The main point of car insurance is to protect drivers financially. In the event of an accident, auto insurance will help to cover the resulting expenses. The amount that it covers depends on the type and quality of insurance that has been purchased. In states like Alaska, auto insurance isn't just recommended; it is required by law. While there are a few exceptions, all drivers must maintain valid liability car insurance to legally operate motor vehicles in the state. Insurance rates vary a lot from provider to provider, so it pays to collect many auto insurance quotes when looking for insurance in Alaska.
Alaska Drivers: Demographics
Despite its massive size, Alaska has a very small population. The majority of drivers in this sparsely populated state are concentrated in a few metropolitan areas. However, driving in isolated areas can be just as risky as driving in heavily congested ones. In the wilderness, for example, deer and other wildlife routinely cross roads in front of drivers. Without decent auto insurance, these types of incidents can cost drivers dearly.
According to the U.S. Census Bureau, the population of Alaska was 731,449 in 2012. Of that number, 521,280 are legally licensed drivers. That total accounts for about 71.3 percent of the population. The vast majority of those who are legally allowed to drive exercise that right.
As of November 2012, there were 244,957 female drivers in the state of Alaska, which equaled 46.99 percent of all registered drivers. The Federal Highway Administration also reports that there are 276,323 licensed male drivers in the state, which equals 53.01 percent of all registered drivers. It should be noted that auto insurance companies are not supposed to take gender into consideration when calculating rates.
What does come into play when calculating car insurance rates in Alaska? Age is a significant factor. The younger a driver is, the less experienced he is too. According to the Federal Highway Administration, 22,490 drivers were under the age of 19 in Alaska in 2012. That accounts for 4.3 percent of all licensed drivers. What's especially interesting is the fact that the largest group of licensed drivers is between the ages of 25 and 29. There are 58,479 such drivers, and they don't have nearly as much experience as drivers who are 10 or 20 years older. That group accounts for a whopping 11.2 percent of all licensed drivers in the state of Alaska, so plenty of them are on the road.
Auto Insurance Requirements in Alaska
In some states, there are ways to avoid having to buy car insurance. For example, some states allow drivers to pay cash bonds in lieu of maintaining car insurance. This is not advisable because a cash bond may not cover all of the damages and injuries that are caused by an accident. None of this matters in Alaska because car insurance is the only acceptable way to obey the letter of the law.
In Alaska, there are minimum requirements when it comes to car insurance. It's important for drivers to be aware of these requirements to avoid running afoul of the law. These requirements are as follows:
- Insurance policies must include at least $25,000 in property damage coverage
- Insurance policies must include at least $25,000 in coverage for the bodily injury or death of a single person.
- Insurance policies must also include at least $50,000 in coverage for the bodily injury or death of more than one person.
In some parts of Alaska, it is not necessary to register vehicles. Insurance is therefore not mandatory in those areas either. The one exception involves drivers who have been ticketed for violations worth six points or more in the last five years. They must maintain valid liability coverage wherever they live.
The kinds of coverage that are required by law in Alaska are very minimal. Most people buy more extensive insurance policies. A great way to get top-quality insurance for an affordable price is by gathering as many auto insurance quotes as possible. Alaska drivers can save huge amounts of money by doing so.