What kind of insurance do I need to drive in Arkansas?
Nowadays, it’s a very common question: What kind of insurance do I need to drive in Arkansas? Today, we will discuss car insurance coverage in Arkansas. Types of Arkansas’s auto insurance coverage, Arkansas’s car insurance cost, Auto insurance claim process, and ways to reduce auto insurance costs in Arkansas. In Arkansas, third-party liability coverage is the most basic kind of auto insurance, and it is required. It shields you from having to pay for any damages to someone else’s property as the policyholder. In the event that you cause an accident that results in someone being hurt or killed, you will also be covered.
Types of Arkansas’s auto insurance coverage
In Arkansas, to lawfully operate a vehicle, a driver must possess a specified level of auto insurance. Additionally, you must always have proof of insurance when operating a vehicle. This proof of coverage, which may be electronic or physical, must be presented when requested by law enforcement. Below is a summary of the coverage required by the state of Arkansas for auto insurance, along with more information about it.
Minimum Liability Coverage: 25/50/25
- $25,000 for bodily injury per person
- $50,000 for bodily injury per accident
- $25,000 for property damage per accident
What Does This Minimum Coverage Mean?
Liability insurance is mandatory for drivers in Arkansas and the majority of other states; however, the minimum amount of coverage needed varies per state. Automobile insurance in Arkansas requires 25/50/25 liability limits in addition to personal injury protection. Accordingly, the bodily injury limits on a driver’s auto insurance coverage must be at least $25,000 per person and $50,000 per accident. This pays for any injuries sustained by a third party in an accident. In addition, policies have to offer $25,000 in property damage coverage for third parties’ assets, such as their car and its contents.
What are Arkansas’s state-mandated car insurance limits?
The entire amount that an insurance company will pay out in a covered claim is referred to as the term limit. The state sets the coverage limitations for Arkansas, which are commonly represented by the three digits 25/50/25, sometimes known as split limits[1]. Property damage, bodily injury per accident, and bodily injury per person are represented by the numbers. View the details of each of these liability kinds and their coverage below.
- Bodily injury coverage per person is the maximum dollar amount your insurer will pay to cover the injuries of a single person you injure in a car accident.
- Bodily injury coverage per accident refers to the total amount your insurer will pay for everyone that you injure in a car accident.
- Property damage per accident is how much your insurer will cover for another person’s property damaged in an accident caused by you.
Liability coverage in Arkansas
According to Arkansas law, all drivers must have liability insurance. If you cause harm to another driver or their passengers, this coverage will pay out. It also pays for any lost income and any harm to the other driver’s car. Most insurance companies usually allow you to carry more liability coverage than the minimum required by the state.
It’s important to keep in mind that your liability insurance will never cover medical expenses or losses to your car or other property. You could research some of the optional insurance policies that are offered in Arkansas for that purpose.
Arkansas’ penalties for driving without proof of insurance
In Arkansas, auto insurance is mandated by law. The following sanctions may be imposed if you are caught driving without insurance.
- Penalties for driving without proof of insurance in AR
- Fines between $50 to $250 (up to $1,000 for repeat offenses)
- License plate removal
- Suspended registration
- Possible SR-22 requirements
- A registration reinstatement fee of $20
- Costs associated with towing or impoundment
Optional car insurance coverage in Arkansas
Liability coverage is the only requirement for driving legally in Arkansas. But if you want even more security, you may choose a variety of coverage options. A list of some of the more popular kinds of coverage is provided below.
Comprehensive: This kind of physical damage coverage guards against non-collision hazards like theft, weather damage, and collisions with animals.
Collision: This coverage will help with vehicle damage if you crash into another car or even a stationary object.
Loan/Lease Payoff: This coverage can be used in place of gap coverage and helps pay the difference between the amount you owe on an automobile and its true value in the event that it is totaled. The gap between the real cash worth of your car and the amount you still owe on the loan is calculated by taking into account the depreciation of your car.
Personal Injury Protection (PIP): Regardless of who is at fault in an accident, you or members of your family are covered by this policy. It is divided into three sections: death compensation, lost wages, and medical payments.
Rental Car Reimbursement: Limits will vary by company, but this coverage goes toward the costs of a rental car if your own vehicle is unable to be driven.
Roadside Assistance: Roadside coverage providers vary in what they cover, but frequent risks include dead batteries, flat tires, and in certain situations, car lockouts.
Uninsured/Underinsured Motorist Bodily Injury: In the event that the driver at blame in an accident doesn’t have insurance or only has the bare minimum, these coverages can help pay for your injuries in the event that they are not paid for by the at-fault party.
Uninsured Motorist Property Damage: While it protects your car or other property damaged by an uninsured motorist, this type of uninsured coverage functions similarly to bodily injury policy.
Why adhering to Arkansas’ car insurance requirements is important
Maintaining the proper level of auto insurance coverage safeguards you and your possessions in the case of an at-fault vehicle accident, in addition to being mandated by law. Over time, this can save you a significant amount of money. It can also be helpful to get coverage for your passengers’ or your own car following an accident. Don’t worry if you’re worried about how much insurance will cost in Arkansas.
