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. Number of uninsured drivers at 12% is below the national average of 15%. This figure clearly shows that Alaskans are keen observers of the laws and they are well aware of the benefits of having policies. That certainly contributes to low car insurance rates here.
The value of a policy becomes clearer in places like the Last Frontier where people are always tested by the elements. Certainly buying automobile insurance help you in many ways other than complying with the laws? Most people have it because it offers them peace of mind and makes them comfortable when driving. It is almost a bonus that you also comply with the laws and not worry about being stopped and checked.
It is not hard to find affordable premiums in Alaska because it has one of the cheapest prices. Unfortunately living costs here seem to be very high compared to the rest of the US. Long distances and harsh weather conditions must make it harder for the companies to provide services in this region. Furthermore, companies cannot offer competitive prices when they cannot sell in large volumes.
Alaska Auto Insurance Requirements
The basic liability limits are;
Driving without coverage may result in suspension of a 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.
Generally, companies are not allowed to sell policies below the state minimum vehicle insurance requirements and it is the same 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.
This certainly makes more sense when you are facing harsher conditions. An unexpected turn of the weather can cause accidents even though you may be a very good driver and used to it. It is a smart move to buy a decent level of protection when the chances of accidents are higher or there are a few more contributing factors.
Many people can easily make the mistake of thinking that basic Liability only car insurance will be a lot cheaper but it isn’t the case here. Perhaps you would think differently if you know all it takes is a few dollars more a month. It certainly isn’t a lot of money to be properly protected as compared with the former option. Being aware of the principles of premium calculations can ease your mind about the costs. It can help you in getting the best value for money.
For example, you may be paying $700 for a basic liabilities policy. Would you be surprised to find out that you can get your vehicle fully covered and increase liability limits five times if you paid $900? This is not a good case scenario offered to influence you. This is actually how it works. The more you buy the lower rates get. In fact, some companies can offer you a great package with full coverage cheaper than liability only from another one. Have a good look around when you are renewing a policy and surprise yourself.
Automobile Insurance Rates in Alaska
It is the largest, the 3rd least populous with 740,000 residents and the least densely populated in the United States. 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 probably push the costs upwards.
Average cost of car insurance in the Last Frontier is $889, which is slightly higher than the national figure of $841. However, looking at this figure alone can be misleading because it doesn’t really tell us what types of policies are mostly bought. It just tells us premium expenditure per automobile. Another study shows how cheap full cover auto insurance quotes are in Alaska at $1,078 on average. It is $247 cheaper than the national median estimates.
When the gap between the average expenditure and full coverage cost is narrow it means that most people protect their own automobiles as well with the latter option. There are other figures supporting this thinking. Average income here is pretty high and this normally results in purchasing better vehicles that need protection. Furthermore, it makes sense to buy reliable cars when the weather conditions are harsh and unforgiving.
Alaska Cheap Car Insurers
The gap between the least and most expensive quote can be more than twice here. This means that you can potentially save 50% by shopping attentively for the best deal. There aren’t many discounts that give you that much relief and usually it takes years to qualify for them. It only takes a few minutes of time to shop around no matter where you live. Here is a good selection of affordable companies. You should make it count and find the best value for your circumstances.
- Umialik Ins., $883
- State Farm, $985
- Progressive, $1,235
Remember to get quotes from other carriers too since this list can change pretty fast. They update their prices several times in a year and that can change the table. By the same token, you should always check alternatives to compare with your existing renewal terms. You might have checked last year and it was by far the most competitive. 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.