Alaska Auto Insurance Requirements
Every driver in Alaska is legally required to be covered by a current auto insurance policy. Minimum coverage requirements in Alaska are somewhat higher than other states, partially due to the high cost of living in the state. The State of Alaska Division of Insurance requires that motorists have the following minimum coverage on every vehicle:
(Source: The State of Alaska Division of Insurance)
Motorists who are unable to obtain automobile insurance from a private insurer may be eligible for coverage under the Alaska Automobile Insurance Plan. The plan assigns applicants to private insurance companies doing business in Alaska. For more information, call AIPSO at 1-800-227-4659.
Drivers who do not carry a valid state insurance card face civil fines and suspension of driver’s license up to 90 days for a first offense, and must present proof of coverage prior to reinstatement.
Factors Influencing Car Insurance Premiums in Alaska
Alaska offers residents the option of excluding family members from an auto insurance policy. If one family member has a poor driving record, it could affect the auto insurance premiums for the whole family. Alaska law gives the named insured the right to specifically exclude a family member from coverage under the insurance policy. This is referred to as a “named driver exclusion”.
Finding cheap car insurance in Alaska tends to be easier than in most states, as Alaska ranks fairly low in average car insurance costs. While there are a variety of factors that go into underwriting auto insurance, Alaska insurance laws give good drivers the opportunity to qualify for cheap car insurance in comparison to other states. Reasons include:
• Population density, which is concentrated in just a few urban areas.
• PIP / no-fault coverage is not available in Alaska
• Overall accident rates are lower than national averages.
• Auto insurance fraud cases are below national averages.
The average auto insurance premium for residents in Alaska is $1,454 in 2011; the national average is $1,790.
Tips for Obtaining Cheap Car Insurance in Alaska
• Alaska allows “named driver exclusions” – if one family member has a particularly bad driving record, consider dropping their coverage
• Bind multiple policies (homeowners, life, auto) with the same provider
• Insure all motor vehicles (boats, snow machines, etc.) with the same carrier
• Maintain a good credit score
• Create a personal “emergency fund” of up to $1500 and increase deductibles accordingly
• Discuss affinity discounts with your insurance provider
• Drop comprehensive and collision insurance on older vehicles
Alaska Statistics
• Auto Theft: Alaska enjoys one of the lowest rates of auto theft in the nation, and the rate has been decreasing consistently over the past 10 years:
(Source: Auto Thiefs)
• Automobile Accidents: The total vehicle miles traveled in Alaska have remained fairly constant in recent years, as have the number of deaths in car crashes. Bucking a national treand, 2009 saw a slight increase in auto fatalities on Alaska highways.
(Source: National Highway Safety Traffic Administration)
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