A study carried out by the National Economic Council has revealed a massive difference in AK auto insurance costs and comparable increases in wages. Joe Bidden, during a recent address to the National Association of Insurance Commissioners, revealed that Alaskan motorists had seen a 145% increase in AK car insurance rates over the previous 10 years but wages had only increased by 35% in the same period.
Bidden pointed out that the auto insurance to wage gap was increasing throughout the country and expressed his support for a review of existing rate review policies in the states that actually mandate them. Although a relatively small gesture in the grand scheme of things, Alaskan road users can at least be grateful that one senior figure is currently on their side.
Unfortunately, the widening gaps are leading to illegal vehicle use from an increasing number of motorists who can’t afford coverage but refuse to give up the day-to-day use of their vehicles. Even when polices are purchased, many drivers are woefully underinsured and this can result in massive out-of-pocket expenses if coverage doesn’t meet all financial responsibilities accrued in an at-fault accident situation.
Thankfully, road users do have a choice when it comes to purchasing AK car insurance. Price comparison websites, in particular, offer great auto insurance deals that can knock many hundreds of dollars off the national average rate. By comparing multiple policies and choosing a product that offers sufficient coverage at an affordable price, Alaskan drivers can stay on the right side of the law while the expected industry reforms take place.