Updated July 2026
What Is Uninsured and Underinsured Motorist Coverage Insurance?
Uninsured motorist coverage (UM) pays for your injuries and property damage when an at-fault driver has no insurance. Underinsured motorist coverage (UIM) pays when the at-fault driver's liability limits are too low to cover your losses. Both coverages are triggered only when another driver is legally responsible for the crash — they don't pay for accidents you cause or single-vehicle crashes.
- You're stopped at a red light in Anchorage. A driver rear-ends you at 35 mph. You have $8,000 in medical bills and $6,500 in vehicle damage. The at-fault driver has no insurance. Your uninsured motorist bodily injury coverage pays your medical bills up to your policy limit. Your uninsured motorist property damage coverage pays for your vehicle repair minus your deductible.
- A driver runs a stop sign and T-bones your car. You suffer a broken collarbone and miss six weeks of work. Your total medical bills and lost wages reach $42,000. The at-fault driver carries Alaska's minimum liability limit of $50,000 per person — but their carrier pays only $35,000 after negotiating your claim. Your underinsured motorist coverage pays the $7,000 gap up to your UIM policy limit.
- A vehicle sideswiped you on the Parks Highway and fled. You have $4,200 in vehicle damage and $2,800 in medical bills. You file a police report but the driver is never identified. Your uninsured motorist coverage treats this as an uninsured driver claim and pays both your medical costs and vehicle damage up to your policy limits.
Who Needs Uninsured and Underinsured Motorist Coverage Insurance?
You should carry UM/UIM coverage if you drive regularly on Alaska highways where help is far away, if you have significant medical expenses that health insurance won't fully cover, or if your vehicle is worth more than you can afford to replace out-of-pocket. Given that one in seven Alaska drivers is uninsured, this coverage pays for itself the first time an uninsured driver hits you.
Compare the annual cost of UM/UIM coverage to your health insurance deductible and your vehicle's current value. If an uninsured driver totals your car or sends you to the hospital, could you cover those costs without financial hardship? If not, the $100 to $200 annual premium is worth the protection.
How Much Does Uninsured and Underinsured Motorist Coverage Insurance Cost?
Adding UM/UIM coverage typically costs $8 to $18 per month in Alaska, or $96 to $216 annually, depending on your selected limits and deductible.
- Your UM/UIM coverage limits — higher limits cost more, but protect you against larger claims when an uninsured driver causes serious injury.
- Your property damage deductible — choosing a $250 deductible costs more than a $500 or $1,000 deductible, but reduces your out-of-pocket cost after a crash.
- Alaska's uninsured driver rate — carriers price UM/UIM based on the likelihood of claims, and Alaska's 14% uninsured rate is above the national average.
- Your claims history — if you've filed UM/UIM claims in the past, carriers may charge more or limit the coverage you can buy.
- Stacking vs. non-stacking — stacked UM/UIM coverage (which combines limits across multiple vehicles on your policy) costs 15% to 30% more than non-stacked coverage.