Living in Alaska is a different experience altogether. Residents of The Last Frontier experience perks that other states don't have, such as no sales or state income tax and a permanent fund dividend that pays each resident $3,300 just to live in Alaska.
But when it comes to Alaska insurance rates, residents pay more than the national average for both auto and home insurance. Knowing what Alaska requires in terms of auto and home insurance can help you save on your rates and make sure you get the coverage you need.
Alaska Insurance for Autos
Alaska insurance rates for autos average $973, and this tort state requires a minimum of $50,000/100,000 for bodily injury and $25,000 for property damage. But these minimums only cover costs if you cause an accident.
Many insurance experts recommend the following types of coverage to ensure you are fully protected on the road:
- Increased liability. Rising medical costs in every state mean that even $50,000 can go quickly in the event of a serious accident. And $25,000 for property damage won't go far if you rear end a Ferrari. Recommended liability limits are $100,000 per person and $300,000 per accident for bodily injury and $50,000 for property damage.
- Collision. This type of coverage covers repair or replacement costs to your car if it is involved in a collision of any kind, minus your deductible.
- Comprehensive. If your car is damaged as a result of something other than a crash, such as falling snow, hail, or vandalism, or if it is stolen, comprehensive coverage will cover repair costs after your deductible. Many lenders require collision and comprehensive coverage.
- Uninsured/underinsured. This coverage will cover medical bills, lost wages, and pain and suffering if you are hit by a driver that is uninsured or doesn't have sufficient coverage to cover your bills.
Alaska Insurance for Homes
Homeowners insurance in Alaska averages $850 a month, much higher than the national average. A few things Alaska homeowners will want to consider when purchasing their homeowners insurance includes:
- Earthquake insurance. This type of insurance must be purchased separately as it is not covered under a standard homeowners policy. If you don't have it, it is worth looking into—Alaska experiences more earthquakes than any other state in the country.
- Flood insurance. Like earthquake insurance, flood coverage must be purchased separately. If you live in a flood plain, this will be required. If your area experiences high rainfall or is prone to flooding, it's still a good idea to have it.
- Personal property. Some policies don't include your personal belongings such as furniture, clothing, toys and so forth, so you will want to purchase separate contents insurance.
Saving on Alaska Insurance Rates
Insurance in Alaska can be pricey, but you can save a great deal on your Alaska insurance rates by looking for discounts and then comparing quotes from different companies. Localinsurance.com is a great source for this, as it offers free information on all types of insurance. Once you've found what you need, you can get multiple quotes from a number of local companies quickly to make sure you are getting the best price on your insurance.
