Alaska Car Insurance
Considering the congested traffic in Alaska, a responsible driver should definitely buy car insurance. Therefore, you should try to find a policy that helps you respect the state’s regulations that has an affordable price and offers you the safety you need as a driver. You also need to purchase the policy before registering the car.
The first thing you should know about Alaska car insurance is the minimum of liability coverage you are required by law to purchase. Two types of coverage are required: one that refers to bodily injuries and another one that covers property damages. For the second coverage, the minimum is of $25,000, but most specialists advise drivers to buy twice that amount. In the case of bodily injury coverage, the minimum is of $50,000 per person and $100,000 per accident. It’s true that these minimums are higher than the ones required by most of the American states, but even so, you should still consider purchasing more insurance. In fact, specialists recommend a minimum of $100,000 of liability coverage per person injured in an accident and of $300,000 per accident.
Another thing you should know is that Alaska is a Tort state. As a result, the driver found at fault in an accident will have to pay the medical bills of all the persons that are injured in the accident. On the other hand, the law doesn’t require drivers to purchase Personal Injury Protection (PIP). That’s another reason why you include more injury liability coverage in your policy. Another option for better protection is to buy PIP coverage.
An Alaska driver doesn’t have to buy uninsured/underinsured motorist coverage either, but the state has obliged car insurance companies (by law) to offer their clients combined coverage. Although this type of coverage isn’t mandatory in the entire state of Alaska it may prove valuable if you are willing to invest the money.
The only problem is that due to the high prices of an Alaska car insurance policy, most drivers find it hard to afford buying a complete policy. That’s because Alaska is one of the states with the highest average price for insurance. $1,875 is more than the $1,538 that represent the country average. That’s 18% more money for an Alaska car insurance policy. But even so, the prices have actually decreased with almost 15% last year (2010) in comparison with 2009, so the 2011 prices are in fact lowered price. You can decide to invest the difference in more coverage or if you want to save even more money you can choose a higher deductible, but that can be a problem if you get involved in many accidents. If you are interested in savings you can also look for discounts offered by many insurance companies to safe drivers or to drivers that drive less miles a year than average.
In this state, as in most of the American states the insurance cost is even higher for teenage drivers. The increase is justified by the lack of driving experience and the statistics which prove a teenage driver is more likely to be involved in an accident. But don’t worry. There are still ways to reduce this cost. To receive a discount, a student can use as an argument a high G.P.A or the defensive driving courses he should take.
In the end, the cost of your Alaska car insurance depends on your choices, but, sometimes, regardless of the money, you should decide to do what’s best for you and your family. A more complete insurance policy might make the difference between a financial disaster and a difficult situation.
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