Arkansas Motor Insurance Legal guidelines – Bankrate.com
As in most other states, Arkansas law requires auto insurance if you own a registered vehicle. It doesn't matter how often you drive, what type of car you drive or how old your vehicle is. Uninsured driving has serious consequences such as fines and driving license revocation.
Car insurance protects your legal and financial obligations if you cause an accident. Arkansas auto insurance laws are different from laws in other states, so it is important to understand the specific requirements that you must meet.
Here are some stats about drivers and accidents in Arkansas:
- There were 2,622 road deaths in the state between 2014 and 2018
- In the same period there were 141 alcohol-related accidental deaths
- More than 19% of Arkansas drivers don't have insurance
Automobile Insurance Laws in Arkansas
Every Arkansas driver must have a minimum amount of insurance to legally operate their vehicle. Arkansas minimum auto insurance is abbreviated as 25/50/25 and includes personal liability insurance. Here are the coverage limits that are included in a minimum insurance policy:
- $ 25,000 in personal injury liability insurance
- $ 50,000 in personal injury liability insurance per accident
- $ 25,000 in property damage liability insurance per accident
If you cause an accident, personal liability insurance pays the other driver's medical costs, while property damage liability insurance pays the other driver's car repairs in the event of damage. It is important to note that a minimum insurance policy in Arkansas does not provide protection for your own vehicle.
Arkansas also requires that your insurance company offer you Personal Injury Insurance (PIP) and requires that you decline the offer in writing if you choose not to purchase it.
Arkansas Liability Insurance
Arkansas auto insurance requirements include liability coverage, which can be found on a minimum insurance policy. However, a minimum insurance policy in Arkansas may not be enough to cover a culpable accident.
If you hit another driver and your car insurance does not cover the full extent of the damage, you will be responsible for paying the difference out of pocket. In addition, liability insurance does not offer any protection for your own vehicle. For this reason, insurance companies recommend that most drivers increase their coverage limits or upgrade to fully comprehensive insurance, which includes collision, fully comprehensive and health insurance coverage.
Is Arkansas a Flawless State?
Arkansas is not considered a healthy state. If the condition is free from defects, the driver's insurance will automatically cover the medical costs after an accident, regardless of who was at fault. In a fault condition like Arkansas, the culprit's driver's insurance pays the other driver's hospital bills.
Penalties for driving without insurance in Arkansas
Driving in Arkansas without auto insurance is illegal. If you are stopped by law enforcement and found that you are not insured, you will be fined and your driver's license could be suspended. To restore your driving license, you will need to purchase SR-22 insurance and pay a license reinstatement fee.
In 2020, Arkansas passed new law that would allow law enforcement agencies to view real-time insurance data when they are holding a license plate. If the database shows that the driver's policy has expired, they will automatically be fined $ 100. If the driver fails to provide updated proof of insurance within a certain period of time, their registration will be permanently suspended until they have purchased insurance and paid the fine.
Additional options for auto insurance coverage in Arkansas
Arkansas auto insurance laws require every driver to have at least one minimum insurance policy. However, many drivers choose to have more protection in the form of endorsements for additional protection. Here are some of the auto insurances that can be beneficial for drivers in Arkansas:
- Gap insurance: Gap insurance can make sense if you lease or finance your car. In the event that your car is totaled, Gap Insurance will help to make up the difference between the depreciation of your car and the outstanding credit balance.
- Roadside Assistance: Roadside Assistance pays for minor repairs and services to the vehicle, such as towing (up to a certain distance), fuel delivery, battery and tire changes.
- Accident forgiveness: With accident forgiveness, your car insurance premium does not increase after your first accident. Remember that most auto insurance policies have damage controls that are eligible for accident forgiveness.
- New car replacement: New car replacement insurance reimburses you for a similar make and model if your existing vehicle suffers a covered damage.
frequently asked Questions
What is the Best Auto Insurance in Arkansas?
The best auto insurance in Arkansas is different for every driver. The top rated insurance providers in the state by Bankrate include Auto-Owners, Geico, and State Farm. However, experts recommend looking around based on your personal criteria and comparing providers to find the best solution for your needs.
What is the cheapest auto insurance in Arkansas?
Based on sample price quotes, the cheapest auto insurance companies in Arkansas are USAA, Southern Farm Bureau, Farmers, State Farm, and Geico. You may also be able to lower your car insurance premium by taking advantage of discounts, bundling your policies, paying your annual premium in full, and improving your credit score.
How much does car insurance cost in Arkansas?
In Arkansas, the average cost of auto insurance is $ 1,914 per year for full insurance and $ 160 per year for a minimum policy. Note, however, that car insurance rates are personalized based on factors such as zip code, age, creditworthiness, and driver's license. The cheapest provider for you may not be the cheapest one for your neighbor.
Can you switch auto insurance in Arkansas?
Yes, you can switch car insurance at any time and most providers do not charge a cancellation fee. Switching car insurance can be a great option when you feel like you are paying too much or when you need certain types of coverage that your existing insurer doesn't offer.