Knowing All About Auto Insurance in Arkansas

As every vehicle owner in the state of Arkansas is required to purchase auto insurance, there are several things to know about auto insurance in this state. One primary thing to remember is that there are minimum amounts in liability that each policyholder should purchase. In Arkansas, an auto insurance policy must carry $25,000 liability coverage for injuries per person involved in the accident. There is also a $50,000 minimum liability for total injuries per accident as well as $25,000 coverage for property damage. Know that none of these coverage include the policyholder and any of the member of his or her household who are also included in the policy. This is because the primary use of an auto insurance policy is to pay for any injuries and damages caused by the policyholder to the other party. Because of this, most policyholders also purchase personal injury protection as well as other supplementary coverage such as collision and comprehensive. The former pays for damages caused to the policyholder’s vehicle and the latter pays for other kinds of losses such as thefts and vandalism. Having proof of auto insurance is very important to have in Arkansas. Drivers need to have this proof with them whenever they use their vehicles. Traffic enforcers and cops are authorized to ask for this proof every time the driver incurs a traffic violation or gets involved in an accident. In cases when the driver fails to produce proof of insurance, the vehicle’s registration may be suspended and driver’s license be confiscated. Fines are also imposed and proof of insurance is also needed in order for one to resume driving again. Though the Arkansas Department of Insurance answer all consumer concerns regarding all types of insurance products offered in the state, the Department of Motor Vehicles is the agency to notify within 30 days after an auto insurance policy is canceled due to nonpayment or for any other reasons.

Those who are thinking of purchasing auto insurance policy but doesn’t know where to start should inquire at the Arkansas Insurance Department or visit its website. This is because under state law, insurance companies are required to provide details on premiums charged for a certain type of consumer under certain situations. This is to facilitate any premium comparison survey a potential policyholder may wish to do before deciding on the exact type of insurance product to purchase, especially those interested in auto insurance.

Since having auto insurance is considered a necessity for those who drive their own private vehicles, most consumers are also interested in ways to enjoy savings when it comes to its cost. One of the ways of incurring savings in purchasing this type of insurance product is to have higher deductible, which is the amount the policyholder has to play before he or she can seek claims from the insurance provider. Insurance companies are also required under state law to offer discount to drivers who are more than 55 years old and have completed a motor vehicle accident prevention course duly approved by the Department of Motor Vehicles. On the end of the age spectrum, a driver who is also a full-time student, 16-25 years old, and has consistent above average grades is also eligible for discounts. Those who own more than one car can certainly ask around for providers willing to offer lesser premium rates for multiple car insurance policies.

Under the state law, insurance companies cannot just decide to cancel or non-renew insurance policy without justifiable cause, especially if the policy has been enforced for more than 60 days. Among the legal reasons for canceling the policy is DUI conviction, nonpayment, fraud or misrepresentation during application, reckless driving resulting to homicide, and three separate instances of convictions due to speeding. Additionally, before a company can cancel a policy, the policyholder needs to be informed several days before the date of cancellation.

We help our Arkansas customers in Little Rock, Fort Smith, Fayetteville, Jonesboro, Pine Bluff, Springdale, Conway, AR and other cities in the Natural State lower their premiums and save money on all types of insurance. Use the form above to find low cost auto, homeowners, health, medical, life and long term care insurance. Using our Arkansas insurance agent and broker network, you can easily compare rates from multiple insurers.

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