#car insurance plans
Arkansas Auto Insurance
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Arkansas Auto Insurance Requirements
The only auto insurance requirement Arkansas has for a motorist is liability insurance. This makes sense since liability pays for bodily injury and property damage suffered by others when the insured is determined at-fault. The minimum liability coverage that Arkansas allows is 25/50/25. With these amounts, the insurer pays up to $25,000 towards the bodily injury expenses incurred by a single driver, or up to $50,000 towards the combined bodily injury expenses per accident. The insurer also pays up to $25,000 towards the repair costs for property damaged in the accident. Property includes, but is not limited to, the other driver s vehicle, house, fence, sign, mailbox, etc.
Arkansas Liability Limits
Arkansas drivers are wise to consider increasing their liability limits even though state law does not require higher limits. Something else that s not required is Comprehensive/Collision coverage. Since liability pays nothing towards the at-fault driver s property damage, those costs have to be paid out of pocket, unless the at-fault driver carries comprehensive/collision coverage. Like the name suggests, collision pays when the insured s car is involved in a collision. Comprehensive covers damage caused by reasons beyond the insured s control such as vandalism, theft, animals, and weather.
The insured first has to satisfy the deductible. After that, the insurer pays, up to the coverage limits, but only if the costs do not exceed the damaged vehicle s blue book value. If they do, the insurer will declare the vehicle totaled and issue a check to the insured equal to the vehicle s current value. If the totaled vehicle is financed and the check is insufficient to repay the loan balance, gap coverage can help cover the difference, if the insured has chosen this other type of optional insurance.
Uninsured/Underinsured Motorist is another valuable but optional coverage. It protects the insured and his/her passengers when involved in an accident caused by another driver who doesn t have auto insurance. If the other driver has insurance, but it s insufficient to cover all expenses, underinsured motorist coverage can help with the difference.
Arkansas Insurance Department
If you plan to drive in Arkansas, more information regarding state-mandated auto insurance is available at http://insurance.arkansas.gov. You can also stop by the Arkansas Insurance Department located in Little Rock, or call the Department toll-free 1-800-282-9134.