Insurance Alaska: A Guide to Auto & Home Coverage
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Alaska doesn't have the largest population in the United States, with only 734,821 people. Still, its population is strong, diverse, and used to harsh environmental conditions. The homeownership rate in the state is 66.3%, slightly higher than the national average. Property values are also healthy, with the median being $318,000, and similar to other states, the average Alaskan household owns two cars.
Considering house and vehicle ownership, the average household in the state has assets worth nearly $400,000. Given the state's extreme weather conditions, Alaska insurance plays a crucial role in protecting those assets and reducing the financial risks to families.
Introduction to Alaska Insurance Requirements
Insurance in Alaska is more than a good-to-have option. The location of the state increases the likelihood of natural disasters such as wildfires, landslides, and avalanches. Even so, as with other states, Alaska doesn't require homeowners insurance, only auto insurance.
Auto insurance requirements primarily cover liabilities or injuries or damages to other people and their property. It's important to look into alternative insurance coverages to ensure comprehensive coverage of your property and body.
Also, while home insurance isn't required by the state, it's usually required by a mortgage lender. The over 70% of Alaskan homeowners who have a mortgage generally require insurance coverage.
Understanding Auto Insurance in Alaska
The minimum requirements for car insurance in Alaska include bodily injury liability coverage and property damage liability. Vehicle owners must maintain coverage of $50,000 per person and $100,000 per accident for bodily injury coverage. They must also carry $25,000 worth of coverage for property damage.
It's generally worthwhile to purchase more Alaska insurance than the state mandates. The more coverage you have, the better protected you are.
Also consider investing in a MedPay policy that covers medical payments for you and your passengers. Alaska is an at-fault state, meaning you can sue the people responsible for the accident. However, there is no guarantee that the at-fault party will have adequate insurance or finances to cover all medical expenses. MedPay can help cover the balance.
Review the insurance requirements of your state:
Home Insurance for Alaska's Unique Conditions
While not a state requirement, home insurance in Alaska is a wise investment. The state experiences several extreme weather events annually, including major storms, heavy rain, floods, and blizzards. It is also common for Alaska to be hit by natural disasters, from wildfires to avalanches.
Standard Alaska insurance policies may not cover everything, but they cover a lot. A typical AK insurance policy covers fire, rain, hail, snow, lightning, and wind. That means a standard home insurance policy should cover your house if a heavy snowfall damages the roof.
However, home insurance in Alaska doesn't usually cover flooding. Talk to an insurance agent to learn what your policy covers and doesn't cover. For anything not covered, ask about add-ons or riders to create a custom and comprehensive policy.
How To Choose the Right Insurance Policy in Alaska
Choosing insurance in AK isn't something to do on a whim. You want to weigh your options and consider your budget.
Cost is almost always the primary concern when buying insurance. Most people want affordable plans that provide extensive protection. While finding affordable and comprehensive options with discounts is possible, meeting eligibility requirements might be challenging.
Still, if you shop around and compare insurance quotes, you should be able to find a policy that fits your budget and meets any state mandates or mortgage lender requirements.
Affordable Insurance Tips for Alaskans
Finding affordable home insurance or the cheapest car insurance in Alaska isn't as challenging as it might sound. It all comes down to comparison shopping and doing everything in your power to receive discounts.
To lower Alaska auto insurance costs, there are several things you can do. First, improve your driving record. A clean driving record often leads to lower premiums. Second, increase your deductible. Paying more out-of-pocket lowers premiums but increases personal risks. Finally, if you also have home insurance, consider bundling your policies. Most insurers offer discounts when combining policies.
To lower home insurance premiums, first focus on home maintenance. Keeping up with annual inspections and minor repairs can limit risks for insurers, allowing for lower monthly or yearly premiums. Many home insurance agencies also offer discounts for installing security systems and measures, such as privacy fencing and exterior lighting. Finally, as with auto insurance, you can always consider a high-deductible plan.
Why Adequate Coverage Matters in Alaska
Alaska is a beautiful state, but the frequency of severe weather and natural disasters combined with abundant remote locations make having insurance of the utmost importance. These policies may not eliminate the dangers of the environment, but they help mitigate your financial risks.
Resources for Comparing Insurance Quotes
When you're ready to compare insurance policies, visit a comparison website or talk to an unbiased insurance broker. EverQuote offers a free comparison tool that allows you to assess several quotes simultaneously.
Explore Car Insurance Options in Alaska Today
Alaska insurance is a good idea for all major assets, and the state legally requires residents to obtain minimum coverage from an auto insurance company for all vehicles they own. If you are ready to find coverage that suits your needs, check out EverQuote. Our comparison tool lets you compare several policies at once to understand your insurance options.