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Arkansas Auto Insurance Requirements and Options

Arkansas auto insurance requirements and options give motorists in the state choices on how they wish to frame their auto policies. With car insurance required for drivers, each auto owner has to abide by minimum requirements as set forth by the state; but beyond that, there are many options and ways for Arkansas drivers to enhance their policies and add value to their coverage. Drivers in AK need to be aware of the requirements laid down in the laws of the state. But it is also important to understand all the options that exist as well. Motorists in the state can customize their plans according to what they need and how much they can afford. With full understanding of everything available, we can make well informed decisions and come up with the best policies for our families.

Auto Liability Insurance in Arkansas

In the state of AK, drivers must carry auto liability insurance according to the requirements of state law. Liability insurance pays for bodily injury and property damages expenses the covered driver is responsible for after an at fault accident. State law calls for split limit auto liability protection, which divides a liability policy into three parts. Each part comes with its own limits as well as its own deductible.

Bodily injury limits for state motorists are $25,000 per person and $50,000 per accident. For property damage liability, Arkansas motorists need at least $25,000 worth of coverage on their auto policies [1]. State auto insurance companies are not allowed to even offer policies carrying lesser coverage, so it is unlikely a driver would ever run into a situation where they were insufficiently insured if they carried coverage at all. Still, having an idea of the state minimum is a good starting point for deciding on a policy.

Actually, most Arkansas car insurance providers generally recommend that drivers carry much more than the minimum levels of liability coverage. This is because medical costs and the expenses related to auto repairs can get so costly. Even the cost of just replacing a car that gets totaled in an accident quite often exceeds $25,000 because the price of new vehicles has climbed so much over the years.

Optional Arkansas Auto Insurance Coverage

Liability insurance is required for all drivers in the state of Arkansas. But it is hardly the only area of coverage available. First of all, drivers can obviously opt to increase their level of protection in this area, and many motorists do just that. Beyond that, motorists have many additional options to choose from. Auto insurance providers are required to offer drivers certain options when they sell them a liability policy. Uninsured motorist bodily injury and property damage, underinsured motorist bodily injury, and personal injury protection all must be offered to motorists when they buy coverage from an Arkansas state auto insurance provider [1].

Uninsured motorist protection provides coverage for the expenses that normally would be covered by the other driver in cases when you get into an accident that the other driver is responsible for but where the negligent driver does not have any auto insurance. It is optional for state drivers to carry, but mandatory for state auto insurers to offer when a policy purchase is made. This is to ensure that all motorists are at least aware that they have the option of buying this and the other policies insurers have to offer.

Underinsured motorist bodily injury protection takes care of excess medical and other reasonable and necessary expenses related to injuries suffered in auto accidents in cases when the negligent driver's insurance protection is not enough to cover all costs. This often occurs when the at fault policy holder only carries state minimum liability coverage. Medical expenses frequently exceed those minimums in serious injury cases involving extended hospital stays, surgeries or rehabilitation. Personal injury protection (PIP) provides protection for the driver and passengers for lost wages, death benefits and other expenses that are not covered by other insurance plans, and is applicable regardless of fault in the accident.

Other AK Auto Coverage Available

Comprehensive and collision insurance are also available for drivers in the state of Arkansas. Although these plans are not mandated by state law, they are usually required by lenders when cars are financed or leased. They protect the vehicle from property loss due to any covered circumstance. Comprehensive covers non collision claims as well as deer hits and certain other limited accident circumstances related to acts of nature.

Another significant note is that the state requires two specific discounts to be offered. The college graduate discount and a defensive driver discount for drivers over 55 who've completed an approved course must be offered [1]. Of course, most insurers offer many more discounts than just these two.

[1] http://www.insurance.arkansas.gov/Consumers/F_A_Q.htm Retrieved 2010-05-14.

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