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<Arkansas Car Insurance Facts and Figures
State Minimum Requirements for Arkansas Auto Insurance
Arkansas uses what is known as the "tort" system of auto insurance. When an accident transpires, one driver will be determined to be "at fault" for causing it and will be subject to financial claims and lawsuits against him and his insurance company. To ensure that drivers have at least a minimum amount of Arkansas auto insurance when driving the roads, the Government of Arkansas has instituted mandatory minimums in a couple of different areas that all drivers must purchase to legally drive. In Arkansas you must have the following levels of auto insurance to be in compliance with the state laws. In order to operate a motor vehicle within the state you must have the minimum amount of liability coverage: $25,000 for bodily injury or death of one person in any one accident; $50,000 for bodily injury or death of two or more persons in any one accident and $25,000 for damage to or destruction of the property of others. The liability of bodily injury protects you against a claim which may be made by someone who has been injured in a car accident for which you are legally liable. Liability property damage protects you against a claim for damage to another person's auto or other property, real or personal, in an accident for which you are legally liable. You may purchase higher limits of BI and/or PD liability if you feel the minimums required by law are not enough to protect you. Your auto insurance agent can assist you in determining the appropriate amount and give you an Arkansas car insurance quote for whatever amount of coverage you are comfortable with.
Car Insurers in Arkansas
Arkansas has 116 auto insurers to choose from, so there is a great variety starting from Arkansas cheap auto insurance with minimum coverage to more expensive full coverage policies that include things such as Collision and Comprehensive coverage. Collision coverage pays for damage to your automobile as the result of colliding with another vehicle or object, regardless of who is at fault. Collision coverage has a deductible that you must pay for the repair of your automobile. When buying collision coverage consider the amount of the deductible you can afford. The larger the deductible, the less premium you will have to pay. You should not have a deductible so large that you cannot afford to pay it if your automobile is damaged. Comprehensive coverage pays for damage to your automobile caused by collision with a bird or animal or damage caused by something other than a collision with another vehicle. Hazards covered under comprehensive include fire, theft, vandalism, water, hail, windstorm and flood. This coverage can be purchased with or without a deductible. It is your choice whether you want to stay with Arkansas cheap car insurance that meets the minimum state requirements or add some of the options listed above. You will also want to pay attention to Arkansas car insurance ratings for the companies and choose one that has a high Arkansas auto insurance rating to make sure that the company is able to pay any claims that you submit to it.
The Cost Comparison of Arkansas Car Insurance to the National Average
While it can be tough to sort through the different auto insurance companies and all of the packages and deals that they offer, it's critical to do your homework to ensure you're paying the best rate for your insurance. The great news is that Arkansas car insurance is very affordable, with the average driver's insurance rate coming in a couple hundred dollars below the national average of $1440 per year. Statewide, drivers in Arkansas pay around $1266 per year for car insurance. The cost of a state's auto insurance also depends on the theft rates and crash statistics. Auto thefts are relatively low compared to the national averages due to increased law enforcement in cities and citizens locking their cars and installing anti-theft devices. In 2009 there were only 6,100 total reported vehicle thefts. Crash statistics are also below the national average and in 2009 Arkansas reported a total of 62,808 vehicle crashes across the state. Since the start of the decade, car crashes are down more than 12%, thanks to Arkansas drivers using better safety.
Arkansas Auto Insurance and Financing
If you are financing your car, your lender will require a certain amount of coverage to protect them because until you own the car by paying off your loan they have a financial interest in your vehicle. The lending institution will be named as a loss payee on your policy so that its financial interest in the automobile will be protected. You should be aware that in the event of a total loss of your automobile, the actual value of your car may be less than the balance you owe to your lender. The purchase of Gap protection should be given consideration at the time of purchase of a vehicle. If you should fail to purchase or maintain coverage on your automobile, the lending institution will purchase coverage and you will be required to pay the lending institution any premium it had to pay for this coverage. This lender placed coverage is much more expensive than coverage you can purchase and might only protect the interest of the lender. You can request Arkansas auto insurance quotes from the different companies to compare them to each other.
Optional Additions to Your Arkansas Auto Insurance Policy
There are different types of optional car insurance you can purchase. Car insurance rates can vary greatly for these, so it is a very good idea to do your homework before deciding on an insurance company. One type is personal injury protection. This is offered in three parts which may be purchased individually or all together. If you decide you don't want one of the three you must decline it in writing. The three coverage are medical payments, which include payments for doctor bills, X-rays, ambulance and funeral expenses; lost wages (with certain restrictions) and death benefits. This coverage protects you and members of your household who are injured or killed while riding in your automobile. The second type is uninsured motorist bodily injury which pays certain expenses for you and members of your household who are injured due to the negligence of an uninsured motorist. These expenses include medical bills, disability and death benefit resulting from that accident up to the limits of coverage purchased. The third type is uninsured motorist property damage, which pays for damages to your automobile subject to a $200.00 deductible if your auto is damaged by an uninsured motorist. The final type of optional coverage is underinsured motorist, which pays should you be struck by another party who does not have sufficient liability coverage to pay for all of your damages for bodily injury. This coverage may pay the excess expenses up to the limit of the coverage you purchased.
If you cannot obtain auto liability insurance through the voluntary market, you may have your agent apply for coverage for you through the Assigned Risk Plan.
http://insurance.arkansas.gov/
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