February 22, 2010

Tips For Collecting Auto Insurance Quotes In Alaska

Alaska is in the top 25% of all states when it comes to auto insurance rates, with only 10 states in the nation who have higher rates. A typical annual premium in Alaska costs $500 more than the national average. The reason for this higher premium is because Alaska insurance law requires drivers to have large amounts of injury and property liability coverage in their insurance policies.

Alaska operates under what is known as a 50/100/25 system for liability, and any auto insurance quote given in Alaska must abide by it. The first number represents $50,000 and is the total amount of liability that a policy must carry for a single person injured in an accident. The second number represents $100,000, and is the total amount that must be covered for all parties injured in an accident. This means that if only one person is injured, the insurance company will pay out a maximum of $50,000 to that individual. If three people are injured, they would, at maximum, have to split $100,000 three ways. The last number in the system is $25,000 and is the amount of liability that the policy holder must have to cover property damage to other vehicles in a collision.

These are the only requirements of the state, as Alaska does not mandate that drivers carry comprehensive, collision, or underinsured/uninsured motorist coverage (UM/UIM). All of these can be extremely beneficial add-ons, however, even if the government does not require them. Collision coverage will pay out for damage to the driver’s own vehicle, even if they are at fault. Comprehensive damage covers everything other than collision, including damage to the vehicle due to weather or theft. UM and UIM can be very useful as even $50,000 can be used up very quickly, and there are still drivers who do not carry insurance, which could leave a law-abiding motorist in serious trouble if they are injured. It is also worth noting that Alaska uses what is known as a tort’ system in determining fault, which means there is no such thing as no-fault accidents. Someone has to be found responsible, and that someone can be sued. Having excellent coverage is essential simply for that reason.

Collecting Alaska auto insurance quotes should therefore be done with an eye for detail. All basic auto insurance quotes issued there are going to include the minimum liability, but be sure to check out what else, if anything, is covered. If the policy only speaks to the bare minimum of liability, shop around to see if there are better quotes that include a few add-ons. There are many insurance companies operating out of the state of Alaska, and vehicle owners simply need to be diligent.