Looking for a break on your Alaska auto insurance rates? We've compiled 3 simple steps you can take to make sure you are getting the best possible Alaska car insurance rate available to you.
1. Understand your required coverage. In Alaska, you are required to carry liability insurance of 50/100/25. Broken down, that means insurance that provides up to $50,000 for injuries or death to any one person, $100,000 for total injury or death per collision, and $25,000 for property damage. Alaska uses a Tort system, which means someone must be found at fault for each accident. That person's insurance pays the damages for all parties involved.
If you carry a loan on your car, your loan company will require you to carry full coverage. This protects both you and your loan company. It insures the company will receive the full loan amount for the car should it be unrepairable. It also ensures that you will not be left making payments on a car that you can no longer use.
2. Understand the cost of insurance in Alaska. In 2003, the average insurance premium in Alaska was $1,100/year. There are 10 states that have a higher average annual auto insurance rate.
Some variables that affect your rates include your driving record, your age, your purpose for driving, and the distance you drive just to name a few.
-If you have a clean driving record, it is obvious that you will pay less for your auto insurance than someone who has had accidents or tickets in the past five years. Driving carefully and obeying the laws of the road will save you a significant amount of money, possibly up to 50%.
-Drivers under 21 pay higher premiums because of their lack of experience and higher rate of accidents and incidents. Students however can qualify for discounts with many companies if they keep a high G.P.A or complete a driver's education course. Often times older drivers can qualify for discounts by taking defensive driving courses. These discounts vary by insurance company and must be asked for.
-Insurance companies consider your driving purpose when calculating rates. A "drives to business or work" rate is higher than a "pleasure" rate. If you don't work or if you carpool or use public transportation, you need to notify your agent and ask for a reduced rate.
-If you have reduced your daily mileage by driving to a carpool location, only driving 2-3 times a week, driving to a bus stop or any other reason, you should also inform your agent. Depending your new yearly mileage average, you may qualify for a rate reduction.
3. Understand what other discounts may be available to you. Most companies offer discounts for safety equipment on your vehicle such as anti-lock breaks, airbags, daytime running lights, anti-theft devices and more. Companies also offer discounts for multiple car policies or multiple coverage policies in which you insure your home and car with the same company.
Now that you've got your questions lined up, you are ready to search for the best rate you can get. The easiest way to go about comparing rates is by using the Internet. The Internet allows you to get rates from multiple companies, compare similar policies, and investigate company ratings without having to make a single phone call. Before you make your final decision, be sure to get quotes from at least three different companies to get an idea of the best possible rates for the policy you need. Spend some time doing a little bit of homework and you can be well on your way to finding the cheapest Alaska auto insurance rates possible!
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