Insurance Articles

In order to ensure that residents are financially responsible in the event of an accident, the Natural State requires that motorists maintain liability insurance, though additional forms of coverage remain optional. The absolute basic policies only require $25,000 or Bodily Injury Liability (BIL) for one person in any one accident, $50,000 of BIL for two people or more in any one accident, and $25,000 of Property Damage Liability. Although the minimum state requirements may seem adequate enough for many vehicle owners, the Arkansas Department of Insurance still recommends that residents pursue additional protection that covers a motorist against a wide variety of incidences, including accidents involving uninsured motorists, repairs to one’s own vehicle, or protection against personal injury.

The basic levels of Arkansas auto insurance do not cover damages to the policyholder’s own vehicle. For this reason residents may wish to purchase comprehensive and collision coverage as a way of adding greater amounts of protection. This additional coverage is often broken into two parts. The collision portion covers damages to the policyholder’s vehicle that are sustained in a collision with another automobile, while the comprehensive portion typically covers a wider range of damages. Under this form of protection the policyholder’s vehicle is also covered from an array of damages that may have been sustained separate from striking another automobile, such as that caused by fire, flooding, theft, vandalism, or colliding with an animal.

Greater Protection with AR Car Insurance

Purchasing additional automobile protection designed to cover many potential personal losses as a result of an accident is often considered to be a wise investment. Including Personal Injury Protection to one’s policy can prevent a policyholder from having to pay expensive medical bills after a collision entirely out-of-pocket. PIP, however, typically comes in three parts that cover either medical payments, lost wages, or death benefits. Although Arkansas motorists are capable of purchasing one or all three portions, choosing to decline PIP entirely must be done in writing. It’s important for residents to note that this additional coverage also includes passengers within the policyholder’s automobile, as well as members of the insured’s household that are injured or killed while riding in the insured vehicle.

Additionally, residents are urged to consider the possibility of colliding with an uninsured or underinsured motorist. According to the Insurance Research Council roughly 16% of AR motorists are uninsured, and because of these statistics, motorists within the state are encouraged to include uninsured/underinsured motorist protection into their policies in order to cover damages sustained from colliding with such an individual. The Arkansas Insurance Department notes that residents who purchase liability coverage will be offered uninsured motorist protection as well, and must sign a statement should they choose to reject the additional coverage. Though optional, AR residents are encouraged to purchase a protection plan that extends beyond the state requirements in order to achieve the greatest amount of coverage while traversing the open roads.