Alaska’s Mandatory Insurance and Financial Responsibility Suspension

Every state has its own set of laws governing vehicular insurance and financial responsibility in the event of an accident. As a responsible driver, you should familiarize yourself with the regulations and requirements of your particular state.

Insurance RequirementsAlaska is an "at-fault" or "tort" state, meaning that how and where you file an insurance claim usually depends on who was "at fault" for the accident. Making things slightly more complicated, Alaska is a comparative fault state, and the different parties involved in an accident may all assume partial fault. If you’ve been in a car accident, you may choose to file:

claim with your own insurance company,claim with the other driver’s insurance company, and/orpersonal injury lawsuit.

For this reason, Alaska State law requires that all registered vehicles and drivers carry liability insurance. This provision guarantees that if you’re not at fault, you’ll be able to claim damages from the other driver, and if you are found at fault, your own insurance can help cover the other driver’s damage costs.

There are two types of liability insurance required in Alaska. You must carry a minimum bodily injury liability insurance of $50,000 per person and $100,000 per accident. You must also carry a minimum property damage liability insurance of $25,000. Additional insurance is available—and often recommended—but not required by state law.

You are legally mandated to carry proof of insurance, such as an insurance identification card, with your vehicle at all times. If a driver fails to provide proof of insurance upon request, the Division of Motor Vehicles will suspend the driver’s license, privilege to drive, or privilege to obtain a driver’s license for anywhere between 90 days and 24 months, depending on previous license/driving violations.

Financial ResponsibilityMany states use the terms "insurance requirements" and "financial responsibility requirements" interchangeably to stipulate that drivers must have the resources to cover damages if they’re found at fault for an accident. The definition of "financial responsibility" in Alaska extends beyond the mandatory insurance discussed above. Not only are Alaska drivers required to carry a minimum insurance policy, but they also must cooperate with their insurance company and the other involved parties to settle all claims appropriately.

If you have been found at fault in an accident, the Alaska Department of Motor Vehicles will suspend your license until all claims are resolved, thus compelling you to assume financial responsibility as the at-fault driver. It may be noted that the state requirement to carry proof of insurance falls under this category of financial responsibility, and so is enforced in the same manner. To lift the suspension, you may be asked to do one or more of the following:

Submit evidence to the DMV that an automobile liability insurance policy was in effect at the time of the accident. If proof is submitted before the suspension date, the suspension will be revoked.Submit releases of liability (i.e. general release) with notarized signatures of all persons who received personal injury and/or property damages for the collision.Submit a settlement agreement (i.e. promissory note) with all people seeking damages for the accident.Deposit security for the specified amount set out by the department.Prove that you are not liable for the accident in the Administrative Hearing process.

If you’ve been involved in a motor vehicle accident, you may wish to seek the advice of a qualified injury and/or non-injury car accident lawyer. Their knowledge and experience can go a long way in helping you settle your accident claim with minimal stress and maximal outcomes.

If you are looking for a personal injury lawyer in Alaska, the author recommends Crowson Law Group.