Obtaining Arkansas car insurance is both a legal necessity and a smart investment for drivers in the state. Auto insurance is required for all drivers in the state of Arkansas. Here are some guidelines to the mandatory coverage you will need, an explanation of the insurance related terms you must know, and some basic information to help you select the right provider and policy to insure your Arkansas based vehicle.
Minimum Liability Car Insurance Requirements
By law, all registered drivers in the state need 25/50/25 liability coverage. This means you must have:
These are the bare minimum coverage limits that will make you a legal driver in Arizona. That does not mean that it is enough coverage to protect your finances in the case of an accident. Nor does it mean that you don't need to have additional types of car insurance to protect your self, your family and your property.
Arkansas is a Tort State
One main reason that you should consider obtaining liability amounts higher that those listed above is that Arkansas is a tort state. This is different from a "no-fault" state. Being in a tort state means that the at-fault driver in a car accident is responsible for paying the victim's medical expenses. It also gives the victim the right to sue the at-fault driver for any related damages like pain, suffering, lost wages and more. If you or another family member is charged with causing an accident, would the minimum amounts be enough to cover the medical expenses of an injured person? Experts recommend purchasing additional insurance beyond state minimums.
Types of Auto Insurance
While liability insurance is required, other types are not, but may be a good idea to have. Here is a break down of the different types of car insurance you may want to consider.
Other options like rental insurance and towing are also great to have and may be added to your policy. However, you will need to check because every policy is different and you are responsible for making sure the coverage you need most is included.
While Arkansas car insurance costs were below the national average in 2006, residents still want to save money where they can. The average national rate that year was $817 and the state premium was $684. In order to get a good rate on premiums, and the coverage you need take some time to compare similar policies and know your options. Car insurance is one of the most important investments you can make.