Alaska Car Insurance Guide

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It is really important to get Alaska car insurance quotes because the state has some of the highest minimum insurance requirements in the US. This means you can easily end up paying more if you’re not careful. And that’s not all.

For those looking for car insurance in Alaska, you have to be smart enough to know what you and your car really need. The tendency among car owners is that they just go for any insurance that has a recognized brand name, without even thinking about the possibility of their choice. This can cause a lot of problems in the long run, especially if your quote lacked the right coverage.

Thus, it is very important that you not only get a quote, but know what should be included in it when you get it. That’s where we can help. Keep reading to learn the ins and outs of auto insurance in Alaska.

Minimum Auto Insurance Requirements In Alaska

As stated in the introduction, Alaska has among the highest minimum libailty insurance requirements in the whole of the United States. At the current time you are required to carry libailty insurance unless you live in an area exempt from registration or qualify for some other exemption (see law section below).

Assuming you and/or you vehicle are not exempt, you will need to buy at least the following liability insurance coverage:

  • $50,000 for bodily injury or death of one person in an accident;
  • $100,000 for bodily injury or death of two or more people in an accident;
  • $25,000 for property damage in an accident;

Even though these required insurance minimums are higher than other states they may still not be enough. Many accidents can cost more than your insurance coverage. In such a situation you’re on the hook for any costs over and above your insurance policy limits. Therefore, higher liability insurance limits and other types of auto insurance coverage are strongly recommended.

Alaska State Auto Insurance Laws

Given it’s vast size and sparse population Alaska has adopted some unique insurance laws and requirements often not seen in other states. The principle of financial responsibility remains in place.

Buying the required liability insurance listed above satisfies this requirement, but a few people do choose to self-insure or deposit cash and/or post a bond with the DMV. Any option besides insurance will likely cost more and is much more difficult to manage than simply purchasing an insurance policy. Yet, in Alaska there are even more wrinkles to the whole insurance issue.

As mentioned above residents of certain areas do not need to register their vehicles with the DMV and are thus exempt from mandatory insurance coverage unless they receive a ticket worth more than 6 points in the last 5 years. Following on this, certain types of vehicles may be exempt from the mandatory insurance requirements listed above. However, you may still require other types of insurance so do check before canceling or forgo buying an insurance policy.

The following vehicles are exempt from motor vehicle registration and thus do not need standard liability insurance coverage:

  • Vehicles that only cross a public road from one private property to another; including farm vehicles operating in accordance with the provisions of AS 19.10.065.
  • Vehicles with dealer plates.
  • A vehicles that have special permits as outlined in AS 28.10.151.
  • Human or animal powered vehicles.
  • Government owned vehicles.
  • Vehicles used exclusively on private property.
  • Vehicles currently registered in another state or country, provided the vehicle does not remain in Alaska for over 60 days.
  • Mobile homes.

All other motor powered vehicles be they cars, trucks, vans, motorcycles, SUVs, etc. need at least libailty insurance coverage. Moreover, you must always have proof of financial responsibility (usually an insurance card) when operating your motor vehicle.

Failure to have and show proof of financial responsibility or insurance when request by an officer of the peace can result in a variety of penalties. These include but may not be limited to the suspension of your driver’s license, reinstatement fees with the DMV and the requirement to file an SR-22 Form, which provides proof of future financial responsibility, for the following 3 years with the Division Of Motor Vehicles.

Finally, please be aware that Alaska is an at-fault state when it comes to insurance. This simply means that your insurance coverage protects you as a driver only up to the limits in your car insurance policy. Any damage and/or pain and suffering you cause above this will be yours to pay. The same applies to other drivers who cause an accident with you. Thus, if they don’t have enough insurance coverage you may have to seek additional payments through the courts.

As a result, it is always wise to consider uninsured and underinsured motorist coverage on top of your regular policy to provide a bit more protection. You should also be aware of how to file a claim should the time arise.

Alaska Car Insurance Companies

Even in Alaska you can still find many companies who want to sell insurance policies. In fact the Alaska Division of Insurance even has A Consumer Guide to Choosing an Insurance Company that can help you if you really have no idea where to begin.

The following companies (in order of size) are the largest issuers of private passenger auto liability policies in the state and may be a good place to start for finding an insurance policy. Of course you can always use our instant Alaska car insurance quote form found at the top or bottom of this page to compare multiple companies quickly and easily:

State Farm

Allstate

Geico

Progressive

USAA

The Hartford

Safeco

Country Financial

Teachers’ Insurance Plan

If you have a problem with any of the insurance companies listed above you always have the option of requesting that the Division of Insurance investigate them.

Average Alaska Auto Insurance Rates

Average Alaska auto insurance rates, by most measures, are exactly that, average. For example, in Insure.com‘s 2011 premium comparison, Alaska come in just below the national average for sample premiums at $1,454 compared to $1,561.

Similarly, CarInsurance.com has found that average quotes for car insurance in Alaska are just slightly cheaper than their US average. In this case $1,427 for Alaska drivers compared to $1,441 for US drivers.

The only source that disagrees on this point is the Insurance Information Institute. In 2008, they found Alaska to be the 12th most expensive state with average annual premiums of $904, compared to just $789 in the rest of the country. They have the most comprehensive statistics, but their numbers are a little out of date.

In any case, it doesn’t really matter who has the lowest average auto insurance rate. What matters is what you pay for your coverage. To this end the Division of Insurance has included a huge number of premium comparison tables (p. 16-57) in their 2009 Consumer Guide To Auto Insurance.

Their numbers may be a little out of date but they should help point you in the right direction for which company is likely to have the cheapest rates for you, given your circumstances.

Alaska Car Accident Statistics

According to statistics from the Alaska Highway Safety Office and the National Highway Traffic Safety Administration Alaska is slightly more dangerous than the typical state to drive in. The fatality rate per 100 million vehicle miles driven was 1.30 in 2009 compared to 1.14 for the rest of the US. As a result 64 people died on the roads that year.

Despite it’s huge size, almost all road fatalities occur in just 5 boroughs of the state. They are: Anchorage Borough, Kenai Peninsula Borough, Matanuska-Susitna Borough, Fairbanks North Star Borough, and Juneau Borough. If you are driving in these area pay special attention as they can be particularly deadly.

Why You Should Get Alaska Car Insurance Quotes

Now you are likely wary of the different possible incidents that may occur on and off the road. Think of where you drive your car, or if you have any recorded driving offenses. Why is it valuable that you look for and know such information?

For the simple reason that every quote you request will require some personal information. It is important that you provide them with the right answers. Once they have this they can provide rate and policy information that fits your circumstances.

Therefore, your Alaska car insurance quote can accommodate your situation. Of course, in this case, you should still find out what options you would like to have. Since Alaska has some of the most extreme weather in the country, you are advised to take extra precaution when it comes to insurance coverage.

If you don’t have the time to visit various insurance companies, the best way to get quotes is through websites like ours. With the cut-throat competition among insurance companies and agencies these days, they have to provide better service at lower prices. And what better way to do that than to provide Alaska car insurance online?

It’s one of the easiest ways to go when applying for a quote. You don’t need to sit through those long sales talks! The information that you need regarding your chosen quote will be provided on the website. All you have to do is fill out the necessary information regarding your driving experience and the status of your car. After that, you’ll be all set.

It’s quite amazing to see how the Internet has changed the whole car insurance market for the better. Don’t hesitate to take advantage! Get your Alaska car insurance quote now.

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Local Guide to Alaskan Insurance

Anchorage

More Information

Division of Alaska Insurance Home Page

Alaska Division of Motor Vehicles

2009 Alaska Automobile Insurance Guide

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