Arkansas car insurance requirements run about average compared to other states.
|State Regulator Information||800-852-5494||www.insurance.arkansas.gov|
|Insurance Premium||Avg. Annual Premium: $ 1,399||National Average: $1,503|
|Mandatory Car Insurance Coverage||Bodily Injury Liability:$25k/50k
Property Damage Liability: $25k
Drivers in the state of Arkansas are required to carry about the same liability coverage as drivers in other states are. Where Arkansas drivers luck out, is that the state gives you the option to opt out of additional coverages that are starting to be required in other states. These mandatory, but yet optional coverages have more to do with protecting you than other people you may be in an accident with.
Mandatory Arkansas Car Insurance
Arkansas car insurance laws require that you carry 25/50/25 in liability coverage. This is about average for the nation, with most states requiring the 25/50 for liability bodily injury coverage.
Broken down, this is what the 25/50/25 means:
25 = That no less than $25,000 in coverage is allowed on your Arkansas car insurance policy, to pay for the medical expenses of a person you injure or kill in an accident.
50 = No less than $50,000 in coverage on your Arkansas car insurance can be purchased to cover the medical expenses for two or more people that you injure or kill.
25 = This last 25 represents the required liability property damage coverage that you are required to have on your insurance policy. You can purchase no less than $25,000 in coverage and it covers the damages that you may cause to another person’s property. This property can be their vehicle or a more stationary object, like a house or traffic sign.
Mandatory Rejection for Arkansas Car Insurance
Personal injury protection, uninsured motorist and underinsured motorist coverages all have to be offered to you at the time you purchase the required liability insurance. You will then have the option of purchasing this additional coverage or rejecting it. If you reject the coverage you have to do so in writing.
If you purchase it, the coverage will be added to whatever other insurance you have purchased. This will give you additional coverage to protect you in the event of an accident.
Assigned Risk Arkansas Car Insurance
Some people just either have very bad luck or they are very bad drivers. If you ask them directly, they would probably say that all of the tickets and accidents on their driving record was the result of bad luck. The insurance companies, however, don’t agree and say it is bad driving.
If you have enough of this bad driving (or bad luck) on your record, the insurance companies aren’t going to want to sell you insurance coverage.
But, wait a minute! Don’t you have to have insurance coverage to be able to drive in Arkansas?
Yes, you do. This is why there is Assigned Risk.
Assigned Risk is when insurance companies are forced by the state of Arkansas to give you insurance coverage, even though they don’t want to. Because they don’t want to and they are being forced to; you can expect very high insurance premiums if you end up in Assigned Risk.
Then you will have to decide if driving is still worth the price you have to pay on your Arkansas car insurance.
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