Insurance Requirements for Arkansas
The State of Arkansas requires a minimum amount of auto liability
insurance for any registered vehicle. A driver who has their license
suspended for insurance-related traffic violations, DUI, or reckless
driving may be required by the court to obtain an SR 22 as well.
The Minimum Liability Limits are:
* $25,000 Bodily Injury
* $50,000 Per Accident
* $25,000 Property Damage
Minimum coverages are also the same for most vehicles. All insurance
providers in Arkansas must also offer uninsured motorist coverage by
law. Failure to keep the minimum required liability insurance will
result in suspension of the vehicle's registration.
What does "full coverage" mean?
The term full coverage generally means that the insurance policy has
both liability coverage and coverage for damage to your vehicle.
The term "full coverage" does not mean that "everything" is covered
no matter what happens. Your auto insurance policy declaration
page lists the coverages that you have selected.
What deductible should I choose?
The higher the deductible, the lower the premium, but the more you
will pay out of pocket in case of a claim. The lower the
deductible, the higher the premium, but the less you will pay if you
have an insured claim.
What can I do to keep my car insurance premiums low?
In order to keep your car insurance premiums low, you could consider
driving a safer, slightly older, or less valuable vehicle. If
you have a high premium but don't want to change vehicles, you can
also opt for a higher deductible and be sure to keep your policy
from lapsing to keep costs down.
The easiest way to keep your rates low without changing vehicles or
spending money is to maintain a safe driving record. Avoid
moving violations like speeding and reckless driving.
Ultimately, remember to drive the speed limit, drive cautiously, and
to buckle up, this will help you avoid getting ticketed, which will
leave a mark on your record that lasts three years in Arkansas.
What is a limit?
A limit is the maximum amount of money your insurance will pay
toward a covered loss. For example, let's say you cause and
auto accident resulting in an injury to a person in another car, the
case goes to trial and there's a verdict to compensate that person
for $57,000. If the bodily injury liability limit on your
policy is $50,000, your insurance company would pay $50,000, and
then you would be responsible for the difference.
What is the difference between collision comprehensive?
It's easy to remember what collision
coverage does, simply by looking at
the word "collision." When you have this type of coverage, you're
essentially insuring your car against damages it may suffer if your
car collides with another vehicle. Comprehensive
coverage, on the other hand, deals
with loss or damage caused by things other than a collision—such as
theft, vandalism, animals or hail.
Rating and Coverage Considerations
Coverage options, limits, and deductibles you choose are only a
portiton of the weighted elements that influence the rate of
your auto insurance. Primarily, these criteria tend to influence
your car insurance premium the most:
Your driving record
This one's the most obvious. Because your insurance policy is
designed to offer protection in case you get into an accident, your
insurer does its best to analyze the likelihood of an accident.
If you've been in 3 accidents in the past few months, for example,
there's a higher chance of another one in the near future. Your
driving record, also known as your Motor Vehicle Report (MVR),
details past accidents and moving violations.
As a general rule: the cleaner your driving record, the lower your
Age, gender, and marital status
Age, in an insurer's eyes, is directly related to experience. The
more experience you have behind the wheel, the less likely you are
to cause an accident.
Another important factor is gender, specifically since statistics
are more likely to be involved in an accident than females.
Marital status is also important. Statistics show that married
drivers are less likely to crash than their single counterparts.
These factors can often be neutralized by a clean individual driving
Where you live
Accidents are unexpected and often caused by factors outside of our
control. If you live in an urban area that's densely packed with
traffic and has a high theft rate, your premium could be higher than
a rural-living counterpart's.
These pricing elements typically affect your rate to a lesser extent
than your driving record:
The make and model of your car
If you drive a new model that scored highly in crash safety tests,
you could be rewarded with lower rates than a driver who opted for
the flashy new car that performed poorly on the same tests. And if
you add comprehensive and collision coverage to your policy, you'll
be insured up to its actual cash value, or ACV, in the event it's
stolen or declared a total loss. The less valuable the car, the less
you can expect to pay for these coverages.
Your credit-based insurance score
This is not a factor in all states, but it remains a consideration
in the majority of the country. Statistics show that drivers with
better insurance scores are less likely to get into car accidents.
How you use the car
Do you use your car to commute through heavy traffic twice a day? Or
is it just for Sunday drives? How you intend to use the car can
influence what you pay for insurance.
Prior insurance history
Drivers who haven't had a gap in coverage are statistically less
likely to get into a car accident.