Auto insurance. Alaska.
QUOTATIONS from 2006 AUTOMOBILE INSURANCE GUIDE
STATE OF ALASKA
The Alaska Statutes require that if you own or operate a motor
vehicle you must provide a means of taking care of others if you are
involved in an accident and determined to be legally responsible. Most
people meet this obligation by buying insurance, but it can also be met
by posting a bond or by self-insuring, which must be authorized by the
Division of Motor Vehicles. The owner or operator of a vehicle registered
for use on the road must carry at least the legally required minimum
amount of liability insurance.
Alaska Statute 28.22.019 requires that you must have a copy of your policy, certificate of self-insurance, or identification card in your immediate possession when you are driving a motor vehicle
Liability coverage, the only coverage you are required to carry under Alaska law, provides you with protection from claims by others for damages that might arise out of an accident for which you are found to be legally responsible. This coverage is divided into Bodily Injury Liability and Property Damage Liability.
Bodily Injury is the portion of your Liability coverage that pays for expenses such as medical costs, loss of income, and funeral costs of others who are injured or killed as the result of your negligence. Coverage may be purchased with a split limit or with a single limit.
Split limits provide for payment up to a specified amount per person and up to a total amount per accident. A policy containing Bodily Injury coverage with a split limit of $50,000 per person and $100,000 per accident pays no more than $50,000 for the expenses of any one person. If more than one person is injured, a total of $100,000 is available to meet their expenses, but each person can recover no more than $50,000. Your policy or premium quote may show this as $50,000/$100,000
Bodily Injury or BI.
Single limits provide up to a specified amount for all Bodily Injury expenses without limiting the amount of payment per person. A policy containing Bodily Injury coverage with a single limit of $300,000 pays up to the total amount of coverage without limiting the amount an individual may recover or the number of individuals who may be able to recover. However, $300,000 is the maximum amount available under the policy.
You must carry limits of at least $50,000 per person and $100,000 per accident. However, higher limits may be available for an increase in premium. In deciding how much Bodily Injury coverage you wish to select, you may want to consider the cost of medical treatment in your area. Does your community have a trauma center equipped to handle injuries that occur in auto accidents or are there likely to be transportation costs to reach the nearest facility? How many people might be injured in an accident with one other vehicle or with two other vehicles? What is the likelihood in your community of having a multiple car accident or striking a pedestrian?
Property Damage is the portion of your Liability coverage that pays for expenses to repair or replace the property of others which is damaged as the result of your negligence. This coverage does not take care of your vehicle or other items of your property. Coverage is only available as a single limit. Your policy or premium quote may show this as $25,000 Physical Damage or PD.
If your policy provides $25,000 of coverage for Property Damage, it will pay up to that amount for all covered damage occurring during an accident regardless of the number of parties involved.
You must carry limits of at least $25,000 per accident.
However, higher limits may be available for an increase in premium. In deciding how much Property Damage coverage to select, you may want to consider the cost of repairing vehicles in your area. Does your community have auto repair facilities that keep a stock of parts needed for repair or will there be additional costs and delays to order needed parts? What would it cost to repair a wall, fence, mailbox, or other property that might be damaged? What is the likelihood of having a multiple car accident in your community? How much will it cost to provide a rental vehicle for the other party while their vehicle is being repaired? What is the average cost of a new car?
For more information, contact the Division of Motor Vehicles at any of the following locations:
Anchorage: 1300 West Benson Boulevard -- Telephone: 269-5551
Fairbanks: 1979 Peger Road -- Telephone: 451-5180
Juneau: 2760 Sherwood Lane, Suite B -- Telephone: 465-4385
Palmer: 1800 Glenn Highway, Suite 1-- Telephone: 745-2185
Soldotna: 333 Kalifornsky Beach Road, #10 -- Telephone: 262-4681
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