Arkansas Car Insurance: A Quick Guide

Car insurance can seem like a literal quagmire of choices for the new motorist; however, there are some rules that all drivers need to know going into the game. Complete information regarding the various ins and outs of Arkansas’s insurance requirements can be obtained by contacting the Arkansas Insurance Department in Little Rock at 1-800-282-9134 or by visiting their website, http://insurance.arkansas.gov.

AR requires that all drivers have liability insurance; this will pay for damages inflicted to the person and vehicle with whom the insured is in an accident that was of their making. Minimum state coverage is 25/50/25, which means that if there is only one person in the vehicle that was struck the insured’s insurance provider will pay for twenty five thousand dollars worth of medical expenses, if there is more than one person harmed in the accident fifty thousand dollars of their combined expenses will be covered, and if property was damaged (such as a private residence or a guardrail, as well as the other vehicle involved) twenty five thousand dollars will be allotted for repair.

AR does not require that their motorists carry any more than the minimum liability when they are driving; however, it is recommended that all drivers have more coverage than this. Comprehensive/collision insurance exists to pay for damage to the vehicle of the driver responsible for the accident, preventing them from finding themselves with thousands of dollars worth of repair. This will also pay for vehicle damages in the event that a car is struck by a deer or is damaged due to inclement weather conditions. In the event that the cost to repair a vehicle is greater than the vehicle’s blue book value per the Kelley Blue Book the vehicle will be declared totaled and the blue book value awarded to the driver. Gap coverage may also be an option for those individuals whose auto loan value exceeds the blue book value of their vehicle.

Even though most states require that all drivers carry liability not all of them do, and even those that do have drivers that choose not to comply. Uninsured/underinsured motorist coverage provides for payment medical and repair expenses for damages to the vehicle and person of the insured if they are involved in a hit and run or are struck by a car whose driver either does not possess insurance or whose insurance is insufficient to cover the total costs incurred.