Financial Responsibility Laws
Alaska has both Financial Responsibility and Mandatory Insurance laws. The purpose of these laws is to protect the motoring public from uninsured drivers on Alaska’s streets and highways. These laws allow the Division of Motor Vehicles to remove financially irresponsible drivers from the roads.
Vehicle owners or drivers who are at fault in a collision are required by the Financial Responsibility law to pay for any damage or injury caused to another person. If there is a reasonable possibility that you may be found liable in a civil court, your privilege to drive will be suspended for up to three years. You can end your suspension, at any time during the three-year period, by making a financial settlement with the other parties involved in the crash.
The Mandatory Insurance Law requires either the vehicle owner or driver to carry liability insurance. The minimum amount of liability insurance coverage is $50,000/$100,000 for bodily injury or death and $25,000 for property damage. You must carry proof of liability insurance in your vehicle. Failure to provide proof of liability insurance to a law enforcement officer may result in a traffic citation or the vehicle may be impounded.
If you are involved in a crash, which results in bodily injury or death to a person, or property damage in excess of $501, you must provide – within 15 days – proof of insurance to the Division of Motor Vehicles. Proof of insurance is required from all the drivers involved in the crash regardless of who caused the crash. This means you must provide the proof of insurance even if you did not cause the crash. The requirement to notify the Division of Motor Vehicles is in addition to any report given to the police or your insurance company. Normally the officer investigating the crash will give a certificate of insurance form to the drivers. The certificate of insurance forms are also available at any DMV office or on the state web page.
If you were uninsured or you fail to provide the proof within 15 days, your driver’s license will be suspended for 90 days for a first occurrence and 1 year for a second occurrence.