Best Car Insurance in Alaska

Insurance companies in Alaska have 40 working days to settle a claim after it is filed. Alaska insurance companies also have specific timeframes in which they must acknowledge the claim and then decide whether or not to accept it, before paying out the final settlement.

Insurance Claim Timeline in Alaska

• 10 working days to acknowledge the claim and send the policyholder instructions and paperwork. This includes proof-of-loss forms, which serve as a sworn statement from the policyholder about the scope of the damage or injuries.
• 15 working days to make a decision on the claim after receiving completed proof-of-loss forms.
• 15 working days to make the final payment if the claim is approved.

There are several factors that can affect exactly how long it takes for an insurance company to settle a claim. For example, claims involving serious or multiple injuries take longer to settle. Additionally, poor communication between the driver, insurance company, and insurance adjuster can slow down the process.

Still, you are entitled to an efficient settlement. If you think that your insurance company is violating the law or operating unethically, you can file a “bad faith” lawsuit, which may award you the original settlement amount with added interest and penalties.

No, you cannot insure a car with a salvage title in Alaska. Salvage vehicles are cars that have been declared a total loss, meaning they're too damaged to be worth repairing and cannot be driven legally. As a result, no legitimate car insurance company writes policies for them.

Although insurance companies in Alaska won't insure a car with a current salvage title, you can get coverage if you have the vehicle repaired and inspected by a state-certified mechanic. If it's declared safe to drive, the DMV will issue the car a reconstructed title. Several insurance companies, including Allstate and Geico, sell policies to vehicles with a reconstructed title.

Keep in mind that some insurers will only sell liability insurance for reconstructed cars, meaning that they won't pay for any physical damage to the vehicle. Even if you are able to get collision and comprehensive insurance, your policy may not cover the full value of the car if it's totaled again.

No, you do not need uninsured motorist property damage insurance in Alaska – it is optional. Alaska law requires car insurance companies to offer you $25,000 in uninsured motorist property damage (UMPD) coverage, but you can reject it.

Even though it's not required, UMPD is a good investment for drivers who want to avoid paying out of pocket to fix their car after an accident caused by an uninsured or underinsured motorist. However, UMPD is similar to collision insurance, which pays to fix your car after any accident you're in. So, if you already have collision coverage, you do not need UMPD.

To learn more, check out WalletHub's guide to uninsured motorist insurance.

Car insurance usually follows the car in Alaska. The types of car insurance that follow the car in Alaska are bodily injury liability, personal injury liability, collision, and comprehensive. You're required to carry bodily injury liability and property damage liability in Alaska.

If you let someone borrow your car and they cause an accident in Alaska, bodily injury liability insurance pays for injuries to the other driver and their passengers. Property damage liability insurance will pay for damage to the other driver's car. If the person who borrowed your car causes damage that exceeds your coverage limits, their liability policy can act as secondary coverage. But their coverage only kicks in after yours is tapped out.

You won't need to use your PIP or MedPay coverage if someone caused an accident while driving your car because PIP and MedPay follow the driver. You will have to use your collision and comprehensive insurance to pay for damage to your car, though. These optional coverage types pay for your car to be fixed no matter who was driving, but it is a claim on your policy.

It's always a risk to lend your car to someone else, because you could definitely end up filing a claim using your own insurance in Alaska. When someone borrows your car, they also borrow your insurance coverage in most cases.

Full coverage insurance in Alaska is usually defined as a policy that provides more than the state's minimum liability coverage, which is $50,000 in bodily injury coverage per person, up to $100,000 per accident, and $25,000 in property damage coverage. Full coverage in Alaska also includes optional collision and comprehensive insurance. As a result, full coverage insurance costs an average of $1,212 per year in Alaska, while a state minimum policy costs $456.

If you can't afford to repair or replace your car after an accident, collision and comprehensive are important coverage types—even if they're not required. Collision insurance covers repair or replacement costs if you are in an accident, drive into an object, or flip your car. Comprehensive insurance covers repair or replacement costs if your car is damaged by falling objects, natural disasters, floods, fires, theft, vandalism, or animals. Full coverage insurance costs an average of $1,212 per year in Alaska, while a state minimum policy costs $456. Lenders usually require collision and comprehensive in addition to the insurance you must have under Alaska law when you finance a car.

Most people should also choose higher liability coverage limits than what is required by Alaska law. If you cause an accident and your liability limits don't cover the whole bill, you are still personally responsible for the rest. In the end, “full coverage” means having the right amount of coverage to protect your assets in a worst-case scenario.