Alaskan travelers will have to pay more for their auto insurance after a state-appointed commission approved a proposal to require insurance companies to cover travel.
Alaska’s Transportation Insurance Commission unanimously approved the proposal Wednesday.
Alaskans currently are covered under the state’s “Alaska Motorist Insurance Program” that provides coverage for about 15 percent of drivers.
However, the commission said a recent study found that nearly 50 percent of people who are insured by their employer do not pay the full cost of coverage.
The proposal is meant to improve Alaska’s ability to attract drivers and improve access to insurance, but it faces strong opposition from the auto insurance industry.
The state’s insurance commission said in a statement that it would not impose a cap on how much people could cover.
Instead, it said it would look at ways to raise the amount of coverage people are required to pay.
The Alaska Association of Insurance Commissioners, which represents insurers, said the proposal would mean fewer insurance options for Alaska residents, and could lead to more expensive insurance policies for those with pre-existing conditions.
The commission said it will hold a hearing on the proposal on Dec. 13.