Mandatory Liability Auto Insurance
In the state of Alaska, the only auto insurance coverage that is required to be carried is liability. This provides for the protection of other people and their property in the case of an accident where you are at fault. According to state law, all vehicles must be insured for at least the following liability limits:
- $50,000 per person for bodily injury - $100,000 in total per accident for bodily injury - $25,000 per accident for property damage.
These limits are the highest required minimums in the United States and reflect realistic costs incurred due to accidents
Recommended Auto Insurance Coverage
While a variety of other types of coverage are recommended by insurers, the State of Alaska does not mandate any others. Even uninsured motorist coverage, which is mandatory in many states, is not in Alaska, despite the state having an estimated 13% of drivers uninsured. However, uninsured motorist
coverage is a very wise investment.
Collision and comprehensive coverage are the two types of insurance that provide physical coverage for your vehicle. While these are not mandated by the state, they are mandated by lenders if your vehicle is financed. This provides protection for the lender in case the vehicle is damaged or destroyed in an at fault accident. If your vehicle is paid in full, you have the choice to carry collision and comprehensive coverage if you want. Most people base their decision on the value of the car versus the annual premium for those forms of coverage. In a state that experiences harsh winter conditions, like Alaska, physical damage coverage is a good choice.
Personal injury protection or medical payments coverage is another type of coverage that superior policies include. It provides coverage for medical costs and expenses incurred due to bodily injury obtained in a car accident. It covers both the driver and all passengers in the vehicle. It goes above and beyond other types of medical coverage.
Other types of valuable auto insurance coverage include towing and labor and rental car coverage.Towing and labor will help if you need roadside assistance. Rental car coverage takes care of the cost of a rental car if your vehicle is unavailable to be used, due to a covered incident.
Having a complete knowledge of Alaska auto insurance options and obligations will prove to be very helpful to you as you select the policy for your vehicle.Get custom quotes now
