Do you need a break on your Alaska auto insurance rate? We have come up with three easy steps that you can use to ensure you receive the best possible Alaska car insurance rates that are available to you.
First, know how much coverage you need. The state of Alaska requires that drivers carry liability insurance of 50/100/25. The breakdown of this is that the insurance provides up to $50,000 for injuries or death to any single person, $100,000 for total injury or death per collision, and $25,000 for property damage. Under the tort system used in Alaska, someone must be found at fault for each accident. That person’s insurance is responsible for the damages of all parties involved.
Your loan company will need you to carry full coverage if you are currently carrying a loan on your car. This way, both you and your loan company are protected. Should you not be able to fix the car, this provides that the company will get the full loan amount. This ensures that you will not end up making payments on a car that you no longer can drive.
Second, make sure you understand the cost of insurance in your state. Know about the insurance rates for Alaska. In 2003, the average driver in Alaska paid $1,100 a year for auto insurance. There are ten states in which drivers pay a higher than average annual rate for their auto insurance.
A number of variables affect your rates: driving record, age, purpose for driving, and the distance you drive are just a few of these.
* Drivers with a clean record pay less for insurance than drivers who have had accidents or tickets during the past five years. By driving carefully and following the rules of the road, you can save an amazing amount of money — up to about 50%.
* Younger drivers (under 21) pay high premiums because they lack experience, and statistically have a higher rate of incidents and accidents. By maintaining a high GPA or completing a driver’s education course, students can often qualify for discounts. Commonly, elderly drivers can qualify for discounts by going through a defensive driving school program. These discounts need to be requested and could differ by insurance company.
* When calculating your rate, an insurance company factors in your purpose for driving. The “pleasure” rate is lower than the “drives for business or to work” rate. You need to contact your agent and request a reduced rate if you do not work or if you carpool/use public transit.
* Make sure to inform your agent if you have reduced your daily mileage, for example, by carpooling. You might qualify for a reduction in your rate depending on your average mileage for the year.
Third, consumers should know what discounts they are eligible for. Most insurance companies provide discounts for safety equipment on your vehicle; for example, airbags, anti-lock brakes, anti-theft devices, daytime running lights, and more. Insurance companies offer discounts for multiple car policies, or multiple coverage policies where you insure your home and car with the same company.
Once you know what questions you need to ask, you are ready to look for the best rate available to you. Using the Internet is the simplest way to compare rates. By going online, you can find rates from different companies, compare similar policies, and check company ratings without making a single phone call. Get quotes from at least three different companies before making your final decision. Consumers who do a little bit of homework can be well on their way to finding the cheapest car insurance rates in Alaska.