A 3-minute lesson from the Alaska course. Read the rules and examples, follow the handbook page references, and check your understanding before you move on.
Alaska has two laws that protect you from uninsured drivers: the Financial Responsibility law and the Mandatory Insurance law. Together they let DMV remove financially irresponsible drivers from the road.
Financial Responsibility law
Vehicle owners or drivers who are at fault in a collision must pay for any damage or injury they caused to another person.
If there is a reasonable possibility you may be found liable in civil court, your privilege to drive will be suspended for up to three years. You can end the suspension at any time by making a financial settlement with the other parties.
You must carry proof of liability insurance in your vehicle. Failing to show it to an officer may result in a traffic citation, or your vehicle may be impounded.
This DMV notice is in addition to any report you give the police or your insurance company. The investigating officer normally gives drivers a certificate of insurance form; forms are also at DMV offices and online.
A driver rear-ends you at a light, causing $800 in damage. It wasn't your fault, but damage is over $501, so you still must send DMV proof of insurance within 15 days.
Check your understanding
Read the question, decide on an answer, then open it to check the explanation. These are Roadwise study questions based on the source handbook.
What is the minimum liability insurance required in Alaska for bodily injury or death per crash?
$25,000/$50,000
$100,000/$300,000
$50,000/$100,000
$30,000/$60,000
Answer: $50,000/$100,000
Alaska's mandatory minimum is $50,000/$100,000 for bodily injury or death.
Under the Financial Responsibility law, if you may reasonably be found liable for a crash in civil court, your driving privilege can be suspended for up to how long?
3 years
1 year
5 years
6 months
Answer: 3 years
If there is a reasonable possibility you may be found liable in civil court, your privilege is suspended for up to three years unless you settle.