How much is car insurance in Arkansas per month?

In Arkansas, drivers need $25,000 of bodily injury liability insurance per person, up to $50,000 per accident, and $25,000 of property damage liability insurance. Arkansas does not require uninsured motorist protection, which replaces the liability coverage an at-fault driver should’ve had and pays for your costs up to your policy limits. Coverage like MedPay or personal injury protection pays for medical expenses for you and your passengers, and both are optional in Arkansas.… read full answer

Here’s How Much Car Insurance Drivers Need in Arkansas:

If you lease or finance your car, you may be required to carry coverage types that are not mandatory under Arkansas law. Lenders usually require comprehensive and collision insurance. Collision insurance covers repairs to your car when you hit another car or object. If the damage to your vehicle was caused by something other than a collision—like a natural disaster, vandalism, falling objects, or animals—it is most likely covered by comprehensive insurance. You might also have to get gap insurance, which covers the difference between what you owe on your loan and what the vehicle is worth at the time of a total loss.

Even if you’re not required to carry these optional coverage types, you may still need them. You can learn more about when to drop optional coverage and the penalties for driving without insurance in Arkansas to make sure you’re paying for the coverage you need.

Car insurance in Arkansas is expensive because the state has higher than average traffic fatalaties, with 17 deaths per 100,000 people (compared to the national average of 10). In Arkansas, you can expect to pay approximately $1,563 per year for full coverage car insurance or $558 per year for minimum coverage. Car insurance in Arkansas is about the same as the national average, which is around $1,500 annually for … read full answerfull coverage and about $600 per year for minimum coverage.

The cost of car insurance is steadily increasing, too, both in Arkansas and nationwide. As the cost of providing insurance goes up, the premiums insurers charge also rise. All insured drivers share the increasing cost of insurance. That is why your rates tend to go up every time your policy is renewed, regardless of whether any individual factors—like your driving record or location—have changed.

There are several unique reasons why car insurance goes up every year in Arkansas, too, even if your details remain the same.

Top Reasons Car Insurance Is Expensive in Arkansas

• People in Arkansas are driving more

As a result, the number of accidents, claims, and payouts is rising, too. In Arkansas, there were approximately 516 fatal crashes in 2018, versus 470 fatal crashes in 2014.

• Arkansas auto repairs are getting more expensive.

Another reason Arkansas auto insurance is getting more expensive is that cars are becoming more expensive to repair. In 2016, the average cost of car repairs in Arkansas was $771.55, up from $679.46 in 2012. Vehicles today cost more to repair due to all the technology and features inside them now.

• People in Arkansas drive uninsured

As the cost of car insurance continues to rise, more drivers take the risk of driving without car insurance. In 2015, 17% of drivers lacked even minimum liability insurance in Arkansas. The cost of uninsured drivers is passed on to consumers through higher premiums.

• Healthcare in Arkansas is getting more expensive

Car insurance companies are hit hardest when paying out claims involving medical bills, and it’s not getting any cheaper. Healthcare spending increases by an average of 6.1% every year in Arkansas.

• Arkansas is experiencing more severe weather

In Arkansas, severe weather events like winter storms, flooding, and droughts are becoming increasingly common. These weather events cause insurers to pay out a higher number of claims, which tend to be more expensive and less predictable. As a result, they have to raise rates to keep pace.

However, there could be other issues elevating your rates.

If your driving record is clean and your rates are still high, your car insurance might be expensive because of your:

Age. Drivers under 25 and older than 65 pay more for auto coverage because they are statistically more likely to be involved in serious and fatal accidents. In Arkansas, 16-year-old drivers pay an average of $7,755, 25-year-old drivers pay an average of $1,936, and people over 65 pay an average of $1,452.

Location and driving patterns. Population-dense cities have higher premiums than rural areas because city living usually means more accidents, more property crime, and more frequent claims. In Arkansas, the most expensive locations for insurance are West Memphis, Osceola, and Helena-West Helena. You can also expect rates to change based on your driving patterns—long commutes or regular driving in high-risk areas can cost you.

Financial responsibility. In Arkansas, drivers with no credit pay 62% more on their premiums than drivers with excellent credit. You can also demonstrate financial responsibility by maintaining minimum car insurance with no gaps in coverage. Letting your coverage lapse could raise your rate by as much as 6% in Arkansas, when you get your next policy.

Claims history. You should avoid filing small claims that can drive up your premiums. In Arkansas, the average collision claim raises a driver’s rates by $151.40, which amounts to $454 over the course of three years. If you have a $500 deductible and a $1,500 claim, you’ll end up paying $954 through insurance, versus $1,500 out of pocket. In that case, filing a claim is not the best choice.

How to Get Cheaper Car Insurance in Arkansas

Multiple factors affect the cost of car insurance. Some things you can’t control, but you do have a say in most of the contributing factors. Driving safely, obeying traffic laws, and keeping a clean driving record are the best ways to keep your insurance costs down.

