Uninsured vs. Underinsured Motorist Coverage in Alaska

By the FigureMyTax Editorial Team · How we calculate

Alaska has one combined UM/UIM coverage. It pays your damages that the at-fault driver's insurance does not cover, up to your limit, and only after that driver's liability limits are used up.

One coverage, not two

AS 28.22.201(a)(2) requires uninsured and underinsured motorist coverage to be a single combined coverage. A policy must include it in at least the liability minimums, which are $50,000 per person and $100,000 per accident for bodily injury and $25,000 for property damage (AS 28.22.101(d) and (e)), unless the insured rejects it in writing.

The excess approach

The Alaska Supreme Court explains that the Legislature changed in 1990 from a "reduction" approach, which subtracted other payments from your limit, to an "excess" approach under which UIM coverage pays to the extent the at-fault driver's liability coverage is insufficient to compensate you for your actual damages, up to your UIM limit. The statute's formula is the lesser of your damages minus what the liable party paid and your applicable limit (AS 28.20.445(a)).

You must exhaust the other driver's limits first

UM/UIM coverage does not apply until the limits of the liability bonds and policies that apply have been used up by payments, judgments or settlements. In Curran v. Progressive Northwestern Insurance Co. (2001) the Court read that as an exhaustion requirement and held that settling with the liability insurer for less than its limit does not meet it. Talk to an attorney before you accept a sub-limit settlement.

Unknown drivers and hit-and-run

If both the owner and the operator are unknown, payment may be made only where there was direct contact between the vehicles. A vehicle that left the scene is presumed uninsured if you report the accident to the appropriate authorities within 24 hours (AS 28.22.201(b)).

What the coverage does not require

UM/UIM is excess to automobile medical payments coverage and workers' compensation, so it does not duplicate them (AS 28.20.445(b)). Neither chapter requires coverage for punitive damages (AS 28.22.101(e)). Property damage under UM/UIM carries a $250 deductible unless the insurer offers another amount.

Where your coverage can follow you

In Umialik Insurance Co. v. Miftari (2024) the Court held that an insurer cannot exclude UIM coverage for a vehicle the insured owns and insures under a different policy. See how the stacking and priority statutes fit with that holding, then run the numbers in the Alaska UM/UIM stacking calculator.

This is general information, not legal advice, and the state comparisons above are illustrative, not an exhaustive survey. Confirm how Alaska's rules apply to your specific case with a licensed Alaska attorney.