Reader’s Question:

A friend of mine told me that when you increase your auto insurance here in Anchorage, Alaska it doesn’t really mean that your coverage will increase. Is the statement of my friend is correct? If so, why?

Tyron

Anchorage, AK

Good day Tyron,

If your vehicle has a lien holder then most probably you will be required to have collision auto insurance on top of your overall comprehensive coverage. Protection for their investment is what lenders want in Anchorage, Alaska and a collision auto insurance has the capacity to provide that protection.

For better understanding, a collision auto insurance is the one that takes care the coverage when your car hits to another car, hits to an object or hit by an object. With in these specified circumstances, your car is covered and will be fix using your collision auto insurance policy.

While with liability coverage, some of the coverage limits can be adjust by the policy holder. The usual cost of damage during collision or accident is being paid by the auto insurance company provided that the amount was already established by the claims adjuster. This cost of damage will not exceed the assessment value of the vehicle, and this answer your question. Your friend is correct regarding his statement, the factor that change here is the deductibles.

Check you policy for better understanding about deductibles and set this up with your insurance agent in Anchorage, Alaska. You can also shop for free quotes online and compare them so you can assess your choices for auto insurance policies.

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