Financial Responsibility & Mandatory Insurance

Do I need car insurance?

If you own or drive a car (or other motor vehicle), you must have car insurance. You must also carry proof that you have insurance (an insurance card).

Alaska law requires anyone who owns or drives a car to have a certain level of liability insurance. Liability insurance protects others if you cause an accident that hurts another person or damages their property. (It does not cover your injuries or property damage.) 

In Alaska, the level of liability insurance required is at least: (1) $50,000 per person; (2) $100,000 per accident for bodily injury or death; and (3) $25,000 for property damage per accident. Certain rural areas in Alaska are exempt from these mandatory insurance requirements.

The person driving a car is the person responsible for making sure the car is insured. If you drive without insurance, or without proof of insurance with you, you can be fined or your driver’s license may be suspended. If you need another insurance card, your insurance company can provide one.

Car insurance can be expensive. Finding out how much insurance will cost before you buy or drive a car is smart. Be aware that when you apply for car insurance, the insurance company may ask for a credit report and use your credit history to set the rate.

What do I do if I am in an accident?

Stop. In Alaska, you must stop after an accident that results in injury, death, or damage to property. You must help any injured person at the scene of the accident. You also must exchange names, addresses, and vehicle license numbers with the driver of the other vehicle. If you do not do these things, you may be charged with a crime called leaving the scene of an accident. You could also be fined or imprisoned for leaving the scene of an accident.

Will my parents have to pay if I cause an accident that damages another car?

When parents consent to a child under 18 getting a driver’s license, they agree to accept liability for damages the minor child may cause by driving a vehicle. That means that you and your family will have to pay for any damage you cause.