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Choosing the right Arkansas auto insurance
Arkansas (AR) is one of the five most dangerous states for drivers, according to a recent study. At a rate of 103 deaths per 100,000 people, Arkansas's driver fatality rate is almost double that of the national average. The high rate of serious accidents in the state makes it critical for drivers to protect themselves with an adequate Arkansas car insurance policy.
Arkansas driving risks
With a population of 3,017,804 people, Arkansas is the 23rd most populous state in the United States. Little Rock is the largest city in the state, with a population of 201,893. With Jonesboro, the fifth largest city, having a population of 77,520, Arkansas is a mostly rural state made up of small to mid-sized cities and towns connected by numerous farms and undeveloped land.
More than 85% of county roads in Arkansas are unpaved. Unpaved roads are particularly vulnerable to deterioration due to high maintenance costs and damage from rainfall runoff. A recent study shows that the rural roads of Arkansas are the most deteriorated in the U.S., with 33% of rural roads being in poor condition, which is more than double the national rate of 12%. Consumer Affairs ranks Arkansas roads as overall the seventh worst in the country.
In addition to the higher risk of accidents, poor road conditions can lead to increased vehicle damage. Unpaved roads can cause cracked or broken windshields due to rocks. Potholes and other hazards can cause damage to your car's tires, axles and other parts. Arkansas drivers may want to consider carrying additional coverage beyond the minimum to protect themselves against these hazards.
Types of Arkansas car insurance coverage
Most insurance companies offer the same basic coverages, though the specific features and car insurance policy provisions can vary. "Full coverage" can mean different things to different insurers, so ask your VIU by HUB Advisor to clarify the specific coverages whenever you request Arkansas insurance quotes.
Liability Coverage
Liability Coverage pays for damages you are legally liable for due to injuries or property damage that the negligent operation of your motor vehicle causes to someone else. Bodily Injury Liability covers injuries or deaths of people.
Property Damage Liability covers damage to other people's vehicles and other property. Liability insurance does not cover damage to your vehicle or injuries to yourself, though it may provide coverage for passengers in your vehicle if you are legally liable for their injuries.
Uninsured and Underinsured Motorist
Uninsured Motorist coverage (UM) pays for injuries to people in your vehicle that someone who does not have auto insurance is legally liable for. Underinsured Motorist coverage (UIM) pays for the difference between the policy limits of a negligent third party and the value of your injury claim when the third party does not have enough insurance to cover the entire amount.
You can also purchase these coverages for Property Damage, but you can only purchase UM or UIM coverage for property damage if you also purchase it for bodily injury. This coverage is optional, but with 19% of drivers being uninsured in the state, you may want to consider purchasing it.
Collision Coverage
Collision Coverage pays for damage to your vehicle caused by a collision with a vehicle or another object. Collision Coverage is no-fault coverage. You can use it whether you caused the accident or someone else did. It usually pays for the repair or replacement of your vehicle at actual cash value, minus the deductible specified in your policy.
Comprehensive Coverage
Comprehensive Coverage pays for vehicle damage from causes other than a collision, such as hail, vandalism or theft. It also covers damage caused by hitting an animal with your vehicle.
Personal Injury Protection
Personal Injury Protection (PIP) pays for medical bills & expenses, lost wages or the accidental death of a person in your vehicle. This is also a no-fault coverage that you can use whether you caused the accident or someone else did.
Arkansas minimum insurance requirements
All Arkansas vehicle owners must purchase a minimum of $25,000 per person and $50,000 per accident in Bodily Injury Liability coverage and $25,000 Property Damage Liability coverage. All other coverages are optional, but car insurance companies must offer you the opportunity to purchase Uninsured and Underinsured Motorist coverage for Bodily Injury and Personal Injury Protection coverage.
Average cost of an Arkansas car insurance policy
The average cost of minimum coverage in Arkansas is $445 per year and the cost of full coverage is $1,925 per year. By comparison, the national average is $625 per year for minimum coverage and $2,700 per year for full coverage.
Car insurance rates can vary depending on which part of the state you live in. For example, Fayetteville residents pay 7-8% less than the state average for full coverage, while residents of Little Rock pay at least 5% annually.
Arkansas is in the middle of the pack compared to other states, with 25th highest average annual premium for minimum coverage. It is the 17th most expensive state for full coverage. To ensure you get the best value for your money, be sure to compare Arkansas car insurance quotes from multiple car insurance companies.
Factors that affect Arkansas auto insurance rates
The primary factors that affect Arkansas auto insurance quotes are age and driving behavior & history. Your credit rating may also affect your quote.
Insurance rates are typically higher for younger drivers, with a 16-year-old paying an average annual cost of $3,120, compared to $1,190 for a 40-year-old. High-risk drivers also usually pay more. Factors that may place you in the high-risk category include:
• Speeding tickets.
• Moving violations.
• DUI convictions.
• Recent car accidents.
Finally, drivers with poor credit pay an average of $983 per year more than drivers with good credit. Drivers with excellent credit can save money – up to $203 per year compared to drivers with good credit.
Practicing safe driving can reduce your auto accident risk, but you cannot control what other drivers do. You must purchase at least the state minimum coverages but given the financial burden that could come from an unexpected car accident, weather event or crime, going beyond the minimum requirements can provide you with peace of mind.
This information is intended for general informational purposes only and is not intended to constitute legal advice.
Sources:
Arkansas Department of Agriculture
Insurance Information Institute