Insurance Coverage Review

Insurance Coverage Review – winter weather driving is dangerous. Review your auto insurance needs and prepare for winter driving. It is essential to have enough insurance in a car accident.

Minimum Auto Insurance Requirements

Alaskan law requires liability insurance for drivers. Alaska statutes states that drivers must buy at least $50,000 of liability bodily injury coverage per person and $100,000 of liability bodily injury coverage per accident. Drivers must also buy $25,000 in liability property damage protection. Drivers must also prove they have insurance at all times. Failure to provide proof of insurance may result in a license suspension.

Statutory minimum does not mean fully insured. Although Alaska requires minimum levels of auto insurance, many crashes cause damages greater than minimum requirements cover. For example, a severe crash may result in long-term injuries. Such injuries reduce a victim’s ability to earn a living or limit quality of life. When this occurs, the injured person may require insurance beyond what an at-fault driver’s policy insures.

Additional Insurance Options During Insurance Coverage Review

Companies offer insurance beyond state requirements, such as uninsured (UM), underinsured (UIM), and medical payments coverage (MedPay). These insurances should be part of every insurance coverage review. They protect you when damages exceed the at-fault parties’ insurance available.

Uninsured/Underinsured Motorist Insurance

Uninsured/Underinsured Motorist coverage, usually called U/UIM – protects you (and all occupants of your vehicle and family members) when you are run over by an Uninsured or Underinsured Motorist – usually a drunk driver. If you (and your family) are badly hurt by an uninsured or underinsured motorist, this insurance stands in the place of the other driver and pays your claims, just as the other driver’s liability insurance would pay them … if the drunk had any insurance. It is staggering how many Uninsured / Underinsured Motorist we have on Alaskan roads. U/UIM is VERY important insurance for you and your family.

Prepare for winter weather driving. Buy at least as much U/UIM insurance as you buy liability insurance. Consider buying more to better protect your family. This insurance coverage may be all that is available to address a lifetime of medical bills, unemployment and pain. I recommend at least 100/300 coverage. It is far better than 50/100, but it does not provide much beyond minimal protection. The next step up is 250/500 or $250K per person, and $500K per accident.

IMPORTANT: U/UIM insurance is usually less expensive than liability insurance. It is not linearly priced. In other words, doubling your U/UIM coverage will usually NOT double your premium payment. It is smart to think: “How much is my life – and my family’s lives – worth?”

Medical Payments Insurance

Medical Payments Coverage or MedPay insurance normally pays for medical bills arising from an automobile accident. It covers you and all occupants of your vehicle. And while it is not mandatory under Alaskan law – it should be. Many people have no MedPay or only $5,000. This is not enough.

How Much Will I Pay for MedPay Coverage? We recommend you buy $100K of MedPay insurance. It should cost between $50 and $75 every six months. People with good MedPay coverage rarely get bankrupted by medical bills and aren’t harassed by collection agencies after a Motor Vehicle Accident. It is cheap peace of mind. Buy all you can afford.