Even the safest drivers sometimes end up in car crashes. That is why vehicle owners in Anchorage are required to carry car insurance. From fender-benders on Spenard Road to multicar collisions on the Walter J. Hickel Parkway, a good car insurance policy can keep an accident from costing you a lot of money.
Finding the best and most affordable car insurance is easy when you work with an independent agent. These local agents are available to help you obtain and compare customized car insurance quotes from some of the best insurance companies in Alaska. Contact an insurance agent near you to get started.
How Much Does Car Insurance Cost in Anchorage, AK?
The average cost of car insurance in Alaska is higher than the national average. Shopping around for the best rate has the potential to save you hundreds of dollars a year.
- National average annual car insurance cost: $1,311
- Alaska average annual car insurance cost: $1,410
This average rate can only give you a general idea of what you might actually be expected to pay. Car insurance costs can vary from one driver to the next because they are based on several factors such as the following.
- The make, model, and year of the vehicle(s) you are insuring
- Your age, occupation, and driving record
- Information about the other licensed drivers in your household
- Whether you own or rent your home
- The amount of liability coverage you are purchasing
- The coverage options you want to include in your policy
- The size of your deductible
In many cases, you can get rate reductions if you bundle your car insurance with other policies like home insurance or renters insurance. Comparison shopping enables you to get the coverage you want at the lowest offered price.
What Are the Minimum Car Insurance Requirements in Alaska?
Car insurance is required in Alaska except in some of this state’s small, remote communities where vehicle registration is also not required. However, if you live in the Anchorage area, this exemption does not apply to you.
All car insurance policies in this state must include liability insurance. This is designed to cover other people’s property damage and medical bills if you cause an accident.
Your policy must include a minimum of 50/100/25 liability coverage. This means that it must provide at least the following.
- $50,000 in bodily injury liability per person
- $100,000 in bodily injury liability per accident
- $25,000 in property damage liability per accident
Even though these required minimum amounts are higher than in any other state, they still may not be high enough to fully cover your financial obligations if you cause a collision in which several people are seriously injured. If that happens, you will be on the hook for making up the difference.
That is why some Anchorage drivers opt to purchase car insurance that has liability limits that are even higher than the state requires. Umbrella insurance can boost your liability coverage even more.
What Else Can Anchorage Car Insurance Cover?
In addition to the mandatory liability coverage mentioned above, most car insurance providers offer a variety of coverage options such as the following.
- Collision coverage: This covers the cost to repair or replace your vehicle if it is damaged or totaled in a collision, regardless of fault.
- Comprehensive coverage: This covers the cost to repair or replace your vehicle if it is damaged or totaled in a non-collision event such as if a tree falls on it.
- Uninsured/underinsured motorist coverage: This can compensate you for your injuries and property damage if an uninsured or underinsured driver is responsible for a collision with your vehicle.
- Medical payments coverage (MedPay): This can cover medical treatments for you, your family, and your passengers if you are injured in a collision, regardless of fault.
- Roadside assistance and towing: This covers the cost of needed assistance if your car becomes disabled while you are away from home, such as if your engine overheats or you get a flat tire.
- Gap insurance: This can pay off your car loan if your vehicle is totaled in a covered event. It is beneficial if the amount you still owe for it is greater than the vehicle’s current depreciated value.
It is a good idea to review the details and costs of each coverage option so you can best determine which are a good fit for you and your family.
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What Is the Penalty for Driving without Insurance in Alaska?
If you are caught driving without insurance, you can face these penalties.
- A fine of $500
- The suspension of your driver’s license for 90 days to one year
- The requirement to maintain an SR-22 for a year
- Higher car insurance rates
If you are at fault for an accident while uninsured, you will face the same penalties but your license will be suspended for three years instead of one. Plus, you will be on the hook for covering any property damage and injuries you may have caused.
The rate of uninsured drivers in Alaska is higher than the national average, but this may have something to do with the fact that people in most remote areas can drive legally without insurance.
- Percentage of US drivers who are uninsured: 13.0%
- Percentage of Alaska drivers who are uninsured: 15.4%
If you are in a collision caused by an uninsured driver, that person is responsible for compensating you for and your passengers for your property damage and any necessary medical treatments.
Uninsured motorist insurance was created to ensure that you can receive the compensation you deserve quickly and without the need to take legal action against the at-fault driver.
Does Anchorage Car Insurance Cover against Auto Theft?
The auto theft rate in the state of Alaska, and in Anchorage specifically, is significantly higher than the national rate. Anchorage residents report around 2,000 auto thefts a year.
- National auto theft rate per 1,000 people: 2.29
- Alaska auto theft rate per 1,000 people: 5.42
- Anchorage auto theft rate per 1,000 people: 5.32
It is important that you are aware that you can only receive compensation for a stolen vehicle if your car insurance policy includes comprehensive (or, “other than collision”) coverage.
If you are still paying for your vehicle or you have it on a lease, chances are good you have this coverage already. If not, you may want look into how much it will cost for you to add it to your Alaska car insurance policy.
Local Independent Agents Can Help You Find the Best Auto Coverage in Anchorage
If you are looking for the best car insurance policy to meet your coverage and budgetary needs, an independent agent can help. These agents work for you, not for a particular insurance company, so they are free to shop around to find the coverage you want at a price you can afford.
It doesn’t cost anything to talk to an independent agent. Contact an insurance agent near you to get more information and to start comparing customized car insurance quotes.
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