Alaska Auto Insurance Coverage

In the Land of the Midnight Sun, drivers can buy cheap state required liability only car insurance but they need to pay 4 times more to buy a full coverage policy. The towns and vehicles can be few and far between when travelling here. No matter how quiet the roads are you still need to buy at least liability coverage for automobiles and keep the rules. Ratio of uninsured drivers at 16.1% is higher than the national average.

The value of buying full coverage automobile insurance becomes clearer in places like the Last Frontier where people are always tested by the elements. Only 31% of Alaska’s roads are paved, which increases accidents and damages to vehicles. Also, colliding with wildlife or skidding off the road due to ice or snow is a real risk. So, having both Collision and Comprehensive coverage would help you recover your losses if you suffer an accident or other vehicle damages.

Alaska in Pictures

Alaska Auto Insurance Requirements

The basic liability limits are;

  • $50,000 in bodily injury liability
  • $100,000 in total bodily injury per accident
  • $25,000 in property damage liability

Driving without the minimum coverage may result in suspension of your driver license. Drivers must carry proof with them and present it to officers when asked. They recently started checking it electronically too. Further information can be obtained from DMV website.

Keep your headlights on in Alaska as you are required to use headlights on certain state highways to prevent collisions. Also you are advised to use headlights whenever you are driving here.

Since you have to buy a policy, you should spare a little time to research the options, check the price differences and buy full coverage if you can afford it. An unexpected turn of the weather can cause accidents even though you may be a very good driver and used to it. It makes sense to buy physical damages vehicle insurance when the chances of accidents are higher or there are a few more contributing factors.

Automobile Insurance Rates in Alaska

Alaska is the largest state but has only 740,000 residents and the least densely populated in the country. About half of the population live within the Anchorage metropolitan area. Generally, these are perfect conditions for low premiums because country living usually equals low accident and crime risks. However, there are weather risks that push the costs upwards.

The average cost of state required liability only car insurance in the Last Frontier is $421, which is 32% lower than the national average. However, the average premium for full coverage is $1,946 and it is slightly under the US average.

Alaska Cheap Car Insurers

The gap between the least and most expensive quote can be more than twice here due to lower competition in the market in comparison to other states. This means that you can potentially save 50% by shopping attentively for the best deal. There isn’t any discount this large and takes a while to qualify for. Here is a good selection of affordable companies. You should make it count and find the best value for your circumstances.

  1. Umialik Ins.
  2. State Farm
  3. Progressive

Remember to get quotes from other carriers too since this list can change pretty fast. Automobile insurers update their prices several times in a year and that can change the table. You might have checked the competitiveness of your renewal premium last year and it was by far the best price. This doesn’t guarantee that it will remain the same. That is why you should always compare quotes from different companies.

Anchorage Vehicle Insurance

It is by far the most populated city in AK with 300,000 residents. Motorists need to spend about 10% more for automobile coverage. The real figure may be more than that since this city is probably pulling the state average up. But it is worth putting up with the costs when you think about the perks of living so close to nature and still enjoying city life.