or jail time of up to 365 days or both||Class A Misdemeanor|
|Fraudulent acts over the amount of $500,000||Up to $50,000 fine or jail time of up to 5 years or both||Class C Felony|
– Statute of Limitations in Alaska
After an accident, you have a time limit to file a lawsuit against the at-fault party.
|Type of Injury||Time Limit|
|Personal Injury||2 years|
|Property Damage||6 years|
– Vehicle Licensing Laws in Alaska
Now that we have looked at the state-level laws and their impact, let’s look at laws that help us be up-to-date with our license and insurance documentation.
In the next few sections, we would cover questions like – when can teenagers apply for a driving license? what are the penalties for driving without car insurance? how long is your license valid?
– Penalties for Driving without Car Insurance in Alaska
State laws in Alaska require motorists to carry the minimum liability coverage insurance at all times while their vehicle is registered (with exceptions in certain remote areas).
Anyone driving without car insurance in Alaska can be penalized with a fine of up to $500 along with the possibility of driver’s license suspension for up to a year. If an uninusred motorist is involved in an accident, the driver’s license can be suspended for up to three years.
– Teen Driving Laws in Alaska
In the eyes of the law, teenagers are considered high-risk drivers because of their inexperience in driving and limited knowledge of the laws in their state.
That’s why it’s important for teens to be very careful on the road while driving and follow the law under every circumstance. This also helps in keeping premium rates low for teens.
We hope that you would follow the advice shared in the video above for getting better premium rates. Now, let’s look at the licensing laws for teens in Alaska.
The minimum age to apply for an instruction permit is 14. The teenager must be accompanied at all times by a licensed driver who’s at least 21 and has a driving experience of at least one year. The instruction permit has a validity of two years.
At the age of 16, teens are eligible to apply for a provisional license provided they have completed the mandatory holding period of six months for the instruction permit and maintained a clean driving record.
In addition, you have to show proof that you have completed 40 hours of driving which included 10 hours of nighttime driving.
Restrictions on a provisional license: You aren’t allowed to drive with passengers under the age of 21, exceptions being siblings, and may not drive during the night hours of 1 a.m to 5 a.m.
Teens are allowed to apply for an unrestricted license when they turn 18 provided they have followed the restrictions and maintained a clean record. You may visit your local DMV office to apply for your driving license.
– License Renewal Procedure in Alaska
Everyone in Alaska is required to renew their driver’s license every five years irrespective of age. Renewals by mail and online renewals are permitted for those under 69, while the older population has to renew their license in person.
– Rules of the Road in Alaska
When was the last time you checked the car seat laws, speed limits on highways, move over laws, and ridesharing laws in Alaska? Once we start driving, we lose touch with these laws and follow what others are doing on the road.
We will look at some of these laws in the next section so that you can be safer on the road. Also, if you’re a new resident of Alaska, you must know about these rules.
– Fault vs No-Fault
Alaska follows the tort system or the at-fault system for car insurance which means the at-fault party in an accident is responsible for paying the damages. The mandatory liability coverage in Alaska helps at-fault parties to claim damages from their insurer.
– Seat Belt Laws in Alaska
The car seat laws in Alaska require all riders of a car to wear a seat belt irrespective of their seat in the car.
– Car Seat Laws in Alaska
Car seat laws for children are applicable to all kids younger than four. There are certain seat requirements for children depending on their age and weight in Alaska.
|Up to the age of 1||Children should be restricted in a rear-facing seat|
|1-3 years||Children can be harnessed in a rear or forward facing car seat|
|4-7 years||Children should be secured in a booster seat with a seat belt|
|8-12 years||Children must use a seat belt|
– Keep Right and Move Over Laws in Alaska
If you’re driving under the speed limit, you aren’t allowed to drive in the left lane as per the state laws.
If you happen to notice a stationary emergency vehicle (including animal control vehicles) with flashing lights, you are required to either slow down or vacate the lane next to the stationary vehicle if it’s safe to do so.
– Speed Limits in Alaska
The maximum posted limits on the highways and freeways of Alaska is 65 mph. While driving, motorists must follow the posted limits on different types of road and take special care when the weather conditions are severe.
|Type of Road||Speed Limit|
|Interstate and rural highways||65 mph|
|Other roads unspecified in the rules||55 mph|
|Residential roads||25 mph|
|Business districts||20 mph|
|School or playground roads||20 mph|
– Ridesharing Laws in Alaska
In June 2017, the Governor of Alaska signed an act, HB 132, to regulate the operation of transportation network companies (TNC) such as Uber and Lyft. Also known as the Let’s Ride Alaska Act, the new law established a uniform code for TNC’ across the state.
Requirements to work as a driver:
- No criminal record
- Clean driving record in the past
- 21 years or older
- Need to include information like name, age, address, motor vehicle registration, insurance, and driving license number in the application
The ridesharing laws don’t allow anyone to drive if they have been convicted in the past or listed on the sex offenders website.
– Safety Laws in Alaska
We would now look at the safety laws in Alaska, regulations that make it safer for everyone to drive on the roads.
In this section, we will understand the penalties for distracted driving or driving under the influence of alcohol/other substances.
– DUI Laws in Alaska
Driving under the influence of alcohol is not only dangerous for you as it can lead to fatal crashes but impact other motorists and pedestrians as well.
