Arkansas full coverage automobile insurance is composed of many parts. Full coverage policies include liability insurance, collision coverage, comprehensive coverage and uninsured motorist coverage.
The amount of each type insurance you need will depend on the financial status of your vehicle. It may also depend on the value and age of your vehicle.
Arkansas law requires you to have liability insurance if your car isn’t financed. The minimum amounts required are $25,000 for medical coverage for each person in an accident, $50,000 in medical payments and $25,000 in property coverage. This policy is also known as a 25/50/25 or 25/25/25 policy.
You may be able to choose to have more coverage, at a higher monthly cost, depending on the value of your assets and other factors.
Your lender may require you to have more than just liability insurance if your car is being financed. Your lender will require you to have collision insurance, comprehensive and uninsured motorist insurance.
As the name suggests, collision insurance covers the repair or replacement cost of your vehicle in case of a collision. A collision is when you hit another vehicle, hit a stationary object like a pole or tree, or hit an animal such as a deer.
The amount of collision coverage and the premiums you pay will depend on how old and valuable your vehicle is, where it is parked at night and how often you drive, your driving record, whether your vehicle is in an urban or rural setting, and how costly repairs are for your specific model.
Comprehensive insurance covers your vehicle in the event that it is damaged or destroyed by “acts of God” or vandalism. A “act of God” could be a branch from a tree or another natural object striking your vehicle, hail damage and, in many cases, water damage due to flooding.
The cost and amount of your comprehensive coverage will vary depending on your vehicle’s age and value, how expensive it is to repair your particular vehicle, your location, and other factors.
Uninsured motorist coverage (UM) covers your vehicle in the event of an accident with another driver. Your cost for this insurance depends on how much you drive each month, whether you live in an urban setting or rural, where you park your car at night, and other factors such as the age and value your vehicle, what kind of repairs are needed, and many others.
Your deductible is the amount you will pay out of your pocket to cover your car insurance. It can have a significant impact on how much you pay each month for full coverage. The higher your deductible, the lower your monthly premium payments.
Once you know what you should look for in an Arkansas full-coverage automobile insurance quote, it might be worth going online to compare the costs of different insurance companies. You should keep in mind that no single website can compare all insurance companies so you’ll need to do comparisons on at minimum three websites to ensure that you get the best price for your full-coverage automobile insurance.