Auto insurance AK is amongst the most expensive in the United States and the high mandatory levels of coverage have much to do with this. Alaskan car insurance is a legal requirement and the state operates under the tort system. This means that all drivers have a financial responsibility for injuries caused to third-party drivers and their property in an at-fault accident.
The minimum levels of AK auto insurance coverage are as follows:
- $50,000 worth of bodily injury liability coverage per individual
- $100,000 worth of bodily injury liability coverage per accident
- $25,000 worth of property damage liability
There is no legal obligation to purchase any other forms of AK car insurance but road users are advised to enhance their coverage whenever it is affordable to do so.
So what makes AK auto insurance so expensive and why is there the need for such high levels of coverage? The geographical nature of Alaska makes the terrain highly dangerous, especially in the winter when road conditions are constantly hazardous because of thick ice and persistent snowfalls. Poor weather and changing road conditions often catch drivers out and a short lapse in attention could easily result in a significant accident collision.
To help reduce your AK car insurance rate, consider the use of a price comparison website when you need to purchase a new policy. Price comparison websites provide a competitive marketplace where companies fight for business on a basis of price and superior coverage. With a little time invested, significant savings can be made.