Under Alaska law, drivers must have bodily injury liability coverage in place. This portion of the insurance policy is used to pay for damages sustained by the occupants of the other vehicle in an accident. Property damage liability coverage is also required, and this coverage pays for the cost of repairing the other driver’s vehicle as well as any objects damaged in the collision.
The minimum level of bodily injury liability coverage that a driver in Alaska must buy is $50,000 for the injuries of a single person and $100,000 for all people injured in the same accident. This coverage pays for medical bills, expenses incurred by the injured person for services like housekeeping and rehabilitation, and lost wages due to a hospital stay or medical appointments.
Property damage liability coverage must also be purchased. It pays for the cost of repairing any sign posts, mailboxes, sheds or fences that are damaged in the accident.
The state does not require drivers to buy ininsured/underinsured motorist coverage, but it’s a good idea to put this protection in place. Uninsured motorist coverage pays out when the at-fault driver in an accident doesn’t have car insurance. Underinsured motorist coverage serves to fill in the gap when the at-fault driver has insurance but his or her coverage is not enough to pay for the damages caused during the accident.