Is Alaska a No-fault Car Insurance State?

The short answer to this question is “No”. Alaska is a tort state for car insurance purposes, which means that people who have been injured in a car accident have the right to sue to collect damages.

Living in a tort state also means that when an accident occurs, one driver is deemed to be responsible. That person is responsible for paying damages to the people who were hurt, as well as paying for the cost of repairing property damaged in the accident.

To pay for the cost of damages inflicted in an accident, most people buy car insurance. It helps to protect them from financial ruin if an accident occurs. The at-fault driver’s insurance policy will pay for the medical bills and expenses incurred by those injured in the accident. It also pays for funeral expenses, if required.

The cost of repairing the other driver’s vehicle is covered by the responsible driver’s insurance. Any damage caused to other objects, such as mailboxes, sign posts, and traffic lights, is covered by the liability portion of the policy.

If the responsible driver is sued, the insurance company will appoint a lawyer to represent him or her. The attorney will attempt to negotiate a settlement. If no settlement can be reached and the matter goes to court, the lawyer will represent the policyholder in the legal proceedings.