The veritable wilderness of Alaska has earned it the deserved label of ‘The Last Frontier’ because of the relatively undiscovered merits it possesses. The stark landscape and varying weather conditions in Alaska also reflect on the price of auto insurance and in 2009, motorists paid an average of $2,218 for a policy. This figure represents a massive $483 above the national US average and was 13% higher than the equivalent period in 2008.
Auto insurance in Alaska follows the Tort system which determines that somebody must be held as accountable in the event of a road traffic accident. It is important to note that the Tort system can vary considerably from state to state.
State law in Alaska demands that all motorists hold a minimum of 50/100/25 coverage and this is one of the reasons why insurance in this region is considerably higher than it is in other states. The breakdown of minimum auto insurance cover is as follows:
- $50,000 worth of bodily injury liability for a single person
- $100,000 worth of bodily injury liability per accident
- $25,000 worth of property damage cover
Although there are no obligations to purchase protection against uninsured or underinsured motorists, it is highly advisable to consider this additional level of cover if it is affordable. Policies purchased in Alaska must be sourced thorough a carrier that is licensed to operate within the state. Before committing to a policy, it is advisable for motorists to research the insurance rating of an individual company to check details regarding their financial stability and their record of effectively settling claims.