How Much Does the Minimum Car Insurance Cost in Arkansas?
Any state’s and Arkansas’s auto insurance prices are influenced by a number of variables, including the driver’s insurance provider of choice and personal information. Personal information will be requested, including the driver’s age, postal code, driving record, credit score, and more.
In Arkansas, USAA offers the most economical insurance, with an average yearly cost of $304. But only active duty personnel and their families are eligible for their coverage. GEICO is the next most affordable and accessible insurance provider in Arkansas; their average annual premium for auto insurance is $373.
These costs should not be used to compare insurance quotes because they are merely estimates based on rates for typical drivers in Arkansas. The minimum coverage of 25/50/25 set by the state was the basis for collecting the premiums for auto insurance in Arkansas. A 40-year-old citizen of Arkansas who drives a 2010 Toyota Camry and has an excellent driving record and credit score was selected as the model for the sample profile. For consumers seeking excellent service and reasonable prices, Money Geek has also evaluated the top auto insurance providers in Arkansas.
What Is the Minimum Car Insurance Requirement in Arkansas While Leasing a Car?
The regulations for auto lease insurance vary between the leasing business and the state if you’re renting a car in Arkansas. Although this can vary based on the company, most require drivers to have full coverage auto insurance with 100/300/50 liability limits. To find out the minimum restrictions, get in touch with your car leasing firm.Your specific circumstances will determine the amount of auto insurance you require, but MoneyGeek normally advises Arkansas drivers to obtain a comprehensive coverage policy with liability limits of at least 50/100/50. Comprehensive and collision coverage are included with full coverage insurance, protecting the driver’s car in the event that damages are sustained or caused. Considering that 19.3% of drivers in Arkansas lack insurance, safeguarding
Car insurance costs in Arkansas
Arkansas car insurance rates by city
The cost of your auto insurance may vary depending on where you live in Arkansas. The typical prices in some of the state’s most populous cities are included here so you may compare them to the state average premium for comprehensive coverage.
For a variety of reasons, rates can differ between cities. The cost of repairs in the area, including the availability of mechanics and components at reasonable prices, might be a major factor. The cost of nearby cars, the frequency of motor accidents, and the incidence of theft and vandalism can all affect how different rates are in different places. The sort of car you drive, your age, your driving history, and other personal considerations will all affect your premium.
| Arkansas city | Avg. monthly full coverage premium | Avg. annual full coverage premium | Percentage change from AR avg. annual full coverage premium | |
| Benton | $163 | $1,952 | 2% | |
| Bentonville | $144 | $1,728 | -9% | |
| Conway | $153 | $1,833 | -4% | |
| Fayetteville | $148 | $1,780 | -7% | |
| Fort Smith | $148 | $1,775 | -7% | |
| Jonesboro | $153 | $1,832 | -4% | |
| Little Rock | $168 | $2,017 | 6% | |
| North Little Rock | $166 | $1,993 | 5% | |
| Rogers | $146 | $1,750 | -8% | |
| Springdale | $148 | $1,774 | -7% |
Average car insurance costs by age and gender in Arkansas
The age of the driver is one of the main variables influencing Arkansas auto insurance premiums, just like it is in most other states. Drivers under 25 usually pay the highest rates; the average cost for an 18-year-old is the highest among all age groups. The average premium for men is more than that for women. Males are more likely than females to file claims, be involved in traffic offenses, and be involved in motor accidents.
- Male
- Female
| Age | Avg. full coverage premium in Arkansas | Avg. min. coverage premium in Arkansas |
| Age 16* | $4,233 | $1,155 |
| Age 18 | $6,438 | $1,708 |
| Age 20 | $4,940 | $1,160 |
| Age 25 | $2,597 | $571 |
| Age 30 | $2,074 | $468 |
| Age 40 | $1,936 | $423 |
| Age 50 | $1,741 | $407 |
| Age 60 | $1,695 | $402 |
| Age 70 | $1,852 | $471 |
*16-year-old calculated on parents’ policy with discounts applied; 18- and 20-year-old are renters on their own policies with no discounts applied
Cost considerations for young drivers in Arkansas
Insurance for teenage drivers is usually more expensive than for older, more skilled drivers. Furthermore, until they are 18 years old and able to sign a contract, teenage drivers must continue to be covered by their parents’ auto insurance coverage. However, if their insurer permits it, young drivers can typically save money by continuing to be covered by their parent’s coverage. This could last until you become 25 or for as long as you share a residence.
| Age | Avg. annual premium for drivers on their parents’ policy in AR | Avg. annual premium for drivers on their own policy in AR |
Percent difference |
|
| Age 16 | $4,006 | N/A* | N/A* | |
| Age 17 | $3,749 | N/A* | N/A* | |
| Age 18 | $3,501 | $5,808 | 40% | |
| Age 19 | $3,124 | $4,753 | 34% | |
| Age 20 | $3,008 | $4,445 | 32% | |
How does driving record impact the cost of car insurance in Arkansas?
