Alaska Auto Insurance Laws and Car Insurance Requirements

Alaska auto insurance laws are amongst the most stringent in the United States, a fact not lost on the state’s citizens. However harsh these laws may appear, ultimately they are intended to ensure the safety of all road users. The purpose of these laws, therefore, isn’t to be punitive, but rather to keep citizens on the road safe in all eventualities. That’s why every vehicle must be insured and proof of insurance must be offered at the scene of every accident in the state.

According to Alaska auto insurance requirements, every driver must have a currently active liability insurance policy at all times. This applies whether the vehicle is being operated on a street, highway or public property. The only exceptions to the insurance requirements are off-highway vehicles, areas where registration is not required and non-registered non-operational vehicles.

The minimum coverage required under Alaska auto insurance laws is the highest in the nation. Every driver must carry coverage of at least $50,000 for injury or death to any person, $100,000 for total injuries or deaths per accident and $25,000 for property damage. The rates are set at a high level to minimize the number of lawsuits that tend to follow accidents.

As in most states, drivers are required to provide proof of insurance at particular times. In Alaska, this includes any time you are involved in an accident or any time you are pulled over by a police officer and asked for proof of insurance. Failure to provide adequate proof can result in a range of penalties depending on your driving history.

According to Alaska auto insurance requirements, failure to provide proof of insurance can result in immediate suspension of your driver’s license and the period of suspension can range from 90 days to 12 months, depending on your previous record. The more times you are issued a motor vehicle liability insurance, or MLI, violation, the longer the suspension.

Along with the license suspension, drivers can also be charged a fine for MLI violations. A first violation carries up to a $500 fine and any subsequent violation can carry up to a $1,000 fine or a 6-months driver’s license suspension or both. As with other areas of Alaska’s insurance laws, the penalties are particularly austere in order to ensure the safety of all road users.

Under Alaska auto insurance laws, owners of new cars with outstanding loans must also carry full coverage insurance. Full coverage insurance is also required on all rental cars. If you do not have collision coverage for a rental car, your insurance company is required to offer it in order to mitigate any physical damage to the car.

Alaska does not take the idea of auto insurance lightly and neither should you as a driver. It is therefore in your best interest to ensure that you are covered for any eventuality. You should not take risks with your life or those of other drivers. Put safety first with a full coverage auto insurance plan for complete peace of mind.

Factors That Impact Auto Insurance Premiums

Many people face rising auto insurance premiums each year without knowing how to stop the increases. There are a number of factors that can adversely impact the premiums that are paid for auto insurance. Knowing these factors and managing them can make a big difference when it comes time for your policy renewal.

The make and model of your car has a big impact on your premiums. In many cases, more expensive cars are more expensive to insure. This is because replacement parts and labor are more expensive. Safer cars, even if they are larger, can reduce premiums, because drivers and passengers have a lower likelihood of dying or becoming seriously injured in these cars.

Personal driving history has a dramatic effect on ones premiums. Accidents can and often do increase your premiums, and too many accidents can result in non-renewal of a policy. Traffic tickets not only cost you money when incurred, but they are tracked by the insurance companies. Drivers that get tickets are considered to be a higher risk and cost more to insure.

In most cases, cars become cheaper to insure as they get older. At a certain point, the replacement value of an older car is low enough that collision coverage is not needed, as the premiums would be more than the cost of buying an identical car of the same age.

The number of miles driven over a year is a question that insurers ask about. This is because a car that sits in the driveway has a much lower risk of getting into an accident than a car that is in traffic. People who work at home and only drive for leisure will save a lot more than people who commute twenty or thirty miles or more each day.

Similarly, a car owner who lives in a rural area will have lower premiums than one who lives in a high traffic urban area. This is due not only to increased risk of accidents in urban areas, but also because of higher auto theft rates in urban areas. Some people in urban areas incur a very high cost of transportation, including parking garage fees, and some of them decide to rely entirely on public transportation.

A driver’s age is another factor in setting rates. Younger drivers are more expensive to insure, as they tend to be in more accidents than older drivers. Older drivers are safer and more experienced drivers in most cases. These higher rates can be offset somewhat by having all drivers in a household on the same insurance policy, thus incurring a multiple driver discount.

Every driver needs insurance, but hopes to never need to use the insurance coverage. Taking the time to understand the factors that drive increases in auto insurance premiums can help the consumer to save a great deal of money on insurance.

Technology, Discounts, Customer Education to Drive Telematics Auto Insurance

Insurers are recognizing the importance of discounts to penetrate U.S. and Canadian markets. But this calls for the combination of product features.

Something seriously required in favor of the auto insurance policy holders in United States of America and Canada. UBI adoption is growing at a frenetic pace in North America according to the figures released by BI Research. Market watchers are keenly observing the growth of auto insurance and the factors that can pose challenges to auto insurance industry. Figures depict a rosy picture. Telematics based auto insurance growth rose from 4.1% in 2015 to 6% in 2016 in North America. The growth is pegged at 19.2% in 2019. What is the role of telematics expertise in expanding market reach? Can discounts increase the subscriber base? Is there any pitfall? Let us explore.

Insurers are constantly on the lookout for cost effective ways of doing business with telematics. But convincing policy holders seem to be their challenge. Yesterday’s know how is passe with newer and sophisticated knowledge developing on ICT front. Data collection and customer engagement hold the key for success in the wired world today. Aspiring policy holders can be convinced by the insurers with cutting edge technologies like: Driving data capture, direct marketing channel, Roadside assistance (NSD Partner), Geo analytics and gamification to mention a few. The millennial and Gen Z are technophile demography for the telematics market.

Technical features are for risk mitigation and discounts are for cost reduction. If both factors are combined market penetration is easier. At this point an expert is taking a balanced view. Donald Light the director of Celent, a research and consulting firm, is of the opinion that a combination of both discounts and surcharges can provide a bright future for telematics in Canada. He was sharing his view during ‘Insurance Telematics Canada 2016’ in Toronto. We all know surcharges are additional premiums against risky driving behavior. And Light suggest this to change the driver perception on their driving.

What perception Light wants to change? People pay a price for a product or service on their perception on quality. The same theory is applicable to one’s perception towards driving. If one thinks he is a ‘better driver’ and not an average driver which he actually is, then encouraging them to implement telematics mobile app to avail discounts will become a demanding task. Because his self esteem comes in the way of enhancing his driving behavior and accepting drive score as ultimate criteria for improving his driving. It is at this very stage only education is needed to change perceptions.

The very purpose of UBI is to reward the well behaving drivers on criteria like speed, acceleration, phone use etc. Vast part of the population are mobile and it makes sense for them to implement telematics mobile app on their mobile devices to mitigate accidents as well as earning drive score to avail policy premium discounts. Education is needed to change wrong perceptions of drivers to accept UBI as fair and to understand what standard driving behavior is.

Education should be extended on ensuring cyber security as telematics mobile apps are also prone to cyber attacks. This should be seen in the context where 60% of cars and trucks are going to be connected on net by 2017. This means tailored telematics services should address cyber security issue also to gain more acceptance in the market.

Switching to telematics is a good option; it is also promising for the insurance sector that wants to expand its reach. Cutting edge technical features, discounts for drive scorecards as well as surcharges for errant driving behavior can increase the acceptability of mobile telematics thereby attracting new mobile subscribers. If these issues are addressed, auto insurance market penetration will become easy.