Car Insurance in Alaska
Car Insurance in Alaska
Alaska requires all registered cars to be insured. This is to guarantee that you will be protected in the unfortunate case of a car accident.
Read more to learn about Alaska car insurance laws, how the state’s programs can help you with insurance issues, and how insurance companies in the state determine your rates.
Alaska Car Insurance Requirements
In order to comply with Alaska car insurance laws, you must have liability insurance to help cover costs associated with injury or property damage to the other party in an accident you cause.
Your liability insurance must include the following minimum coverage limits per accident:
- $50,000 for bodily injury or death, per person.
- $100,000 for total bodily injury when multiple people are hurt.
- $25,000 for property damage.
Optional Car Insurance
After an accident, it can be devastating to find that the minimum insurance requirements do not provide you enough financial protection.
When you consider that liability only covers injury or property damage you cause to others and not your own, you can imagine that you may end up spending a lot of money if anything happens to you or your property.
When shopping for car insurance, consider these optional types of coverage:
- Collision – This will help pay for damages to your car after a traffic accident.
- Comprehensive – This will help you with damages to your car that result from non-accident-related events, such as weather, fire, and animal collisions.
- Uninsured motorists – While car insurance is required, many people still drive around without it. If you get in a car accident caused by one of these drivers, this coverage can help you with associated costs.
- Underinsured motorists – Like uninsured motorists coverage, this will help you when you get in a car accident with a driver who does not have enough insurance coverage.
- Medical payments – This will assist you with your medical costs if you are hurt in an accident.
NOTE: Loan and lease terms often require the driver to purchase collision and comprehensive coverage.
Proof of Insurance
You are required to carry a proof of car insurance with your vehicle at all times. The most common form of proof is your insurance ID card issued by your insurance company.
If you are caught driving without car insurance, you face driver’s license suspension.
If your license is suspended because of a car insurance violation, you will need to file an SR-22 proof of insurance (often referred to as “SR22 insurance”) in order to have your license reinstated.
Your car insurance company can file your SR-22 for you. Keep in mind that purchasing an SR-22 will likely increase your premium rates.
Alaska Automobile Insurance Plan
If you are having problems finding car insurance because insurance companies have deemed you a high-risk driver, you can apply for car insurance through the Alaska Automobile Insurance Plan.
The plan offers high-risk drivers the opportunity to obtain car insurance in Alaska by sharing the risk associated with these drivers amongst the providers in the plan.
Car insurance through the plan is generally more expensive than through the open market. You should only apply to the plan as a last resort.
Other Car Insurance Issues
Alaska’s Division of Insurance offers assistance to consumers with complaints and fraud.
If you are having a dispute with your car insurance company, you can file a complaint to gain assistance with your issue.
You can file your complaint:
- Online at the Division of Insurance website.
- By mail by printing an Insurance Inquiry/Complaint Form and sending it to:
- Division of Insurance
- Consumer Services Section
- 550 West 7th Avenue
- Suite 1560
- Anchorage, AK 99501
Insurance companies lose a huge amount of money due to insurance fraud. Those losses get passed down to consumers through increases in car insurance premiums.
Car insurance fraud often involves:
- Staging car accidents.
- Lying about injuries.
- Lying about property damage.
To report suspected fraud, contact the Division of Insurance by calling (800) 867-8725.
Determining Car Insurance Rates
Several factors affect your Alaska car insurance premium.
When comparison-shopping for car insurance, keep in mind that the following will factor into your rates:
- Your driving record.
- Your age and gender.
- Your marital status.
- Your car’s:
- Your credit history.
- The chosen deductibles:
- Your deductible is the money you are responsible for towards a claim before your insurance kicks in.
- Higher deductibles result in lower premiums.
AK Car Insurance Discounts
A great way to save on car insurance in Alaska is taking advantage of any available discounts.
When comparing car insurance quotes, you should ask about these common discounts:
- Good driver.
- Good student.
- Anti-theft device.
Discounts can play a big role in getting cheap rates, but the biggest factor is a clean driving record. Accident avoidance and safe driving are the major factors in obtaining and maintaining low-cost Alaska car insurance.
Most Cars Stolen in Alaska
If your car is known to be a target for car theft, you will likely have to pay higher car insurance premiums.
These following cars are the most stolen cars in Alaska for 2013, according to www.nicb.org:
- Chevrolet Pickup (Full Size).
- Ford Pickup (Full Size).
- Dodge Pickup (Full Size).
- Honda Accord.
- Ford Exporer.
- GMC Pickup (Full Size).
- Honda Civic.
- Ford Taurus.
- Jeep Cherokee/Grand Cherokee.
- Ford Pickup (Small Size).
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