Most people pick their car insurance based on one thing: the cheapest monthly payment. That’s a mistake that could cost you everything you own. The minimum requirements for Alaska car insurance seem reasonable enough. You need coverage as follows: $50,000 for injury or death of one person, $100,000 for injury or death of multiple people, and $25,000 for property damage. Sounds like a lot of money, right? It’s not.
The Scary Truth About Medical Bills
You have no idea what an ER visit costs anymore? Try $15,000 for anything serious. And that’s just to walk through the door and receive basic care. Don’t even talk to me about ambulance charges – $2,000 just to ride in the ambulance to the hospital. This is exactly why having adequate Alaska car insurance coverage matters so much when you’re dealing with accident-related medical expenses.
If the person you struck requires actual surgery, well, then things really get nasty. Orthopedic surgery for a broken leg can run $80,000. Spinal surgery? You’re looking at $150,000 or more. Brain trauma cases can easily top $300,000 before the person even leaves the hospital.
Your $50,000 coverage limit starts looking pretty small when you’re staring at a $300,000 medical bill.
Here’s what most people don’t realize: if your insurance doesn’t cover the full amount, the injured person can come after your personal assets. Your house. Your savings. Your future wages. Everything.
Why Alaska Makes This Worse
Alaska’s unique driving conditions make accidents more severe. Ice, snow, and long distances between towns mean that when crashes happen, they tend to be bad ones.
Emergency response takes longer here, too. A fender bender in Anchorage is one thing, but what about an accident on a remote highway? Helicopter medical transport can cost $50,000 or more. Your basic policy won’t even make a dent in that bill.
What You Actually Need
Most insurance experts suggest carrying at least $250,000 per person and $500,000 per accident for bodily injury. For property damage, consider $100,000 or more.
That might sound like overkill until you think about it this way: the difference in monthly premium between minimum coverage and adequate coverage is usually around $30 to $50. That’s maybe $600 extra per year. Compare that to losing your house because you didn’t have enough coverage.
The Uninsured Driver Problem
About 1 in 8 drivers in Alaska don’t carry insurance at all. Even more carry just the bare minimum. What happens when someone without insurance slams into you? You’re stuck dealing with your own insurance company to get your medical bills and car repairs covered.
This is where uninsured motorist coverage comes in. It’s basically backup protection for when the person who hit you has no way to pay for the damage they caused. Given how common this is, skipping this coverage is basically gambling with your financial future.
The Real Cost of Being Underinsured
Here’s something most people never consider: even if you have enough coverage for the other person, what about your own family? If you’re seriously injured and can’t work for months, will your insurance help replace your income? Disability insurance through your car policy costs very little but can replace a portion of your salary if you can’t work due to accident injuries. Most people focus on protecting others and forget about protecting themselves.
To Conclude
Your car insurance isn’t just about meeting legal requirements. It’s about protecting everything you’ve worked for. That extra $50 per month could be the difference between a manageable accident and financial ruin.
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