Few things seem to be a way of throwing your money away than insurance. At least, it seems that way until you are in a car accident. Car insurance is imperative if you want to ever have financial peace of mind again. Alaska is not known for being the most economical place to live. The sheer cost of shipping merchandise to this frozen oasis simply adds to the already difficult prospect of sustaining a reasonable lifestyle.
Minimum Car Insurance Requirements in Alaska
Alaska car insurance laws have one of the highest minimums in the United States. Although rates throughout the car insurance industry have fallen over the last year, Alaska is still up there. Alaska currently has a 50/100/25 regulation for liability coverage, where many other states fall into the 15/30/10 range. As anyone can see that is a big difference. You will also pay for this difference. Where the car insurance premium for the United States is around $1545, Alaska’s average car insurance premium is almost $1900.
Perhaps part of the reason that Alaska car insurance regulations are so stringent is because their roads are so hazardous. Weather is a primary concern when driving in Alaska. The summer months are quite seasonable, however the rest of the year is extremely in climate. Blizzards, combined with sleet and slush make the roads slippery and dangerous. Some roads are very narrow, steep, and riddled with sharp turns and steep hills.
Alaska also has a lot of wilderness, and with the wild comes wild animals that may cross into a road at any time and place. Wolves, bears, moose, and elk are plentiful in the Alaskan landscape. Hitting a large animal with your car can actually total your car. Totaling with insurance companies means that your car is a “total” loss. It will cost them more to fix the car than it will to pay you. This only comes into play if you have purchased collision insurance. If you do not have collision insurance for your vehicle the insurance company will not cover the expenses of fixing your car.
In a place like Alaska you are probably better off getting a little more insurance coverage on your vehicle since the more hazardous the environment you are driving in is the higher the risk of you having an accident becomes.
Full coverage on your car insurance means that you are covered if you hit someone, someone hits your car, you run into a building or animal, if your car is hit by an inanimate object like a tree falling on it, or if someone steals or vandalizes it. Full car insurance coverage gives you the security of knowing your car will be replaced no matter what happens to it. You of course will pay for this surety.
Find Cheapest Car Insurance in Alaska
When you live in a hostile environment like Alaska you have to consider what the alternatives are. Oh, and make sure you compare insurance rates at least once a year. The rates have a tendency to go up and down so make sure you have the best one available by shopping regularly.