In the year 2014, Alaska witnessed 29 alcohol-imparied driving fatalities, which includes those who weren’t even driving in those crashes.
What is the minimum blood alcohol content (BAC) for a DUI offense in Alaska?
If you’re under the age of 21, there’s a zero-tolerance policy under the DUI laws – that means you aren’t allowed to drive after drinking under any circumstance.
If you’re above 21, the BAC limit for DUI is 0.08 percent. For commercial drivers, the BAC limit is 0.04 percent.
What are the penalties for DUI in Alaska?
- First Offense: Motorists are fined a minimum of $1,500 and face jail time of at least three days for the first DUI offense. In addition, their license is also suspended for a minimum period of 90 days.
- Second Offense: If a motorist is found guilty again within a period of 15 days from the first offense, he/she would be charged a minimum fine of $3,000 and face prison time of at least 20 days. The driver’s license would be revoked for at least a year.
- Third Offense: A third DUI offense, within 15 years, would cost motorists a fine of at least $4,000 and a minimum of 60 days in prison. The driver’s license would be revoked for at least three years.
- Fourth Offense: On the fourth DUI offense, motorists would be fined at least $5,000 with prison time of a minimum 120 days. The driver’s license would be revoked for at least five years.
- Fifth Offense: After the fifth offense, motorists face prison time of at least 240 days and a fine of $6,000. The driver’s license would be revoked for at least five years.
Motorists who have been convicted more than five times for DUI would face minimum jail time of 360 days and a fine of $7,000.
– Distracted Driving Laws in Alaska
Alaska’s laws for distracted driving are relaxed as compared to cellphone usage laws in other states.
The state only prohibits motorists from texting while driving and there isn’t a cellphone usage ban otherwise. However, the penalties for texting while driving can be steep, especially if you hit or injure someone.
Can’t-Miss Facts of Alaska
After all the information in the previous sections, you are now well-versed about the state laws related to driving and car insurance in your state.
In the next few sections, we would present facts about your state such as car theft stats, fatality rates, teen drunk driving numbers, and EMS response time.
– Vehicle Theft in Alaska
|Rank||Make & Model||Year of Vehicle||Thefts|
|1||Chevrolet Pickup (Full Size)||2003||147|
|2||Ford Pickup (Full Size)||2004||95|
|3||GMC Pickup (Full Size)||1997||58|
|6||Dodge Pickup (Full Size)||1998||44|
|8||Jeep Cherokee/Grand Cherokee||1999||28|
|9||Ford Pickup (Small Size)||2000||22|
|10||Chevrolet Pickup (Small Size)||1998||20|
Pickup trucks are the most popular vehicle for theft in Alaska.
|Bristol Bay Borough||6|
|North Slope Borough||15|
– Road Dangers in Alaska
Do you know the fatality rates by weather condition in your state? Or the reason for most fatal crashes?
Knowing about the fatality rates and reasons behind crashes help you to be more careful on the road.
– Fatal Crashes by Weather Conditions
|Weather Condition||Daylight||Dark, but Lighted||Dark||Dawn or Dusk||Other / Unknown||Total|
– Traffic Fatalities by Road Type in Alaska
– Fatalities by Person Type in Alaska
|Light Truck - Pickup||6||14||14||18||13|
|Light Truck - Utility||11||7||9||18||11|
|Light Truck - Van||0||2||6||6||2|
|Bicyclist and Other Cyclist||1||3||0||1||1|
– Fatalities by Crash Type in Alaska
|Total Fatalities (All Crashes)||51||73||65||84||79|
|Involving a Large Truck||4||5||1||4||5|
|Involving a Rollover||17||21||15||33||20|
|Involving a Roadway Departure||32||43||36||64||48|
|Involving an Intersection (or Intersection Related)||8||15||14||13||18|
– Fatalities Trend for the Top 10 Counties in Alaska
|Alaska Counties by 2017 Ranking||2013||2014||2015||2016||2017|
|Fairbanks North Star Borough||7||11||9||8||12|
|Kenai Peninsula Borough||4||6||6||11||6|
|Bethel Census Area||1||1||2||1||4|
|Nome Census Area||0||1||0||0||4|
|Prince Of Wales-Outer Ketchikan Census Area||1||0||1||1||2|
|Ketchikan Gateway Borough||0||0||0||1||1|
|Top Ten Counties||47||68||64||77||73|
|All Other Counties||4||5||1||7||6|
– Teen Drinking and Driving
There were 31 arrests for DUI in the year 2016. Traffic fatalities rate for alcohol-impaired driving per 100,000 population was 1.4 in Alaska which was higher than the national average of 1.2.
– EMS Response Time in Alaska
|Type of Road||Time of Crash to EMS|
|EMS Notification to|
|EMS Arrival at Scene|
to Hospital Arrival
|Time of Crash to Hospital
Traffic congestions, commute time to work, and car ownership numbers do impact your everyday life while you’re driving.
– Car Ownership in Alaska
The maximum number of households in Alaska own two cars in line with the national average as per the chart above by Data USA.
– Commute Time in Alaska
The employees in Alaska have a shorter commute to work of 17 minutes versus the national average of 25.3 minutes.
– Commuter Transportation in Alaska
Most of the people (about 69 percent) in Alaska prefer to drive alone to work, followed by around 12 percent who carpool to their office.
You can now start comparison shopping today using our FREE online tool. Enter your zip code below to get started!