A Guide to Auto Insurance in Alaska (AK)

One of the most intriguing systems around the country has to be Alaska auto insurance. There are so many differences here as opposed to other areas that anyone outside the state doesn't have a clue.

Heck, even the majority of the citizens living in Alaska don't realize all the areas that need to be covered when you own a policy! Today we want to change all that by giving you an inside look at all the regulations and state laws surrounding Alaska auto insurance.

The Requirements

When you own a policy in Alaska you must carry the minimum liability coverage. If you glance at some of the other states around the country you will see a setup of 25/50/10, but here the situation is a bit more expensive. So when it's time to purchase a policy you will be required to hold:

* $50,000 per person for bodily injury
* $100,000 per accident for bodily injury
* $25,000 for property damage
* Minimum required liability limits for the use of a rental vehicle
* Collision and comprehensive coverage to a rental vehicle

This is over double of what we normally see which means that the overall premium costs are going to be higher. Since these are a bit higher you won't be required to hold other pieces to a policy like underinsured/uninsured motorist coverage. However, by law the insurance companies are required to offer it to you. Whether or not you add it to the plan will depend on your financial situation, the amount driving time you're dealing with, and whether or not the state utilizes a Tort system or No-Fault system.

What System is in place in Alaska?

Alaska auto insurance comes with a "no-fault" system as opposed to a Tort system. Those who experience the latter means that someone must be at fault when an accident occurs. The individual who is found guilty will have his or her insurance company pay for all the damages. Luckily this is not the way things work in the state of Alaska.

Here everything revolves around a No-Fault system, which comes with various benefits. First of all; you are not required to carry comprehensive and collision, uninsured/underinsured motorist, or personal injury protection insurance. Some people do anyways just to be safe, but it is not a state law. The goal behind No-Fault plans is to lower premiums and make each individual company pay for the damages.

The Expenses

Alaska auto insurance is one of the most expensive in the nation, so it's important to cut corners when you can. We aren't talking about within the policy, but taking the appropriate steps to receive additional discounts. Raising deductibles and asking for basic discounts can be a huge help. In fact, you can even receive additional savings later on if you don't file a claim or you show loyalty to the company.

These are not guarantees, but they are some of the ways you can save. Another angle to take is simply paying your premium off upfront. Obviously the amount of savings is going to depend on the company, but all Alaska auto insurance companies love getting their money in the beginning. This way it's a win-win situation for both of you. Just look over each area, ask questions, and do the appropriate research. Taking this route will certainly help you find the best policy at the best price.

It is also a good idea to make sure you compare several different companies in terms of the type of cover that they have on offer, because you will find that there are differences between them. If a particular Alaska Auto Insurance Quote seems too cheap, then be sure to read the terms and conditions even more carefully, and ascertain whether it is simply a great deal, or whether there is some essential piece of cover missing that accounts for the price differential.

As with most things in life it is important that you keep your common sense and compare like with like. Some auto insurance policies may be more expensive, but because their terms and conditions are better they may actually be the better option to go for.

Do your due diligence, check carefully and read through any policy documentation carefully and you will be more likely to get a great deal from the Alaska Auto Insurance Companies.


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