FINANCIAL RESPONSIBILITY LAWS Alaska has both Financial Responsibility and Mandatory Insurance laws. The purpose of  these laws is to protect the motoring public from uninsured drivers on Alaska’s streets and  highways. These laws allow the Division of Motor Vehicles to remove financially  irresponsible drivers from the roads.  Vehicle owners or drivers who are at fault in a collision are required by the Financial  Responsibility law to pay for any damage or injury caused to another person. If there is a  reasonable possibility that you may be found liable in a civil court, your privilege to drive will  be suspended for up to three years. You can end your suspension, at any time during the  three-year period, by making a financial settlement with the other parties involved in the  crash.  The Mandatory Insurance Law requires either the vehicle owner or driver to carry liability  insurance. The minimum amount of liability insurance coverage is $50,000/$100,000 for  bodily injury or death and $25,000 for property damage. You must carry proof of liability  insurance in your vehicle. Failure to provide proof of liability insurance to a law enforcement  officer may result in a traffic citation or the vehicle may be impounded.  If you are involved in a crash, which results in bodily injury or death to a person, or property  damage in excess of $501, you must provide - within 15 days - proof of insurance to the  Division of Motor Vehicles. Proof of insurance is required from all the drivers involved in the  crash regardless of who caused the crash. This means you must provide the proof of  insurance even if you did not cause the crash. The requirement to notify the Division of  Motor Vehicles is in addition to any report given to the police or your insurance company.  Normally the officer investigating the crash will give a certificate of insurance form to the  drivers. The certificate of insurance forms are also available at any DMV office or on the  state web page. http://www.dot.state.ak.us/12209V4/jsp/12209main.jsp  If you were uninsured or you fail to provide the proof within 15 days, your driver’s license  will be suspended for 90 days for a first occurrence and 1 year for a second occurrence. 