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Is Alaska a no-fault car insurance state?

Here's what you need to know...
  • No-fault auto insurance refers to the way that claims by a policyholder are filed and processed after a car accident
  • This system was developed with the goal of keeping smaller claims out of litigation and streamlining the settlement process for policyholders
  • In a no-fault state, a driver that is injured in an auto accident will file a claim through his or her insurance for any personal injuries from the accident because the driver will carry personal injury protection (PIP)
  • Rather than having a no-fault insurance system, Alaska is a tort-based state
  • If you are involved in a car accident in Alaska, the driver who caused the accident will be responsible for the damage and injuries caused out of his or her auto liability policy

Alaska is very similar to the other 38 states in the U.S. that have a tort based auto insurance system. This means that if you get into a car wreck in Alaska, the driver that is responsible for causing the wreck will be responsible for paying for the amount of the damage through his or her insurance policy.

On the other hand, the other 12 states in the U.S. have a different auto insurance system called a fault-based system or tort system, which requires a driver who is injured in an auto accident to file under his or her Personal Injury Protection (PIP) to recover for any personal injuries suffered.

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What is no-fault car insurance?

No-fault car insurance was originally designed as a way to keep claims that are small enough in value out of the judicial system.

In general, this system of insurance encourages a faster settlement of claims because there does not have to be an initial determination of fault for an accident before a driver files against his or her insurance policy for damages for personal injuries suffered in the crash.

Keep in mind that this system of insurance applies to medical bills up to a certain threshold amount. For other damage to your car, you would proceed to recover against the responsible driver’s liability policy in a fault-based insurance state.

The other type of major insurance system is a tort-based system. There are 38 states in the U.S. right now that use this system for insurance claims.

In this system, the driver who causes the accident is the one who pays for all personal injuries, including actual medical expenses, pain and suffering, and loss of wages. The driver who was responsible for the accident would pass for this out of his or her own auto liability policy.

Is Alaska a no-fault state?


Alaska is one of the states in the U.S. with a tort-based system. This insurance system is also sometimes called a fault based or at-fault system.

The most important thing to know about this system in Alaska is that how you file a claim for recovery after an accident depends on which driver was at fault for the crash.

If you are the driver responsible for a crash in Alaska, the other driver will file a claim against your auto liability policy. Your policy will pay for damages suffered by the other driver up to the limits of your policy.

If a driver in Alaska is found to be responsible for an auto accident, it is possible that his or her driver’s license could be suspended. This is particularly the case if the driver does not maintain the required auto insurance coverage in Alaska.

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What You Need to Know About Car Insurance in Alaska

Pursuant to Alaska Statute 28.22.101, there are minimum requirements for auto insurance coverage in Alaska. This includes $50,000/$100,000 for bodily injury or death as well as $25,000 for property damage.

There are stiff penalties for not maintaining this required auto insurance in Alaska. For example, you could have your driver’s license suspended if you are found driving without the minimum amount of coverage.

Also, your vehicle could be impounded if you are pulled over by a law enforcement officer and are unable to produce valid proof of auto insurance coverage. Both penalties are expensive because you must seek to recover your vehicle and have your driver’s license reinstated.

This could also mean that you are going to have to pay more for the required auto insurance coverage later on.

Remember that not everyone chooses to follow the law in Alaska even though there are serious penalties for not having auto insurance. To protect yourself if you are hit by a driver who does not carry insurance, you can add underinsured or uninsured driver coverage to your policy.

You are also free to increase the limits of your policy so that you can have peace of mind that you will not have to dip into your personal finances to pay for an accident that you cause.

How to Find the Best Car Insurance Coverage in Alaska


Finding the right car insurance coverage in Alaska is just like shopping around in any other state. The most effective way to start this process is to get a range of quotes online.

This will help you to quickly evaluate coverage options and make sure that you are not paying more than you should for coverage from any particular company. It is never a good idea to simply choose the company that has the lowest price.

There are additional considerations, such as its reputation for customer service and whether there are many complaints filed against it in your state before you ultimately sign up for a policy.

After you have fixated on a particular policy, you should begin to negotiate with the car insurance company that you have chosen to find out about all of the potential discounts you could have.

Some of the most popular discounts for auto insurance coverage include multi-car, good driver, good student, multi-line and anti-theft discounts. The amount of the discounts offered will depend on the company as well as your personal circumstances.

Another good time to look for a better rate on car insurance is before your policy automatically renews. If you switch insurance carriers around your renewal date, then you can avoid the expense of having to pay a cancellation fee for your policy.

Wrap Up on Car Insurance in Alaska

Alaska is a tort-based car insurance state, which means that the way that you recover for a claim from an accident is based on the person who was at fault for the accident.

You are required to have auto insurance in Alaska, but you may also add other coverage so that you are further protected in the event of an accident.

If your auto insurance policy in Alaska is up for renewal soon, this is the perfect time to shop around online and compare different rates. Do not forget to ask about all of the discounts that you may be able to qualify for so that you reduce your rate as much as possible.

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