Other than that, the best way to lower your car insurance costs is to compare rates from at least three insurance companies. Ideally, you should check your rates every 6-12 months, when you renew your policy. But at a minimum, be sure to check your record and shop for rates every three to five years, since you may be able to get a lower rate if a traffic violation falls off your record.

In Arkansas, the most expensive policies cost roughly $1,849, and the least expensive coverage costs around $964, when all driver profile information is the same. That means you could save as much as $885 simply by shopping around. Be sure to confirm you’re getting all the discounts you’re eligible for, too.

The penalties for driving without insurance in Arkansas include fines and the suspension of your registration. You can avoid these consequences by meeting Arkansas’s proof of financial responsibility requirements. Arkansas requires that all drivers have at least $25,000 in bodily injury liability coverage, up to $50,000 per accident, along with $25,000 in liability coverage for property damage.… read full answer

Purchasing Arkansas’s minimum liability car insurance coverage is the easiest way to satisfy the financial responsibility requirement. Drivers in Arkansas pay an average of $498 per year to maintain the minimum amount of coverage. That’s nothing compared to the consequences of driving without insurance, especially if you get into an accident.

Penalties for Driving Without Insurance in Arkansas

Not having car insurance and not being able to prove that you have it are two different violations. If you have insurance but cannot prove it when you get pulled over or at the scene of an accident, you are guilty of an “administrative violation,” similar to a seat-belt ticket. within 10 days.

Driving without car insurance at all is much more serious, and the penalties are more severe. In addition to the legal consequences, you can also expect your car insurance premium to go up. A single conviction for driving without insurance raises annual premiums by an average of 10%, or $149, in Arkansas.

What happens if you get into a car accident without insurance in Arkansas?

If you get into an accident while driving without insurance in Arkansas, you will be cited and all the penalties for driving without insurance will apply, no matter who is at fault. Driving uninsured can make it difficult to be compensated for damages if you are not at fault and can have long-lasting and life-changing consequences if you are at fault.

If the accident is your fault, you’ll have to pay for all the damages out of your own pocket. In addition to the legal consequences for driving without insurance, you could easily be responsible for tens of thousands of dollars or more in damage to your vehicle, the other driver’s repair and hospital bills, and your own medical care. Both the other driver and their insurance company can sue you and have future wages and savings garnished to pay for damages. You could face mounting debt or even bankruptcy, especially if the other driver doesn’t carry uninsured motorist coverage or personal injury protection.

Even if the accident is not your fault, driving without insurance leaves you vulnerable to expensive hospital and repair bills. Arkansas is an at-fault state. In at-fault states, the other driver is usually responsible for damage to your car and any medical treatment you may need—assuming the other driver is found completely at-fault. Arkansas uses a modified comparative negligence system, which means you may not be able to recover all the costs associated with the accident if you are found partially responsible for causing it.

Driving uninsured doesn’t negate the other driver’s fault entirely, but you’re almost certainly going to be penalized and unable to recover everything you would be entitled to if you had insurance.

You can get car insurance in Arkansas, even if you are…

Uninsured: Unless you’re a newly licensed driver, having a history of driving without insurance or lapses in coverage is a risk to insurers. To insurance companies, it’s similar to a bad driving record, which is why drivers who let their insurance lapse for 60 days pay about 6% more than the average premium in Arkansas.

USAA, State Farm, Nationwide, and Geico tend to have the lowest rates for drivers who want to regain coverage.

Driving someone else’s car: It’s not illegal to drive someone else’s car if you do not have insurance, but non-owner car insurance can protect you if you don’t have a car but still drive regularly. If you borrow a car from someone living in your own home, you should be listed on the car owner’s policy. But you may want to explore non-owner coverage if you need to reinstate a driver’s license, you rent or borrow cars frequently, or you want to maintain continuous auto coverage between vehicles.

Geico, State Farm, Nationwide, and The General good places to shop if you need non-driver car insurance.

High-Risk: If you’re a high-risk driver who has been denied coverage from traditional insurance companies, check out Arkansas’s assigned risk program. Whether you require an assigned risk program or still qualify for high-risk insurance from conventional providers, you’ll pay more. In Arkansas, drivers with just two speeding tickets pay an average of 20% more on their annual car insurance premiums, for example.

Depending on your driving record and the seriousness of your infractions, you could pay even more. Still, even though rates may be higher, at least you can drive legally and avoid more penalties.

Final Thoughts: How to avoid driving without insurance in Arkansas

To avoid the penalties of driving without insurance, shop around for at least $25,000 in bodily injury liability coverage, up to $50,000 per accident, along with $25,000 in liability coverage for property damage In Arkansas, you can find basic liability auto insurance for around $498 per year if you have a clean driving record. The consequences of driving without insurance are ultimately more costly than purchasing minimum auto insurance coverage.

No matter what your unique needs are, the best way to get accurate quotes and the best prices is to comparison shop.