Omnibus Clause

Many Alaska liability insurance polices include an omnibus clause. An omnibus clause is a standard provision in many automobile liability policies extending coverage to individuals not named in the policy. In other words, the omnibus clause applies to individuals authorized to use an insured vehicle. As long as the individual has permission to drive the car, they are covered by the omnibus clause.

Does Alaska Liability Insurance Require An Omnibus Clause?

No, Alaska Liability Insurance Law does not require an omnibus clause. 

Here’s Why:

• Alaska law’s primary focus requires liability insurance with specific minimum coverage. This protects others if you cause an accident.
• Alaska Statute 28.22.101 mandates that owners of registered motor vehicles maintain a liability insurance policy meeting minimum requirements for bodily injury/death and property damage.

Again, while an omnibus clause is not legally mandated in Alaska, many auto insurance policies automatically include this provision. Read and understand the terms of your specific policy. Ask your insurance agent if your liability policy includes an omnibus clause and how it applies to your situation. 

Liability Insurance

If a friend takes your vehicle with permission and crashes but has their own insurance, your friend’s insurance may be primary and necessary to cover damages for injured parties. So, if someone else driving your car is at fault for the accident, here’s how your Alaska liability insurance policy’s coverage may help:

• Auto liability coverage: Alaska liability insurance may help pay for other injured parties’ medical bills or damaged vehicle that arose from the accident. Your liability coverage will not pay for the permissive driver’s medical bills or repairs to your car.
• Collision coverage: May help pay for your vehicle repairs. Keep in mind that you’ll have to pay your deductible (the amount you’re responsible for paying before insurance kicks in) first.
• Medical payments coverage: Typically pays for medical bills incurred by your vehicles occupants, including the permissive driver.

Insurance Coverage: Drivers Without Permission

If someone takes your vehicle without permission, then you will not be accountable for damages or injuries that driver causes. For instance, if a thief takes your vehicle and crashes, then you will not be liable for injuries. You may however need to use your Alaska liability insurance to cover your own property damage claims.

If you are in an accident, it is important to gather as much information as possible from the other driver. Ask for registration in addition to proof of insurance. In many cases, several insurance policies can apply to assist in making injured parties whole following a crash.

Johnson Law has been helping Alaskans for nearly 30 years. It’s who we are. Call Johnson Law at  (907)277-3090 or use our Contact Form to discuss your Alaska accident injury case. We are here to serve you.

And while we hope you never need us… We’re here if you do. ~ Doug Johnson

Source: Investopedia; Alaska State Legislature

Image Source: Travel Alaska

Bodily injury insurance pays for the victim’s lost wages and medical bills. Property damage insurance covers repair costs for their vehicle or stationary objects, like their home or fence, that may have been damaged in the accident.

Liability car insurance is required in the State of Alaska (SOA) for all drivers. According to the Alaska Driver Manual, the minimum amount of mandatory liability insurance coverage is $50,000/$100,000 for bodily injury or death and $25,000 for property damage. All drivers are responsible for maintaining minimum insurance coverage.

Statutory Minimum Is Not Enough

If you are over 35 (and certainly if you are over 45) it is time to update your liability car insurance. Here are my nuts-and-bolts suggestions, after 30 years of cutting through automobile insurance like a hot knife through butter. Talk to your insurance sales agent. An insurance sales agent is trained to help you understand how much insurance is appropriate in your circumstances. It is their job to ask you questions, evaluate your situation, and make informed suggestions. Furthermore, this service costs you nothing. Call your insurance sales agent right now and set up an “Insurance Review Meeting.”

If you really don’t want to ask your insurance sales agent (or don’t have one), we recommend the following as the absolute minimum liability auto insurance you should buy before getting on Alaskan roads. This protects you from claims arising from your driving. If you lose control of your vehicle and hurt somebody, this insurance is what stands between you and bankruptcy.

We recommend a minimum of 100/300, that is $100K per person, and $300K per accident. This is OK coverage. It would grade 100/300 as C+ 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. 250/500 is B+ coverage. It is reasonable.

When deciding how much liability insurance to buy, the key is realizing that you are driving 4,000 pounds of steel at 55+ MPH on icy Alaskan roads. If you lose control and hurt another person, you want enough liability auto insurance to pay the other persons’ medical bills, lost wages, pain, suffering, and disability. If you don’t buy enough liability insurance to cover these claims, the balance of the injured persons’ claims come out of your pocket.

How Much Does It Cost?

IMPORTANT: The cost of liability insurance is NOT linear. In other words, 100/300 does NOT cost twice as much as 50/100. The expensive insurance is the 50/100 coverage that you already have.

Alaska Requirements for Liability Car Insurance

You must provide proof of insurance to the Division of Motor Vehicles (DMV) within 15 days of being in a serious crash in Alaska. A serious crash involves bodily injury or death to a person, or property damage in excess of $501. Regardless of the crash’s cause, all drivers involved must submit proof of insurance. Even if you didn’t cause the crash you must provide the proof of liability car insurance to the DMV.

The requirement to notify the DMV is in addition to any report given to the police or insurance company. Normally the officer investigating the crash will give a certificate of insurance form to the drivers. The certificate of insurance forms are also available at any DMV office or on the state web page. Alaska law enforces harsh penalties against drivers without liability auto insurance. If you are uninsured, or fail to provide the proof within 15 days, your driver’s license will be suspended for 90 days for a first occurrence and 1 year for a second occurrence. Protect yourself and others on the road by carrying proper insurance.

This Blog is Part 1 of a 5 Part Series. Check these posts for information about U/UIM, MedPay, Umbrella, and Homeowner Insurance.

Johnson Law, P.C. has been helping Alaskans for nearly 30 years. It’s who we are.

And while we hope you never need us… We’re here if you do. ~ Doug Johnson

Please call Johnson Law, P.C. to discuss your case: (907)277-3090 or use our online contact form.

Secondary Sources: Alaska Division of Insurance;  Alaska Department of Motor Vehicles; WalletHub

Image Source: WalletHub