The state of Alaska requires every driver operating a vehicle to have some form of auto insurance coverage. This policy must be in the vehicle while he or she is driving. Drivers must also show proof of insurance in the event of an accident where property damage exceeds $501. If the responsible party can not provide this proof, a suspension of the driver’s license and vehicle registration will be issued. A driver’s license will be brought current when documentation showing proof of financial responsibility is available.

Liability Requirements
Motorists must carry a minimum policy comprised of a liability plan which will provide protection from claims derived from damage or injury to the property or body of another individual. Alaska liability coverage is $50,000 per person for bodily injury, $100,000 per accident for bodily injury and $25,000 per accident for property damage. Although these are the minimum coverage requirements, drivers should research the costs of medical treatment and property damage repair in the area to ensure their limits are sufficient.

Bodily Injury Coverage
The bodily injury portion of a liability policy covers the monies accrued by the injured individual for medical expenses, financial loss, funeral costs and other pertinent assessments. With a $50,000/$100,000 liability policy, each injured individual can receive no greater than $50,000 for expenses. If two people or more are injured, the group will be provided with a total of $100,000 without exceeding $50,000 per person.

Bodily Injury Sum Increase
Specifying a single amount above the minimum requirement for bodily injury insurance coverage is a safe way to ensure protection, although this is not a requirement. Motorists in Alaska can elect a single sum over $100,000 to represent the amount for all bodily injury expenses. This single limit pays costs up to the maximum amount without restricting each injured individual to a predetermined quantity. A limitless number of persons can recover money for accumulated medical costs under this plan.

Property Damage Coverage
The $25,000 minimum auto insurance requirement in Alaska for property damage is used for the repair or replacement of a vehicle or property as a result of the faulty driver’s accident. Although the minimum amount does not cover the expense of the negligent driver’s motor vehicle, it covers all damaged property for the other driver. This amount pays up to $25,000 without limitation to the number of parties involved.

Property Damage Sum Increase
Higher limits are available to vehicle operators looking for more protection. Many drivers may choose to increase their policy limit to conform to local repair costs. Drivers should also consider the amount of traffic on roadways driven on a regular basis. High traffic roadways increase the chances of a collision and driving through neighborhoods increases the chances of damaging property outside of another’s vehicle. Motorists in rural communities should consider the increase in repair expenses for ordering car parts and the need for a rental car due to the delay in repair.

Uninsured/Underinsured Motorist Coverage
The state of Alaska requires all insurance companies supplying coverage to drivers to provide an offer of uninsured/underinsured motorist coverage. In addition to liability coverage, uninsured/underinsured motorist coverage will cover injury and personal property damage expenses for the insured driver in the event that an uninsured driver is responsible for causing the accident. The uninsured/underinsured motorist coverage also protects drivers who fall victim to hit-and-run scenarios. Individuals have the option to select both policies or chose just one.

Excluding Drivers
Alaska law allows drivers to exclude another driver within the household from the policy. Individuals of legal driving age presenting greater risk for accident can be left off of the insurance plan without penalty. This scenario should be considered for families with young adult drivers residing at other locations who do not operate a motor vehicle. Many individuals choose this option as a way to lower auto insurance premiums.

Lack of Prior Insurance
Policy rating, in some cases will not consider lack of prior insurance as an offense. If an individual had never registered a motor vehicle or has not disrupted the Alaska Mandatory Insurance Act, then he or she can not be penalized during the policy assignment process. Many insurance companies offer discounts to those who can provide insurance history so be prepared to share other auto insurance company names, dates of coverage and liability limits.