Arkansas Car Insurance: Important Things That You Need Know

Car insurance plays a very important role in any claim that is made after a road and traffic accident. Like most states, Arkansas requires every vehicle owner to maintain a particular minimum amount of coverage so that they will be able to operate their vehicle on the state’s highways and roads legally. Failure to do so may possibly result in severe punishments which might include jail time and monetary fines.

If you want to know more about the Arkansas car insurance then keep on reading. Here you will see all the important information and requirements which can give you a better understanding of this car insurance. Furthermore, we have compiled such details to help you protect yourself when you are on the road.

Arkansas Minimum Car Insurance Requirements

In order to fulfill your Arkansas car insurance requirements, you should have liability car insurance that can help you for paying property damage or injuries to another individual resulting from the vehicle accident you’ve caused.

However, your liability auto insurance should have the following the limits (minimum)

  • For bodily injury. $25,000 per person
  • For property damage. $25,000 per accident
  • For total bodily injury. $50,000 per accident, if several individuals were injured in the accident.

Optional Arkansas Insurance

Most Arkansas car insurance companies offer several optional coverages to help protect you financially. Here is the different optional insurance that you might want to avail.

  • Underinsured or Uninsured motorist

This helps pay for property damage or injuries resulting from a road accident caused by a motorist whose insurance is not enough to pay your costs or uninsured motorist.

  • Collision

This optional insurance can help in covering damages to your vehicle resulting from a traffic accident.

  • Comprehensive

This insurance helps in covering damages that are non-collision related to your vehicles, like those resulting from extreme weather, fire, and even theft.

While Arkansas doesn’t require you to obtain comprehensive and collision, the mortgagee of your sponsored vehicle may possibly require you to buy any of the above-mentioned coverage types.

PIP or Personal Injury Protection

PIP or also known as no-fault insurance, can also be bought in Arkansas. This will help you in paying particular charges resulting from car accidents regardless of who caused the accident.

In Arkansas, come auto insurance companies are mandated to provide you various personal injury protection coverage types. Here are the following options where you can choose from.

  • Lost wages. This help with pays that you may possibly lose as a result of car accidents.
  • Medical payments. This can help you in paying injury-related costs.
  • Death benefits. It can be used to pay for the funeral as well as death-related expenses as a result of car accidents.

Nevertheless, you might choose not to buy any of these coverages, however, make sure to disregard it in writing. But if you do not have a health insurance you possibly want to consider PIP.

Arkansas Car Insurance Laws

  • Discount for Senior Citizens: Arkansas law aids senior citizen drivers to save by demanding every car insurance company to offer discounts to drivers ages 55 and above who have finished an accident inhibition course by Arkansas’s Office of Motor Vehicles.
  • Notice Periods: Arkansas car insurance companies should offer their clients a 20-day printed notice especially if it plans to cancel excluding cases of nonpayment that only require 10-day printed notice. On the other hand, if your policy isn’t renewed, your car insurer should give you one-month written notice.

Reasons for Cancelation

  • Within the first two months of your insurance policy, your insurance company may possibly cancel your policy for any of these reasons:
  • Non-payment of premium
  • DUI conviction
  • Homicide resulting from the usage of motor vehicles
  • Getting insurance through misinterpretation and fraud
  • Three convictions of reckless driving or/and speeding within three months before and the end your policy period

Penalties and Violations

Aforementioned, in Arkansas, if you’re found to operating without insurance, either during a traffic stop or through monthly checks conducted by the DFA you will have a fine and your vehicle registration will be suspended.

Mandatory fines for the 1st offense usually range from 50 to 250 dollars, for the 2nd offense uninsured drivers should pay a fine amounting 250 to 500 dollars and 500 to 1000 dollars for the 3rd offense.

In addition to that, drivers who are condemned for a subsequent or 3rd offense might be imprisoned in the county jail up to 12 months.

In order to give back your registration after your violation you should do the following:

  • Pay the reinstatement fee
  • Give your proof of insurance to the DFA
  • Purchase the minimum required Arkansas auto insurance

How to obtain auto insurance discounts in Arkansas

Some car insurance companies in Arkansas may possibly give you a discount if you:

  • Have a decent driving record
  • Own a home
  • Have several vehicles on your policy
  • Being a good driver or student, usually, students with B average are likely to get discounts

While rebates are one of the best ways to save on an auto insurance, your top bet is to sustain a good driving record which reflects volition-free and safe driving.

Arkansas Auto Insurance Plans or AIP

As a general rule, all drivers or automobile owners should be insured. However, Arkansas car insurance firms have the power to refuse coverage to high-risk drivers.

So, if you are having a hard time looking for an insurance company, you may possibly apply for car insurance through the Arkansas AIP.

In fact, you can avail the insurance plan in any auto insurance agent that is licensed to perform the business in the state. On the other hand, when your application is completely processed, you might be consigned to a different auto insurance company.

All insurance companies in Arkansas should join the plan. Moreover, the amount of car owners allocated to a certain company through the insurance plan is reliant on how many consumers that the company covers voluntarily.

Note: Keep in mind that the cost of Arkansas car insurance varies depending on the coverage limits that you obtain as well as other endorsing factors.