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Car Insurance Requirements for Resident Drivers in Arkansas

Arkansas drivers must carry minimum automobile insurance before they can travel on the highways. The department that is responsible for motor vehicles will verify vehicles that are purchased and registered in the state of Arkansas. They will attempt to verify the auto insurance of the vehicle and see if it meets the minimum requirement of Arkansas law. Arkansas requires all residents to carry auto liability insurance including bodily injury, all injuries and property damage insurance. The minimum requirement for bodily injury insurance is $25,000. The liability insurance requirement for all persons involved in the accident is $50,000. The property damage liability insurance is $25,000.

If you are driving a rental car, you also must make sure that it is covered with car insurance. Many credit card companies offer rental car insurance. You can call and check with your credit card company to see if they offer insurance for your rental car. The state of Arkansas requires drivers without auto coverage from credit card companies to carry the rental agreement from the rental company. The rental agreement should specify information about the auto insurance coverage for the rental cars.

In Arkansas, drivers are not required to purchase the uninsured or underinsured motorist coverage. Although uninsured/underinsured motorist coverage is not required, the state of Arkansas recommends drivers to purchase them. Many motorists that travel on the highway are uninsured. There are also a large number of drivers that are underinsured in Arkansas. To prevent the financial disaster, you should get an uninsured/underinsured coverage from the local insurance company.

The state of Arkansas permits exclusion of insurance coverage for family members that share the same car under one household. The auto insurance company can exclude a person from the household from the auto insurance coverage. This type of coverage is called household or family exclusion coverage.

Drivers must insure their vehicles at all times. If the auto insurance coverage has expired, you must quickly renew it otherwise the officials will suspend your driving license. Most auto insurance companies in Arkansas evaluate the risk of policy buyers by checking the personal credit history. The personal credit history is not the only factor that the auto insurance company used to determine the rate. When you receive the insurance quote, you will be informed about other factors that influence the rate.

Arkansas is not a no fault state. Instead, it is a Tort state. Due to this fact, the person who causes the accident will pay for the damage cost. Therefore, companies in Arkansas suggest drivers to buy a higher automobile insurance coverage.