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Alaska Auto Insurance Rules and Regulations

Alaska auto insurance rules and regulations detail the state's laws regarding car insurance for motorists across the state. Of some surprise to some people is the fact that even in Alaska there is a need for residents to think about auto insurance. There are some important things to keep in mind including exceptions to the law pertaining to some drivers. For anyone new to the state or for those who have become newly insured or have purchased a vehicle for the first time, the particulars of the state's rules and regulations are very important to understand.

Mandatory Auto Insurance in AL

The Mandatory Insurance Statutes in Alaska require that vehicles subject to registration under state law are covered with auto liability policies in compliance with state minimums. Bodily injury and death liability minimums in the state are at $50,000 for a single victim and $100,000 for multiple victims. For property damage liability, the minimum for each policy is $25,000. Alaska drivers who fail to comply with these guidelines for auto liability insurance are subject to suspension of their driving privileges. These minimums are not applicable in areas where auto registration is not required. There are a number of areas in the state of Alaska where auto registration is not required. The state Department of Motor Vehicles (DMV) has full information on which areas are exempt from these rules. Of important note is the fact that drivers who have received a ticket carrying more than six points on it anytime in the past five years do have to be insured [1].

Importance of Carrying Insurance Proof

Carrying proof of insurance is important for different reasons. Above all else, it gives police officers and other interested parties the information they need when they respond at the scene of an accident, and it helps you as a driver to have all the information you need right at your fingertips to call your insurance company and open a claim in the event of an accident, break in or other auto emergency. An insurance card gives a concise account of the specifics of your policy and of your insurance provider.

Because it is so important to carry proof of insurance for informational purposes, this insurance proof is required in vehicles whenever they are out on the road. Motor vehicle liability proof must be in the driver's possession any time they operate an automobile, and must be ready to present to any peace officer or other agent of the Department of Public Safety (DPS). In Anchorage, vehicles can be impounded for failure to produce proof of auto insurance [1].

Many areas in the state of Alaska are exempt from mandatory registration and from the Mandatory Insurance law in the state. The Department of Administration, Division of Motor Vehicles compiles information on exempt areas based on information obtained from the Transportation department. Check with state authorities for an update list of best exempt areas so that you can be sure to remain in compliance with the state's Mandatory Insurance law.

Optional Auto Insurance in Alaska

Although auto liability insurance is the only required element of car coverage for Alaskans as far as the state is concerned, there are other areas of protection that drivers can include in their policies if they so choose. Collision and comprehensive are separate but closely related areas of coverage. Collision insurance takes care of property damage to the covered vehicle in accident circumstances without regard to fault. Comprehensive insurance deals with non collision related losses. Deer hits and damage from falling trees are covered under comprehensive auto policies.

Comprehensive and collision are optional according to state law, but drivers who lease or finance their vehicles normally have to carry these modes of coverage as a part of their Alaska car insurance policies until their financial obligation on the cars is met. Collision and comprehensive protect the lien holder's remaining investment in a financed vehicle, ensuring that they will be repaid for their losses in the event of an accident or other property loss. But they also protect the covered driver. It would be tough to have to walk away from a totaled vehicle and have to continue making payments on it for months after an accident while also trying to afford a replacement.

Alaska drivers have other endorsements they can choose to include in their auto insurance policies to enhance their value and expand their reach of protection. Medical payments coverage provides protection for the driver and any passengers that are in the covered vehicle at the time of an accident. Uninsured and underinsured motorist coverage protects against losses that would ordinarily be covered by a driver's liability policy. AL drivers have many different ways to customize their auto coverage according to their preferences.

[1] http://doa.alaska.gov/dmv/faq/manins.htm Retrieved 2010-05-14

 

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