In Alaska, you need $50,000 in bodily injury coverage per person ($100,000 per accident) if you purchase car insurance. Bodily injury liability coverage pays for other people’s injuries after a car accident that you cause, and it can also cover your legal fees if you are sued after a crash. However, car insurance is not required in Alaska if you live in a remote area where vehicle registration is not mandatory.
Even though Alaska doesn’t always require car insurance, it’s always a good idea to purchase it anyway. Car insurance is an important way to protect yourself financially, since it can keep you from paying out of pocket for expenses resulting from injuries and property damage that you cause.
Alaska is an at-fault state, which means that the at-fault driver is responsible for paying for everyone injured in the accident. There are no restrictions on the right to sue after an accident in at-fault states, even if the insured buys personal injury protection (PIP).
On average, state minimum coverage costs $456 per year in Alaska, but there are many factors that can affect how much you pay for a policy. Any coverage above and beyond what is required by Alaska law is optional, but it’s usually worth the money to get some additional protection. The biggest reason is that state minimum coverage doesn’t protect your personal vehicle. For insurance to pay for damage to your car, you’ll need full coverage.
In Alaska, full coverage refers to a policy that includes collision and comprehensive, plus higher coverage limits than what is required by state law. Full coverage car insurance costs about $1,212 per year in Alaska. There may be cases when you don’t need full coverage insurance, but Alaska drivers should buy as much coverage as they can afford as a general rule.
Most policies offer coverage for six months to one year at a time and can be paid in a variety of ways, including monthly payments. The best car insurance companies in Alaska balance affordability with quality coverage and strong customer service. You can easily get a quote from top companies like Geico, State Farm, Umialik, and Country Financial online or over the phone, or use WalletHub’s comparison tools to find the best car insurance policy for your needs.
Car insurance in Alaska costs $45 monthly ($543 per year) for minimum coverage, on average, and around $131 per month ($1,573 annually) for a full-coverage policy. The cheapest insurance companies in Alaska are USAA, State Farm, and Allstate, but insurers calculate premiums differently, so it’s a good idea to get quotes from more companies to find the best deal.… read full answer
Average Cost of Car Insurance in Alaska by Category
Clean driving record: $49 per month
After an at-fault accident: $68 per month
Driver with poor credit: $78 per month
Teen driver: $153 per month
After a DUI: $68 per month
The average cost of car insurance in Alaska is 25% lower than the national average auto insurance premium, and Alaska ranks 18 out of 50 for the most affordable car insurance rates in the U.S.. There are several factors that affect how much you’ll pay for car insurance in Alaska, including your driving record, age, location, the amount of coverage that you purchase, and the insurance company you buy it from.
Finally, it’s worth noting that car insurance premiums in Alaska are average , compared to the cost of coverage in neighboring states like Washington and Hawaii. You can find more details in the table below.
Cost of Car Insurance in Alaska vs. Neighboring States
No, uninsured motorist coverage is not required in Alaska, as drivers can reject the coverage in writing. Still, insurance companies are required to offer at least $50,000 in uninsured motorist bodily injury coverage per person (up to $100,000 per accident), as well as $25,000 in uninsured motorist property damage insurance per accident.… read full answer
For Alaska drivers who do not opt out by rejecting the coverage in writing, uninsured/underinsured motorist coverage helps pay for a car accident in which the other driver doesn’t have car insurance, or doesn’t have enough coverage for the damage they caused.
Why You Should Get Uninsured Motorist Coverage in Alaska
Normally, an at-fault driver’s insurance helps pay for any damage after an accident. However, if the other driver doesn’t have any – or enough – coverage, it can be time-consuming and difficult to sue them for funds to cover any medical or repair bills. That’s where this optional insurance coverage can help you save time and money.
Even though Alaska does not require uninsured and underinsured motorist coverage, you should still consider buying it. In Alaska, an average of 15% of drivers on the road don’t have car insurance. Car accidents in Alaska can be very expensive, too.
Key Facts About Uninsured Motorist Coverage in Alaska:
Minimum Uninsured Motorist Bodily Injury: $50,000 per person and up to $100,000 per accident
Minimum Uninsured Motorist Property Damage: $25,000 per accident
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