Alaska auto insurance customers are required to buy third party liability coverage to stay legal in the state. Along with bodily injury and property damage liability insurance coverage, a driver should consider buying uninsured and underinsured motorist coverage as add-ons to the policy. Collision and comprehensive insurance coverage are also optional in Alaska.
Uninsured motorist coverage protects the driver, the occupants of his or her vehicle, and the car itself when an accident occurs when the at-fault driver does not have insurance coverage at all. It pay out for medical bills, rehabilitation costs and the repairs to the owner’s own vehicle following an accident.
Underinsured motorist coverage also protects the owner, but it comes into play when the at-fault driver has some coverage available, but his or her policy limit is not high enough to pay for the damages caused. The a-fault driver’s insurance is used first, and the underinsured motorist coverage is used once the the other driver’s policy limit has been reached to top up the available coverage.
Collision coverage pays for the costs of repairs to the policyholder’s own vehicle after striking another car or object, as well damages caused to the vehicle in a rollover accident.
Comprehensive coverage pays for damages due to incidents other than collisions. It pays for repairs to the car caused by severe weather, vandalism and fire. This is the part of the policy that pays out when the car is stolen.