Arkansas Car Insurance
Quick Facts about Car Insurance in Arkansas:
- Car insurance in Arkansas rates about average for overall car insurance coverage.
- Arkansas has hundreds of registered car insurance companies.
- It is illegal to operate a motor vehicle in Arkansas without liability insurance.
Car insurance in Arkansas provides coverage outline below (as outlined by the Arkansas Insurance Department’s (http://www.insurance.arkansas.gov/Administration/divisions.html) state requirements:
- $25,000 = bodily injury (one person in one accident)
- $50,000 = bodily injury of two or more persons in one accident (note: if you are sued, you would use this money to pay the victim. If this money runs out, you will have to pay from your own money.)
- $15,000 = property damage for one accident
This means that car insurance in Arkansas must cover minimum 25/50/15 of a person’s claim.
When you are searching for a car insurance company in Arkansas, make sure to shop around first to get the cheapest quotes. Since there are thousands of car insurance companies in Arkansas that are registered with the National Association of Insurance Commissioners (http://www.naic.org), you can consult a number of insurance companies before choosing one.
DID YOU KNOW??? 42% of Americans find their car insurance policy too confusing to understand!
Why You Need Car Insurance In Arkansas
There are a number of reasons why car insurance in Arkansas is mandatory.
- 1. To comply with state laws. Did you know that 48 states have made it illegal to drive without car insurance?
- 2. To ensure a car loan. Most lenders require that you have proof of insurance before they will sell you a car. Without insurance, the lender will have to buy insurance and the premium will likely be much higher than if you had bought the insurance policy on your own.
- 3. To protect your assets (body, property and family). Accidents happen. Sometimes, you are responsible. If you are sued, car insurance helps you pay the victim and pay for damages to both of you and your vehicles.
Want Cheap Car Insurance? Get cheap car insurance quotes online and ask your current car insurance company to match the quote!
Car Insurance Premiums and You
It’s a mystery to some people how car insurance companies decide on your premium (your monthly rates). In fact, it’s a simple equation.
- Your driving record: Car insurance companies take into account your driving record and the driving records of those covered under your policy in the last three to five years.
- Your credit-based insurance score: People with better scores often pay lower premiums. If you’ve fallen on hard times, ask your auto insurance provider if they will consider a “life event exception.”
- Your age, gender, and marital status. There is a proven correlation of age, gender and marital status and the strong likelihood of these individuals making claims on their car insurance, so companies tend to charge higher premiums. A 25-year-old, single male is far more like to have an accident than a married, middle-aged man, for example. Insurance companies also hike your premiums for people over the age of 65 because their chances of making a claim increase.
- The type of vehicle you drive. Generally, sports cars and high-performance vehicles require higher premiums because they are involved more frequently in accidents, are more prone to theft, and cost more to repair.
There are more factors that car insurance companies consider before quoting your premium costs, but rest assured they will vary from company to company. You can find a cheap quote that suits your needs.
