Alaska Car Insurance
Alaska is tied with Maine for the highest minimum liability insurance coverage requirements in the country. By law, Alaska drivers are required to carry minimum liability coverage of $50,000 for one person, $100,000 for all parties in an accident for bodily injury damages. The minimum coverage for property damage liability is $25,000. This amount of coverage may be more simply stated on an auto insurance policy as 50/100/25.
UIM Coverage
Although it is not required by law, Alaska drivers also advised to purchase Uninsured/Underinsured Motorist ("UIM") coverage. UIM is very important. It applies in the event the at–fault driver in an accident is uninsured or does not have enough insurance to pay for the damages sustained by the other driver(s) or passengers in the accident.
For example, if an Alaska driver in an accident had 50/100 UIM coverage, he or she would be able make a UIM claim with their auto insurance company and be able to receive up to $50,000 for their own bodily injury damages. A UIM claim would be valid if the at fault driver was uninsured or the UIM insured sustained bodily injury damages beyond the limits of the at fault driver's insurance liability limits. Per the policy, the insurer would only pay up to $100,000 for all UIM bodily injury claims stemming from the accident.
PIP Coverage
Personal Injury Protection ("PIP") is no fault coverage. It is also not required by Alaska law. It pays for medical bills the driver and their passengers in an accident. PIP is the primary form of medical coverage for an auto accident. If medical expenses exhaust the PIP limits, the insured can then bill remaining amounts to their health insurer. Alaska drivers should carefully review their auto insurance policy to understand its terms, coverage amounts, and limitations.
Collision and Comprehensive Insurance
Other important available insurance coverage types in Alaska are Collision and Comprehensive coverage. These coverage types are not required by law but can be very important in the event of an accident. Also, many financial institutions require Alaska vehicle owners to purchase collision and comprehensive coverage as a condition of their loans.
Collision pays for vehicle repairs or vehicle replacement value following a collision regardless of fault. Comprehensive coverage pays for all vehicle repair damage or replacement value for incidents other than a collision such as the tree falling on a car or the car being stolen. There are minimum deductible limits for these collision and comprehensive such as $500, but Alaska drivers can also raise their deductible amounts to lower their premiums.
Do Not Let Your Auto Policy Lapse
It is very important that Alaska drivers do not allow their auto insurance policies to lapse. Each day, hundreds of Alaska drivers are involved in car accidents. Uninsured drivers in Alaska pay fines and may be forced to comply with state financial responsibility laws, which require them to purchase expensive SR–22 Insurance. They can also be held personally responsible for all damages caused in an accident. Driving without car insurance in Alaska is fiscally irresponsible and can lead to financial ruin.
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