The minimum coverage limit for auto insurance policies would vary from state to state. In Alaska, the auto insurance coverage should be a minimum of $50,000 in case of injury or death of a single person in an auto accident. If more than one person is injured or dies in an accident, the minimum cover should be $100,000. If there is property damage, the cover should be $25,000. Normally, individuals as well as business houses would purchase a higher cover so as to meet any eventuality.
Several types of auto insurance coverages are available to vehicle owners. The most important among them are comprehensive coverage, collision coverage, liability coverage, and medical coverage.
Comprehensive Coverage
The comprehensive coverage is normally for protection against what is termed as ‘Acts of God’, like damage due to fire, theft by a third person, collision with any animal, and other such unpredictable damages. If your car is involved in such an incident and you have this coverage, you could claim the repair or replacement charges from the insurer. Normally, a deductible would have to be paid under this coverage to the insurer. This coverage is not mandatory in Alaska but you would require this if you wish to create a lien on your vehicle. This coverage is particularly necessary for new vehicles.
Collision Coverage
If you are involved in an auto accident and you were at fault, the collision coverage would provide you protection. The repair and replacement costs of the vehicles involved in the accident could be claimed under this policy. This coverage is also not mandatory in Alaska but is recommended for new vehicles or for obtaining a car loan from a lender.
Medical Coverage
When an accident occurs and other people are present in the vehicles who had suffered bodily injury, then this policy offers protection and claim. Insurance companies encourage people to purchase this policy because the injured persons would be taken care of immediately and they would not sue the driver who had been at fault for negligent driving. This policy could be extended to cover lost wages also for suitable compensation.
Liability Coverage
The liability coverage not only provides for the bodily injuries but also for property damages in an accident. This policy would take care of the medical bills, salary losses, property damages, and any legal defense costs. The liability coverage policy is mandatory in Alaska and the limits had been stated earlier.
Other auto insurance policy coverages like personal injury protection or PIP, no-fault insurance, uninsured motorist bodily injury coverage, underinsured motorist bodily injury coverage, uninsured motorist property damage coverage, underinsured motorist property damage coverage, etc. also exist in Alaska. These policies would act as additional cushion when the cost of claim could exceed the coverage under the regular insurance policies. These policies could be taken as add-ons when you think that the risk of driving is higher in your area or if you are buying a costly vehicle. You could use the coverage calculator provided in the auto insurance websites, if you are not sure about the amount of coverage that you should obtain.
