Alaska has both Financial Responsibility and Mandatory Insurance laws. The purpose of these laws is to ensure that drivers and owners of vehicles using the streets and highways are financially responsible for any damage or injury caused by motor vehicle collisions and to remove financially irresponsible drivers from the highways.
The Division of Motor Vehicles must suspend the driver's license, privilege to drive or obtain a driver's license of drivers who fail to comply with the Financial Responsibility law. The suspension will occur when there is a reasonable possibility that the driver involved in a collision will be held liable and did not have insurance or had insufficient insurance to cover damages. The driver can satisfy the requirements for Financial Responsibility by providing proof that the requirements have been met in one of the following ways:
Drivers must reinstate their privilege to drive at the end of their suspension period.
A person's license may also be suspended under the Mandatory Insurance law.
If you have additional questions you can call, write, e-mail or visit a DMV office.