Your Arkansas auto insurance premiums are heavily influenced by your driving history. The presence of a DUI, accident, or speeding citation on your record can drastically raise premiums. Not all insurers will cover a driver with a DUI on their record, even though we’ve listed average DUI rates. It’s crucial to remember that the rates displayed only represent the average rise following a single DUI conviction; subsequent infractions will probably result in significantly higher rates and could even put a driver in the high-risk driving category. This allows you to compare average rates in Arkansas between a driver with a clean record and one with various offenses.
| Driving incident | Avg. annual full coverage premium in AR | Percent increase from AR avg. annual full coverage premium |
| Clean driving record | $1,907 | 0% |
| Speeding ticket conviction | $2,301 | 21% |
| At-fault accident | $2,675 | 40% |
| DUI conviction | $3,276 | 72% |
Car insurance rates in Arkansas by credit score
Among the numerous states that permit insurers to base insurance rates on credit-based insurance scores is Arkansas. Generally speaking, smaller rates are associated with stronger credit, whereas higher premiums are associated with weaker credit. In Arkansas, for instance, a bad credit score is associated with full coverage premium increases that are, on average, 102% higher than the state average and greater than a DUI conviction. Conversely, in Arkansas, having an outstanding credit score results in full coverage premiums being reduced by an average of 16 percent.
| Credit tier | Avg. annual full coverage premium in AR | Percent change from AR avg. annual full coverage premium |
| Poor | $3,849 | 102% |
| Average | $2,113 | 11% |
| Good | $1,907 | 0% |
| Excellent | $1,610 | -16% |
Arkansas car insurance rates by vehicle type
The brand and model of your car is a big factor that influences your auto insurance rates. The cost of replacing or repairing a car varies, and this affects the cost of insurance for that car. Although this isn’t always the case, your auto insurance rates will often increase with the cost of the vehicle you purchase. The age, size, safety features, and theft history of your car can all affect your premium.
| Vehicle | Avg. annual full coverage premium in Arkansas |
| BMW 330i | $2,560 |
| Ford F-150 | $1,658 |
| Honda Odyssey | $1,713 |
| Toyota Camry | $1,907 |
| Toyota Prius | $1,966 |
ways to reduce auto insurance costs in Arkansas
You might be able to reduce your premium if you’re receiving high quote prices for auto insurance in Arkansas. Finding the areas where you can make the most improvements will depend on how well you assess your personal rating variables, but the following are some essential cost-saving techniques:
Shop around: Rates for auto insurance vary from one provider to the next, so switching may be the easiest way to save money on your premium. Obtain quotations from multiple local providers to determine which one is best for you.
Compare discounts: Discounts vary in how much you can save depending on the business. Even though two businesses might provide identical savings options, you might save more money with one of them. Rather of searching for potential discounts online, you might choose to chat with an agent to find out how much you can save with a carrier.
Increase your deductible: If you raise your deductible, your premium will be less, but you will have to pay more out of pocket if you ever need to submit a claim.
Increase your credit score: In Arkansas, it is permissible for auto insurance firms to compute an insurance score that influences your rate using your credit information. Research has indicated that drivers with lower credit ratings compared to those with higher scores have a statistically higher likelihood of filing a claim. Your premium may therefore decrease if your credit score rises.
Frequently Asked Questions
Is car insurance required in Arkansas?
Yes, to drive in the state of Arkansas, a driver must have auto insurance. Drivers are required to carry liability coverage on their policy that is at least 25/50/25. They risk fines, penalties, or even jail time if they don’t have this.
Do you need car insurance to register a car in Arkansas?
In Arkansas, a driver must have auto insurance before they may register their vehicle. In addition to being legally mandated by the state, not obtaining an insurance policy that complies with the minimal requirements may have negative effects on the motorist.
Can you get car insurance without a license in Arkansas?
In the same way that you may register a car in Arkansas without a license, you can also get auto insurance without one. However, keep in mind that if you don’t have a license, your premiums will probably increase from your insurance. This is so that your driving history may be checked using your license. You’re considered a high-risk motorist without it.
Is Arkansas a no-fault state and what does this mean?
No fault states do not exist in Arkansas. No matter who is at blame, drivers in no-fault states must make a claim with their own insurance. Rather, the state requires that someone be held accountable when an accident occurs.
Conclusion
Similar to a well-fitting suit, Arkansas auto insurance is essential, offers protection, and should be customized to your specific requirements. Liability coverage is required by the state, but in order to be safe from unforeseen circumstances, it’s always a good idea to look into extra alternatives like comprehensive and collision coverage. It’s important to make sure you have enough protection when driving on public roads in addition to abiding by the regulations. In summary, consider your insurance coverage to be your dependable travel companion as you explore the Natural State.
I believe if you can observe my entire blog, you may get a valid idea of car insurance coverage in Arkansas. Types of Arkansas’s auto insurance coverage, Arkansas’s car insurance cost, Auto insurance claim process, and ways to reduce auto insurance costs in Arkansas.