Arkansas Car Insurance
In the state of Arkansas, like most states in the US, drivers are required by law to carry a minimum amount of insurance at all times while their vehicle is registered or being driven on public roadways.
Not only must you carry these minimum requirements, you must also find a policy that will protect you and your interests while you are driving or even parked. For individuals who are not familiar with the state laws in Arkansas, finding comprehensive yet affordable coverage can be a daunting task.
Read on, and learn everything that you need to know. Be sure to always compare quotes for auto insurance by using the FREE tool located above!
How Much Insurance Must You Have in the State of Arkansas?
In the state of Arkansas, drivers are required by law to purchase liability protection only. Liability insurance is designed to show officials that a driver is financially responsible and able to pay for damages as well as injuries that they are liable for when they are behind the wheel. It is important to recognize the fact that liability protection does not protect you or your vehicle.
It is solely purchased to cover third party drivers and protect your assets from lawsuits and wage garnishments that may arise following an accident. By law, residents in the state of Arkansas must carry the following:
Liability Bodily Injury
Commonly referred to as BI on an insurance declaration page, Liability Bodily Injury will protect you when someone claims injuries in an accident that you have been found liable for.
To be liable for an accident, you must be found 51% or more at-fault for the incident. It is unlawful for you to drive a vehicle if you do not have at least $25,000 per person and $50,000 per accident in BI coverage from an insurer licensed to do business in Arkansas.
Liability Property Damage
Property Damage is the second piece of liability coverage that will protect your assets when you are involved in a claim and you have caused damage to vehicles or other property that you do not own.
Property Damage will not pay to repair your vehicle or your personal property that is damaged in an accident you are liable for. When you are building a policy, you must purchase a minimum of $25,000 per accident in Property Damage coverage.
This limit applies to all damage in a single accident and cannot be exceeded. If you want more protection, you can raise this limit for a higher premium.
What Other Coverage Options Are Available in Arkansas?
Now that you know about state mandated coverage options, it is important to familiarize yourself with optional forms of cover that will protect you and your property. Insurance policies are not one-size-fits-all. You must consider your budget and your own personal needs when you are building your custom policy.
Just because you do not have need for a specific coverage does not mean that you should buy bare minimum coverage. Here is a list of coverage you may want to purchase for peace of mind:
Coverage For Your Vehicle
You are not required by state officials to carry protection for your vehicle, but you may be required by your lender or your lessor to carry this protection.
If you do not own your vehicle outright, there is a creditor or financier who has interest in that vehicle. This is why a loan or lease contract will have requirements stating that you must carry full coverage on the vehicle as long as money is owed on the loan or the lease.
If you fail to purchase physical damage coverage on a financed or leased vehicle, you are violating the terms of your contract. The lender then has the right to force place insurance, which can increase your car payment.
The problem with this is that the forced placed insurance will only pay your lender when a claim is filed. The lender then has the right to force place insurance, which can increase your car payment. The problem with this is that the forced placed insurance will only pay your lender when a claim is filed.
To avoid force placed insurance, purchase comprehensive and collision cover:
Comprehensive
Comprehensive cover will pay when something other than a collision damages your car. Some of the covered hazards include: fire, theft, vandalism or striking a live animal.
If you purchase comprehensive, the insurer will pay for your repairs up to the fair market value of your vehicle. You may have to pay a deductible if one is listed on your policy.
Collision
Collision is one of the more expensive forms of cover that you can purchase in Arkansas, especially if you are a young driver or you have a less than perfect driving record.
Collision cover will pay for damage to your car if you collide with another vehicle or another object, no matter who is deemed at fault for the accident. You will have the option to select the deductible that is best for you. The higher the deductible, the lower your premiums. Be sure to consider how much you are willing to pay out-of-pocket before you select a high deductible.
Uninsured Motorist Coverage
Just because having insurance is the law in the state of Arkansas, statistics show that at least 16% of the drivers in the state are driving without liability insurance. If you are involved in an accident with any of these uninsured drivers, you will not receive payment for your injuries or damage unless you go through the long battle in court or you carry Uninsured Motorist coverage.
While you are not required to purchase the coverage, all companies licensed in Arkansas are required to offer every policyholder Uninsured Motorist protection.
If you purchase Uninsured Motorist, it comes in two parts. Uninsured Motorist Bodily Injury will pay for your medical bills and the expenses incurred by your passengers when someone with no insurance or low limits hits you.
You can also purchase Uninsured Motorist Property Damage, which will pay to repair your car in a hit and run or in a situation where the other party does not have coverage. You may have to pay a $200 deductible if you are involved in a hit and run and the other driver was not identified.
Personal Injury Protection
Not all states offer Personal Injury Protection (PIP), but in Arkansas this is an option that you can pay for for added protection. You are not required to purchase PIP, but you must reject the cover in writing if you choose not to. PIP comes in three parts.
When you purchase PIP, you are purchasing medical payments, lost wages, and death benefits. You will receive coverage for medical bills, funeral expenses, and lost wages while you are recovering from an accident. Your passengers who are not family members will also receive the same protection while in your car.
Average Premiums for Arkansas Car Insurance
According to national reports, the average premiums for car insurance in Arkansas is $1,398 per year. This is significantly lower than the national car insurance average.
While the premiums tend to be lower in Arkansas, you must consider your own personal factors to find out how much you will be paying. Insurance companies use several different factors to enter into a formula and calculate your rates.
These rates represent how much risk you present to the company. Some of the many factors that will be considered to calculate your premiums include:
- Age
- Driving Experience
- Driving Record
- Vehicle Type
- Number of Vehicles
- Garaging Location
- Credit Score
- Vehicle Usage
- Annual Mileage
- Occupation
How to Make Car Insurance Comparison Shopping Easy
Now that you know that so many different factors can affect your rates, it is time to start rate shopping. The only way to find the most competitive premiums from reputable insurers is to request quotes from these insurers.
You should request quotes with the same coverage limits and options to compare the apples to apples cost. Many find that online rate comparison tools are the most convenient tool to use to save on insurance premiums.
If you plan to request quotes online, have the following information handy so that your Arkansas car insurance premiums are as accurate as possible:
- Name and Date of Birth of all drivers in the household
- Driver license number and date licensed of all drivers
- Accident or violation dates in the last 3 years
- Vehicle Identification Number
- Odometer reading and annual mileage estimates
- Number of miles to and from work or school
- Coverage options and limits
- Good Student Verification for students in the household
With this guide to Arkansas car insurance, you can make an informed decision as you build a policy and you obtain quotes.
Use a convenient quoting tool such as the one below that gives you access to the most reputable Arkansas car insurance companies, fill in your insurance, and start comparing prices today. Simply enter your ZIP code into the FREE comparison tool located below!