Alaska Car Insurance

Get Free Auto Quotes To Find Cheap And Affordable Rates In Ak

If you want to save money on your car insurance in Alaska you must first become educated about auto insurance. Learning about the insurance laws for Alaska and what they mean is the first step in becoming educated. Also, finding out what the top insurance companies in Alaska are charging for car insurance and comparing them can help ensure you get the type of insurance you can afford. 

In the state of Alaska only liability insurance is required for purchase. The bodily injury liability for Alaska is a minimum of $50,000 and a maximum limit of $100,000. When it comes to property damage liability there is a limit of $25,000. The difference between the two is that bodily damage liability deals with the costs for  damage to a person hurt in an auto accident. Property damage liability however deals with the costs of damage to one’s property, such as a smashed rear bumper on a car.  

The state premium in Alaska is much higher than the national average,. The state’s premium is $2,130, while the nation’s premium is an average of $1,766. There are several factors that play a role in determining  your premium. Even though Alaska’s premium is higher than the national average, there are some things you can do to lower this rate. Your location is probably one of the most important factors. Large cities in Alaska such as Anchorage and Juneau are going to offer higher premiums because they are more populated, therefore causing more accidents, thefts, and deaths. Another way to lower your premium is to minimize the amount of traffic violations you receive and car accidents that you get into. Having a good driving record will greatly affect your premium because you are not seen as a major threat to others on driving on the road. Some factors that cannot really be helped include the type of car you drive, your age, your sex, and your marital status. 

With such a high average premium in the state of Alaska is very important to shop around to find the best auto insurance rates for you. Since car insurance is 100%  needed in order to drive in Alaska, you are going to want to find an insurance company that you can afford. Even if you have had to file a claim, or you have been in a car accident, by looking around you can find a great rate on auto insurance!

 

Alaska Car Insurance Questions & Answers

Q: Is auto insurance mandatory?

A: Yes and no. For the majority of Alaskans, your auto insurance coverage must provide $50,000 injury liability for one person in an accident, $100,000 for two or more injuries in an accident, and $25,000 to take care of any property damage in an accident. This is called 50/100/25 in insurance-speak, and has nothing to do with the IQs of your relatives, the figural dimensions of hippos, or the size in weight of the last three fish your Uncle Abner purportedly caught last summer.

There are certain areas, however, in Alaska, where neither registration nor insurance is required. The list of these locations is shown below. The great big exception is this: If a driver has received a ticket for a violation of 6 points or more -- no matter where he or she is living -- within the last 5 years, that driver must have liability insurance.
Q: Is Alaska a "tort" state?

A: Yes, which means that you are financially responsible for the damage and injury you cause to one or more people in a wreck and includes lost wages, medical expenses, and any pain and suffering. Liability coverage helps insure you against the costs of all these catastrophes and is required by law. Although Alaska has the highest liability insurance minimums in the country, it’s a good idea to remember just how much it cost you the last time you had to take your kid in to get that bean extracted from his nose. Imagine what it would cost if someone was really hurt and had to spend a few days in the hospital! Or if more than one person was hurt? Or if you jumped the curb while admiring your newly pierced nose in the rear-view mirror and hit Acme Widget Company’s phone box, disabling all their phones and computers, thereby causing x-number of dollars in lost revenue? Suddenly those 50/100/25 numbers don’t sound so high, do they?

Q: What type of insurance is required to purchase and maintain an Alaska tag and registration?

A: Alaska's minimum liability coverage of 50/100/25 is required by law, but proof is not mandatory upon application. The clerk will not shine a spotlight she keeps hidden under the counter on you and accuse you of being a liar in front of everyone standing behind you in line, but if this worries you, you can learn about registering your car, getting your plates, and then print out the forms online at http://www.state.ak.us/dmv.  Then you can just mail everything in and avoid the clerk completely. The application itself carries a signature line in which you certify under penalty of law that you carry a mandatory insurance policy that will be maintained during the entire registration period of your vehicle. But don’t lie; it’s really bad karma – and you might get caught.

Q: Can I maintain my current policy issued in my previous state of residence?

A: No. Since you’ve got to register your car within 10 days if you’re serious about staying in Alaska (living or working there, or both), you’ve also got to certify you have insurance – Alaskan insurance. If you’re just visiting, your policy from whatever state you’re from will cover you for 60 days. This will serve as a great excuse to leave your mother-in-law’s house if you’ve been there for an extended visit and can’t convince your wife two months has been way long enough.

Q: What if I fail to keep insurance on my vehicle that I’ve registered in Alaska?

A: Even though you won’t get exiled to the coldest part of the state and left to fend with a book of matches and a live chicken, failure to have liability insurance in effect may result in suspension of your driver's license – 90 days for the first offense and a year for the second. In Anchorage, you can even get your car impounded. So, unless you’re willing to hoof it for a while, it’s best to just do the right thing and pay that car insurance premium.

Q: I own several vehicles but do not operate some of them. Do I need insurance for the inoperative ones?

A: Every vehicle in Alaska is required to be registered unless specifically exempted by law. So don’t even go there if you’re thinking of telling the authorities that other car in your front yard is really just a plaything for your child or pet monkey. Oh, one other thing: Camper shells are exempt, but it’s kind of hard to operate them on a flat surface unless you hook up the sled dogs.

Q: How can I own a vehicle and not need insurance?

A: To get out of needing insurance, you have to be exempt from registration laws, and to be exempt from registration laws, you have to live in one of those areas listed above. Otherwise, overcome your delusions of grandeur, stop thinking you can beat the system, and buy that insurance