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Penalties for Driving Without Insurance in Alaska

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The State of Alaska has two laws in place to protect drivers on its road: Mandatory Insurance and Financial Responsibility Laws. They require anyone driving in Alaska to be responsible for financial damages in accidents they cause (with proof on hand), and to have auto insurance to pay those bills. Anyone caught disobeying these two laws will be penalized $500 in fines and up to a year in suspended driving privileges. If you are at fault for a road collision while driving uninsured, suspension can even stretch up to 3 years. Having violations on your record can also label you as a high-risk driver in insurers' eyes, which makes finding cheap auto insurance in Alaska difficult.

Type of PenaltyFirst OffenseSecond OffenseIf at Fault in an Accident
Fines $500 for each offense
Driver's License Suspension 90 days 1 year 3 years
SR-22 Maintenance 3 years for each offense

Penalties for Driving Uninsured in Alaska

The Mandatory Insurance Law of Alaska requires you, as a registered motorist of the State, to have motor vehicle liability insurance in effect whenever you drive. The minimum coverage required has limits of 50/100/25. The Alaska’s Financial Responsibility Law further states that motorists need to have one of the acceptable forms of proof of insurance whenever they're on the road. Law enforcement in Alaska are authorized to request proof of insurance at traffic stops or when you’re pulled over for a traffic infraction such as speeding. Proof can be your official insurance ID card, a copy of your insurance policy, a liability certificate from your insurer, your insurance binder, or a digital representation of your policy saved on any of your electronic devices. Failure to prove that you do have active insurance coverage can lead to penalties. We’ve outlined these below.

First Offense

The first time you are cited for driving uninsured in Alaska, you will be slapped with a $500 fine and be at risk of license suspension. If you do not go to the Alaska DMV with the appropriate documents as evidence that you were insured at the time of citation within 30 days, your license will be suspended. For first offense driving privileges are suspended for 90 days.

Future Offenses

If within 10 years of your prior conviction, you are caught driving without insurance for a second time, you face another $500 fine. The second time around, however, your license will be suspended for an entire year. The State will still offer you a 30-day grace period if you can secure evidence of having an active insurance policy on the day you were handed your citation. Without proof, your suspension will be made effective. You can only have your driving privileges restored after the year is up. The third time you're caught driving uninsured, that license suspension gets extend to three years.

If At Fault in an Accident

Complying with Alaska’s Mandatory Insurance Law becomes more crucial if you find yourself involved in more serious accidents. These include any crashes or collisions that resulted in death, injury, or more than $500 worth of damages to property. Both parties, regardless of who is to blame for the mishap, will have to provide the investigating officer with proof of insurance meeting the state's standards.

Additionally, if you are found to be at fault for the car crash, Alaska’s Financial Responsibility law requires you to pay for any property repair or medical costs you caused the other party. Without liability coverage, you may be unable to pay and will face severe penalties. 

Aside from the $500 insurance violation fine, your driving privileges will be frozen for up to 3 years if you have caused the collision. The DMV will allow you 15 days to prove that you were in fact insured at the time of the accident. If this can be verified, your suspension period can be shortened-–provided that you settle payments you owe the other party involved in the crash. 

Reinstating your Driving Privileges in Alaska

After completing your suspension period and paying your fine, you can begin the process of restoring your driving privileges with the DMV. 

Firstly, you will need to obtain the proof of financial responsibility necessitated by the State. You should also ask your insurer to file an SR-22 for you. The SR-22 is the guarantee that you will be maintaining your insurance for 3 years without a single day of lapsed payment on your premium. 

Secondly, you will need to pay all fees included in the license reinstatement process. In Alaska, reclaiming your driving privileges can be quite costly. On top of the standard $20 license fee, you will need to re-take a road test, which should cost you $15. For first time offenders, the reinstatement fee is $100. For second time offenders, the reinstatement fee is $250. 

Once you have reclaimed your driving privileges, the DMV will put you under a 1-year Mandatory Probation Period. If you commit another traffic infraction within the year, no matter how minor an infraction that may be, your license will be re-suspended.

Re-applying for an Auto Insurance in Alaska

Violations on your driving record can label you as a high-risk driver, the kind that insurance carriers would normally try to avoid providing coverage for. If you’re being denied the opportunity to obtain an auto insurance policy in the open market, you may can try for one through the State’s assigned risk pool, the Alaska Automobile Insurance Plan.

Sources:
Alaska Legislature: proof of insurance required; penalties
Alaska Division of Motor Vehicle: reinstate from Financial Responsibility

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