Like most other states, car insurance in Arkansas is a legal requirement if you own a registered vehicle. It doesn’t matter how many times you drive, which car you have or what age your vehicle is. Uninsured driving can lead to severe consequences like license suspension and fines.
If you are involved in an accident, car insurance covers your financial and legal responsibilities. Arkansas’ car insurance laws differ from those in other states. It is important that you understand the specific requirements you must meet.
Here are some stats to know about drivers and accidents in Arkansas:
- There were 2,622 traffic deaths in the state between 2014-2018
- During that same time, there were 141 fatalities due to alcohol-related crashes
- More than 19% of Arkansas drivers do not have insurance
Arkansas has laws regarding car insurance
Arkansas drivers must have minimum car insurance to be able to legally drive their vehicles. Arkansas minimum car insurance is abbreviated as 25/50/25, which includes personal liability insurance. These are the coverage limits for a minimum coverage policy.
- $25,000 bodily injury liability coverage per individual
- $50,000 bodily injury liability coverage per accident
- $25,000 per accident in property damage liability coverage
Arkansas car insurance companies must offer coverage for uninsured or underinsured motorists. However, policyholders can decline to take this coverage.
In the event of an accident, bodily injuries liability coverage will cover the medical costs of the other driver, while property damages liability coverage will cover the cost to repair the car. Arkansas’ minimum coverage policy does not cover your vehicle.
Arkansas requires that your insurance company offer personal injury protection insurance (PIP). If you don’t want it, you must refuse the offer in writing.
Arkansas has liability insurance
Arkansas insurance requirements require liability insurance. This can be found in a policy that provides minimum coverage. A minimum coverage policy may not provide enough coverage to cover an accident at fault.
You would be responsible for the cost of any damages incurred by another driver if your car insurance policy doesn’t cover them all. Liability-only coverage doesn’t provide protection for your vehicle. Insurance companies recommend that drivers either increase their coverage limits, or upgrade to full coverage policies that include collision and comprehensive coverage.
Arkansas is it a state of no-fault?
Arkansas is not considered to be a state of no-fault. A driver’s insurance company in a state that isn’t at fault will cover any medical bills incurred after an accident. Arkansas is a fault state. The insurance company that was at fault pays for the hospital bills of the other driver.
Arkansas drivers without insurance face severe penalties
Arkansas law prohibits you from driving without insurance. You could lose your driving privileges if you are stopped by law enforcement. To reinstate your driving privileges you will need to purchase SR-22 insurance. You also have to pay a reinstatement fee.
In 2020, Arkansas passed a new law that allows law enforcement officers to see real-time insurance data when they run a license plate. A $100 fine is automatically imposed on drivers whose policies are found to be inactive. Drivers who fail to provide current proof of insurance within a specified time frame will have their registration permanently suspended until they pay the fine and purchase coverage.
Arkansas offers additional auto insurance options
Arkansas car insurance laws require that every driver has at least a minimum coverage policy. Many drivers opt to add endorsements for additional protection. These are some car insurance endorsements that could be helpful for Arkansas drivers:
- Gap insurance: This insurance is useful if you finance or lease your car. Gap insurance pays the difference between the car’s value and the remaining loan balance in the event of your vehicle being totaled.
- Roadside Assistance: This pays for minor repairs and services like fuel delivery, flat tire change, and towing (upto a certain distance).
- Accident forgiveness: Your car insurance premiums will not rise after your first accident. Remember that accident forgiveness is not available to everyone.
- If your vehicle is damaged or destroyed in an accident, you will be reimbursed for the cost to replace it.
Questions frequently asked
Which Arkansas car insurance company is best?
The best car insurance company in Arkansas is different for every driver. Auto-Owners and State Farm are among the best-rated insurance providers in Arkansas, according to Bankrate. Experts recommend shopping around to compare providers and using your own criteria to find the best match.
Which Arkansas state has the lowest car insurance?
Based on sample rate quotes, the cheapest car insurance companies in Arkansas are USAA, Southern Farm Bureau, Farmers, State Farm and Geico. Your car insurance premium may be reduced by bundling or consolidating your policies, paying the full premium, and improving your credit rating.
What is the cost of car insurance in Arkansas?
In Arkansas, the average cost of car insurance is $1,914 per year for a full coverage policy and $470 per year for a minimum coverage policy. Keep in mind, however, that car insurance rates can be personalized according to factors such as your zip code, driving record, credit score, and age. Your neighbor may have the same provider as you, but not necessarily the cheapest.
Are you able to switch insurance companies for your car in Arkansas?
You can change car insurance companies at anytime. Most providers don’t charge cancellation fees. If you feel you are paying too much or need coverage you don’t have, switching car insurance companies could be an option.