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car insurance alaska - AK

Overview and Law enforcement

To register your vehicle in nearly all U.S. States, it must be insured. In some locations within the state of Alaska this condition is not a legal requirement so it is not necessary that the vehicle be insured.

However, for those locations where vehicles must be registered and insured, they are governed by the Mandatory Insurance Law. This law requires that drivers must carry Liability Insurance, or if it is an aggressive driver (to remain on the fringes of the law) he/she must carry proof of SR22 (financial responsibility). In this way the Department of Public Safety creates awareness and a commitment to the privilege of driving.

The SR 22 (also known as Financial Responsibility) is required as proof of being insured when a driver has committed an offense or crime that required his/her license to be suspended. Suspensions can occur due to violations such as driving under the influence or driving without insurance.  Depending on the case the driver must keep it current sometimes for a period of up to three (3) years.

Given the environmental conditions of the state, such as the changing weather and the diversity of wildlife, car accidents are very feasible. Our belief in this section is simple and as the saying goes, "it's better to be safe than sorry".  It is worth having your car insured properly and not having to use your insurance policy, rather than being in the embarrassing situation that deserves proper accident coverage to respond to the parties involved (and not being able to use this benefit).

Each state which is governed by the laws of Mandatory Insurance has a range for the coverage amounts. Let’s find out about the minimum coverage amounts required or coverages established by the State of Alaska for owners of vehicles that must have proof of motor vehicle liability insurance or SR 22:

  • for body injury / death the minimum amount of $ 50,000.00/ $100,000.00 
  • the amount of $ 25,000.00 for property damage

It should be noted that the SR22 is determined by court judgment, almost always the amounts are pre-established or agreed, and in most cases the minimum coverage amounts discussed above are agreed upon.

Determining your Auto insurance in Alaska

The amounts that we have mentioned up to now only cover or protect from damage to other persons or vehicles with who you can be involved in an accident. However, you must consider the possibility of having an insurance policy that covers your expenses, those of your vehicle and those of the people who are inside your vehicle when an accident occurs. Have you thought about the amount of money that would have to pay to cover the costs in the event of a car accident?

Feel free at the moment of purchase to do your own market research and find a car insurance policy that covers others as well as your own. The most important thing is that you become aware and know what to expect from this benefit.

These insurance policies are usually a little more expensive than the minimum coverages established by the State of Alaska. You must take into account that insurance companies are studying the strengths and weaknesses (age, sex, marital status, academic level, if you are a good or bad driver, etc.) of customers to determine rates and deductibles in policies. But in any case, it is you who determines the amount of your coverage and against which things you wish to be protected. In the State of Alaska it would be good to know / ask how much your insurance policy covers against Mother Nature damages!

The Car Insurance Companies in Alaska

Since there have been cases of fraud, car insurance companies do their own research and analyze their future clients. You should also do the same. Alaska has fewer roads than most other states in the U.S, coupled with difficult and risky driving conditions. Beginning with the premise that you live in Alaska and that many companies do not have bases or branches in town, a good beginning strategy would be to ask other drivers (that you know) about their experiences with their insurance companies.   

It is likely that you may have had a bad experience or are not satisfied with your insurance company. If you have a complaint please do not hesitate to submit it to the State of Alaska's Division of insurance. They can investigate and take actions to audit the policies and procedures of any insurance company. Don't be afraid to take this route as it will only help to improve standards and provide better service to customers.

Affordability is always the number 1 factor when looking for a new insurance provider. However, the ideal company would be one that can materialize a comprehensive insurance policy (with the adequate coverage required) that is customized to your individual needs. 

It never hurts to be over prepared, by establishing your priorities and needs. An important tip is to compare the prices of coverage when you are deciding to finalize the purchase. And remember to ask for discounts! Discounts are good! Remember that insurance companies use discounts to attract new customers. But if it is for your safety and that of others, we believe it is worth spending a little more money on good coverage. Our conclusion and recommendation is to be a careful and responsible driver, who complies with all traffic laws, which in turn will allow you to protect and keep your driving privileges. This is the most effective and efficient way to save money on auto insurance.